Buffalo Project Summary:
The Al Mabroor buffalo project offers interested parties the opportunity to partake in the lucrative buffalo farming and breeding trade. Game farming has grown significantly in South Africa over the past decade and has become an industry with great economic potential. There is a growing demand for disease-free buffalo and the Al Mabroor buffalo breeding project will aim to breed these magnificent animals.
Our objectives are to start with 20 cows and 2 bulls. We will follow sound business and agricultural principles in taking care of our nucleus herd. Reproduction is our main aim and we will follow our plan as stipulated in the breeding table. It is of great importance to start with the best animals and genetic material for this will ensure that all progeny can be sold at a premium.
20 investors will form a partnership and 80% of their collective funds will be utilised to purchase buffalo. The other 20% will be used to cover costs in the first couple of years.
The minimum investment amount is R 100 000. Initially the Al Mabroor buffalo breeding project need R10 000 000 to start the project. This could be raised between any number of partnerships of 20 people. Individual investors looking to invest significant amounts could do so in their personal capacity.
The sooner we can start, the better for everyone involved.
Expected returns and time frame for investment
Investors in the buffalo breeding project should see the investment as a 5 year project with no income in the first 5 years. At the normal breeding rate of buffalo, investors can expect to have 5 times more buffalo in year 5 compared to their starting number of buffalo in year 1. Assuming that prices remain the same over the next 5 years, it can be assumed that investors initial investment amounts should be worth 5 times more. Any increase in buffalo prices due to inflation etc. will have a further positive effect on investors’ returns.
Ultimately it will still be the partners in the partnership that will determine when they want to sell off some or all of the buffalo. Al Mabroor will assist the partnership with recommendations, as to when to sell, etc. Annual income in the partnerships can be generated by selling off some of the stock from time to time. Again this will be the decision of the individuals in the partnership.
How to invest
Complete the application form. Deposit the investment amount in the trust account details provided on the application form. The minimum investment amount is R 100 000. Provide all the necessary FICA documentation. The first 20 investors interested in the project will form a common law partnership that will own the buffalo purchased outright.