What We Do
Our 'Grass Motel' agistment revenue model provides beef producers and processors access to cost effective, high quality grass supply at scale
Leveraging our long established relationships with the beef supply chain, we are able to offer our partners a top quality 100% natural food source for their cattle, plus an expert cattle management service.
Income is derived from the following sources:
– Exclusive Grass Motel Access (2- 5 year agreement, annual fee based on a percentage of the value of the property).
– Per head agistment fee
– Carbon credit upside
Our livestock management expertise encompasses regenerative grazing resulting in increased livestock carrying capacity and soil restoration.
Pasture management principles involve planting multiple species of grasses, legumes and plants, that increase the soil microbiome and provide greater nutritional value to cattle through heightened mineral, protein and phosphorous levels. This can assist in increasing the animal’s average daily weight gain and increase performance.
Packhorse acquires properties according to strict criteria. This allows us to meet our financial and environmental obligations to investors and cattle agistment partners through our principles of regenerative agriculture.
Target IRR 3-4% cash yield derived from Grass Motel exclusivity fee and per head agistment fee, 5-6% capital growth based on a 10 year investment period. . Excludes potential income from Australian Carbon Credit Units.
We back up our methods by measuring performance
Animal performance is measured by monitoring average daily gain using an Optiweigh unit. The unit is simply set up in the paddock, equipped with a lick block to entice the cattle. The cattle place their front feet on the platform, their NLIS tag is read & their weight recorded & exported to our data collection centre. Cattle are weighed multiple times a day, stress-free in their grazing environment with weight gain changes tracked in less than 5 days.
The COVID-19 pandemic has re-ignited the conversation that we need to produce more of our own food here in Australia. Agriculture is a huge contributor to global warming.
At the outset, Packhorse identified that we can produce plentiful clean, green, high quality food for Australian consumption and for export, while simultaneously restoring the environment, increasing land value and adding value to the supply chain.
The Packhorse team has 30 years' specialised experience in the red meat industry.
Our cattle management capabilities deliver many advantages to supply chain partners:
A known quantity and controlled stock flow
- Capital light
- Strategic alignment with quality grass producer
Scale, genetic control, cost efficiency
- Ability to leverage assets under Packhorse control to drive scale and manage production demands
- Consistency around genetics underpins value based marketing
- Locked-in cost to gain and overall production through the supply chain cycle
Supply security and reduced cost
- Increased supply and reduction in cost of production.
Packhorse Core Strengths:
Australian Environmental Custodians
- Impact investment improving lives of future generations
- Regenerative farming expertise
- Utilising animals to reenergise the soil
- Increasing soil organic matter
LOW RISK INVESTMENTS
- Strong thematic
- Capital preservation
- Risk adjusted returns (target IRR 8-10%pa*)
- Low fee structure
Track record
- Peace of mind confidence around capital
- Subject matter experts
- Above benchmark* risk adjusted returns
- Strong returns on current investments
Carbon CREDITs
- Potential upside to returns (not included in target IRR)
- Environmental benefits
- Improving carbon and water cycle
- Improving ecosystems services
Strategic Focus
- Strict acquisition criteria
- Beef only – we won't be distracted
- Aligned, invested management
- We put the environment first
Deep Supply Chain Relationships
- Unique off take partnerships
- Secured income stream
- Reduced volatility
- Alignment in values and objectives
*Benchmark data taken from ABARES rate of return for beef farms, Australia Northern Region, 2009-2020