- Paarl Export Protea, Wine & Olive Estate on 28.78ha
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Western Cape,
Winelands Boland,
Paarl
- R4 500 000
- Currency Converter
- Web Reference: A1.2.4 AGBLK 20
Excellent views over the dam and protea fields to the Paardeberg Mountains
Present size and usage of land:
Total size: 28,78ha (71 acres)
Under export: Protea, Leucadendron and Leucospermum fynbos cultivation: approx 14ha carrying 12 cultivars (all hybrids especially bred to flower mainly in the European winter months)
Vines: ,60ha Cabernet Sauvignon, ,07ha Merlot and ,33ha Shiraz producing approximately 3,000 bottles per annum of wine under existing registered label.
First vintage 2001, 2002 Cabernet/Merlot awarded 3 stars in John Platter. 2003 Vintage received 2,5*
Former horse paddocks: +-5ha existing -could be planted to more Protea or Vines.
Windbreak olive trees (yielding small quantity of eating olives and 1-200 bottles of olive oil)
Buildings:
Bungalow style 4 bedroom house
Prefab cottage-2 bedroom
Packshed (650 sq m) with coldroom, mezzanine store and office plus ablution block and small air-conditioned winery (shed has potential for further expansion)
Flower propagation shed, tool store and water tank tower.
Open shed for storage of horse feed and farm implements.
Staff cottage and ablution block.
Additional building with 4 stables and 2-roomed staff accommodation.
Borehole pumphouse.
Water:
The southern slopes of the Paarl Mountain provide a natural catchment area for winter run-off water and a seasonal streamlet runs through the property and feeds the farm dam. In addition there is an annual allocation in summer months from the Berg River Water Scheme. (7ha of water equivalent to 21 ha of protea requirement) and ample for horse paddocks. Irrigation is by high pressure pump into underground mainlines which feed drip lines throughout the farm. Domestic water is supplied from a borehole which is pumped to header tanks above the tool storeroom.
Machinery & Vehicles:
3 ton Toyota Dyna truck (2002)
1 ton Toyota Bakkie (2003)
Tractor with crop spray unit,
Plough
Grader
Two flower trailers
Horse float
Manual forklift
Two conveyor belt systems
Electrically operated leaf stripper ? strapping machine
Wine making equipment (de-stemmer/crusher and manual press)
Human Resources:
Existing Management and expertise
Joint owners with parents, who are semi-retired and live in Cape Town.
Young co-owner is highly experienced in horse management and breeding. (He has bred one six-time and a five-time winner in past years) and now also has protea production and wine making experience and expertise.
8 permanent live-in employees, 10 permanent live-out employees
Seasonal staff as necessary
Veterinary:
3 experienced horse veterinarians in the area.
General situation:
The farm could be seen as a `Lifestyle' property because of its close proximity to two historic Winelands towns and to Cape Town. In addition, there is a perfect area of 1ha at the top of a slope overlooking the dam and the Paardeberg Mountain range, where another dwelling could be built.
The protea flowers, which are all exported (mainly to Holland), are currently producing just under R1million per annum in sales but, with further investment, this has the potential to grow to R1,5 million and more. There is also ample room for further planting.
The wine is used partly for family consumption and the balance is sold to create a break-even situation.
Reason for selling:
Owners are in their late 60s and are semi-retired and live in Cape Town. They now wish to realise their capital in the farm in order to travel and enjoy an active full retirement before settling down.
Expansion possibilities:
Comments from the current owner.
Looking at the opportunities for capital investment to improve the trading income and future prospects of the whole farm, here are some indications of what might be possible.
Flowers:
There are two areas (,84ha and ,66ha) where older plants (from 10 years back) have recently been pulled These are ready for replanting with the new Leucospermum Soleil ( a new pincushion variety) and with Leucadendron Rosette which has always been a top seller for us. In both cases we can propagate from cuttings we already have to save money but the rooting process, new plastic mulch and drip irrigation piping will likely cost about R75,000.
These will take about 24 months before they produce saleable stems but, once they are in full production, the potential future income is in the region of R140,000 per annum from these two blocks.
A more immediate opportunity to increase revenue from flowers would be to find a more direct sales route into Europe and the UK. At the moment the Dutch control the international flower market and all our flowers go to Holland.
Even the two main Export Agents in Cape Town are fully or partly owned by the Dutch and as a result there are a number of `middle men' all taking their cut both here and when the flowers arrive in Aalsmeer. Farmers are receiving between R2 and R10 a stem for flowers which eventually retail in Florists for 2 -7 Euros (and more) a stem. At one point we used to get many orders at fixed prices during the 6-7 months of peak season, but now everything goes on consignment to the auctions in Holland and as a result prices are often lower and certainly less predictable. Because we are exporting through agents, we are also paying VAT on all sales
The value of the Rand of course has an effect on sales as air freight is charged in US$ and the product is sold in Euros. Fortunately, many of the Protea varieties which we produce can be shipped by sea in refrigerated containers and the saving in freight costs does improve prices (although the payment cycle is lengthened by 2 to 3 weeks).
Now that the horses have been removed from the farm, there is also the option of converting approximately 3-5ha of horse paddocks to either more Protea plantings or more vines.
Wine:
At the moment there is just ,66ha of Cabernet and Merlot (approx 80/20) in production with a further ,34 ha of Shiraz (not yet bearing) planted in other patches of the farm where the Protea did not flourish. The wine has thus far been made by my son in law with assistance from his friend. We are currently producing about 2 to 2,500 bottles per annum and there is an opportunity to increase production over time by planting another one to one and half hectares in the area above the dam (below the place where I suggested a second home could be built)
Whilst there is a bit of an oversupply of wine (worldwide) at the moment, there is always a place for a small boutique winery producing excellent quality in a fairly unique packaging. So the opportunity here is to improve the quality of the wine with an investment in new oak barrels and perhaps the services of an expert wine consultant. Costs here might be in the region of R120,000 for barrels and I am not certain what a consultant might charge.
There is also an area of approximately 1,5ha immediately below the house and above the dam on which the Protea have not thrived and which could be used for further vine plantings or for another crop such as olives. This is also an ideal spot for a second home or Guest Cottage BnB to be built as it enjoys excellent views over the dam and on to the Paardeberg mountain range. It can be easily accessed from the farm entrance without the need to v by-pass the main house or packshed area.
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