Agricultural Commodity Investment Opportunity

Agricultural Commodity Investment Opportunity

Background

Postharvest losses in African countries are estimated to be between 20 and 40 percent of food produced. An estimated 25 percent of Agricultural produce is lost following harvest in countries such as Nigeria. This is mainly as a result of mishandling, spoilage and pest infestation. Coupled with the COVID-19 pandemic at this time, the problem has become increasingly direr. It is estimated that Nigeria produces over 33 million tons, of maize, 9.3 Million tons of Guinea Corn and 278.2 thousand tons of beans annually in recent years. Some of the major producing states of these produce in Nigeria are Kaduna, Taraba, Niger, Zamfara and Plateau states.

Subsequently, there is a growing demand for these Agricultural Commodities occasioned by population increase, exports to neighboring landlocked countries, limited Government support to farmers in recent years, the rising cost of farm inputs, and insecurity. These factors have further limited farmers capacity and capability to increase agricultural productivity. Additionally, protectionist government policies (such as a recent ban on importation of maize by the Central Bank of Nigeria) are causing decline in imports of food and other agricultural products thereby leading to price volatility.

Our research experience and involvement in the Agricultural Commodity space has shown positive return on investment (ROI) over the years. In 2020, between January and July, ROI on Maize, Beans and Guinea Corn was within 30% to 75%. Further research shows that the indices and outlook for 2021 agricultural activities point to a similar direction of profitability.

In response to these weak links and attendant investment opportunity across the agricultural commodities value chain, T I Plus Limited proposes to scale its involvement in Agricultural Commodities Trading. This is aimed at reducing gaps in Food Security (occasioned by postharvest losses and wastage) as well as aiding price stabilization and increasing the availability of Agricultural Commodities during the year. This endeavor equally helps in increasing the quality of preserved food as we adopt Global best practice in our processes.

Below are our Company’s investment options you may want to consider:

Option 1 (Conservative Portfolio)

15% Return on Investment per annum: This is investment option is conservative as T I Plus Limited guarantees the repayment of the principal and 15% interest on the Principal investment as at and when due. This is guaranteed notwithstanding whether profit is made or not.

Option 2 (Aggressive Portfolio)

50% Profit share: This investment option assumes the principle of shared responsibility. Any funds committed here will be strictly applied to Agricultural Commodity Trading. All logistics costs (transportation, fumigation, storage warehouse, insurance and any other cost associated with this process) will be embedded in the investment.

The Company shall provide updates to the Investor as regards the quantity in units (MT) acquired on behalf of the Investor and the cost of logistics as stated above.

This investment can only be terminated upon maturity or liquidation of the investment. (sale of commodities). Once this process (purchase and sales) is concluded, the Profit or any loss arising from this transaction will be shared equally between the Company and the Investor. The Principal amount invested in addition to the accrued 50% share of profit or loss due will thereafter be paid out to the investor at the end of the trading year.

Subscription for both investment portfolios will commence from the 1st August 2020 and close on the 31st August, 2020. The maturity date for both investment portfolios will be 31st August, 2021.

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