[Type the company name]
ETP2601
Assignment 4
Semester 1 | Due 8
May 2025
NO PLAGIARISM
[Year]
,IVESTOCK WEALTH BECOMES MULTIMILLION-RAND ENTERPRISE Livestock Wealth
(LSW), a livestock crowd farming platform, has become a multimillion-rand
enterprise, and is expanding its offerings to include agricultural food products,
planted in a smart farming connected system. Developed by KwaZulu-Natal-born
electro-mechanical engineer Ntuthuko Shezi in 2015, Livestock Wealth offers people
with no access to land, time or skills the opportunity to own livestock within a
professionally managed farming operation. The Web and mobile application allow
investors to invest their money in cows rather than in unit trusts, shares or
exchange-traded funds. Through connecting its network of small-scale partner
farmers to investors, the business model allows farmers who cannot afford to scale
their business to access capital, while offering the investor an opportunity to invest
in assets which are not influenced by financial market trends. Cattle farming in
South Africa is estimated to be worth around R142 billion, with the local beef
industry generating an estimated $144 million in exports in 2017, according to data
from Trade Map. After seeing multimillion-rand growth, the investment company
says it has now expanded its offerings to include an array of agricultural assets that
can be owned by potential investors, including sugar cane plants, macadamia trees,
and maize plants and a separate option of investing in a connected garden system
which grows all types of organic vegetables. Speaking at a business update in
Johannesburg yesterday, Shezi explained that the new offerings give investors who
lack the time and farming expertise the opportunity to own tangible, high value,
growing assets. “Our goal is to give ordinary citizens an opportunity to invest in a
long-term investment plan on any agricultural product that has the potential to yield
great investments. For instance, macadamia trees, the most lucrative crop in South
Africa, can cost around R20 000 per hectare for the investor, but after a few years
of growth, one tree can reap rewards on a minimum investment of around R80
000.” Potential investors can buy online, from the partner farmer, while Livestock
Wealth facilitates and manages the assets like an investment portfolio. The South
African macadamia industry is the largest producer of macadamia nuts worldwide.
According to the 2018 World Nut and Dried Fruit Conference, an estimated yield of
53 500 tonnes of macadamia trees reaped a sales value of well over R3.2 billion in
2018. The connected garden system, a pool-table-sized garden which grows any
vegetable crop, including spinach, lettuce, cauliflower and brussel sprouts, is
managed around the clock by an experienced partner farmer. Investors can own
several smart garden systems, which are connected to an internet of things
monitoring system, allowing the farmer to track the environmental condition of the
plants, while the investor can view and track the plants at almost any time via the
app. “Because farmers receive a seasonal income, the biggest problem they face is
gaining access to funding to help them grow their business and take care of
expenses, such as paying salaries, feeding livestock with quality food, maintaining
tractors and providing medical care for the stock. Banks often require collateral for
taking loans and with most black farmers renting out their farms from government,
it becomes impossible to provide the required collateral.” The crowd farming
company has partnered with Woolworths and wholesaler Cavalier Foods, to provide
them with free-range beef, which is free of antibiotics and growth hormones. The
farming business says it is engaging potential partners such as restaurant chains,
public hospitals, prisons and retailers to connect them to its farmer partners who
will then supply them with fresh produce on a regular basis. “Typically, we are
looking at supplying institutions such as Johannesburg General Hospital with onions
, or lettuce on a daily basis and also supply some retailers and restaurants with a few
kilograms of veggies on a daily or weekly basis. The farming systems are not limited
to vegetables, but also include growing plants that will be used to make food spices,
such as seeds, buds, fruits, flowers, bark and roots of plants.” Livestock Wealth
started with 26 cattle in 2015 and currently manages a herd of around 2 000 cattle
at four farms across the country. These have a total value of over R20 million and
are managed on behalf of 800 investors who are not only South Africans but include
Germans, Americans, Canadians, Irish, English and Chinese. The company says
since inception, it has paid out almost R5 million in dividends. Its business model
works like a bank fixed deposit, where the client would invest in a cow for a six- or
12-month period with an option to re-invest. The 12-month option means investing
in a pregnant cow (R18 730) and the six-month option is investing in a calf (R11
529), which will eventually be sold for free-range beef with an average return on
investment of about 12%. Another alternative is the shared-investment option
(R576) where the investor buys a portion of a cow together with other investors.
“Government can’t give us all a farm divided into small amounts. We need to move
away from the old farm model of one person owning land, having all the skills and
farming their own product,” says Shezi. “With crowd farming, one entity owns the
land, and the farmer who loves farming and has the skills continues to farm, and
then others invest in the production. Whether it is cattle or blueberries or veggies,
other people can be involved in production without the investors getting their hands
dirty.” The company has also partnered with MTN Connected Livestock, which helps
monitor the livestock online through a tracking device, providing investors with data
about the condition of their animals through the app. “We are hoping that our
business model will be a game-changer in lowering the barrier to entry for millions
of aspirant farmers. The main definer is that the two parties each have what the
other wants, and we are committed to managing the relationship between the
investor and the farmer, by giving the farmer the option and the ability to unlock
the hidden value in their crops and livestock.” Source: (Mmako, Sambo &
Shambare, 2023) Question 1 Ntuthuko Shezi is clear about the goals he wants to
achieve for Livestock Wealth. With reference to the case study, Explain to Ntuthuko
how important setting goals is for his livestock business.
1. Provides Strategic Direction and Vision
By setting clear goals—such as expanding from cattle to agricultural products and creating smart
garden systems—Ntuthuko Shezi gives Livestock Wealth a clear strategic direction. This helps
align all operations, innovations, and partnerships (such as with Woolworths and MTN) toward a
common purpose. As seen in the case, the goal of providing ordinary people access to farm-
based investments creates focus in product development and marketing.
“Our goal is to give ordinary citizens an opportunity to invest in a long-term investment plan on
any agricultural product…”
2. Encourages Innovation and Diversification
ETP2601
Assignment 4
Semester 1 | Due 8
May 2025
NO PLAGIARISM
[Year]
,IVESTOCK WEALTH BECOMES MULTIMILLION-RAND ENTERPRISE Livestock Wealth
(LSW), a livestock crowd farming platform, has become a multimillion-rand
enterprise, and is expanding its offerings to include agricultural food products,
planted in a smart farming connected system. Developed by KwaZulu-Natal-born
electro-mechanical engineer Ntuthuko Shezi in 2015, Livestock Wealth offers people
with no access to land, time or skills the opportunity to own livestock within a
professionally managed farming operation. The Web and mobile application allow
investors to invest their money in cows rather than in unit trusts, shares or
exchange-traded funds. Through connecting its network of small-scale partner
farmers to investors, the business model allows farmers who cannot afford to scale
their business to access capital, while offering the investor an opportunity to invest
in assets which are not influenced by financial market trends. Cattle farming in
South Africa is estimated to be worth around R142 billion, with the local beef
industry generating an estimated $144 million in exports in 2017, according to data
from Trade Map. After seeing multimillion-rand growth, the investment company
says it has now expanded its offerings to include an array of agricultural assets that
can be owned by potential investors, including sugar cane plants, macadamia trees,
and maize plants and a separate option of investing in a connected garden system
which grows all types of organic vegetables. Speaking at a business update in
Johannesburg yesterday, Shezi explained that the new offerings give investors who
lack the time and farming expertise the opportunity to own tangible, high value,
growing assets. “Our goal is to give ordinary citizens an opportunity to invest in a
long-term investment plan on any agricultural product that has the potential to yield
great investments. For instance, macadamia trees, the most lucrative crop in South
Africa, can cost around R20 000 per hectare for the investor, but after a few years
of growth, one tree can reap rewards on a minimum investment of around R80
000.” Potential investors can buy online, from the partner farmer, while Livestock
Wealth facilitates and manages the assets like an investment portfolio. The South
African macadamia industry is the largest producer of macadamia nuts worldwide.
According to the 2018 World Nut and Dried Fruit Conference, an estimated yield of
53 500 tonnes of macadamia trees reaped a sales value of well over R3.2 billion in
2018. The connected garden system, a pool-table-sized garden which grows any
vegetable crop, including spinach, lettuce, cauliflower and brussel sprouts, is
managed around the clock by an experienced partner farmer. Investors can own
several smart garden systems, which are connected to an internet of things
monitoring system, allowing the farmer to track the environmental condition of the
plants, while the investor can view and track the plants at almost any time via the
app. “Because farmers receive a seasonal income, the biggest problem they face is
gaining access to funding to help them grow their business and take care of
expenses, such as paying salaries, feeding livestock with quality food, maintaining
tractors and providing medical care for the stock. Banks often require collateral for
taking loans and with most black farmers renting out their farms from government,
it becomes impossible to provide the required collateral.” The crowd farming
company has partnered with Woolworths and wholesaler Cavalier Foods, to provide
them with free-range beef, which is free of antibiotics and growth hormones. The
farming business says it is engaging potential partners such as restaurant chains,
public hospitals, prisons and retailers to connect them to its farmer partners who
will then supply them with fresh produce on a regular basis. “Typically, we are
looking at supplying institutions such as Johannesburg General Hospital with onions
, or lettuce on a daily basis and also supply some retailers and restaurants with a few
kilograms of veggies on a daily or weekly basis. The farming systems are not limited
to vegetables, but also include growing plants that will be used to make food spices,
such as seeds, buds, fruits, flowers, bark and roots of plants.” Livestock Wealth
started with 26 cattle in 2015 and currently manages a herd of around 2 000 cattle
at four farms across the country. These have a total value of over R20 million and
are managed on behalf of 800 investors who are not only South Africans but include
Germans, Americans, Canadians, Irish, English and Chinese. The company says
since inception, it has paid out almost R5 million in dividends. Its business model
works like a bank fixed deposit, where the client would invest in a cow for a six- or
12-month period with an option to re-invest. The 12-month option means investing
in a pregnant cow (R18 730) and the six-month option is investing in a calf (R11
529), which will eventually be sold for free-range beef with an average return on
investment of about 12%. Another alternative is the shared-investment option
(R576) where the investor buys a portion of a cow together with other investors.
“Government can’t give us all a farm divided into small amounts. We need to move
away from the old farm model of one person owning land, having all the skills and
farming their own product,” says Shezi. “With crowd farming, one entity owns the
land, and the farmer who loves farming and has the skills continues to farm, and
then others invest in the production. Whether it is cattle or blueberries or veggies,
other people can be involved in production without the investors getting their hands
dirty.” The company has also partnered with MTN Connected Livestock, which helps
monitor the livestock online through a tracking device, providing investors with data
about the condition of their animals through the app. “We are hoping that our
business model will be a game-changer in lowering the barrier to entry for millions
of aspirant farmers. The main definer is that the two parties each have what the
other wants, and we are committed to managing the relationship between the
investor and the farmer, by giving the farmer the option and the ability to unlock
the hidden value in their crops and livestock.” Source: (Mmako, Sambo &
Shambare, 2023) Question 1 Ntuthuko Shezi is clear about the goals he wants to
achieve for Livestock Wealth. With reference to the case study, Explain to Ntuthuko
how important setting goals is for his livestock business.
1. Provides Strategic Direction and Vision
By setting clear goals—such as expanding from cattle to agricultural products and creating smart
garden systems—Ntuthuko Shezi gives Livestock Wealth a clear strategic direction. This helps
align all operations, innovations, and partnerships (such as with Woolworths and MTN) toward a
common purpose. As seen in the case, the goal of providing ordinary people access to farm-
based investments creates focus in product development and marketing.
“Our goal is to give ordinary citizens an opportunity to invest in a long-term investment plan on
any agricultural product…”
2. Encourages Innovation and Diversification
