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Seeking additional RM500K to venture into Malaysia cattle/beef industries

Seeking additional RM500K to venture into Malaysia cattle/beef industries

Project Cost: RM800,000

Amount Invested : RM300,000

Amount Required : RM500,000

Knowledge / Experience Required: finance; internationalisation

Proposed Investor’s Role: part-time

Industry: agriculture; trade

Project Stage:

Government of Malaysia orders obtained. All relevant papers and procedures completed. Pending working capital for cattle, air freight, logistics, portable abattoir. Infrastructures – we are using MOA (dept veterinary svs feedlots).

EXECUTIVE SUMMARY:

Conducted 2 years R&D on cattle/beef industries
Own Licenses and ESCAS and pre-booked 150,000 heads of cattle at a time from Australian Sideline Partners (an aggregated cattle supply)
Secured government agencies’ (DVS, MOA) facilities (feedlots & abattoirs) and supported by FAMA to get the goods direct to consumers (‘tiada orang tengah”)
Owned a specialized formula of animal feed with proven result (double weight gain) with half of the retail cost to farmers
ESCAS COMPLIANCE

Exporter Supply Chain Assurance Scheme (traceability system link to DVS)-DAFF/MLA
Implemented by Australia to control livestock export industry (recognised by Malaysian DVS)
XXXX is one of only a few ESCAS compliance company in Australia
XXXX cross-owned Australia & Malaysia shareholdings (49%:51%)
CATTLE/BEEF INDUSTRIES

Indonesia is the largest importer live cattle.
Malaysia is importing 95% of beef consumption
Upstream – Feedlot breeding, feeding
Downstream – processing, beef based products, retailing
Related downstream – animal feed production & supply
MALAYSIAN CATTLE INSIGHTS

EPP 5 – DVS, focuses on integrating and rearing an additional 300,000 heads of cattle in large oil palm plantations by 2020.
Cattle breeding and rotational grazing programme (Good Animal Husbandry Practices (GAHP).
3 core players are FELCRA, Ihsan Permata Sdn Bhd (Jcorp) and Espek Livestock Sdn Bhd (RISDA).
LICENSES & PERMITS

Export Licensed – XXXX Australia Pty Ltd
Import Licensed – XXXX Malaysia Sdn Bhd
Export Permit – Approved in Oct/Nov 2014
Import Permit – Approved in Oct/Nov 2014
Purchase Orders – from ADUN KEDAH to GAM & ATIEN (co-trader)
ESCAS Approval
Audited Feedlots in Malaysia
FUNDING REQUIREMENT

Export Licensed – XXXX Australia Pty Ltd
Import Licensed – XXXX Malaysia Sdn Bhd
Export Permit – Approved in Oct/Nov 2014
Import Permit – Approved in Oct/Nov 2014
Purchase Orders – from ADUN KEDAH to GAM & ATIEN (co-trader)
Support & Guarantee letter of MOA to Financial Institutions to finance XXXX on Cattle Pilot Project
Support letter from Prime Minister’s Dept to FELDA for granting the Livestock Grant to XXXX Malaysia
AIR FREIGHTER CHARTER

We have engaged forwarders and direct Air Cargo companies like MH, SQ & TOLL GLOBAL.
B747 could fit 300 heads of 250 – 300 kg size of cattle with 115,000 kg gross weight
The Charter cost is USD135,000 to RM200,000 per trip from Sydney Airport to KLIA.
The schedule is fixed and we have to arrange the transfer from farm to the Export Terminal for chemical treatment and inspection approval (DAFF)
The travelling hours is ~ 8 hours plus
SEA FREIGHTER CARRIER

We have engaged other Exporters & ship owners to carry our cattle
A ship could fit 3500 heads of 420 kg size of cattle
The Charter cost is USD1.2 million per trip from Sydney Airport to KLIA.
The travelling time is 7 days from Darwin Port to ASWP in Malaysia.