K.Geldenhuis National Department of Agriculture Pretoria

A.Stylianou Management Agent

GJ van den Heever Management Agent

Ncera Farms (Pty) Ltd is a public company listed under schedule 3(b) of the Public Finance Management Act (PFMA, Act I of 1999). The Department of Agriculture is the sole shareholder in the company, dedicated to assist small and emerging fanners; Ncera Farms is funded by Government. Expenditure for the 2005 MTE is projected at R2, 3 million for 2005/06 R 2,5 million, R 2,5 million in 2006/2007 and R 2,6 million in 2007/08.

The budget provides for capital expenditure during the 2005/2006 financial year amounting to Rl,5 million for the erection of the following infrastructure on Welcome Home Farm in order to accommodate the approval by the Minister of Agriculture for the creation of a Service Center to provide services in the form of support and training to the surrounding communities and the newly settled farmers.

The infrastructure for the Service Center is as follows:

• Security Fencing
• Erection of administration and training complexes
• Erection of workshop complex
• Ablution facilities
• Water reticulation
• Shade houses / nursery
• Hydroponics tunnels
• Security Systems

Upgrading of certain existing structures Ncera Farms has historically been providing, in as far as the existing facilities make it possible, support, training and advisory services to the surrounding communities, and in many cases communities from as far away as 100 kilometers.

It is the intention of Government to settle during the 2005 / 2006 financial year, previously disadvantaged farmers, on the farms currently managed by Ncera Farms. The demands for the necessary support and training will increase considerably and the Minister of Agriculture has agreed that this will be provided through the Service Center.

The Training Center will continue with all the services provided in the past and in addition will render technical assistance and extension services on the farms, as and when required.

It order to supplement the income and at the same time provide practical training, the

budget has made provision for following operations to be carried out:

Livestock, the top Nguni breeding cows have been selected which will be used in the training of animal husbandry, and stock improvement schemes.

Dairy production will continue with the aim to be phased out and disposed of to previously disadvantaged farmers once the necessary support systems are in place.

Vegetable and other cash crop production will also be part of the income / training program.

FARMS (PTY) LTD: BUDGET FOR THE PERIOD

BUDGET 2005/2006

In terms of approval by the Minister of Agriculture and Land Affairs, the budget provided for the creation of a Service Center at Welcome Home Farm Ncera. The estimated cost amounted to R 1,5 million of which R 9000 000.00 has been provided for in the 2005/2006 financial year.

The Infrastructure necessary for the Service Center is as follows

• Security fencing
• Erection of buildings for administration and training
• Erection of buildings for workshop
• Ablution facilities
• Water reticulation infrastructure
• Shade house /nursery
• Hydroponics tunnels
• Security systems
• Upgrading of certain existing structures

The budget provides For 30 selected lop breeding female cows with the intention being to breed livestock for a stock improvement scheme for the surrounding communities whilst under-taking an animal husbandry training program at the budgeted cost of R. 38 640.00

The budget provides for the maintenance of a total dairy herd of 171 animals, which comprise of the following categories:

• 129 Mature milk cows
• 29 Heifer Calves
• 13 Bull calves

On an average it is envisaged that 80 cows will he in production at any given time. The estimated income From this operation will be R. 719 060.00

In order to supplement income it is envisaged to plant :and market various fresh table crops as follows:

• Sweet potatoes
• Cabbage
• Potatoes

The net income from this operation is expected to amount to R 14 112.00

The expected administration costs amount to R 1 442 770.00 of which the highest costs are management and audit Fees.

The net deficit is expected to amount to R. 1 572 088.00

The budget provides for the amount of R 1 580 000. 00 of operating capital to be Financed by the National Department of Agriculture to offset the deficit.