Camel Farm

Galkacyo, Somalia

At this farm we are producing fresh camel milk for the city of Galkacyo and surrounding areas.


Animals capacity: 100+

Minimum investment: 30% of a camel

Price per camel: $ 1300

Expected employees: 3-6

Estimated annual ROI: 20%

Next revenue report: 2019-10-01

Introduction

We are buying two types of camels for this farm. Young camels that we are breeding before they start producing milk and lactating camels that are ready to produce milk. The breeding camels are around the age of 6-7 years old who are ready to get pregnant this spring or the autumn. We are starting with 60 camels with possibility to increase to 100 camels. The camels will graze naturally in an area near Galkacyo city, central Somalia. Camels are very important in Somalia both for milk and meat. Somalia is the world's #1 camel milk producer. The camels will be given utmost care by nomads who have been camel herders for many generations.

Investing in this project

As an investor in this project you will get a share of the revenues from the milk and animal sales every quarter. You can invest in a whole camel or a share of a camel. The minimum investment is 3 shares or 30% of a camel. After we pay the operating costs, investors will get 70% of the net revenues. The investment period will run until the investor gets their money back with 60% profit.

The price of a camel in this farm will be $ 1300 which includes the purchase price and related costs. After the animals start producing milk, we estimate the everage milk production will be 2-3 liters per camel per day. The price of camel milk in Galkacyo is $ 1-2.5 per liter. Therefore, the quarterly revenue could be about $ 20 250 from total of 60 camels and the operating costs is estimated to be $ 7 800 per quarter. Which gives a net profit of $12 450 per quarter and investors will get $8 715 per quarter or $ 34 860 per year. Based on these estimates, the investors can get their money back with 60% profit in ca 4 years. You can withdraw or re-invest your earnings at any time. It is important to note that these are only estimates and actual revenues could be different.

Example investment in this camel farm

This is an estimate of potential return on investment on a 4 year period.

Invested Share Payback A. ROI
$ 1300
(1 camel)
1.66 % $ 2 323 20 %
$ 6 500
(5 camels)
8.3 % $ 11 615 20 %
$ 13 000
(10 camels)
16.6 % $ 23 230 20 %
$ 39 000
(30 camels)
50 % $ 69 690 20 %
$ 78 000
(60 camels)
100 % $ 139 380 20 %

Project timeline

This an estimated timeline and may change over time.

Announced Buy animals First Payment
May 2019 June/July 2019 Oct 2019

Local impact

This farm will create jobs for former nomads who will be responsible for taking care of the animals and selling milk. We expect up to 6 people to work at this project when fully running. The project also creates another impact by providing fresh camel milk to the residents of the city . In addition, we also make an impact by providing a market for people who want to sell camels to us.

Risk assessment

Every investment carries risk and investment with Agrikaab is no different but we try to be transparent and do our best to minimize the risks. These are the potential risk with this project

  • Security [medium] The security situation in this area is moderate. There is potential clan conflict around federal state borders but the animals will be kept away from these areas.
  • Droughts [high] There is a high risk of droughts in this region which can have an impact on the fertility of the animals, food and water resources. If there is a drought it is possible that some animals may not get pregnant for a season.
  • Disease [medium] There is potential for diseases. We will retain a veterinary who will check up the animals occasionally. Sometimes there could be outbreaks that can kill animals.
  • Loss or theft [medium] Since the animals are grazing in an open area, there is a risk of animals going astray or theft. However, we plan to use GPS trackers to monitor the animals.
  • Infertility [medium] Some animals might be infertile. In those cases, we will sell those animals and any loss will be distributed in the whole herd.
  • Low milk yield [medium] Some animals may not provide the expected milk yield. This can have an overall impact on the total milk revenue from the animals or may reduce the animal's selling price in the market. These animals will be sold after the end of the lactation period.
  • Miscarriage [medium] Some animals may have complications during delivery, especially among young camels. In these cases, the losses will be distributed in the whole herd.
  • Death [medium] There is always a risk of death of animals for different causes. In these cases, the losses will be distributed in the whole herd.

Terms of investment

By investing in this project, you agree to the following terms of investment as well as the general terms of service available here.

  • Investors have the right to check their animals physically and take them from our care.
  • The investment is not tied to a specific animal. You own specific number of animals in the herd. If the animals die, are stolen or lost the losses will be distributed in the herd.
  • Investors will be eligble to receive 70% of the net revenues from the project until they recoup their money back plus 60% profit.
  • After the investors have receive their money back with 60% profit, their investment will end. Investors can re-invest their earnings or withdraw.
  • Investors are entitled to receive quarterly revenue reports from the project.
  • The expenses during the gestation period for food and labor are included in the initial purchase price.
  • The expenses during the rest of the project will be covered from the revenues from the project.
  • Payments from this project will be made on quarterly basis.
Frequently Asked Questions

How does the investment in this project work?

Investors in this project will get a share of the net revenues from the whole herd. After paying expenses, the investors will get 70% of the net revenue until they get their money back with a 60% profit, after which the investment will end.

What are the camel shares?

To enable more people to participate, we have divided camels into 10 shares. You can purchase a whole camel or a minimum of 3 shares. That means you own 30% of a camel. If you want to buy a whole camel you can buy 10 shares.

What are the camels used for?

The camels are mostly used for milk production. Some camels will be sold to other farmers/ herders.

Who gets the offspring of the camels?

The offspring or calves will be part of the herd and belongs to the whole project and all investors.

What is the pregnancy length of camels?

The pregnancy length (gestation period) for camels is around 9-14 months.

How long can it take to get my money back with profit?

Right now, our estimate indicates that you can get your money back with a profit of 60% in 4 years. However, it can be longer or shorter depending on the price of milk, price of animals, production, and demand.

Do I have to pay recurring expenses?

No, the expenses for the gestation period are included in the purchase price. Expenses after the animals deliver and start producing milk will be covered from the revenues from the project.

Do you take commissions?

We will take a share of the net revenues from the project, 30% of the net revenue will go to us and investors will get 70% of the net revenue.

Can I sell my camel?

No, your investment is tied to the whole herd and will be paid back gradually until you get your money back with a profit.

Do I own specific animals?

No, but you own a specific number of animals in the herd. The revenues from the whole herd will be distributed based on the number of animals you own in the herd. In the app, you will be assigned to camel(s) from the herd to personalize your investment.

What if the camels don't get pregnant?

It is possible some camels may not get pregnant. Those camels will be bred again in the next season or will be sold if they are infertile. Any losses will be distributed in the whole herd and will not have an impact on a particular investor.

What if animals die, stolen or lost?

In any of those cases, the losses will be distributed in the whole herd and will not have an impact on a particular investor. We will be using GPS trackers to monitor the animals during gestation period when they will be grazing naturally.

What do camels eat?

Camels are herbivores. A camel can survive without food and water for a long period of time. When they find water, they will drink as much as possible. They can drink up to 150 liters of water at once. At our farms, the camels get livestock feed, water and medicine.

Our impact

Creates jobs

Our local operation creates jobs for former nomads who work at our farms. They take care of the farms, buy and sell products.

Locally produced food

We are producing locally produced food which are distributed in the local market. We sell organic milk and vegetables at affordable prices.

Supports the local economy

Agriculture is over 75% of Somalia’s economy (GDP). We are bringing global investment to this vital industry for the local economy.

Our global investors

Our investors come from all continents from more than 50 countries

Somalia Kenya Sweden USA Germany Canada Denmark Finland France Spain Portugal Italy Czech Republic Slovakia Slovenia Estonia United Kingdom Netherlands Ireland Australia New Zealand Singapore Malaysia Mauritius Uganda South Africa United Arab Emirates Saudi Arabia Bahrain China Japan South Korea Argentina Brazil Poland Croatia Turkey Hungary Uruguay Malta India Luxembourg Romania

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