PRODUCT AND PRODUCTION CYCLES
BLUEBERRY PLANTS
FYNBOS
DEFINING DE FYNNE
Amathola:
Fruit Bearing
In 3rd year
PROBLEM STATEMENT
De Fynne Nursery faces new challenges in managing
current growth and expanding their presence in the
horticulture industry.
FRUIT SEEDLINGS
Lab: Propagates
from Tissue
Lab: Root Growth
5 to 6 weeks
Amathola:
Plants in the
Orchid
OCT to FEB
De Fynne:
Blueberry Seedling
4 to 5 months
ALTERNATIVE GROWTH STRATEGIES
METHODOLOGY
BACKGROUND RESEARCH:
 Macro Factors of South Africa
 Macro Factors of Horticulture Industry
 Existing company materials
INTERVIEWS:
 Local Nurseries: owners and managers
 Four Retailer Stores: store or dept. managers
 Industrial Development Corporation: director
 The Business Place: director
 Department of Economic Development and
Tourism: directors
 Stellenbosch University: professor/SME
EVALUATED THROUGH FOLLOWING FRAMEWORKS:
SWOT, PEST,5-Forces, 4Ps, and STP
BUSINESS ID
TYPE: Nursery
LOCATION: Simondium, Western Cape, South Africa
FOCUS: Indigenous Plants of Fynbos Biome
Year 1
Year 2
• Moved nursery to city of Kylemore
• Capacity: 2 tunnels
• New Branding • Blueberry contract increase
• Labor force increase
RECOMMENDATION : IMPLEMENTATION :
Increase the production
of indigenous plants and
other ornamentals
- Secure the mother stock
- The projected sales volume for
2012 needs to be propagated
Dec.2010 through Apr. 2011
- Assess labor needs
- Assess infrastructure capacity
- Streamline operational
procedures
DE FYNNE
NURSERY
• Awarded contract with
Woolworths, the largest retailer in
South Africa
CALEDON
FYNBOS
NURSERY
TYPE Wholesale,
Wholesale,
Wholesale,
closed to public closed to public open to public
SINCE 2003
1999
1995
FINANCIAL PROFILE
DESIRED
40%
40%
60%
* % of revenue as a result of a product mix
Tamara Struk, Master of Public Administration
CIPA Fellow 2012
COMPETITORS
ORGANIZATIONAL CHART
CURRENT
By:
Aleksandra Janjic, Master of Public Administration
CIPA Fellow 2012
Toniqua Hay, Master of Public Administration
CIPA Fellow 2012
• Blueberry Contract Awarded from
• Registered company as a blackAmathola, fruit grower in Eastern Cape
owned Closed Corporation • Moved to NuCellar grounds in Simondium
• Employed two people
• Jacky turns full time & employ 9 people
• Capacity: 8 tunnels
60%
ARNELIA
SHADOWLANDS
NONKE
PLANTS
GLEN ELGIN
Wholesale,
Wholesale,
Nursery, Farm
closed to public closed to public
1994
1982
1903 Farm
1995 Fynbos
TARGET MARKET Nurseries,
Landscapers, Farmers, Retail, Landscapers
Nurseries,
Export, Retail,
Retail,
Retail,
Export market (30%)
Landscapers, Landscapers,
Landscapers, Commercial Cut
Retail (70%)
Farmers,
Commercial
Farmers
flower Growers
Property
Fynbos Cut
Developers
flower Farmers
PRODUCT Indigenous
Proteaceae
Fynbos
Indigenous,
Non-specializing Fynbos Cut
SPECIALIZATION Plants and
Plants
ornamental
flowers, Potted
Other
perennial, herbs
Plants , Rooted
Ornamentals
Cuttings
PRODUCT Blueberry Plant Propagator of Other
Partnership with No fruit trees, New fynbos
DIVERSIFICATION Testing
fynbos varieties indigenous
nurseries to
no grass
variety JV with
seedlings:
maintain
plants, trees, provide grass
SA exporter and
pears,
mother stock herbs
plugs, trees
Dutch importer
pomegranates, for new
shrubs, large
Grape, Bee
apples
varieties by ARC
aloes
hives
SIZE 1.5HA
15HA
N/A
750 sq. meter 16HA
1690HA:
greenhouse
- 570HA Fruits
22 tunnels
- 46HA Fynbos
EMPLOYEE # 9 + casual wrks N/A
N/A
68
95
N/A
Year 6
IMMEDIATE GOALS: RISK MITIGATION
COMPANY PROFILE
• Started nursery in Elton’s backyard
cultivating 3 fynbos plant varieties
• Jacky & Elton employ at ARC
• Jacky & Elton move to ASNAPP
Year 5
Year 4
Year 3
MEDIUM TERM GOALS: RISK MITIGATION
RECOMMENDATION :
IMPLEMENTATION :
Increase the production of indigenous
plants and other ornamentals
- Secure the mother stock
- Assess labor needs
- Assess infrastructure capacity
- Streamline operational procedures
- Service large clients in person bi-weekly
Strengthen the relationship with the
-Own propagation of the blueberries
Blueberry Client
- Competitive pricing
Secure another large volume client through: -Provide Woolworth with other types of plants by purchasing
-Product diversification
indoor plants and/or herbs from other nurseries
-Securing clients with the current product
- Strengthen the presence through networks, trade shows,
offering.
publications with the Landscaping Associations and industry
related business such as interior design, construction, etc.
LONGTERM GOALS: GROWTH
RECOMMENDATION :
IMPLEMENTATION :
SLOW GROWTH
Indigenous Blueberries
+ other ornamentals
CURRENT:
33%
67%
GOAL (6 years): 60%
40%
FAST GROWTH
Indigenous Blueberries
+ other ornamentals
CURRENT:
33%
67%
GOAL (1year): 60%
40%
-Secure the mother stock
-Gradually increase production and sales of fynbos and other ornamental
plants by 30% per year
- Streamline operational procedures
- Elton Jefthas dedicates full time to De Fynne
- Increase production and sales of fynbos and other ornamental plants by
300% in the first year and sustain growth for the next 6 years
- Create partnership with other nurseries to offer large variety of product
-Securing outside funding
* Commercial Loans
* Production Loans from Woolworth
- Securing land via Land Reform
RECOMMENDATION
LONG TERM SLOW GROWTH: % of revenue from indigenous and other ornamental plants with the constant 30%
increase in sales of indigenous and other ornamental plants per year.
33%
33%
39%
46%
52%
REFERENCES
ARC – Agricultural Research Council, ASNAPP – Agribusiness in Sustainable Natural African Plant Products; Competitors table was
populated with the information found on the competitors websites except for the Shadowlands Nursery information was extracted
from the interview with the owner of the nursery, www.arnelia.co.za, www.overberginfo.com/fynbos-nursery, www.nonkeplants.com,
www.glenelgin.co.za. Base map of Africa, www.greenerpasturesafrica.com/: Photo of scattered blueberries
www.buttermilkpress.com/blog/blueberry-pie-recipe:
Photo
of
one
pink
and
yellow
fynbos,
farm4.static.flickr.com/3255/2312523223_48016459da.jpg. All other pictures and references are contributed my the team.
59%
65%