Estate Living Magazine Smart Moves - Issue 38 February 2019 | Page 32

P R O C P O E M R M T U
Y N & I T I Y N V L E I V S I T N
M G E N T
WANT A COW?
(SPOILER ALERT: Don’t put the
photo on your fridge and give your
cow a name – you know how this will end.)
It’s probably not a good investment option for committed vegans
or squeamish meat eaters who like to think boerewors is born
dead in a punnet in Pick n Pay but, if you’re ready to diversify your
investments and go for something a little unusual, head over to the
Livestock Wealth website or, better still, give them a call. You’ll be
participating in a truly African tradition, assisting small-scale farmers
and contributing to a unique South African entrepreneurial start-up.
You may even find yourself having to do some interesting explaining
to your spouse.
The underlying business model is that cows
produce calves each year, and the majority of these
are sold for meat at auction, with a small percentage
being kept to grow the herd. Owning an individual
animal is risky as it could be stolen, get sick, be injured,
or be attacked by predators. Also, there’s no guarantee
that every cow will produce a calf every year. But the risks are
mitigated when investing through Livestock Wealth as all animals
are insured against loss, and profits are split across all investors
to ensure that everyone receives a gain even if something has
happened to their individual calf or cow. ‘Safety in numbers’ softens
the blow when things go wrong.
WHAT’S IN IT FOR THE FARMERS?
For farmers the benefit of this model is that they are able to raise
cash, which is generally tied up in the actual herds they farm. This
assists them in running and growing their business. The farmers are
also being exposed to large corporates such as Woolworths, which
is one of the buyers of calves. This gives credibility to the farmers
and also ensures that they adhere to sound farming practices.
‘Honey, I bought a cow.’
livestockwealth.com
Brendan Dale