Amadlelo Agri Sample Clauses

Amadlelo Agri. Amadlelo Agri provided R25 million worth of cows and equipment such as tractors, a roller, a ripper and a number of other implements. The list of equipment and implements is specified in the sharemilk agreement between the company, the Seven Stars Trust and the Seven Stars cooperative. The cows are mostly leased by Xxxxxxxx from AMPIC shareholders. The remaining capital comes from the company’s own funds which it accumulates from the levy it raises from its shareholding farmers. The AMPIC shareholders agreement dictates that per share the member contributes R12.00 per month per share for a period of a minimum of seven years, equalling a monthly capital injection of nearly R60,000. In reality, the farmers contributed close to R300,000 per month over the seven years. This contribution has now stopped, but the levy is to be repaid to the farmers by the company. The company further paid the sum of R2.2 million to Seven Stars coop. Through this payment, it essentially obtained the cattle owned by Seven Stars coop and which were to be included in the herd managed by Xxxxxxxx. The possibility for the coop to keep its herd, although no longer in their ownership, was important to the members who did not want to just sell their cattle. The coop used the R2.2 million to pay off a loan with the Land Bank (valued at R1.6 million but settled for R1 million) and the purchase of the farm of one of the members who wanted to sell his farm. As such, the Seven Stars coop has direct ownership of one of the plots of land. Xxxxxxxx Xxxx receives a 10% management fee, based on the trust’s profit. This fee covers the time and effort by the company put into internal cooperative matters. The company is heavily involved in equipping both the secondary and primary coops to become well organised, to be officially registered, etc. These activities are not related directly to the farming activities, although they do contribute indirectly. If the coops are operating efficiently and effectively, this will have a positive impact on the performance of the trust. Despite the Seven Stars coop majority on the Seven Stars trust, the cooperative cannot change this management fee structure, although this is not defined in the trust agreement. Figure 2 depicts the financial flows between the Seven Stars trust, the partners and funders.