Macadamia Farm Investment Opportunity | Northern KZN – R 4 – 7 Million

Property Details

Location

Pongola Area,Northern Kwazulu Natal

Farm Size

151ha

Crops

Macadamia Nuts | Pecans | Citrus

Price

R 4m – R7m

Full Property Description

We have secured a great opportunity in Northern KZN in the Pongola region.

 The current owner is looking to secure some investment in order to expand the Macadamia section by a further 15 hectares with an additional 8 currently under oranges being converted as well.

 He is also looking to utilise it to upgrade the current irrigation and construct a dam.

 The farm is really well valued and will be great opportunity to get into the Mac industry.

 The current crop from the Pecan nut, 5 year old Macs, oranges and the on-site Mac nursery ensure that you will not have to wait too long to enjoy the great returns achievable.

Location

The subject property is located between Louwsburg and Pongola in Northern KwaZulu Natal. It is located 30km south west of Pongola and 16km east of Louwsburg.

Operation status

The subject property consists of the following agricultural components;

4ha of 9 year old Pecan orchard, drip irrigation with trees in full production

23.5ha of 10-23 year old Pecan orchard, drip irrigation trees

14ha of 5 year old Macadamia orchard, drip irrigation, second year of production

7.5ha of 3 year old Macadamia orchard, drip irrigation

12 ha of potential Macadamia orchard, with the mother line installed

8ha of 3-4 year old Citrus orchard, second year of production (recommended to convert to Macs)

73ha veld grazing, two grazing camps, cattle handling facility and dip.

10ha Yard space and Nursery

15ha Available for future Macadamia expansion Bush cleared, roads done, seedlings in process of grafting, ready for planting.

151ha Total extent of the subject property

Water entitlement

The subject property draws water from the Ntutshe River within which a weir has been constructed. This water is pumped to a concrete reservoir located above the orchards and homestead, this water is then gravitated to the lands and for domestic use. Water for domestic use is purified. The subject property is registered with the Department of Water Affairs to draw 200 000m³ per year for irrigation purposes which translates to 40ha of land using sprinkler and dragline. The farm is allowed to irrigate the intended 83 ha of irrigation due to the fact that drip irrigation is being used instead of dragline. Water is pumped from the Ntutshe River to the farm which makes it possible to irrigate crops successfully.

The Pecan Orchard

The orchards are all in a good condition as good management principles are being applied. The average monthly maximum temperature should be higher than 28 °C during summer and lower than 23 °C in winter. The average monthly minimum temperature during the summer must rise above 16 °C, but drop below 8 °C in winter. High humidity and rainfall are ideal for the development of scab. The most suitable production areas are therefore those with short, cold winters and long, hot summers, with no early or late frost and a humidity below 55 % during the greater part of the growing season. The subject property is suitable for Pecan orchards.

Pecan trees perform best in a fertile, well-drained, deep soil with a loose to medium texture. The commercial bearing in pecan begins by 7th to 10th year after planting. The yield ranging from 20 to 100 kg per tree is expected from fully grown trees. Current Pecan Nut prices for Nut-in-Shell in South Africa are between R45 and R70 per kg. The price has doubled in the last four years due to the growing demand all over the world. This area is therefore suited to pecan nut farming.

The Macadamia Orchard.

Most soil types are suitable for the production of Macadamias, provided they are well drained and have no restrictive layers in the top 1m of the soil. Poorly-drained clay soils are not suitable. The ideal temperature for macadamias is between 16 and 25 °C. Although the trees can survive when temperatures drop below 3 °C, they should not be regarded as frost resistant. This area is thus suited to the planting of macadamias. The anticipated yield for this area is between 2.0 tons/ha and 3.6 tons/ha. The subject property is suitable for Macadamia orchards.

The Macadamia Nursery

There is a registered Macadamia nursery located on the subject property. The nursery currently has 120 000 Macadamia trees at various stages of production, these are accommodated in four nurseries all under 1.2ha of shade cloth and drip irrigation. 40 000 trees have already been allocated to various Macadamia farms throughout the country. Globally the growth in Macadamia nuts has been exponential, with South Africa and Australia taking the lead in Macadamia production. As a result, there has been an upsurge in the demand for Macadamia trees. Currently many of the traditional sugar farms are converting to Macadamias especially in the Pongola area. The expected annual turnover from the Nursery is in the region of R2 200 000, which is based on annual sales of 40 000 trees, with an expected annual profit of R1 650 000. This income stream, with the potential of further expansion of the nursery has a positive impact on the value.

Reference  Number: M1002