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Case Studies

Project Chip (2023-2025)

Potatoes

Overview

  • Project Chip is a large commercial farmer based in the Free State, with 21 years' experience in potato and other field crop production.

  • The farm supplies large blue-chip off-takers such as PepsiCo and McCain and has been a trusted supplier to Simba for approximately 8 years.

  • The farm was seeing increasing demand from Simba and needed funding to increase production, including for seeds, fertilizers, and additional machinery.

Funding

  • Agrarius provided the client with R43 million in funding over 2023/2024 and R60 million over 2024/2025 season.

  • Funding collateral used: (a) farming land and buildings, (b) cession over crops and sales proceeds from crops, and (c) cession over bank accounts.

  • Agreed covenants included: (a) Simba paying Agrarius directly for potatoes delivered, (b) certified potato seeds required, (c) monthly management accounts submitted to Agrarius, (d) permission for site visits and inspections, and (e) restriction on additional loans without Agrarius' approval.

Impact

  • The client was able to increase planted hectares from 360 to 400 hectares (+11%).

  • With increased productivity and profitability, the client’s revenue grew by 66% and EBITDA grew by 170% over 2 years.

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