Hari Triatmojo
Amelia Naim Indrajaya
IPMI International Business School
Amelia Naim Indrajaya
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Lambbank by Jonggol Farm is a breakthrough way of investment in sheep or goat farming in Indonesia. The investment system provides the easiness to invest by small investors even individuals who are willing to invest in sheep or goat farming using the method of profit sharing. The new business model is to connect the investors who are willing to invest and the farmers who are willing to manage the sheep using the specific monitoring model. The model manages up to the process of sharing the benefit of the sheep: meat, milk, etc. The farmers can also gain the benefit by having a lot of sheep with minimum own-pocket expenses, and gain the benefit from the sheep.
The traditional way to have lamb farming is by opening a new owned farm which you have to manage all the activities (feed, maintenance, etc.) by yourself, or the other way is by investing with the existing lamb farming in which you have to trust or at least you have to know them and their reputation.
The operation manager illustrates that the innovation offers by Lambbank is buying and selling regular sheep plus maintenance, make the system so that you can do it as easy as withdrawing your money from the bank. The investor will have the convenience as the sheep is handled by the professional farmers and they can easily choose, monitor the growth of the sheep. The risk of the investor is relatively small as the sheep are professionally managed by the modern farming method which reduces the risk of death of the sheep.
Inspiration comes when a lot of small sheep farmers are having limited sheep and they will bear the risk of loosing the sheep. When the sheep is dead, then they will lose their source of income. Lambbank is coming to help the sheep farmers to sustain their income by inviting the investor who will share the risk and share the profit of the sheep.
The major impact mostly for the farmers who can: maintain, raising and fatten the sheep since birth to the period that the benefit of the sheep can be taken from its meat, milk, or even from the new born lamb. The farmers can gain the portion of the feed and the weight gain without they have to buy the food or even buy the sheep itself. The farmers are coached and trained on how to raise the sheep in the right way, so the sheep can be fattened and grown in the maximum way so they can get the benefit when the sheep are getting bigger or producing the milk.
The business benefit for the investor is getting profit ranges from 10% to 15% per year. This data is coming from the last 5 year experiences.
Example of the calculation for a Sheep is as follow:
Investor entrusts one lamb at the price for example Rp 2,000,000 (weight 40 kg). They bought a sheep for a price of Rp 800,000 (weight 16 kg). It takes about 1 year for this sheep to reach the standard weight of 40 kg, then the cost of enlargement (including vitamin, tsc.) is around Rp 360,000 for one year. For a sheep worth Rp 2,000,000; the costs is = Rp1,260,000. The gain is about Rp 2,000,000 - Rp 1,260,000 = Rp 740,000 divided between investor and the farmers @ Rp 370,000 in a year or about 19%.
The farmers will get the same amount with the investor.
Usually the traditional farmers only rely on their own sheep that they bought by their own fund which very limited number of the sheep and make money when they sell the sheep. The risk of maintenance of the sheep is also taken by the farmers. The continuity of their business is questionable especially if the number of the sheep are very limited. While Lambbank is giving social impact to the farmers for sustainable income and increase the living standard of the farmers as well.
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Lambbank is an innovative way to meet the investor and the farmers directly for buying and selling regular sheep plus maintenance, as easy as withdrawing money from the bank. The investor may trust their investment and the farmers to maintain the sheep and both will get the benefits or return when the sheep are producing meat or milk. The sheep farmers will have a better life from a higher income.
