Return Examples

“Compared to say the share market, I feel that BSM has far less exposure to risk. I believe that even with a major drop in price (40c), we should still expect something like a 6-8% pa return. When compared to shares that have the potential to reduce an investment, it is an easy decision. Even the banks will not guarantee much more than 6%, so BSM beats the banks also." BSM Cattle Owner, Roma, Qld. Australia

Example generated on live prices and current averages for a GST registered ABN holder:

NOTE: Click here for an example for NON GST Registered investors.

You wish to spend a maximum of $5,000.00 on BSM beef cattle. The current purchase price to buy at is $1.91/kg (Inc. GST). Subsequently the current average weight purchased is 249.76kg. Using these figures you would be designated 10 head with a combined weight of 2497.6kg. Your outlay has been $4,770.42 and a Tax Invoice for that amount is generated for payment within 48hrs. Upon order approval, you receive regular e-mail updates on paddock condition, market trends, rainfall and so on.

During the time you own the cattle, every few months your cattle are weighed individually at the paddock, and your portfolio is updated with the current weights. At these stages you are required to pay a weight based grazing fee of $1.15 inc. GST for every kilogram gained since the last weighing. This is direct debited from your selected bank account. Assuming the current average weight gain per head is 203.24kgs, over the course of ownership your 10 head of cattle gained a total of 2,032.40kg. Thus, during the course of ownership the total of the weight based grazing fees direct debited from your selected bank account would then be $2,337.26 ($1.15 x 2,032.40kg.)

After several months the Livestock manager notifies you that your animals are in sale condition at an average of 453.00kg. You are either required to contact (via email, phone or fax) the Livestock Manager within the specified timeframe to say that you will sell at the present Finished Sell Price. Or to avoid missing the “Finished Sale Price” window, you may select the complimentary management service option when you first complete the BUY NOW page. The BSM Livestock Manager can then sell cattle at the optimum weight on your behalf. Based from averages, the Finished Sell Price could be approximately $1.71/kg. There were no additional marketing or transport costs incurred as it was a farm-gate sale. Using the above averages, your portfolio of animals would then be sold for $7,746.30.

To work out your return, the following costs have to be deducted from your sale proceeds:

Your account would now look like this:

Your Gross Profit on the initial $4,770.42 outlay is $356.23!

Assuming your cattle will be gaining around 0.60kg per day on average for the time you own them; that 7% return has come in 339 days!

Example generated on live prices and current averages for a NON GST Registered investor:

You wish to spend at the most $5,000.00 on BSM beef cattle. The current purchase price to buy at is $1.91/kg (Inc. GST). Subsequently the current average weight purchased is 249.76kg. Using these figures you would be designated 10 head with a combined weight of $2,497.60kg. Your outlay has been $4,770.42 and an Invoice for that amount is generated for payment within 48hrs. Upon order approval, you receive regular e-mail updates on paddock condition, market trends, rainfall and so on.

During the time you own the cattle, every few months your cattle are weighed individually at the paddock, and your portfolio is updated with the current weights. At these stages you are required to pay a weight based grazing fee of $1.15 inc. GST for every kilogram gained since the last weighing. This is direct debited from your selected bank account. Assuming the current average weight gain per head is 203.24kgs, over the course of ownership your 10 head of cattle gained a total of 2,032.40kg. Thus, during the course of ownership the total of the weight based grazing fees direct debited from your selected bank account would then be $2,337.26 ($1.15 x 2,032.40kg.)

After several months the Livestock manager notifies you that your animals are in sale condition at an average of 453.00kg. You are either required to contact (via email, phone or fax) the Livestock Manager within the specified timeframe to say that you will sell at the present Finished Sell Price. Or to avoid missing the “Finished Sale Price” window, you may select the Free Management Service option when you first complete the “Buy Now Pages”. The BSM Livestock Manager can then sell cattle at the optimum weight on your behalf. Based from averages, the Finished Sell Price excluding GST could be approximately $1.55/kg. Using the above averages, your portfolio of animals would then be sold for $7,021.50.

To work out your return, the following costs have to be deducted from your sale proceeds:

Your account would now look like this:

Your Gross Profit on the initial $4,770.42 outlay is ($346.82)

Assuming your cattle will be gaining around $0.60kg per day on average for the time you own them; that -8% return has come in 339 days.

The actual return to an investor may vary significantly depending on rises and falls in the Queensland Cattle Market (based on the Roma Saleyards average prices) and the rate at which stock weight is gained. Refer also to FAQ 5 (Risks) on the "frequently asked questions" page.