• Al Mabroor

Newsletter - August 2022

As Salaamu Alaykum


Dear Investor


We trust you are well.



Shariah Consultancy Committee


We are happy to announce that Mufti Shafique Jakhura, Maulana Bilal Jakhura and Sheikh Mohammad Carr, with the assistance of Maulana Riaz Dhai, completed their due diligence on Al Mabroor Agri and that they have agreed to form the new Shariah Consultancy Committee for Al Mabroor Agri. We would like to take this opportunity to thank them for their efforts to date and we trust that it will be the beginning of a long and successful road ahead.



Al Mabroor Website


Kindly visit our new website at www.almabroorprojects.com for more detail on all our investment opportunities and for more information on all our farming activities.



Al Mabroor Agri General Meeting


We would like to remind all investors of the general meeting to be held at NMJ Hall in Durban on the 23rd of August. The meeting will start at 18:00. Investors that would like to attend, but haven’t notified us yet, kindly let us know via email if you will be attending before Friday 19 August. We need to confirm final numbers for catering purposes.



Maize Harvests


We nearly completed the maize harvest at our farm in Bultfontein and for the second year in a row, we were very blessed with the harvest. Maize prices are currently at very high levels and should contribute very favorably to investor returns.

On the 8th of August we started harvesting maize and sunflower at our other farm in Hennenman. The initial yields are over 8,5 tons per hectare and far exceed our expectations. In total we need to harvest 1 100 ha of maize in the next 8 - 10 weeks.

Additionally, we will be able to bale around 7 500 bales of maize rests. This should be enough to make up the majority of feed for around 2 000 animals during the backgrounding phase over the next year.


Foot and Mouth Disease explained


Recently there has been various cases of Foot and Mouth Disease (FMD) outbreaks throughout the country.

From a veterinary perspective Food and Mouth Disease is an infectious disease of cloven hoof animals with largely subclinical conditions. A percentage of affected animals may develop mouth and foot lesions. Kindly note that fatalities because of FMD are very rare.

Diseases such as FMD are a reality in the global beef industry. With the current spread of the disease in various parts of the country, Government imposed a ban on cattle movement for the next 21 days. The ban will be reviewed on a weekly basis.

Al Mabroor inoculated around 20 000 of its animals that are currently standing in the Morgan Beef feedlot. This was done to minimise the small possibility of fatalities and to ensure that our investment assets remain safe and secure In Shaa Allah.

The consequence of this protective action means that we cannot sell our Morgan Beef feedlot animals to the abattoir for the next 8 weeks. When we are allowed to continue selling to the abattoir by the middle of October, we expect to deliver animals weighing around 550 kg compared to the current selling weight of around 480kg – 500kg.

Animals at our various other farms and holding stations that are abattoir ready will continue to be sold In Shaa Allah.



Investment opportunities


The vision for Al Mabroor Agri remains to be a well-diversified fund in the agricultural space, with the core business being cattle farming. Ultimately, we would like to own 120 000 cattle in South Africa and Namibia and to become one of the biggest beef providers in Southern Africa. With your continued support this can soon become a reality In Shaa Allah.

The recent outbreak of FMD together with the government ban on movement of cattle, has brought about very lucrative investment opportunities in the cattle sector.

During June 2022, Al Mabroor started negotiating to purchase its own cattle feedlot which will be wholly owned by Al Mabroor investors In Shaa Allah. We need to raise around R 100 million to conclude the acquisition. The long-term financial benefits for Al Mabroor Agri and investors in particular will be substantial.

Another opportunity that is very attractive currently is the price of young weaner calves in certain areas in South Africa. Due to the Government transport ban on cattle due to FMD, many farmers are under severe cash flow pressure. Currently it offers the opportunity to purchase these animals at a fair discount and to only move these animals once the transport ban is lifted.

This will provide substantial financial gain for investors. The added benefit will be that these animals will be sold to the abattoirs during December when prices are traditionally at its highest.



Diversification


Your investment into Al Mabroor has contributed to it becoming a fairly well diversified agricultural investment opportunity focussing primarily on beef. The funds invested into maize, macadamia nut farming, vegetable farming and sheep farming are all paying good dividends to investors.

The mandate will always be to keep beef as the core, but to look for other lucrative long- and short-term agricultural opportunities to diversity and create better value for our investor community and to reduce the risk of having all our eggs in one basket.

Our core investment principles revolve firmly around Shariah compliance and this is something that the new Shariah Supervisory Board will always ensure remains a priority. As such one of the elements of Shariah Governance in business is to maintain a system of fair trade without being reckless or negligent especially when you have other people's monies in your trust.


We thank you for your continued support.



Jazakallahu Khairan


Al Mabroor Team


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