Assume the price of one ton of Cabernet Sauvignon grapes is R 5,000.  The farmer has one hectare of Cabernet that is 12 years old.  The harvest of this hectare has dropped to 5 tons/ha from a potential of 10 tons/ha.  Expenses run at 4 tons/ha and therefore the farmer is making a net profit of R 5,000/ha.  Uprooting the existing vineyard and preparing the total area using only the Soilmix Way soil preparation methodology as well as replanting with trellising and irrigation systems costs R 80,000/ha over two years with the following cash flow implications:

                                                                                             R

In the 1st year after planting there is no harvest                        (40 000)

In the 2nd year after planting there is no harvest                       (40 000)

In the 3rd year after planting the harvest is 4 tons/ha                0

In the 4th year after planting the harvest is 8 tons/ha                 20 000

In the 5th year and thereafter the harvest is 10 tons/ha             30 000

Net loss after 5 years                                                              (30 000)

By regenerating the existing vineyard using Soilmix regeneration technology the farmer immediately increases his harvest and cuts out the costs of replacing the vineyard.  The Soilmix Technology team and the Soilmix machine SM18 will be able to offer this service as part of the Soilmix Way.  The costs taking the example above are as follows:

Soilmix regeneration technology per hectare (including 

full Soilmix service, calcium and fertilizer)                                    (25 000)

Precision sampling, analysing, and recommendation (optional)        (1 000)

Soil regeneration with the SM machine                                          (6 000)

(The precise costs will depend on the depth of soil treatment)

(Calcium, Phosphates and application costs excluded)

Production in year one remains at 5 tons/ha                                      5 000 profit

In the 2nd year the production increases to 8 tons/ha (60% increase) 20 000 profit

In the 3rd year the production remains on 8 tons/ha                          20 000 profit

In the 4th year the production remains on 8 tons/ha                          20 000 profit

Thereafter continues at 8 tons/ha                                                     20 000 profit

Net                                                                                             40 000

Profit after 5 years                                                                    R78 000

It is clear from this illustration that regeneration of existing vineyards is by far the more profitable option, however existing vineyards may need to be replanted anyway due to unassailable factors such as cultivar type or diseased vines.

Soilmix will initially convert existing farm equipment or make use of contractors to variably apply fertilizer to vineyards.  The expertise of the engineers who designed and built the SM18 will be called upon to facilitate equipment conversions.  Soilmix will generate the prescription maps together with the equations and algorithms needed to make fertiliser recommendations commensurate with the vineyard objectives.

Yield monitoring or weighing the amount of fruit produced for a specific area that is geo-referenced is the fundamental principle on which Soilmix's business rests.  The objective is to increase yield and using the data collected, be able to accurately predict yield increases as a percentage under given environmental conditions.