looks like the HuangYuan government has already started working on the "external breeder" concept described in the 10k report. In the more recent Q1 CC, Solomon mentioned:
The Huangyuan Government is authorized to provide grant funding for the project up to 66% of total development costs on selected projects. The Government is also building similar cattle houses at other locations based on our design in which we will be able to purchase cattle for processing at our new boning and cold storage facility that is expected to be operating by midyear 2013.
I discussed the idea in a recent thread (link below), hoping to get more feedback here but to no avail alas, looks like day-to-day trading issues receive more attention during the week. So I just want to bring this back on a weekend like today to see what you guys think of it.
In my opinion, fish and cattle will be SIAF's bread and butter for the foreseeable future, especially cattle, and the external breeder concept may become one of its main revenue sources, starting 2013/2014. Right now the SJAP demo farm in HuangYuan, Qinghai, has room for about 22 cattle houses of which 12 (I believe) are already built. But if the Qinghai government provides the land, pre-builds those cattle houses, and subleases them to farmers to raise their own cattle in accordance to SIAF's methods, the sky is the limit, with other provinces copying the idea. Who wants to be left behind when it comes to providing work to farmers and helping them grow their income?
Seems to me like this will best be done in a franchising model where all purchasing of feedstock and other services as well as reselling the cattle to SIAF are obligations clearly defined in the franchise agreement. Comments?
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