Crowdfarming Investments Q&A Webinar (Feb 2021)

Crowdfarming Investments Q&A Webinar (Feb 2021)

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Hello everyone and welcome to the Livestock Wealth  Q&A Investments webinar. My name is Thulani,   I handle social media for Livestock Wealth so  I will go over the format before handing over   to our CEO Ntuthuko Shezi. So firstly we have  some housekeeping, we will be keeping all audio   on mute. If you have any questions please share  them on the zoom group chat and we will try to   answer the most common questions in the Q&A of the  webinar, I mean in the Q&A section of the webinar   so after a quick introduction, Mr. Shezi will be  answering the most common questions we are asked,   then at 11:20 we will be answering  your questions from the zoom chat.  

We'll also be posting a recording of this webinar  next week for those who want to listen again or to   share it with a friend and if you haven't already  you can like and follow us on Facebook, Instagram,   Twitter and Linkedin. We are Livestock Wealth. You  can also find us with the hashtag #investincows   so we hope you enjoy this session and thank  you so much for joining. Thank you everyone   for joining in. I really value each and every one  of you that came through to to be with us on this   webinar today, thank you for just making the time,  you know, to to give us an ear. My name is the   Ntuthuko Shezi, I'm the founder, they also call  me the cow executive officer which stands for CEO   of Livestock Wealth and today I'm with members of  my team, our staff members, and these are the guys   at Livestock Wealth, the guys who really  make the magic happen from the farming,   investing, accountants, auditing please  can you just raise your hand our members   of staff and our partners as well.  Great, thank you guys, thank you,   we also have, I believe, some of our partner  farmers on the call - these are farmers who are   farming for us, who are making all this  magic happen, any of our farmers there?   You just text you are here. Gene Likhanya our  macadamia farmer. Anyone else please raise  

your hand, thank you. Oh I see Isaac there  as well, thank you, thank you very much.   Great, it's great stuff and then lastly but most  importantly - our Investors. I would like to see   any of our existing investors, these are guys  who've laboured with us from 2015 October,   when we launched. If any of those investors  are here please can you just raise your hand   for other people to see you as well? Thanks, I see  there Isaac Phahla and Lillian Steyn. Thank you,  

thank you all for just making the time to be with  us today. Right I'm going to start just briefly   with just taking you guys into confidence in  terms of who I am as Shezi, what I believe in,   what made me start this Livestock Wealth business  and what my vision is and where I want to see this   company growing to into the future. I know  some of those things you can't really put on   the website but when you get a chance to talk  to people like we're having a chance to talk   now and you're able to ask questions as well and  meet us, it just opens up a lot of possibilities.  

So I'm Ntuthuko Shezi, I'm 41 years old, I  live in Johannesburg with my wife and my two   daughters Sinqobile and Kwandile. Kwandile is 5  months old. I've been a businessman since 2006.   In my previous life I was a strategy consultant  at Accenture. Some of you may know the company,   if you receive a bill from Eskom, the guys  who designed the bill, what it looks like,   where each field goes, how you get billed,  how they decide to cut you off, that was   my colleagues. My roommate was a leader of the  team that designed that system - that designed  

the bill for Eskom, so if you get cut off  with your power you can blame my friend who   was a leader of the project that delivered  that for Eskom. But being in a corporate I   did very well, I was very successful. I was on the  fast track to being partner, but I had something   eating me up inside of me which was - am I really  doing everything I can to be changing the world?   So that that thing always bugged me. So finally in  2006 I got enough courage to to resign and start  

a business. Some of you may know my businesses  at the airport - Scratch Mobile which does panel   beating, you can check it out there. And then we  also have another business, that's also at the   airport, that one of my companies runs as well  is - First Class Parking, which is the official   Valet parking operator at OR Tambo airport, for  all the busy executives, celebrities, we park   all their cars while they fly and fix their dents  and scratches as well. So that's been going for   about 14 years now. But even then, you know, I was  like OK, is fixing cars really changing the world?   Yes, you can help hide, if there's a wife who  scratched the car and they wanted to fix the   car really quickly before the husband finds out,  so I fix the car quickly and return it quickly,   so I save a marriage there, you know,  but it's not really changing the world.   So I then had this idea for the longest of time  to create Livestock Wealth and there were many   influences of it and the bulk of them from my  parents and grandparents being agriculturalists   While they were young, at a small scale, but  I could see, looking back you know, because   they say hindsight has got the best vision, I  could see how my family was able to move from   my grandparents who were my grandfather I  think was a mail, they call them mail boy   in the 50's. So his job was just to deliver  mail between offices and then my grandmother  

was a cleaner, she just cleaned houses,  people's homes in in Morningside in Durban.   But looking back I was able to see how the  the few cows and the few entrepreneurship   things that my Grandma did were able to propel  our family from object poverty to middle class   where my mom was a Teacher and to me who became an  Engineer an Electromechanical Engineer and my kids   can be anything they want you know, if they want  to be a Ballerina they've got a very, very strong   chance of being a Ballerina without having to  worry where the money is going to come from.   So for me that is what I saw is the power of how  agriculture is a transformative force in Africa   so which is why then I started Livestock  Wealth you know with a bigger vision of saying,   man this country is the most unequal country in  the world, we lead in inequality. What does that   mean - that means across the road there's health  care for a few people who can afford medical aid   and on the other side of the road there's a very  shaby facility where people are condemned to die.   I've had two experiences with close friends of  mine where they could have lived had they only had   medical aid or enough money just to be admitted  to the emergency room of the private hospital.  

One instance happened for me in 2013 with my great  friend, he was a welder, he was ill in hospital.   I went to visit him then and I could  see that this guy is on the clock   and then I called his father and said Patrick's  Dad, I've got R30 000 can you just put in R20 000   so that Patrick can be moved to the next hospital  because that's what they want as a deposit.   Patrick and I were doing a lot of work together  like on contract you know, he was a welder there   was a job that's what was long delayed for us  to start so I knew that there'll be money to be   able to cover the R30 000 from somewhere but his  father sadly he just didn't commit to the R20000   and then he stayed in the public hospital and two  weeks later I got a call that he had passed on.   My wife and I drove to the hospital  to where his home was we drove there   and when I got there I got a shock of my  life that this family has about 30 or 40 cows   sitting in a club because for the day of the  future all the cows have to be on the crawl   and those cars are worth easily half a  million rent yet they can't find R20 000   then the funeral policy that all paid  so there was enough money to bury him   there was catering for us there was all  these other nice things VIP area and all that   nice casket but why is there no R20  000 to bury to keep the guy alive   that's the question that I still ask myself to  this day and someone saying why are there no   financial products that really care about people  so now I'm never a person who loves to complain.   I find problems and I do something about them and  then Livestock Wealth was one such outlet for me   and for me the world I'm creating is a world  where all farmers across the continent of Africa   with all their cows are able to realise the value  of their cows. Today those cows on the platform,  

they are tracked by our tracking system  we're able to to guarantee the person's   creditworthiness based on how many cows they  have whether it's an investor who owns those cows   or even the farmers. I want to create a  world that my team is committed to this   of an Africa where there is no piece of ground  that is not planted where there's other trees   coffee trees, where there is macadamia trees all  across and and in that world there is processing   plants that process those macadamia,  this industry that provides irrigation,   this industry that provides irrigation and tractor  repairs and all those things and then there's jobs And then in the world then there'll be no  inequality because everyone can be able to stay   alive and have a choice to stay alive so that's  me and that is why I'm standing today. Great. We started off in 2015. You guys know our  history, you can go on google, with 26 cows   we grew we're now managing close to R100 million  worth of assets and this is assets in macadamia,   in free-range cows and pregnant cows in all  parts of South Africa and we're not planning to   stop there. Our vision is bigger, it's bigger  than South Africa it's it's it's continental  

and we have you guys have seen how our  work has been featured and supported by   various organizations, your CNN's and everything  else, and I believe that you guys are all here   today to say you spent that 40 minutes that we  invited you and say how can I be part of this and   we want you to be part of our vision of changing  the world, in this way through Crowdfarming.   So I'm gonna just dive in to say how does our  investment in cattle and agriculture work? How   does Crowdfarming work? I think there is a  slide there, not sure if it's showing yet,   OK, so we act as this bridge between the  farmer and the investor and the market.   So what does that mean? It means we have  farmers who already are farming. These are   not wannabe farmers, these are farmers with  skin in the game, with plants on the ground,   with cows that are walking, alive and healthy.  We have those farmers and we vet these farmers.  

We find them, we've got a team that finds  these farmers, does credit checks on them,   makes sure they are good enough to be trusted  such that you as the investor sitting in JHB,   sitting in New York, can buy that  cow that is sitting in their farm   and be the new owner of it and it's being cared  for by the farmer while it grows or while the   baby inside grows and then that's a fixed term  investment that ends when the when the calf is   sold. That normally takes about a 12 month process  and then when the baby is sold then there's money   coming into the farm because the babies at  today's prices are worth about R8 000 or so,   so then the farmer is able to then say - Mr.  Investor, you've partnered with me for 12 months,   you've owned this cow so after 12 months I'm  gonna buy back this cow from you for more than   you paid me for it because now it's value has  increased because now it's a mother and a calf so   if you had bought the cow for R18 000, you then  buying it for the farmer is buying it back for R20   000 giving you a 11 or 12% return on investment  depending on how the beef prices perform.   Now other people may ask why don't I keep the  calf? Why don't I keep the calf? but there's   too much risk in keeping the calf, there's no  knowledge of whether the following well del   calf will be barren or feta and it's going to  take three years for you to find out. Imagine  

three has lost owning a calf that is barren and  then also with the mother why is it 12 months   only is because there is no guarantee that the  the cow will be pregnant in the following year,   in the following season so there's no guarantee  that the cow will bring in money next year.   So to make sure that you as the investor are not  involved in the risks of pregnancy, you are only   involved with the cow for a fixed period of time  while we know for sure that it's pregnant. On the   macadamia side, you guys may know, macadamia is  one of the highest grossing crops in the world at   the moment. You earn more money planting macadamia  in one hectare than anything else so what we do  

because to grow macadamia takes about six years so  you have six years where you have to buy the land,   prepare the soil, plant the tree,  fertilize the tree, put irrigation,   maintain the tree for six years before you  see a single payday as a macadamia farmer.   So what does that mean? It means that only  the most affluent people, private equity   funds are able to own macadamia plantations.  If you go in South Africa, in Venda, all those   macadamia plantations that you see, most of  them are owned by UK private equity funds. Why? Because local farmers don't have six years of  money to put into a tree, so we then partner with   the farmer and say hey Farmer Gene, you've got the  tree, you've got the skill, you are good at this   thing, we'll buy the tree once it's on the ground,  you sell it to our investors on our platform.   As Livestock Wealth we make a commission from each  sale, that's how we keep the bills alive and keep   our our our the lights on and make we make that  commission and then Gene has got money to maintain   this crop and make sure it's the best  crop when it comes to markets in six years   and he's in a position to buy back  that tree from you the investor,   for nearly or over double the money. So  that's what we've done with macadamia,  

where we've created a way for  money to really grow on the tree. OK so then the biggest question  that people always ask now   is my money safe? Can I trust these guys? Who  are these guys?Can they really be trusted?   So one of the things that we've done from  day 1 is make sure we had top-tier auditors,   so at the time when we started it was Siza smg. In  fact we've employed some of their ex staff as our   accountants and CA's into the business,  we've had top-tier auditors from day 1.   They've changed the name now, they're part of  Grant Thornton, so we have Grant Thornton as   our auditors. These are people that come, they  check our books, make sure that everything that   we say we're doing is what we're doing. OK and  secondly there is the technology and there's a due   diligence that we're bringing towards vetting the  farmers. I think I've talked about that. We visit  

every farm and we make sure that during this  time of your investment we are always there   keeping an eye on the farmer, keeping an eye on  your investment too. Then we also have a tracking   device, you're gonna see in the media in the next  couple of weeks, every cow that's on our platform   is going to have this device, which tells us that  the cow is on the farm, it's within the fence.   If there's something happening to the cow at  night, even you the investor, whether you're in   New York or in Venda or in Johannesburg you'll be  able to see that - hey something is happening to   my cow and the farmer is able to react quickly,  so that brings in an extra layer of safety.   We also have insurance as well, so like macadamia  for example, where the markets are matured,   all the farmers that bring in that Gene  has an insurance policy for his macadamia,   so if something happens to the orchard, if  there's fire etc. your investment is safe.  

Lastly we are regulated by the Agricultural  Produce Agents Council which is a statutory   body that regulates agricultural agents,  because as Livestock Wealth we work as an agent   that connects you the farmer to the investor  today and then 6 months later at harvest we then   act on behalf of you the investor now working  with you to sell the product to the market,   or to sell the product back to the farmer so  that's the regulation environment that we are in   and it's a regulator with real teeth - with  complaints resolution processes, with registration   processes, with ways of investigation, with ways  of dismissing people who don't comply with the   promises that they've made and with the statutes  of regulation and the Agricultural Produce Agents   Council is an agricultural body led by the  minister of agriculture that is passed by an   act of parliament but pertaining to agricultural  products, which is the space that we are in. OK,   that is where I'm going to stop. People  always ask how do I start and invest? So I'm gonna share my screen and then I'll take you guys on a journey and say  how do I buy my first cow. Ok, let me move that.   Ok so there you go, you go to our website As you can see there,  

you're in now, then let me go and say  register and then register on the web app. Ok   so let me call this demo livestock and then the  email is, let's say demo at and then I'm going to create a password Our systems are hosted by IBM so you guys know IBM  very reputable company, so all your data is safe   and it complies with all data security rules. OK  then it sends a verification email to my email to   make sure that I'm really a person and not just  a robot. OK so then the email comes in there from   Livestock email verification. I verify my email.  OK then it says my verification was successful,   now I can then log in and I can  start being an investor now.

My email, I put in my password and I sign in. OK now I'm in, now there's the  various investment categories - macadamia trees,   pregnant cows, free range and then you also  see Farmers Club, you guys may also be aware   of Farmers Club, this is our direct farm to  fork service, so please also check it out   on this same website I  choose investments, then I choose the product   that I want to invest in, so now you know what  your investment threshold is so we have the   macadamia tree at R2000 for one tree and there's  no limits in terms of how many trees you can buy.   Free range cow which is the cow that becomes  beef, also no limits of how many cows you can buy   and then the pregnant cow which I talked  about earlier, also no limits so I've chosen,   then it says the product has been added to the  basket. I go and I view my portfolio over here  

and it's showing me I've got a pregnant cow and  it's one of them but let's say I want to buy 20.   I've just received my bonus you know when I just  grow this bonus and not just make it go away.   Then it's updated successfully, so then  my invoice amount is going to be R374   600, then I proceed to checkout now.  It's going to ask for my ID number. OK, all right, it's my birthday  here - August the 13th,   in case you guys want to send  presents any time, then the   phone number... South Africa, I am in Gauteng and my zip  code is 2198. You see then that I'm done,  

I've checked, I've filled in all the  fields so we know who you are and we've got your address and we've got the  amount that you want to pay, now there's 2   ways of paying, direct bank transfer is the most  preferred one but we know that for most people   who are overseas making payments in South Africa  can be hard, so we opened up this card payment   system it doesn't has a cost in terms of fees  but it's something we've decided as a rule to say   is to say investing is everyone's right  regardless of which country they're in,   so we must do whatever it takes to make  sure that everyone is able to invest.   Direct back transfer that's my  choice then I check out, OK. OK and then I get this confirmation over here and  then this is my bank details. I also get an email   confirming this order as well so there we go,  I get an email same time saying OK, I receive   an order and these are the bank details that say  I'm gonna use to make the eft to Livestock Wealth   and this is the amount and this is the reference  number I'm gonna use which is the Farm book order   number and once you've paid then we're able  to, we've received your funds and then your   funds will appear within three days on the wallet  you'll see a statement as well once you've bought   you'll be able to see all your previous orders and  when it's time for the maturity of your investment   you will get an email as well and then your funds  will appear under financials under my wallet   and then if there's no transactions, yes that's  what it says, and then you're able to withdraw   that money or you're able to also reinvest it  again into more products for the following year   and just like that. Ok so I've spoken for  half an hour, now I'm going to just allow for  

some questions. We have time I think until  11:40 so about seven minutes or so. So Thulani,   you can fire away with some questions  that are there on the group chat. Ok, thank you Mr. Shezi, so now it's time for  the live Q&A section. Right, so if you haven't   already, please add your questions in the  chat and we'll get through as many as we can.   We have our first question from Lerato,  she wants to know if one invests in a calf   with 7% interest, is this the  annual or the monthly? That is   the question. Ok, I think the question there is  if I invest in a Free range ox, what's the return  

after six months? So the 5 - 7% is at the end of  the period. Think of a fixed deposit at the bank,   fixed deposits work in exactly the same way, so  think of the free range ox as a fixed deposit   where you've deposited your money in the cow with  the farmer by owning the cow and then six months   later at the end of investment you get your money  back plus the profits, that means that your R11   529 would have grown to about R12 100 up to R12  300 depending on how the beef prices perform. We have our next question from Namata,  it's when can you make your platform   have dollar accounts to reduce the impact  of exchange rates for foreign investors.   Yes, thank you for that question. We are coming  there, we are busy on that process, it's something  

that as a CEO, that is the top of my agenda  in the next 6 months that your investment,   regardless of country you are in, is protected  from the volatility of the south african rand. But   what I am aware of though is that you know  we've had investors since 2015 who've been   invested with us and those who've stuck with us  over the years have grown their money, you know   in real dollar terms as well,  so that is the one thing that   we are really working on to make sure that we've  got those options. So thank you for the question. Ok, we also have another question  from Marieke. I hope I'm pronouncing  

this correctly. They would like to know how  their returns will be taxed in South Africa?   Sure. So in South Africa, with the advice that  we've received from the top legal minds and tax   minds that we've consulted is that the assets are  growing in value so it is considered as a gain   or as a capital gain, because you are the real  owner of this asset, it's almost like a house,   so there is a capital gain, and you guys can  check with your brokers as well and your financial   advisors, that every year there is a threshold.  I think the last time the threshhold was R40 000   where if your gain for the year is less than R40  000, so it means that you're owning like 20 cows   and your profit of R2000 is R2000 X 20 is R40 000  then that portion is not taxed for capital gains.  

That's the advice that we've received and that's  the advice we're also giving to our investors.   But also importantly is your financial advisor,  understanding that we're treating the cow as an   asset, can advise you further in terms of how  to manage your own individual circumstance.   All right, we have a very common question  from Olga; When are the connected gardens   going to be available? Great question Olga, great  question. The connected gardens are coming back   from next month. From the 1st of march we  are opening up the connected gardens again.   We've partnered with a brilliant farmer, I think  she should be on this call, a company called   Azeroth projects and we are looking for other  great farmers as well who we can partner with who   will own, you as the investor you own the  connected garden and it's rented out to the farmer   who then all they have to do is just produce  whatever they produce and take it to market   and pay a monthly rental that gets paid into your  account every three months, or you see all that   every three months so they that we are really  excited that the gardens are really coming back.  

OK we also have nationals asking how long does  it take to buy a 2nd cow when you reinvest?   Sure, great, that's a good question. So if  you start, we've got an investment calculator   on our website so the question that you asking  you can actually go to the website and put the   investment already choose one cow, choose number  of years and you'll see how your profits works.   But there is a secret formula to investing in cows  and that is, if you have enough cows that you own,   that you are targeting to own, even such that  the profit you getting from the cows every year   is able to buy you an additional cow,  without you putting any money of your own,   that is the magic. So now for pregnant  cows, if you have at least nine cows or 10,   then every year you're getting 2 000 x 10 which  is about R20 000 in profits from your cows then   the profits are able to buy you cow number 11  without you putting any new money of your own,   without digging into your pocket. So then every  year that compounding effects just keeps happening   so this is the money growing on its own  just like compound interest at the bank   where interest ends more interest that's the  point that you want to get to as an investor   so if starting with one cow yes you can start  with one cow but if you want to see real gains   get to a point do a number where the profit  I'm getting every year is able to is able to   to to buy me an additional account and then my  number of cars keeps increasing without me putting   in new money then then the investment really is  working for you money growing while you sleep OK, we have a lot of questions flooding in  and unfortunately we do not have much time.  

I'll just take the last 1 and then 2 more.  OK so we have a question from Machali,   they're asking if we can buy a portion  of a cow or a tree in installments? We've had the portion of the tree as you can see  in some of the past media, or portion of the cow   rather, but what we decided to do was to say,  you know, the investment in the cow is something   that's a stretch target for you the investor. Nothing happens in your life unless you stretch   yourself so we saw that if someone puts in  500 bucks and they make profits of 30 bucks,   that person will never be happy because they've  put in little, they're getting out very little   and then everyone is unhappy and we  then said OK everyone must invest   in a full asset so we make sure that we've  got cheaper assets like the tree for R2000   but for the cows you are able to just put  money in your wallet and leave it there.  

It currently is not earning interest yet, we're  working on ways to do that, to do that legally,   because we can't just give you interest if we  are not a deposit taking institution, but we are   working on that with our legal minds. So even when  the money is there while you are saving up towards   your full cow, that the money could be growing at  a few percentage points. But if you if you can,   over three months, OK it's just R5000 or R4000  in this month, R4000 the other month and then   R4000 the other month and boom you have your first  investment you know and that's a stretch target   that then makes you really treasure the investment  as well. Ok, we'll take the last one from Simesha,   she wants to know about our farming practices  - Do we practice sustainable climate   methods, sustainable climate farming practices  and is it possible to visit the farms?  100 100 We care about the world this is one thing  I do, I want as a CEO of the company my job is to   create, my company must create the same world  that my children will live in and their great   grandchildren must be able to live in. So one  of the things that I believe in is, for example,   to make sure cows grow in a natural environment,  this is why we are very pedantic about free-range,   grass-fed beef. That the cows mustn't  be grown with stimulants and packed up   like sardines in a can just so that it's pressed  for time to get to the supermarket and we get   meat that is full of hormones and growth hormones  and antibiotics that have got health complications   later. So obviously at the farms, our farmers  are good farmers who care for the environments.  

They are not miners because  miners take away from the land   but farmers replenish so that  there's something there for tomorrow. OK, yeah then should we take one  more last one minute yeah all right   if you saw me Ibraham wants to know, it's a  question about Farmers Club now they want to know   if our Farmers Club products are halal certified?  Correct yes our Farmers Club products are halal   certified we slaughtered halal approved arbitrage  processing and halal facilities so you can   rest assured Ibraheem that you are well within  all your halal concerns. We believe in really   making our meats accessible to everyone, that is  our core belief, hence us choosing to say we will   be halal so that everyone in the community  is able to participate in what we're doing.  

All right so I think we can close it there. We  know there's more questions but please visit our   F&Q section on our website. We've got an F&Q  section so most of the questions you've got   have already been answered on the website so just  visit and if there's any   other questions that you have you can email them  to us and also we can email them to us but we will   because we've got your email addresses as  well from your registration form so when   there's a question that we see is from you we will  endeavor to make sure that we've responded to it   or even at least just point you to the place  on the website where you can find the answer.   Ok, thank you very much everyone.  Don't forget, download the app,   start investing, go to the website and invest  in the web app. Don't delay because there's some  

people always say I've been following you for  the last 5 years. You know why follow us for 5   years why you can't just invest you know you could  have had 5 years of returns and the 5 years have   been part of the vision so I implore you to start  today, tomorrow is too late. Thank you everyone. Goodbye

2021-03-02 14:05

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