Thabo Dithakgwe farms cattle, goats and sheep on the 2,500-hectare Ottawa Farm near Tosca in North West. He named his business Nasi Ditha Farming, Wildlife and Projects, after his grandfather, who played an instrumental role in his journey to becoming a farmer. Thabo was only 14 when he began farming part time with his dad and uncle in Pomfret, near Morokweng, on land granted to the Barolong Boo Maiketso Communal Property Association in 2015.
Q&A
How do you track your income and expenses?
I keep every receipt from my purchases, whether it’s fuel for my car or shopping at local stores. I document all my spending and earnings, and pass it on to my accountant. I double-check that I record all transactions done with company money. My accountant deals with tax-related issues like my bimonthly VAT returns.
How do you budget?
Because we keep meticulous records, we can easily determine what we need and schedule for it. I know for instance how much lick or medication I need for a season. I determine the number of bags for winter and plan my expenses and budget accordingly.
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I always try to buy a little more than I need, just to avoid any unexpected surprises. I make sure I have extra bags of feed, poles or whatever else I might need to prevent any urgent purchases outside my planned expenses. And there is always something, like a bull damaging a fence.
How do you manage cash flow during the off-season?
Besides my breeding herd, I also speculate with livestock. Farmers ask me to sell their cattle for a fee, and I buy and sell animals for myself. Besides the seasonal income from cattle, I also supply goats and cattle for ceremonies like funerals, weddings and parties.
How do you manage debt and loans?
I am strict when it comes to spending money, and I stick to projects I have decided will improve my financial situation. I make sure half the VAT refunds I receive every other month go towards reducing my debt. Each time I generate a decent income from a venture, I set aside a percentage to settle one of the bigger debts I owe.
How do you determine the prices for your crops or livestock?
I watch the published weekly national red-meat prices. This allows me to determine my price. I specifically watch the price trends for breeding animals sold on auctions. I review the standard prices of pregnant cows and heifers, three-in-ones and open heifers, and then establish prices based on that analysis.
Do you use any financial software or tools designed for farming?
I don’t. I do all my financials through an accountant.
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Do government subsidies or grants play a role in your financial planning?
I funded my business out of my own pocket until I got a loan from Land Bank recently. Being a beneficiary of the bank’s blended-finance initiative means 50% of my loan is covered, and I only need to repay the other half. This has eased my debt burden.
How do you plan for long-term investments in your farm’s infrastructure?
I try to manage my expenses and buy certain items in bulk. This involves things like fencing, poles and other breakables that require occasional repair or replacement. I always have a supply of new poles, fencing and steel materials available in case I need to repair or replace something. I try to use new materials whenever possible.
Do you do succession planning?
I am preparing to mentor two students for a year, a mandatory requirement for them to complete their university degree. I plan to retain one of them to work as a junior manager on the farm. I am currently working towards acquiring a new farm that I plan to eventually manage full time. Once I am satisfied with the student’s work, I will appoint them as the permanent manager of this farm while I concentrate on the new one.
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Have you diversified income sources?
I focus exclusively on livestock, so in that sense I haven’t diversified. I have diversity in my livestock, though. I have sheep, goats and cattle.
The small stock have three breeding seasons every two years, while 70% of the cattle calve in summer and 30% in winter. That gives us two incomes a year. I also consult, market and speculate with livestock for extra income.
Do you have a financial mentor?
My financial mentor is my accountant, Thabo Banda from Banda Professional Accountants.
