By: Natasha Archary
Ayanda Majola and Kagiso Tloubatla, Founders of SV Capital – A South African Investment Company, join Nastassia Arendse on Kaya Biz to discuss why livestock is a good investment.
Majola and Tloubatla started their company in 2017, and through fluctuating uncertainties in the market, including the Covid-19 pandemic, one thing remained constant, the cost of living keeps rising.
Not just with non-perishable food items, but the cost of meat and poultry in particular, increases all the time.
With a high demand for livestock, which includes cows, bulls, sheep, and goats, the livestock industry is thriving and that’s what makes investing in cattle a good investment for anyone looking to grow their financial standing.
Starting with just 50 animals in 2017, SV Capital now has over 8 000 livestock on the farm.
Majola and Tloubatla say investing in livestock is broken down as follows:
“We give people an opportunity to invest in livestock using a fractional ownership structure, which essentially means, an individual invests alongside other investors, then we collect that money, pool it and invest in a herd of cattle.
The reason why we do it this way is to mitigate for risk. Instead of you as an individual owning 1 cow, you’re owning a herd of cattle alongside other investors.
Which means if anything happens to the herd, the risk is mitigated for.
Once money is collected for that period, funds are divided to the farmers, and our partner is Beefcor, one of the largest feed lots in the country.
With over 80-years experience in farming and the rearing of livestock, they then manage rearing the animals, growing them to the desired weight, maintaining their health, so that we can then sell the livestock to abattoirs.”
Only once the livestock is sold, does an investor realize their profit, which is a 14% return over a 12-month period.
Listen to the conversation on Kaya Biz:
5 reasons why livestock is a good investment
- High demand
- Big returns
- Stability
- Scalability
- Potential
Also read: “My wife has been financially cheating on me.”: The Blind Spot
