Farm planning report: Potato and Onion production.
Introduction
Farm planning remains the recipe for success in Agribusiness. According to Benjamin Franklin
“by failing to plan you are planning to fail” (PMB and N.W.K.,2021). It is important because it
enhances resource utilization by the farmer such as capital, land, and labour, and allows him to
mitigate risks in the future such as severe weather conditions, pests, diseases, and market
dynamics (Hersoug.,2021). Potatoes are a popular nutritious food, from 2000 to 2022 the South
African potato industry improved by 49% or 2.5 million tons produced mainly from the Sandveld
region, Eastern Free State, and Limpopo (Dr. Cele, 2024:1). Moreover, onions are the most popular
vegetables after potatoes in SA, over 600 000 tons produced yearly majority from the Western
cape(ceres), Northen cape, Northwest and Limpopo (DALRRD.,2021:4). South Africa remains a
major exporter of Onions in the SADEC region to countries such as Mozambique and Botswana
(DALRRD,.2021: 9). This report outlines a comprehensive farm plan for agronomic, financial, and
sustainability-focused on Potato and onion production in the Western Cape.
Site selection and land preparation
We chose the “Rainbow Harvest farm,” a 100-hectare farm in the Sundvold region, western Cape.
When deciding on a farm, we evaluated the climate and soil condition. This location was chosen
because of the mild summers and evenly distributed winter rainfall, as well as the area's welldrained fertile soil, which are perfect for these crops. Additionally, water and market accessibility
were examined. The farm will be located near a perennial river, which will be vital for irrigation,
and close to major marketplaces such as the Cape Town fresh produce market, which will cut
transportation costs and save fuel and time. Last but not least, for soil testing, preparation, and
improvement techniques we consulted Stellenbosch University's soil science division. We were
advised to add compost to adjust the soil's PH to 5.6, add Agricultural gypsum to improve the soil
structure, and plow the soil 30 cm to make it lose.
Farm layout and infrastructure
Moreover, the 100 hectares will be split into 60 hectares for potatoes and 40 hectares for onions.
A 3-year crop rotation plan will be implemented by planting, for example, beans. Crop rotation is
important to prevent nutrient depletion, soil erosion, pest management and to improve the yield.
Additionally, pivot irrigation systems powered by solar panels will be used to supply water 400600 mm per season. In terms of storage requirements, a 2000-ton cold storage capacity will be
required for potatoes, and a 1000-ton ventilated shed must be built for the onions.
Production planning
Our group members decided to consult with the Agricultural Research Council about choosing
crop varieties, planting schedules, plant spacing, fertilization, and pest and disease management
strategies for potatoes and onions. On the one hand, we were advised to plant the Mondial potato
variety because it can produce a high yield, is resistant to diseases, and performs well in the
markets. We can plant between May and August targeting winter rainfall. For planting spacing,
75cm-90cm apart between potato plants and 25-45 cm apart between rows
was recommended. For fertilizers, we were advised to apply 1000kg of potassium Nitrate 2: 3:4
(30) fertilizer at planting and apply lime ammonium nitrate fertilizer (LAN) after 6 weeks of
planting. On the other hand, for onions, the Australian brown or Hojem onion variety can be
planted due to the climatic weather conditions of the western cape. At planting, we use basal
fertilizer at a ratio of 2:3:4,500 kg per hectare, and the lime ammonium nitrate fertilizer, 200kg,
can be used for top dressing 3-4 weeks after planting. Then for spacing, 10-15 cm apart between
plants and 30-45 cm apart between rows was recommended. Also, potato pests and diseases can
be managed by scouting potato pests such as tuber moths and aphids and late blight disease using
fungicides like copper oxychloride. Onions face thrips and downy mildew can be managed using
sticky traps and Sulphur-based spray
Financial and Economic analysis (for each crop per season)
Enterprise
Potatoes seeds, fertilizers, and pesticides.
Seeds
R15/Kg× 100Kg/ha×60ha = R90000
Fertilizers
Lime Ammonium Nitrate (28)
R15/Kg×1200Kg = R18000
Potassium Nitrate
R31/Kg ×3240 Kg = R100440
Total cost for fertilizers
R18000 + R100400 = R118400
Pesticides
Methamidophos
R392/l×180l= R70560
Methonyl
R250/l×18l = R4500
Total cost for pesticides
R70560+R4500 = R75060
Onions seeds, fertilizers, and pesticides
Seeds
R511/Kg × 5kg/Ha×40Ha = R102200
Fertilizers
Single super phosphate
R27.60×320Kg=R8832.00
Lime Ammonium Nitrate (28)
budget
R12,15/Kg×650Kg=R8144.50
Pesticides
Methomyl
R210/l×2.4l=R504
Deltamethrin 25 EC
R260.50/l×16l=R4168
Fenamiphos
R702/l×150l=R105300
Fuel
Petrol: R22.16/l×500l=R11080
Casual Labor
Casual Labour Soil Preparation
Rate per person per hour = R27.54
Average hours = 54hours
Total = R27.54×54 hours = R1458
Casual Labor Planting
Rate per person per hour = R27.58
Average hours =437hours
Total: R27.58×437=R12052.46
Casual Labour Irrigation
Rate per person per hour = R27.58
Average hours= 240hours
Total: R28.58×240×= R6859.20
Expected Yield and profit.
Potatoes can yield 70 tons/Ha ×60Ha =4200 tons can be expected from the 60Ha. The market
price of potatoes is R4700/ton on average, we can expect total sales of R4700/ton×4200 tons
=R19740000. And as for onions, can yield 50 tons/ha ×40Ha = 2000 tons. The market price of
onions is R5000 /ton on average, we can expect total sales of R5000×2000 tons=R10 000 000.
The total sales will be, R19740000+R10 000 000= R29 740 000
Profitability
Gross income – Total costs
R29 740 000 – R12 543 000(ESTIMATED)=R17197000
Accessing funding
We shall apply for a grant at the Department of Land Reform and Rural Development by providing
all necessary documentation and a business plan. We will also go to banks for loans and repay the
interest on time and our farm will be used as collateral if we cannot repay the loan.
Risk management and sustainability
While farming we must address climate change, water conservation, pest management, and
external market risks to achieve long-term productivity. The natural resource management
lecturer Waldo Wiemers suggests stopping tree cutting, clearing of natural vegetation, and
reducing fertilizers can prevent soil erosion and degradation. Natural management of pests, such
as releasing natural enemies like snakes and using sticky traps, is also recommended. Water
conservation can be achieved through drip irrigation, rainwater storage tanks, and dams. Soil
tilling should be reduced to maintain soil structure and compost can be used as a nitrogen source,
instead of fertilizers. To manage external market risks such as price fluctuations, government
legislation, and natural disasters the Standard Bank Agribusiness SA (2017:332) advises farmers
to diversify crops, ensure their farms have insurance, and watch the news. By addressing these
issues, farmers can improve their farming practices and maintain the environment.
Marketing and sales strategy
Additionally, it is also important to have a marketing and selling strategy. We will sell our products
to the Cape Town fresh produce market. According to an intelligence report, the average price for
this market is R78.21 per bag for potatoes and R44.71 per bag for onions compared to the
Johannesburg fresh produce market (Dr. Cele.,2024:12). We also consider selling directly to
retailers such as ShopRite. Online platforms such as Twitter and Facebook will be used by
consumers to buy directly from us. With the recent unbanning of vegetable sales by the Botswana
government to South Africa, we can now participate in the export market. Moreover, we will use
several pricing strategies including competitive pricing, seasonal pricing bulk pricing, and valuebased pricing. To add, we can maximize our profits through value-adding by processing,
packaging, and branding.
In conclusion, Farm planning remains one of the most crucial components before you can start
any farm enterprise. It helps to manage risks and use resources efficiently to make profits. During
farm planning, we decide on the location, soil type, proximity to markets, and variety of crops to
produce considering market dynamics, Rainfall, and internal factors such as budgets. Budgets
assist the farmers in calculating projected income, expenses, and profitability and present the
document for applying for loans. Soil preparation including adjusting soil PH, adding fertilizers,
and tilling the soil are the most important steps to follow before planting. While farming we also
consider methods to manage pests and diseases, water conservation, and climate change for longterm sustainability. Just like all farm enterprises, marketing, and selling strategies are also crucial
when selling your produce in both domestic and foreign markets. As we close, by following this
farm plan we can achieve our business objectives as the saying says, “A goal without a plan is just
a wish”, Antoine de Saint-Exupery.
References
PMP, N.W.K., 2024. “Simple” Project Management: for Noobs to Pros: Simple Enough for the First
Project Complex Enough to be Steppingstones to the PMP certification. Partridge Publishing
Singapore, page 2-6
Hersoug, B., Mikkelsen, E. and Osmundsen, T.C., 2021. What's the clue; better planning, new
technology or just more money? -The area challenge in Norwegian salmon farming. Ocean &
coastal management, 199, page 1-5.
Department of Agriculture Land Reform and Rural Development., 2021.A profile of the south
African Onion market value chain. Available at (online) :Onion Market Value Chain Profile
2021.pdf . Accessed on 1 March 2025.
Dr.Lungelo Prince Cele., 2024.Market intelligence report: SA Potato industry. Available at (online):
*2024-05_20-Cele_MIR-of-the-South-African-Potato-Industry-v3.pdf , accessed on 3 March 2025.
Standard Bank Agribusiness., 2017.Finance and farm management: Entering African and other
international markets, South Africa’s Agricultural export to bricks page 332. South Africa,
Johannesburg, the standard Bank of South Africa limited.