Off To See The Coconuts
Many readers have expressed interest in the coconut plantation investment opportunity in Brazil that I’ve reported on recently. I believe this constitutes one of the best productive land investments that the small investor could make today. And, to keep things in perspective, in the current climate, a productive land investment is among the smartest plays, period.
I’ve invested myself. However, I made the buy decision after making a trip down to the region to see for myself both the plantation and the factory where the coconuts are processed into their various end products. Many readers who’ve contacted the developer regarding this opportunity have expressed a desire to do the same thing–to see the operation firsthand before making a final decision.
To help investors engaged in active discussions, therefore, the principals put together an investigation tour for this month (May 24 to 27).
They designed the trip to be similar to the one Kathie and I made with them when doing our due diligence last year. One day you visit the plantation, where more than 20 hectares of trees are already in production and plantings are under way on the first section of new dwarf coconut trees. Then you go over to the nearby processing plant to see how they use all the various parts of the coconut to create the different end products they’re then able to sell.
The processing plant is a critical piece, very important to the projected returns. To state the obvious, if you don’t have a market for the coconuts, then you have no revenues. There are several processing plants in the vicinity of the plantations, one of which in particular is interested in buying every coconut these guys can grow.
On the second day, you visit Cohibra, the outfit that is providing the baby trees for planting and that has been engaged to manage both the planting and the harvesting of the coconuts. This company has more than 30 years’ experience researching and growing better coconut trees. The new specially engineered hybrid coconuts, for example, that will be planted for the current plantation offering come from this group.
At Cohibra, you’ll see the nursery, the cross pollination lab, and the irrigation and fertilization infrastructure that will be installed at the developer’s plantation. Cohibra brings a level of sophistication to the operation. They’ll be responsible for making sure the growing process maximizes coconut production.
As I mentioned, the trip this month was initially put together for people already engaged in active discussions about making an investment. However, we’ve worked with the developer to expand the invitation. Now, the trip is available to anyone interested in looking more closely at the opportunity. At this point, they can still accommodate a handful of additional people.
This isn’t a tour, per se (not designed for sightseeing), but it is all-inclusive. You’re responsible for getting yourself to Fortaleza, the jumping-off point for the program. Once there, everything (hotel, transportation, meals, etc.) is included in the single fee of US$750 per person or US$1,000 for a couple traveling together.
If you decide, after viewing the plantation, etc., to buy two or more units, the developer will rebate the cost of your tour from your purchase price. If you decide for some reason not to buy after having toured the operation, you’ll at least have had a unique experience in Brazil and an interesting lesson in coconut agriculture. However, I’d bet that, if you’re seriously thinking about making a productive land investment, you’ll be so impressed by what has been put together here that you’ll want to get involved.
Lief Simon
P.S. Remember that Americans need a visa to travel to Brazil. This can take less than a week. The visa you receive will be multiple-entry good for five years, so you’ll be able to travel back to visit your coconut trees as they mature without having to get another one.
P.P.S. If you’re not able to make these May dates, the developer plans another such expedition later this year. Note that the cost of the investment likely will be higher by then.
