South African Startup Lets Investors Tap Into Livestock Profits Without Getting Their Hands Dirty

At the intersection of technology and agriculture, Livestock Wealth, a South African startup, offers a unique investment opportunity. For approximately $1,000/380K Naira, online investors can purchase a pregnant cow, then virtually monitor the cow’s progress until the birth of the calf, kicking off a potential return on investment (ROI) journey.

This innovative initiative allows investors to reap the financial benefits of livestock farming without getting their hands dirty on the field. As an investor, you can track the progress of your cow using the Livestock Wealth app. Just keep in mind that an additional $23 monthly fee is billed by the company to cover the cost of feeding and caring for the animal.

The investment process is straightforward. Your initial investment of $1,000 secures your pregnant cow. After a gestation period of about nine months, your cow is expected to deliver a calf. When this calf reaches the age of seven months, and roughly 240Kg, it’s sold off, either to a feedlot or a slaughterhouse. The proceeds from this sale serve as your returns.

Background upkeep of the animals is handled by Livestock Wealth, funded through the $23 monthly subscription fee. This arrangement allows them to remain independent of investors’ profits, ensuring a clear separation in revenue streams. Moreover, the subscription includes base insurance covering the cow in the unfortunate event of illness-related death. For $4 a month, investors can also opt to secure additional life insurance for their cow.

The captivating idea behind Livestock Wealth, described by its founder, Ntuthuko Shezi, is basically a “stock exchange environment where the farm is the company, the cows are the stock, and the babies are the dividends.” Despite catering to about 340 online investors, they aim to continually satisfy all stakeholders and maintain a healthy herd to uphold their unique business model.

Shezi’s vision is to expand this unique business model, not just within South Africa but across the entire African continent. As in many cultures, beef is at the heart of the South African way of life, making it a primary staple for many African families, second only to goats in terms of average consumption.

Going forward, Livestock Wealth looks forward to increasing yields for its investors. Shezi disclosed that they are projecting returns of between 18 and 20 percent for investors in 2017. This optimism is buttressed by the fact that the average price of beef spiked by 22 percent in the earlier part of the year, according to the insights shared during his interview with CNN.

In the future, Livestock Wealth aims to move towards organic farming. Investors will be allowed to purchase seven-month-old calves that would be bred without hormones, allowing their meat to be sold as organic commodities. This sustainable farming practice could potentially increase both the quality and monetary yield for investors, creating a more fruitful and healthier investment landscape.

Whether you’re an investor interested in sustainable practices or looking to diversify your portfolio, Livestock Wealth seems to have cultivated a truly unique investment pasture in the technology-meets-agriculture space.