13th Month Pay!!

[uls]

why don't they use their own capital to raise livestock?

why are they asking for money from investors?

[uls]

quick read on "paiwi"


in other words -- CROWDFUNDING

[papi smith]

why don't they use their own capital to raise livestock?

why are they asking for money from investors?

Let me take a guess.

The paiwi program as I know it, is practiced in the hog and fishcage industry. It is a system where an investor provides capital and an industrial partner providing the labor, the profit is split between the two based on their arrangement. There is a high risk in these type of investment practice as it is exposed to a lot of uncontrollable factors like disease, force majeure and even malicious intent by the industrial partner. Thus, in this practice, the investor increases his return to compensate for the high risk by overpricing the inputs, i.e, feeds for hogs and fish, in the hope he gets lucky with the first run which will serve as buffer for losses in succeeding runs. The investor in this case are usually dealers of these animal feeds. They profit three ways, from the volume discount, the normal profit margin and the mark-up.

No this is just a guess and I have no intention of maligning the dv boer paiwi program. I think the goat breeder, is the facilitator between the investor and the industrial partner, generating sales for his goat business, but is immune from the contract itself. Check the contract, if there is a guarantee of payback, if there is, then I am wrong and this is a risk free high yield investment.