In 2017 SENCE Agric launched a crowdfunding exercise for Selema farms. The fund was to enable the farm to acquire, fatten and sell rams for the Sallah festivities. We helped the farm raise N60m for this activity. All those who invested received a 20% ROI within the said 4 months period.
Now Selema farms are back, this time, with an intention of raising N100m for acquiring and fattening cows. This exercise tagged ”Ranch funding at Selema Farms” once again provides members of the public with an opportunity to invest in agriculture and assist smallholder farmers to raise the capital they need.
About the Farm
Selema Farms Limited is a company with two sub-farms namely Selema Farm Fresh and the Oloba Cattle Ranch. Selema Farm Fresh is a major player involved in the importation and wholesale distribution of fruits and vegetables, while Oloba Cattle Ranch is involved with the supply of organic small ruminant meat across the country. Selema Farms took over Oloba Ranch from the Osun State Government in July 2016 for the primary focus of Livestock Farming, Processing and Ranch management.
Selema farms want to raise funds so they can increase their inventory and also be able to serve their customers better. They intend to sell the cows to their existing off-takers who are; MasterMeats, Spar, Red and Green, Ambassadors, Labule restaurants and possibly reach new customers because of the increased inventory as they currently are unable to meet their clients demand hence the crowdfunding. So with access to funds, they can increase their livestock and satisfy their customer demands.
Presently, the farm has an abattoir where they slaughter, process and supply meat to their customers, a feed mill where they process feed for their livestock to make sure adequate and balanced diet is provided for the animals and lastly, built on the farm is a feedlot that can cater to about 2500 cattle which is their long term goal.
About this project
The idea is for Selema farms to purchase a minimum of 500 cows and resell to their off-takers as mentioned above and in the case of left-overs, they will sell to the open market. Three specific breeds of cows are intended to be purchased and they include; Ambala, Adamawa Guadani and White Fulani breeds, these breeds were chosen because they have been proven to survive under harsh conditions, they produce better meat quality and they gain weight quickly when compared with other cow breeds.
How is Selema Farms’ Special crowdfunding structured?
Interested investors can buy minimum units of N50,000. Based on agreed terms, SENCE Agric will disburse the same to Selema Farms for the purchase of the Cows. Selema Farms will then purchase the cows and raise them for 8 months. All payments are to be made to :
Name : SENCE AGRIC LIMITED;
Bank Name: Union Bank Plc,
Account number: 0053276666.
SENCE Agric based on agreed terms will disburse the same to Selema Farms SENCE Agric throughout this period, will monitor the process to ensure that due care and consideration are exercised and all quality standards maintained. Once the cows are ready for sale, we would also monitor the sale of the cows to ensure that all monies are accounted for and your interests protected. All proceeds from the sale of the cows will be paid into a joint account between Selema Farms and SENCE Agric. Once the revenue has been realised, SENCE Agric will begin disbursement of dividends to investors based on the amount invested and income earned.
Risks and Challenges
Livestock production is affected by uncertain factors such as rainfall, pests, and diseases. These factors especially the attack of pests and diseases could cause the death of any affected animal. This is referred to as the “mortality risk”. Normally 10% mortality rate is usually set aside when dealing with livestock production because it would possibly affect the projected income thereby having an adverse effect on the return on investment. Thankfully, Selema Farms has put in place suitable housing structures to protect the cows from harsh weather conditions during the fattening process and also made provisions for veterinary doctors who will keep the cows’ health in check.
The farm has also made sure that all animals bought will be fully insured thereby protecting all investors' money. The insurance will cover all aspects of risk from fire, flood, vaccine failure, theft, pests and diseases, and mortality. In summary, all risks have been covered by insurance (Leadway Assurance) making mortality risk 0%.
A crowdfunding contribution of up to N100 million will enable Selema Farms to purchase 500 Cows for resale at a later date.
Crowdfunding Length: 8 months (1st Oct - 30th June 2020)
Payment Collection Starts:(1st Oct 2019)
The final date of Payment Collection: (1st November 2019)
Repayment schedule: From 1st July 2020*
Mortality risk: 0% because all animals will be insured by Leadway Assurance
Minimum contribution: N50,000
Available Units: 2,000
Facilitated by: SENCE Agric
To participate kindly click here to register
Thank you for your interest in helping the small agribusiness owners in Nigeria grow. We hope this will be a rewarding experience and the beginning of many successful ventures together.
The SENCE Agric Team on behalf of SELEMA Farms
Terms and conditions apply;