You are buying into and securing a valuable supply chain commodity via the owing of livestock which is going to produce progeny (offspring) for up to 10 years. You will be committing to 3-, 5-, 7-, or 10- year terms.
Green Agriventures is going to purchase for you a pregnant cow or cow with calf-at-foot. This will cost you $5,000 plus GST for each pregnant cow (i.e., it is confirmed pregnant and healthy). This cost includes the first-year management for each animal. Green Agriventures is going to manage all aspects of your livestock’s well-being, farming, growth, sale, and profitability in return for management fees.
The cow will give birth in the same year it is acquired, and thereafter one calf each year up to 9 or 10 years of age. The cow will eventually be sold. Some other heifers from your progeny will be retained to breed from 15 months of age. This grows the inventory. The rest of the progeny are sold.
You own the cow and calf and all the progeny (steers and heifers) from each cow you own. Any of the retained heifers (ones that are not sold) which become pregnant and, their progeny are your inventory. Some of the progeny will be sold as calves or weaners (6-12 months). The livestock can be referred to as a commodity and make up your inventory (of assets). Green Agriventures will sell some assets over the term, and some are retained for growing the heard i.e. for breeding.
At the end of the term, your remaining assets are sold, and the funds will go to your bank account after due fees are paid.
You are investing, in tangible assets (cattle), which bring financial returns, but here is the practical way to look at it:
- You are effectively a Grazier when you purchase livestock from Green Agriventures, so for the purposes of the Agreement you are termed a ‘GRAZIER’
- Green Agriventures provides cattle that you own, they are tagged, registered in your name with the Dept of Prim Industries
- Green Agriventures has an exclusive agreement with you or your entity or Trust to manage the assets (i.e. your livestock) for the term of the Agreement
- You will operate a dedicated bank account which transacts all income and expenses related to your herd
Reports and updates are provided to Stockholders per the following:
- On significant farm news and interests of relevance
- Quarterly general update
- On sales of stockholder’s livestock
- On financial matters, EOY report, exit report
Absolutely! You can take your family and visit the farm by arrangement. All visits need to be organized with staff at Green Agriventures. You can’t visit the farm without our prior arrangement.
No. Several Stockholders may own stock on one farm, plus the farmer may own or manage other stock, and it would cause confusion to take up our farmer’s time and have them involved with Stockholders. Green Agriventures are the head managers of the herd . You will be always communicating only with Green Agriventures except when you are on a farm visit arranged by us. We will keep you up to date on everything necessary about your livestock.
We are working on these:
• Organic chicken feed production facility (at Green Ag farm Kingsthorpe)
• Organic Turkeys and Chickens
• Organic Eggs
• Organic Goat Dairy and processing facility (this is a very exciting project)
• Lambs and pork
The turkeys and chickens are already a profitable and growing businesses. The feed and processing for chickens and turkeys is progressing. The eggs and goats are post start-ups already with some significant interest. We will invite investors early 2022. We already have a supply of beef, pork, lamb, eggs, turkeys and chickens which are already sold into our customer base.
We will add you to our organic and ethical food co op which you will receive direct pricing from our farms and other partner suppliers who are all growers or manufacturers. It will give you access to purchase your own products as well as a range of others direct from our producers.
There are many precedents and operating cattle operations to compare our modelling to. Plus, our company is made up of experienced operators from across the supply chain, farming, to distribution and retail. Our modelling is on the lower to modest end of the scale for achievable returns. The longer the term, the achievability of the returns is possible from livestock sales alone. Adding the inventory value to capital growth ROI each year as it grows numerically, makes the proposition robust. Refer to the financials section in the IM for sales and revenues tables.
To reiterate, you can see that livestock profitability increases with the more cattle and the longer the term. It also matters where they are pastured obviously too, as managing the herd to produce maximum weight and quality in the best time frames is necessary to maximise yields. The markets are not shrinking but growing as market research confirms, and prices are expected to hold for next 2-3 years at least.
It doesn’t matter if the export market goes down because we are not focused on export for our revenues but domestic. The export markets, however, are there to exploit with our experienced team members. The question is, is Australian beef growing and will it continue? ABSOLUTELY CERTAINLY ALL marketing research overwhelmingly says YES INDEED! Also, all research is saying it is profitable at all levels large and small but especially at 500 plus herd size. We are building herds from 500-2,000 head.
In addition, our market is not conventional, but organic and holistic fully grass fed and finished, not GMO etc. We already have a distribution network for this via Your Organic Markets (retailer), Organic Farms Market (wholesale) and Green Ag (retail direct from farm and wholesaler). We have over 5,000 retail direct customers and around 500 wholesale. The demand cannot be met. This is why we are doing this.
There is a parallel market like an ‘us’ and ‘them’ thing happening between ethical small players and big players – those who want to control the supply chain and distribution networks. Those who want real nutrition in superior products; and those who want to mass market inferior products. Our ethical and holistic market is in constant growing demand. The question is do you want to put your money in this market in our business model which has solid inroads already in terms of products, distribution networks and sales points including B2B, D2C, B2C, online?
Young says cattle prices are expected to remain favourable, supported by the seasonal forecast and growing export demand. Beef and veal exports are forecast to increase by 14% to $9.2 billion, due to a 16% increase in export volumes. Ref: 2021, June Quarter, ABARES, Agricultural Forecast & Outlook, Dept of Agriculture, Water & the Environment, Australia.
Refer to the links at the end of this document in the ENDNOTES. There are a lot of reliable sources there. Here is a recent Farm Online story: https://www.farmonline.com.au/story/7457345/the changing-face-of-beef-exports/
Firstly, there are many investors who support beef operations with their capital and it is well-known these are doing exceptionally well. However, these are not small investors. They incorporate feedlot operations, not organic, regenerative, fully grassfed and grass finished operations – they are focused on owning conventional markets and also export. Green Agriventures is unique because it is only organic and regenerative, a uniquely conviction-driven market, and allows smaller investors to participate in their operations. The values of ethical and organic enable us to own our supply chain and distribution points – this is a values driven health and well being motivated niche which is also the biggest demand market that is like a parallel economy to everything conventional.
Why do farmers love the concept of partnering with Green Agriventures? Farmers who:
When the final stock are sold, the 60/40 applies only after you have received your original capital back. After you have received your capital back, the remainder is 60/40 split as it is profit.
These costs are based on real farms and real known cost averages. Though these are pro-forma, there are no other anticipated costs
Management fees are quarterly save there are some unforeseeable expenses for example, in the case where cattle may have to be moved urgently?
The first year of management is included in your investment (purchase, placement, and management) of the herd. You will need to have some capital available after the first year to allow for any potential shortfall in cashflow timing such as when the management fee is due if that is at a time before any sales would bring in revenue. This may be a factor in year two but becomes less likely to be drawn upon (or requested) as time goes on because of the growth of the herd.
