Getting to know how to invest in cattle farms will help you understand what can cattle investment do to give you profit. In a short-term period, cattle investment will give you excellent ROI. You don’t have to participate in operational activities.
Cattle investment also requires low operational costs and is very easy to administer. It also has a low risk for everyone involved in the investment. If you’re looking for a secure and solid investment, livestock is the right sector and cattle will be the best option to consider.
From Field to Profit: How Investing in Cattle Farms
After signing the contract between a cattle farm and an investor, there will be four stages during the cattle investment process. Those four stages are cattle purchase, cattle raising, cattle selling, and the exit strategy. Below is detailed information about the four stages.
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Cattle Purchase
Cattle farms are going to purchase young bulls that have the best genetics and the best price. The money you invest in cattle farms will be used to pay for feedlots and grazing for every animal. It includes paying for land use, veterinarian care, transportation, overhead, and insurance cost.
Cattle will be individually numbered using ear tags, they will be investors’ property during the period stated in the contract signed by both sides.
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Cattle Raising
After purchasing cattle, the local farm management partner is going to choose the most suitable farm for cattle and transport cattle to the best location. cattle’s average grazing period is 24 months. Animals can gain 0.70 kg every day.
Cattle will gain 0.70 kg every day if they graze in open grass pastures throughout the year. Cattle will be put into the feedlot to increase their weight in the last 3 months.
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Cattle Selling
Those animals will stay on farms until cattle reach the slaughter weight of over 500 kg. Some cattle can even reach over 600 kg during the fattening and grazing period. The farm partner will then sell cattle to local slaughterhouses. That’s how you get income from invest in cattle farms.
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Exit Strategy
After a few years, every investor will get two options. Investors can withdraw their invested capital along with the accumulated interest before terminating the contract. Another option is choosing to reinvest the money with the same partner for other years.