A learning factory is being designed at a South African university to address, amongst others, the needs of the agriculture sector. The design process revealed that although a learning factory is suitable for developing the identified competencies, context is an extraordinary factor that needs additional consideration as part of the learning factory design process. Unlike most learning factories, the contextual needs of agriculture are broad and dissimilar to manufacturing or production environments. This paper presents the design process as a descriptive case study using the learning factory morphology model and the competency-oriented approach as guiding frameworks. The purpose, target group, knowledge areas and competencies of the learning factory are described. The process and product are also presented with thoughts for the next phase which will include the didactical design of teaching modules and learning activities. It is proposed that a learning factory could be used as a suitable mechanism for developing competencies that can address the needs of the agriculture sector in South Africa and highlights that additional care and focus are needed to ensure that these are developed in a way that application and transfer remain effective and sustainable.