- Country: South Africa
- Industry: Agriculture
- Stage: Start-up
- Investment size: $10,000,000 / min. $1,000,000
- Type of investment: Debt
The function of Agricon is to provide a theoretical and practical learning system to prepare farm owners, managers and workers for the agricultural environment.
We require funds for livestock to offer a strategic partnership system to the emerging and existing farmers.
Agricon will contribute to the Eastern Cape’s GDP by introducing the production of livestock and full value chain thereof as well as on the job training in:
a. Education in the day to day farm operations:
1. Beef (stud and commercial), feedlots;
2. Poultry (chicken, geese, ducks, Muscovy, turkey, ostrich, game and emus);
3. Small stock (sheep, goats and pigs);
4. Pastures (ku kuyu, des modium, Lucerne, Rhodes grass etc.);
5. Dairy (milk, cheese, yogurt and other milk products);
6. Crops (maize, corn, sorghum etc.);
7. Veldt rehabilitation (establishment of spekboom for carbon points);
8. Bush clearing and management (alien plants, poisonous plants, bush encroachment);
9. Fencing (game, cattle, sheep, goat and poultry);
10. Building of infrastructure (roads, sheds, housing, kraal, races, dipping facilities, cattle and small stock handling facilities);
11. Water management (dams, drinking troughs, ground dams, weirs, wind mills, irrigation, water pumps and pipelines);
12. Veterinary.(identifying of diseases, medicines and treatment methods),
13. Abattoir and butchery (slaughtering, grading, packaging and selling);
14. Retail (marketing, distribution and selling);
15. Catering (accommodation, food, entertaining and laundering);
16. Transport (cattle, poultry, feeds, fresh produce, cold chain and general public transport) and
17. Exports and imports (all possibilities that may arise from farming operations e.g. livestock, embryos, semen straws for KI, meat and by-products).
The loan term will be 5 years with a 15% interest paid once a year. Other terms can be negotiated.
There are no bonds or securities signed against property or operational income. We provide the working capital, ground, admin and management as well as all implements and infrastructures. This means that the initial livestock required stays in the system risk free and remains the property of the investor to sell to Agricon and or reinvest at the end of the loan term (three months’ notice of intentions required). The investors are not limited to the investment amount and can increase investments at any time with fresh contract agreement terms.
There is a global food shortage and this is a growing problem. The growth of our population secures the future of all Agricultural projects.
We are all set and preparing to acquire livestock from 1st of March 2012. Additional land will be allocated to the program depending on the size of investor contribution. Currently the investment from investors are R115 000 000 and is growing on a daily basis. The total investment is +/_ R500 000 000.
The additional funding will be applied for the livestock. A portion of funds will be needed for the educational department for books, computers staff and relevant equipment as well as marketing.
The competitive advantage of this project is that we are adding value to all farm produce (farm to fork), and whilst running a project with no financial risk we are educating all members in all aspects of farming and recycling our finances internally. We are 100% in control of all funds and through our legal and auditing departments offer reports to investors on a monthly and annually. We do not have to compete for market as we supply the value chain and have several services with strong trading history like a transport company, abattoirs, feedlots, butcheries etc.
Rationale for the deal
We have designed the business and our offer to the investor in such a way to ensure that the benefit goes to the investor by providing a very good return on his/her investment.
With a project that covers more than 45 000 hectares of ground we will also bring benefit to the members by securing their education and future in agriculture. We aim to duplicate this project in other provinces and countries as this concept is worth sharing to the benefit of all.
Even with the high return on investments we do not limit any investor to a maximum investment amount. We are secured in our investments and additional funding allows our project to continue offering our partnership to more farmers to secure food for all. All of the investors currently signed up are seasoned businessmen and farmers, so that expert advice is freely available to members.
Use of financing
All investor funding is strictly used to buy the initial livestock on behalf of the investor. The initial livestock remains property of the investor for the duration of his/her investment. This livestock can be sold to Agricon and or reinvested into other projects with no limit.
Progeny of this livestock will be used to expand project and fund other divisions.
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