A Crowdfunding Model for Pork Products

The economy is said to be recovering, but it’s still difficult to get money out of banks, particularly if you’re starting a small business. That’s why many entrepreneurs are turning to alternative funding sources like crowdfunding. Crowdfunding was popularized by Kickstarter.com, a U.S. funding platform for creative projects. The idea is to raise money for a business or project using contributions from a crowd of people instead of a single individual or organization. Traditional funding means that a single entity has a larger stake in the business, while crowdfunding gives a smaller stake to each person who contributes to the funding target. In many cases, crowdfunding is more successful at launching start-ups than getting investment from one source. Traditional investors like banks are also wary of new ideas, making it harder to get seed capital.

Crowdfunding can be applied to almost any project, business or potentially profitable idea; it’s been used on forest resources, wind energy and now, meat products. Buitengewone Varkens (www.buitengewonevarkens.nl), which literally means “Extraordinary Pigs,” is a Dutch company that raises and breeds pigs sustainably in fields and forests (free-range pigs). The company has opened its doors to anybody who is willing to invest 100 Euros in the business. In exchange, investors get pork products (ham, sausage, chorizo, salami, etc.) over three years and tickets to special events—a package worth 150 Euros. The combination of local, sustainable, farm-grown meat, fair trade and investor benefits make Buitengewone Varkens a very compelling business model.

Buitengewone Varkens – How It Works

According to the website, Buitengewone Varkens aims to provide tasty and healthy pork products while ensuring fair conditions for its workers. Their pigs live a good life outdoors in field and forest with plenty of space. The pigs live in family groups and sleep in straw-filled cabins. Buitengewone Varkens offers its farmers and farm workers a good living by paying a fair price for their labors and for the food they grow Profit sharing is also practiced whenever possible. Consumers pay a fair price for the products because the supply chain is short and easy to maintain, and there are no middlemen to deal with. When you make an investment, you are paying for the following:

• Rent for the land where pigs live and food grows
• Straw huts for the pigs
• Regular veterinary services
• Farmer and worker labor
• Costs to produce artisanal pork products

As of September 2012, Buitengewone Varkens has accepted the contributions of more than 1,030 participants. Next year it plants to reach a target of 2,000 investors. The investment plan is simple: Each participant invests 100 Euros and gets back 150 Euros in the form of pork products over three years and access to one of the company’s events (worth 30 Euros). Each year, the investor is given 40 Euros worth of meat products. Two people can also attend Buitengewone Varkens events like farm picnics and pig roasts (children welcome).

How to Sign Up

To be a crowdfunder for Buitengewone Varkens, you must create an account on the website. Your information will be kept on record, and you will receive a certificate in the mail within a few days. The certificate serves as a manual and proof of your investment. It also shows the benefits you will receive over three years and other details. During your first year as an investor, you and a partner can already participate in the Buitengewone Varkens events. The company wants to establish relationships with their investors—you can submit feedback on how the farm is run and ideas for improvement. It also offers you the opportunity to be an “Ambassador” for Buitengewone Varkens (optional).