How to Invest in Cattle?
own your own cattle in Paraguay
Investing in live cattle is actually much easier than you might think, as the 3 steps below demonstrate:
Step 1 - Buying the Cattle
You sign the cattle program contract with us and fund your investment. We pool all client contracts twice a year to get the best prices when buying the cattle on your behalf.
We purchase the maximum number of cattle possible for your investment amount, taking into account the lease cost for grazing each animal. This includes costs relating to the land use, transportation, insurance and overheads.
- the animals are individually identified through their ear tag numbers and assigned to you
- the animals are your property (i.e. this isn't a pooled investment fund
Step 2 - Raising the Cattle
When the cattle has been purchased, it is transported to the farm management partner farms. The animals will benefit from constant care and supervision from highly experienced farm personnel and a vet service.
The average grazing period for the cattle is 24 months.
- on average, only one or two animals graze on 107.369 sq.ft. (10.000 m2) of land
- animals are kept on open fields the entire year and gain up to 1.65 pounds (0,75 kilogram) per day grazing naturally
- no additional or unnatural feeding is required
Step 3 - Selling the Cattle
We keep the animals on our farms until it they reach slaughter weight of >948 lbs (>430 kg). Some animals reach 1323 lbs (600 kg) during the grazing period.
Your individual profits are recorded when we sell your animals at the Paraguay livestock auctions. Our farm management partner charges a 20% incentive fee on any achieved profit (before taxes). Projected net ROI to you after incentive fee and Paraguay taxes is 18%.
- projected ROI based on conservative weight (500 kg) and price (US$ 1,65 / kg) values
- part of the land lease retainer is reimbursed if the animal reaches slaughter weight before 24 months
- if the client does not make money, the cattle investment program partner doesn't make money either