Old Mutual Wealth has committed to a significant three-year partnership with Alpha, an initiative aimed at supporting and developing the cattle farming community. This commitment, which began with Karel Fourie and a colleague personally investing their own funds to save the Alpha function due to a short timeline, underscores a deep belief in the value and potential of the sector.
Key aspects of this partnership and Old Mutual Wealth's vision include:
- Historical Roots and Modern Purpose: Old Mutual, a proud wealth-creating brand since the 1800s, has strong historical ties to farming, with farmers being some of its first policyholders. The current initiative is driven by a desire to "give back" and foster sustainable growth within the farming community, particularly in cattle farming.
- Focus on Long-Term Investment and Development: Unlike many short-term insurance companies, Old Mutual Wealth is a long-term investment company actively seeking to invest in the development and prosperity of the farming community. This approach is unique as traditional focus in agriculture has often been on grain farming and short-term support.
- Knowledge Transfer and Education: A primary goal is to educate farmers on crucial financial aspects such as investment, capital gains tax, estate planning, and the legal and business side of farming, which are often overlooked. Karel Fourie intends to spend time on farms, learning from farmers while offering his expertise to help them safeguard and grow their legacies.
- Understanding and Tailoring Products: The initiative aims to understand farmers' needs better to develop and implement suitable financial strategies and products. Old Mutual Wealth already offers products like "investment-backed lending" and "family office" services designed to help farmers keep their money invested while still having access to capital.
- Elevating the Alpha Event: The Alpha function is an exclusive, invitation-only competition for the "best of the best" cattle farmers who have won regional shows. Old Mutual Wealth's sponsorship seeks to elevate this prestigious event, provide proper recognition for winners, and foster healthy competition to drive improvement and innovation among farmers.
- Promoting New Farmers and Economic Growth: The partnership is exploring initiatives such as a "Young Cattle Breed Farmer of the Year" award to encourage new entrants into the industry. By teaching new farmers and promoting growth in cattle farming, there's a significant opportunity for job creation and increased beef exports, as 95% of South African meat is currently consumed domestically.
- Relationship-Based Approach: The core of the strategy is building strong relationships with farmers, rather than just seeking immediate sales. Old Mutual Wealth views this as a long-term commitment to making a positive difference and fostering growth within the community.
The overall vision is to uplift the farming community, especially cattle farmers, by providing financial expertise, support, and recognition, ultimately contributing to wealth creation and ensuring a robust legacy for future generations.
