The current Indonesian cattle market is underdeveloped and unsophisticated using primarily Bali cows (the Asian breed). We have 8,000 hectares in lush prime terrain.
In 2012 Inodnesia imported 80% of it's domestic beef. That same year it slashed import quota's to stimulate it's domestic cattle industry. Now beef has doubled in price and there is a huge shortage.
We are a fully operational iron ore company operating in Sulawesi Indonesia. We are expanding our operations into the agriculture and livestock industry due to the opportunities provided to us by local and central government. We will commence this expansion by using 8,000 hectares of high altitude prime terrain to breed and produce from high quality cattle from European breeds (Angus, Brahman etc.).
Indonesia is a large consumer of beef and the recent halt of imports has led to a huge beef shortage and a doubling of prices.
Indonesia has a growing and extensive middle class from it's total population 250 million.
The beef market exists and is fully fledged, our licenses are in place and the land secured. Our next steps are to purchase cattle and develop our workforce.
The investment is secure and predictable as our high quality cows yield consistently and on target.
ROI commences from the first birthing approximately 10 months after the cattle have settled on the land.
The initial funding will be to purchase the heads of cow, which makes for a simple and easily calculable ROI model.
This project will commence ASAP. Our first cattle will arrive end of June 2013.
There are currently no breeders or producers of European cattle on Sulawesi, yet the terrain is perfect for higher quality cows than what exists currently. Currently only Bali cows are farmed, however these have low yield and low quality meat.
The growing middle class of Indonesia requires higher quality beef as people move on from bakso (the local meat ball dish) to steak.
As a mining company we have worked extensively navigating the political terrain of Indonesia. With the contacts and routes we have forged we have a secure and comprehensive route to trade in the agri/livestock industry in Sulawesi.
In Indonesia all trade must be done under various licensing and these can be extremely hard to come by as the bureaucracy is far from transparent.
By investing in our venture you obtain access to an extremely lucrative and under developed industry in a country where although the riches are great the access is limited and with many obstacles.
The funding will be to purchase heads of cattle. This will make it simple and easy to calculate ROI and track your investment.
We currently have 8,000 hectares which can support 10,000 cows. However we aim to proceed cautiously with just a few hundred heads in order to lay secure foundations and increase numbers steadily over the next 2 years.
As an investor you will be able to track the commodity cost of beef and get a clear idea from external sources about your investment.
The yield on cows is extremely easy to calculate and you will be able to look ahead at the various sale points in the year to determine your profit.
Your investment is live and growing at all times. The operation is relatively simple (compared to our mining side), with minimum manpower (approx. 6 men per 1,500cows), low costs involved as Indonesia is cheap for grain, fuel, building costs, labour etc.