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Farm Development

Investment Strategy

FARM DEVELOPMENT

Agro Concept Management partners with a reliable and highly experienced farm management company, specialized in the farm development, specifically in the western part of the State of Bahia. Also, we work with local farmers, which have extensive experience in cattle raising and breeding, operational activities and sales of finished products on local market.

Western Bahia has soil and climate conditions which are highly favorable for raising grass-fed and feedlot cattle for beef and dairy. It is one of the most productive places on the planet for cattle raising. Compared to other types of agriculture, investment in a cattle-breeding farm is the most lucrative for a short-term period, since you can receive high yearly returns and have much lower material, technical, and personnel costs.

FIVE REASONS TO INVEST TODAY IN BRAZILIAN CATTLE FARMS

Global demand for meat is growing, especially for beef. Over the past 50 years, meat production has more than quadrupled. The world now produces more than 320 million tons each year.

Brazil is the world’s largest exporter of beef, providing close to 20% of total global beef exports and will continue following this steady export growth trajectory for the next decade, reaching 2.9 million metric tons, or 23% of the world’s total beef exports by 2028.

Brazil has the world’s second-largest cattle herd—232 million head.

Brazil has a large internal consumer market, as well as strong export partners like China, Hong Kong, South Africa, Iran, Iraq, Myanmar, Malaysia, Singapore, and the Middle East. Brazil is currently the largest producer of halal meat.

Brazil has highly developed technology for the cattle farming and agriculture industries.

WESTERN BAHIA, BRAZIL

Western Bahia is known as a large agricultural complex and a producer of main crops for export, such as soybeans, coffee, sugarcane, cotton, beef and livestock, and more.

The region of West Bahia has its own special characteristics that increase its potential for large-scale mechanized farming. The landscape of West Bahia is dominated by massive, flat plateaus with dimensions of 300 by 200 km, which are conducive for developing large farms. A sufficient amount of rainfall (up to 1,800 mm per year during the 7 month long rainy season), a large supply of freshwater from three major rivers and the Urucuia Aquifer, warm weather, low risk of natural disasters and very affordable land prices in this region make it an ideal place for agricultural and farming investments today!

However, land prices are forecast to steadily rise due to the infrastructure improvements being made in Western Bahia. The construction of the West-East railway line and seaports will allow a significant reduction in transportation costs when compared to the current costs for road transportation to a large port. The railway will significantly reduce time and expenses for farmers exporting goods out of the region. So today is the time to invest!

FARMING MODEL

Activity

Cattle breeding and raising or crop production farms using irrigation

Location

Brazil, West Bahia region

Minimum Size

1 000 hectares

Cattle Breeds or Crops

Lenore, Angus or Nelore or another breed or Crops: soybean, corn, sugarcane, cotton and coffee

Payback on Investment

4-5 years using irrigation

Feeding for cattle

Combination of grass-fed and feedlot in the last 90 days

Productivity

6-8 cattle heads per 1 hectare with irrigation

Irrigation

Center pivot (100 ha) system

FARM INVESTMENT PROCESS

Depending on the size of investment you wish to make in Brazil,  AgCM will present you with detailed information on the most suitable agricultural land or developed farms from our portfolio. Once you choose from the farms or plots of land, we move on to stage 2.

Together with our local partner, a farm management company, we present you the best possible options for farm development depending on soil, climate and water availability, market demands and legal/tax organization. Once the initial business plan is approved, we arrange a site visit to the farm in Brazil or Paraguay, as well as negotiations with your new potential business partner.

After the on-site farm visit and finalizing of negotiations with potential local partner, we assist in creating of an appropriate legal partnership entity between you and the local partner. When the new entity is created and details regarding the  farm development process are finalized, you start your operation with the new local Brazilian partner.

Once you and your Brazilian partner establish a new entity and sign a contract, AgCM’s obligations are fulfilled. We are paid a commission fee as a pre-agreed fixed amount or based on a percentage of the agreed amount of the investment.

FARM DEVELOPMENT PROCESS

  • Preparation for soil correction
  • Enrichment of the soil with lime and potash
  • Planting grass or corn
  • Fence construction
  • Installation of electricity
  • Cattle treatment equipment installation (for cattle farm)
  • Construct storage facilities
  • Establish cattle camps (for cattle farm)
  • Obtain an irrigation project license from the local authorities
  • Select and purchase irrigation systems
  • Install and maintain the irrigation systems
  • Drilling a well if not available
  • Select the breed and amount of calves and cows to be purchased, according to the business plan

Commence with farm operational, management, accounting, and administrative activities

The investment and farm development process for each project will be specified in detail in the business plan, but it will include some or all of the above-mentioned stages.

Investment Options with Agro Concept Management