HOW DO I CONFIRM MY INVESTMENT? LIVESTOCK PURCHASE ORDER
Once Tradición Ganadera receives an acceptance letter to the proposal, it will follow through with the agreed purchase in accordance to the defined parameters and will send the corresponding settlements to the investor, together with the receipts and contracts.
WHICH LEGAL DOCUMENTS ACT AS BACK UP?
For each batch purchased, there will be a contract signed by the investor, the producer and Tradición Ganadera. Property and transit waybill. Electronic transfer in SNIG.
DO I NEED ANY AUTHORIZATION TO PURCHASE LIVESTOCK?
To be able to purchase livestock under the name of the investor it is necessary to be enrolled in DICOSE. It is an easy and simple procedure that is dealt with at the moment. A member of Tradición Ganadera’s staff can accompany the investor if required. In the case of not being able to appear in person, this procedure can be performed by power of attorney. Tradición Ganadera can solve this issue upon client’s request.
BRAND
Together with the DICOSE enrolment, it is necessary to register an identification “brand” related to the obtained DICOSE number. It is necessary to make the branding irons necessary for branding animals with the registered logo. Tradición Ganadera can solve this issue for those who require it.
HOW ARE BUSINESS RESOLVED?
By getting to the average objective weight in the output batches, or a market scenario that requires an anticipated exit (whether it is because there is a rise or a fall in prices), Tradición Ganadera will inform parties of the decision on the sale of the animals. For such sale to be performed, the owner of the livestock (the investor) will be asked to sign the corresponding bills.
HOW DO I RECEIVE MY PROFITS?
The owner of livestock (the investor) will receive a check from the slaughterhouse or the buyer of the livestock, such cheque will be endorsed in favor of Tradición Ganadera, who will settle the fees according to what had been agreed on the contract and will hand out the resulting fee to each of the parts.
WHAT HAPPENS IF I NEED THE CAPITAL BEFORE THE END OF THE AGREED TERM?
If the investor was in need of recovering cash flow before the settlement of the business, Tradición Ganadera will ease the situation by trespassing the business to another client or selling the animals to a third party, minimizing the economic impact.
WHICH OTHER COMPONENTS DOES MY INVESTMENT HAVE, BESIDES THE PURCHASE OF ANIMALS?
After each purchase, the investor will be sent a settlement with the bill for the purchase of the animals and the detail of the expenses involved, which will have been taken into consideration before in the total investment and contemplated in the analysis of expected return of the deal.
- Arbitration commission (when applicable). Even though it can happened, it is unusual for the direct buying / selling of livestock among producers; therefore, there is normally a broker or a consignee that mediates the operation. The cost of such arbitration is in the range of 3% to 6%+.
- Initial freight. This is to be paid by the buyer (investor). It is settled by kilometre and according to the size of the crate used. Tradición Ganadera obtains preferential fees due to the important volume of hired freight and translates that benefit to its client.
- Health and ear tags. The batches selected by Tradición Ganadera for its clients have all the health guarantees. However, to keep a standard with the producer, animals are dewormed and treated in accordance to the veterinary recommendation the moment they go into each establishment. The subsequent treatment costs that would be necessary will be subject to the contract terms agreed for each deal. Seeking optimizing the operational management, each batch will be identified with ear tags of different colors, besides the traceability ear tags
- Technical, operative and logistic supervision. Tradición Ganadera charges a percentage of the total investment to ensure covering operative costs. Such concept includes technical follow-up, travel expenses for the buying and selling of animals, control in reception and shipment of animals, and all expenses related to the operation and logistics of each deal.