Since our initial October 2017 entry into the North American market, our cattle purchase contracts have increased steadily every month. All the cattle for our investors which funded before our December purchasing cycle cutoff date, has now been purchased. The animals are now grazing on our green and spacious 30,000 hectares (74,092 acres) cattle ranch.
The increased demand and popularity of our cattle program means we are now changing our bi-annual animal purchasing cycle to a quarterly cycle (i.e. 4 times per year). We buy in cycles to get the best (i.e. cheapest) prices for our investors.
Overall, cattle production in Paraguay has remained strong and international export sales contracts continue to increase every year. The largest clients are Russia, Brazil and Chile. Currently there are between 12-14 million head of cattle in the country with a target of 20 million by 2020. Beef prices are up currently 9% above last year.
The orange plantation continues to expand every month. With approximately 150 clients over the last two years the implementation of lots keeps the farming company staff very busy. We have just purchased another parcel of land of 300 hectares (741 acres) located much closer to Paraguay’s Capital city, Asunción.
The purchase of the new parcel will enable the farming company to reduce operating costs substantially across the board due lower transportation costs and closer proximity to the processing plant. This in turn will increase the net profit for the company and the investor/partner.
With Paraguay still importing 80% of all consumer orange products in 2017, our target local market is still very strong.