Synthetic Symposium - AI & AI Discussions
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Whether you're a finance enthusiast, a tech aficionado, or simply curious about the future, join us for insights and perspectives that only AI can deliver. Explore the crossroads of intelligence and innovation in every episode!
Synthetic Symposium - AI & AI Discussions
Superfarm - Investing in Blue: The High-Tech Journey of a Blueberry Farm
Ever thought about what it would be like to own a slice of a blueberry farm in Turkey? Tune in as we unravel the unexpected twists and turns of investing in agriculture, where typical tech stocks and bonds meet the lush fields of Yalova. Our episode takes you on a captivating journey through the financial landscape of Apicikiolu Agricultural Technologies Industry Investment Incorporated, a high-tech blueberry farm perched on 27.5 acres of prime Turkish soil. Get ready to unearth how this ambitious venture harnessed crowdfunding via the Turkish Capital Markets Board, akin to the SEC, and discover the dynamic ways share classes shape investor influence.
Join us as we dissect the company's financial trajectory from December 2023 to June 2024, spotlighting the strategic moves, unexpected overspend on infrastructure, and the role of a major player, Levent Serliun, who commands the A shares. Are these financial surprises signs of innovation or red flags of possible corner-cutting? You'll hear about their ambitious plans and the actual outlays, with revelations about operating costs and investment strategies that will intrigue anyone curious about the nexus of agriculture and finance. Whether you're a seasoned investor or just blueberry curious, this episode is packed with insights you won't want to miss!
All right. So picture this You're looking at your investments, right, You've got your tech stocks, maybe some bonds, the usual stuff, Right. Then bam, you see you own part of a blueberry farm in Turkey.
Speaker 2:A blueberry farm in Turkey.
Speaker 1:Yep Sounds kind of crazy, right.
Speaker 2:Yeah, a little out there.
Speaker 1:Well, today we're diving deep into exactly that.
Speaker 2:Ooh, I get to hear.
Speaker 1:We got our hands on this financial report from a Turkish agricultural company. Financial report from a.
Speaker 2:Turkish agricultural company and let me tell you, it's juicy, juicy are late on me, okay.
Speaker 1:So first things first, the company's name. It's a mouthful, a pic. You'll be a Tarim technology, larry's an IEA. To room anonymous. You get the well, that's a mouthful but luckily it translates to something a bit easier a picikiolu, a Agricultural Technologies Industry Investment Incorporated company.
Speaker 2:Okay, that's better. So where are they based?
Speaker 1:These guys are operating out of Yalova, Turkey.
Speaker 2:Yalova, where's that?
Speaker 1:It's right on the coast of the Sea of Marmara.
Speaker 2:Ah, beautiful area.
Speaker 1:Perfect climate for blueberries. And we're not talking about some small operation here. This is serious business 27 and a half acres of land dedicated to blueberries 27 and a half acres. To give you an idea, that's like 18 football fields.
Speaker 2:That's massive, and they're growing blueberries on all of it 18,000 blueberry pots.
Speaker 1:They've got automated irrigation, fertilization systems, the whole shebang. High tech blueberry farming.
Speaker 2:Sounds impressive. So how did they get the funding for all this?
Speaker 1:This is where it gets really interesting. They used crowdfunding, crowdfunding.
Speaker 2:Like we have here with the SEC.
Speaker 1:Exactly Similar concept, but this is through the Turkish Capital Markets Board.
Speaker 2:Makes sense. They're equivalent of the SEC right.
Speaker 1:And they've got different share classes to determine how much control investors have.
Speaker 2:Ah, so different levels of involvement.
Speaker 1:Right, They've got A, B and C shares. Accredited investors, or qualified as they call them, get the B shares.
Speaker 2:Okay.
Speaker 1:Non-accredited or non-qualified get the C shares.
Speaker 2:So that dictates how much, say, they have in the company.
Speaker 1:You got it. Now buckle up, because here's where things get a little wild. All right, hit me. So this report covers from December 5th 2023 to June 5th 2024.
Speaker 2:Six months.
Speaker 1:During that time they raised 25,000 Turkish lira.
Speaker 2:Wow, that's a good chunk of change.
Speaker 1:That's not all. There's this one investor, Levent Serliun.
Speaker 2:Okay.
Speaker 1:This guy owns a big chunk of the company 32.93% to be exact and he controls most of the A shares.
Speaker 2:Hold on the A shares.
Speaker 1:Yeah, the A shares basically call the shots when it comes to the board.
Speaker 2:So, even with all that crowdfunding, one person has a lot of control.
Speaker 1:You got it. Now let's talk about the money. What did they plan to spend it on and what did they actually spend it on?
Speaker 2:All right, let's get down to business.
Speaker 1:So their plan was pretty standard Buy the 18,000 blueberry pots, pay for harvesting. You know the usual operating costs, up-form fees, regulatory stuff, advertising the land lease for the farm.
Speaker 2:Sounds like a pretty comprehensive plan.
Speaker 1:You'd think so. Right, but here's where it gets interesting. We compared their plan to their actual spending.
Speaker 2:Okay, and.
Speaker 1:And let me tell you, there are some surprises.
Speaker 2:Surprises, yeah, like what.
Speaker 1:Well, for starters, they spent way more than planned on the blueberry farm infrastructure.
Speaker 2:Really, how much more are we talking?
Speaker 1:Like 40% more than they initially budgeted.
Speaker 2:That's a huge difference. I wonder what happened there.
Speaker 1:Exactly. And then there's the harvesting costs.
Speaker 2:What about them?
Speaker 1:Nothing, zero spent.
Speaker 2:Well, that makes sense, right? It's not harvest season yet.
Speaker 1:Good point, but then there's the operating costs, lower than expected.
Speaker 2:That could be good right More efficient.
Speaker 1:Maybe, but it could also mean they're cutting corners somewhere. We'll have to see.
Speaker 2:Yeah, could be a red flag, what else?
Speaker 1:The platform fee Paid in full right away Interesting.
Speaker 2:Not necessarily bad, just interesting.
Speaker 1:Right, but here's the real head scratcher Regulatory and advertising costs Way under budget.
Speaker 2:Now, that's strange. You'd think they'd want to get the word out.
Speaker 1:Exactly. And to top it all off, they've only paid half of the land lease.
Speaker 2:Half. That's a little worrying.
Speaker 1:Yeah, a little strange, right. So we've got this Turkish blueberry farm using crowdfunding, but their spending is raising some eyebrows.
Speaker 2:It definitely sounds like there's more to this story. Some things just don't add up.
Speaker 1:Exactly. Looks like we've got a real blueberry mystery on our hands.
Speaker 2:All right. So last time we were talking about some well interesting spending choices with this blueberry farm.
Speaker 1:Right, some things just weren't adding up.
Speaker 2:Exactly so. Let's shift gears a bit. What about their financial projections?
Speaker 1:Projections you mean, like how many blueberries they think they're going to grow.
Speaker 2:Exactly and, more importantly, how much money they expect to make from all those blueberries.
Speaker 1:Okay, so they've planted their blueberries, metaphorically and literally. What kind of harvest are we talking about here? Blueberry, bonanza or bust?
Speaker 2:Well, according to their projections, they're expecting to harvest their first crop in the summer of 2025.
Speaker 1:2025. So we've got some time to wait.
Speaker 2:Yeah, which makes sense. Blueberries take a while to grow. It's not like they're planting tomatoes here.
Speaker 1:Makes sense. So how many blueberries are we actually talking about?
Speaker 2:Well, they're predicting a yield of about five kilograms of blueberries per pot.
Speaker 1:Five kilos per pot. Okay, hold on, got to do some quick math here. We're talking 18,000 pots, so that's 90,000 kilograms of blueberries. That's a lot of blueberries, that's a mountain of blueberries. So what are they going to do with all those blueberries?
Speaker 2:Sell them, of course.
Speaker 1:Of course, but for how much?
Speaker 2:Well, they're estimating a wholesale price of around 20 Turkish lira per kilogram.
Speaker 1:Okay. So if they manage to sell all those blueberries at that price, we're talking some serious cash. But that's a big if right, right.
Speaker 2:There are a lot of assumptions built into these projections. For one thing, they're assuming they're going to have ideal growing conditions.
Speaker 1:Yeah, good weather, no pests, all that jazz.
Speaker 2:Exactly yeah, and you know, Mother Nature doesn't always cooperate.
Speaker 1:True, true. What else are they assuming?
Speaker 2:They're also assuming that the prices of blueberries will stay stable.
Speaker 1:But we know that commodity prices can be all over the place.
Speaker 2:Exactly, and let's not forget about competition. The global blueberry market is getting pretty crowded.
Speaker 1:So even if they grow all those blueberries, there's no guarantee they'll be able to sell them at a good price.
Speaker 2:Right. So while these projections might look good on paper, it's important to take them with a grain of salt.
Speaker 1:Okay, so let's say I'm thinking about investing in this blueberry farm. What are the key questions I should be asking? How do I cut through the hype and get to the real deal?
Speaker 2:First and foremost.
Speaker 1:I'd want to know about their risk management strategy. Risk management you mean, like what happens if something goes wrong.
Speaker 2:Exactly what are they doing to protect themselves against things like crop failure or price drops? Do they have insurance? What are their backup plans?
Speaker 1:So I'm looking for evidence that they've thought about the what-ifs.
Speaker 2:Exactly. I'd also want to know about their sales and distribution channels.
Speaker 1:You mean how they're actually going to get those blueberries to people who want to buy them?
Speaker 2:Exactly? Do they have existing relationships with buyers? Are they exploring different markets?
Speaker 1:Because having a mountain of blueberries just sitting around wouldn't be very profitable.
Speaker 2:Not at all.
Speaker 1:Okay, so risk management sales? What about the people running this whole operation?
Speaker 2:Ah, the management team. That's another crucial factor.
Speaker 1:What should I be looking for there?
Speaker 2:Experience, expertise, do they have a proven track record in agriculture? Do they have the skills to handle the challenges that come with this kind of business?
Speaker 1:So I need to make sure they know their blueberries and their business.
Speaker 2:Exactly. And one more thing to consider the regulatory landscape. Regulations Like are there any rules about agricultural crowdfunding in Turkey? Exactly, you want to make sure there aren't any hidden hurdles that could complicate things.
Speaker 1:So it's not just about the blueberries themselves, but the whole ecosystem they're operating in Precisely Investing is about looking at the big picture. Ok, so we've talked a lot about this one specific farm, but what?
Speaker 2:about agricultural crowdfunding in general. Ah, that's a good question.
Speaker 1:Is it a good investment strategy?
Speaker 2:You know, I think it has the potential to be really transformative.
Speaker 1:Transformative? In what way?
Speaker 2:Well for farmers. It can open up access to funding that they might not be able to get from traditional sources.
Speaker 1:So it could be a game changer for small farms or those trying to do something innovative.
Speaker 2:Exactly, and for investors, it offers a way to diversify their portfolios.
Speaker 1:And maybe feel good about supporting sustainable agriculture.
Speaker 2:Exactly. There's something appealing about owning a piece of a farm, even if it's just a small piece.
Speaker 1:I get that, but like any investment, there are risks, right? What are some things investors should watch out for?
Speaker 2:Well, one obvious risk is the possibility of fraud or mismanagement.
Speaker 1:So not all crowdfunding projects are created equal.
Speaker 2:Right, you need to do your due diligence make sure the project is legitimate and that the team running it is competent.
Speaker 1:So research is key, absolutely yeah.
Speaker 2:And then there's the inherent risk of agriculture itself.
Speaker 1:Right Weather, pests, all that stuff.
Speaker 2:Exactly. No matter how well managed a farm is, there are always factors beyond their control.
Speaker 1:So it's about finding that balance between supporting something you believe in and protecting your investment.
Speaker 2:Well said, it's a balancing act.
Speaker 1:All right, so we've talked about the potential of agricultural crowdfunding, but let's be real, there are risks too right?
Speaker 2:Absolutely. It's not all sunshine and blueberries.
Speaker 1:So what are some red flags investors should watch out for? How can we avoid getting caught up in a bad deal?
Speaker 2:Well, one of the biggest red flags is when a project makes promises that seem too good to be true. Remember, if it sounds like a fairy tale, it probably is.
Speaker 1:So like if they're promising crazy high returns with no risk.
Speaker 2:Exactly, you got to be wary of those guaranteed 20% return claims.
Speaker 1:Gotcha Agriculture is unpredictable. There's always going to be some risk involved.
Speaker 2:Right. No investment is completely risk-free, especially in agriculture.
Speaker 1:Okay, so red flag number one unrealistic promises. What else should we be looking out for?
Speaker 2:Red flag number two a lack of transparency. When you're looking at a project, you want to see detailed information about the company's management team.
Speaker 1:Their experience, their track record, all that good stuff.
Speaker 2:Exactly. If they're being vague about their background or their financials, that's a big warning sign.
Speaker 1:Makes sense. You want to know who you're trusting your money with.
Speaker 2:Right, and that transparency should extend to the project itself. You should be able to easily find information about the farm's location, the growing conditions, their agricultural practices.
Speaker 1:So no hiding behind fancy marketing jargon.
Speaker 2:Exactly Transparency builds trust.
Speaker 1:Okay, what about the crowdfunding platform itself? Anything to watch out for there?
Speaker 2:Absolutely. You need to do your research on the platform, look at their reputation, their track record.
Speaker 1:So how long they've been operating, what kind of projects they've hosted, if there have been any complaints, Exactly.
Speaker 2:A reputable platform should have a solid history and a thorough vetting process for the projects they list.
Speaker 1:Makes sense. It's like an extra layer of protection.
Speaker 2:Right. They should also have clear procedures for handling any disputes or problems that might arise.
Speaker 1:OK, so due diligence is key, but let's talk about some positive signs. What are some green flags that suggest a venture might be worth investing in?
Speaker 2:One of the most encouraging signs is a well-defined business plan. This shows that they've thought through the details, from planting and harvesting to sales and distribution.
Speaker 1:So it's not just about growing blueberries, it's about having a plan to sell them and make a profit.
Speaker 2:Right. They need to understand the market demand for their product and have a strategy to reach their target customers.
Speaker 1:What else?
Speaker 2:Another good sign is a strong emphasis on sustainability.
Speaker 1:Oh yeah, that's becoming more and more important to consumers these days.
Speaker 2:Absolutely. People want to know their food is being produced in an environmentally responsible way, so look for companies that prioritize sustainable farming practices, things like water conservation, minimizing their ecological footprint.
Speaker 1:So it's not just about doing the right thing, it's also good business sense.
Speaker 2:Exactly Sustainable agriculture is becoming a key selling point.
Speaker 1:OK, anything else.
Speaker 2:Transparency and open communication are huge. Look for companies that are willing to answer your questions, provide regular updates and engage with investors in an open and honest way.
Speaker 1:So clear communication is key.
Speaker 2:Absolutely. It builds trust and confidence.
Speaker 1:All right. So, as we wrap up our deep dive into agricultural crowdfunding, what's your final piece of advice for our listeners?
Speaker 2:Be informed, be cautious and be realistic. Don't let the excitement of a new investment opportunity cloud your judgment.
Speaker 1:So it's about finding that sweet spot between passion and pragmatism.
Speaker 2:Well said, do your research, ask tough questions and remember that every investment comes with risks. But with careful consideration, agricultural crowdfunding can be a really rewarding way to support sustainable food production and, potentially, grow your wealth.
Speaker 1:That's great advice. Thanks for sharing your expertise with us today. It's been a fascinating journey into the world of blueberry farms and crowdfunding.
Speaker 2:My pleasure. It's been a great discussion.
Speaker 1:And to our listeners. Thanks for joining us on this deep dive. We'll be back next time with another fascinating topic. Until then, happy investing.