Livestock... an opportunity and an investment

Muhammad Salem Al Ali

January 19, 2023

Most of us know that livestock is an important and vital part of the agricultural economy, and the demand for animal products is constantly rising, in response to the growing and expanding population. The number of poultry reached 33 billion chickens in 2020, while the number of livestock in the same year also reached billions, forming a section important part of the biomass of terrestrial mammals.

Of course, these are large numbers, and if we add to them the expected growth rates during the coming years and decades, we will reach a conclusion confirming that this industry offers tremendous opportunities for investment. That the issue requires investment patience until it reaches the stage of full maturity;

The beauty of this type of investment is that it involves a kind of environmental and social responsibility. Livestock plays a vital role in sustainable agriculture, by providing manure to fertilize agricultural crops, and also recycling nutrients in the soil. In addition, it can help improve the quality of crops. soil, and reduce its erosion, and on the other hand it is a major component of global food security.

From an investment point of view, the livestock industry is a flexible investment that can be diversified, because it is associated with multiple types of animals, and it is possible to transfer them from one type to another, according to market requirements and future trends. For meat, there are livestock and poultry projects, in addition to fish farming, and for eggs. There are poultry farms of all kinds. As for dairy and cheese, the issue here revolves around cow and sheep farms, as well as camels.

And it does not end here, for the sake of honey there are bees and apiaries, and for the sake of silk there are silkworm nurseries, and also snail farms for skin and leather, and there are leeches for medical hospitals, and wool and leather are by-products with high added value.

Perhaps the most important thing when choosing and choosing between these various opportunities is knowing the risks before starting the investment strategy, that is, understanding the competition and prices, and making sure to conduct research and studies.

For example, the infrastructure and superstructures must be prepared for the project, and then the species that are suitable for the nature of the different regions and environments must be selected, as well as investing in high-quality animals with a good health condition, and factors such as weather and climate, and the availability of fodder, water, pastures, energy and other resources must be taken into consideration, And also the local demand for the products of these animals, the size of the available space and resources, the availability of veterinary care, the proximity to markets, as well as the amount of skills and experience enjoyed by the workforce concerned with animal affairs.

Like any investment, the livestock industry needs to develop sound and effective marketing plans, along with the need to build a knowledge base associated with it, and follow up on the latest trends, changes and developments. The profitability of projects here is largely driven by demand and price cycles, which are affected in turn by many macroeconomic factors.

Investing in livestock, if done correctly, offers wide potential and grows assets, simply because it is a growing industry that will not know slowdown, and an investment fund rich in products. If you are one of those who buy and sell in the financial and commodity markets, and tend to invest money in Projects with returns, so why not try a little in this type of investment?

It is true that it has some risks, like any investment, but what distinguishes it is that it is profitable on both sides, and what about an environmentally friendly industry that generates good and fights hunger?! 

Founder of Suhail Smart Solutions

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