I have come across several jawdropping #business models, but this one certainly got my attention.
Livestock Wealth is an agribusiness startup in South Africa that allows investors to invest up to $1,000 in a pregnant cow on its farm. After the cow gives birth and the calf reaches seven months of age, it is sold to a slaughterhouse and the return for the beef is divided among the investors.
Nututhuko Shezi, the founder of this business describes it like this: “it’s a stock exchange environment where the farm is the company, the cows are the stock and the babies are the dividends.”
In addition to the investment in the cow, investors pay a monthly fee of about $23 for the feeding, breeding and health of each heifer.
Once suckled, the prized calves are sold to an abattoir or feedlot at a price per kilogram. The average calf weighs approximately 240 kilograms and will sell for just under $400.
Currently, Livestock Wealth farms cattle in real-time for a pool of 340 online investors, and has 680 cows across its three farms in South Africa.
Read the full article at: CNN.com
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