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The 5 Year Plan

It must be stressed again that this plan is flexible.

Allowance has been made for 20% of your annual crop sale to provide income for operating costs and profits. Should this be deemed unnecessary or indeed inadequate then it can be adjusted. This would either increase or decrease the time span of the plan (it makes allowance for the purchase of, for example, a tractor in the 4th or 5th year, construction of a dam as the crop increases and even for the taxman receiving his share).

The culmination of the plan is R1-million, after tax, in your pocket after the 5th year, in addition to revenue received from sales in the interim and enough garlic seed to replant and continue enjoying further annual revenue.

To start, you need 600m2 (square metres) of land. Garlic Growers will supply you with 10,000 planting cloves (garlic grows when the actual clove is planted). These cloves will produce 50,000 more cloves.

Year
 
Land
 
Cloves
 
Profit & cost for next year
Cloves
1
=
600m2
=
10,000
=
50,000 cloves less 20%
=
40,000
2
=
2,400m2
=
40,000
=
200,000 cloves less 20%
=
160,000
3
=
9,600m2
=
160,000
=
800,000 cloves less 20%
=
640,000
4
=
38,400m2
=
640,000
=
3,200,000 cloves less 20%
=
2,560,000

This gives 640,000 WHOLE GARLIC at the end of the Year 4 which should be worth at least R1-million and would need 3,84 hectares of ground. If at the end of Year 4 you have sold 160,000 whole garlic, it should give you at least R200,000 which would be enough to cover all your costs for Year 5 (including the hire of extra land if necessary). This would leave you with 2,4-million cloves to plant in Year 5.

2,4-million cloves planted in Year 5 = 2,4-million WHOLE GARLIC at the end of Year 5. Even if, for a quick sale, you decided to practically give it away at only R1 per whole garlic, this would leave you with:

R1-million for the TAXMAN, R1-million for YOU and 2-million cloves to plant for a 6th year.

 

 

  Telephone +27 (0)11-952-1575 / derick@garlicgrowers.co.za
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