Happy New Year! Today, I am happy to announce that we are making an update that will improve our platform for the community and expand the market for the people we want to support.
It has been a little over one year since we started selling animals for breeding to the community. Although the breeding model works over time, we have learned that it can be risky and costly to keep animals for a longer period and that most importantly, the impact is lower than what we want to achieve.
After we recently opened a farm in central Somalia, we started testing to trade animals regularly in the local markets and for export. This along with the information we gathered while recording the prices of the local livestock trading in Somalia over the last 8 months, led us to conclude that trading will be more beneficial for the users, since it can offer quick turnaround and will make a bigger impact.
Right now, if we only keep animals for breeding our current farm has a capacity of a maximum of 1000 goats/sheep, but if we are trading we can increase that capacity to over 10 000 animals per year, per farm, since we are buying and selling animals every month. This will create a bigger market for a lot of farmers. Our goal for 2018 is to trade 10-20 000 animals.
Therefore, we are officially switching from breeding to trading animals.
What does this mean for people who want to invest in livestock?
It means from now on you can buy and sell animals based at the local market prices. You will be able to buy and sell animals at any time. You can become an active trader who sells animals every month or keep your animals longer and watch the market prices. Basically you will become a true digital livestock trader.
To make sure our operations run smoothly when you decide to sell animals, we will pay you the current market prices without waiting for your animals to be taken to the market.
How does trading compare to breeding model?
With the current breeding model, you were buying for example a goat for $ 199 and getting a new animal every year for 3 years. You got a total of 4 animals. You could then sell all of your animals for the local market prices.
With the trading model, you can buy animals at the current average market prices (so far $ 51-87) and sell them when the price rises. That means for $ 199 dollars you could buy 3-4 animals and sell them after a few weeks, months or years. It is your decision when to sell your animals. If you want to create a herd, you can always buy animals when the market is low and keep them. Operationally, you will not be assigned to specific animals but you will own a specific number of animals in our farms. That means if you show up and ask to take your 5 goats, we will give you 5 goats from the farm.
What about the members who already bought animals for breeding?
For anyone who bought animals before today, we will give you all your remaining +x animals in this month. That means it is basically the same cost as breeding (you paid $199 for a goat and get a total of 4 goats in 3 years) and now you are getting all 4 for the same price which you can trade or keep just like everyone else. We will send more details about the new animals to the current owners soon.
What about the camels?
We will follow the same model for the camels. However, to enable more people to participate in camel trading, we are introducing the possibility to buy a whole camel or shares of a camel. Just like the goats and sheep, you can see the current market price for the camels and decide to sell your camel or shares and we will pay you that price. Locally, we will be buying lactating camels for milk production to be able to cover their costs for the time that they are in the farm.
How are the market prices determined and how often will the market prices be updated?
This process will stay the same as it has been for the past 8 months. Our team calls local livestock markets and records prices on every Monday. In order to standardize things, we make an average price based on the different quality of animals and locations.
How will this change the app?
There will be no changes to the app. You will still have a specific number of animals or shares of animals you see in the app, which you can sell, gift or donate.
When can I start trading animals?
If you already have animals, you can trade them now. For new users, we will open new orders soon.
Where can I see more details?
Thank you to our community as always for your understanding and participation on this adventure!
As a result of this update, we are also updating the terms and conditions.