In 2014, we reported for the first time on a group in Panama developing an organic fruit tree plantation and offering small investors a chance to participate in a turnkey way.
The idea, we determined after close inspection, was brilliant… but also ambitious. Could this group do what they were representing they would do?
We carried out our due diligence and decided the chances were good that the answer to that question would be yes. We proceeded to alert readers at the time to that first opportunity—a chance to own a piece of a mango plantation.
That first offer sold out in a matter of weeks.
In the years since, this group has gone on to launch plantation after plantation…
More mangos… then guava… then limes… then more mangos… then Haas avocados…
And every one of these plantations has sold out in short order.
Today, five years later, the group behind this program has planted thousands of acres with hundreds of thousands of trees. Their operation, in Panama’s heartland, is beyond impressive, employing growing technologies that are both state-of-the-art and 100% organic. They’ve become the biggest employer in this region of this country, an important contributor to the local economy and the local community.
More to the point for all past investors, they’re growing, harvesting, and selling a lot of organic fruit… which is being shipped from their Hub of the Americas location all over the world.
What’s the point for you… seeing as all of those previous plantations have sold out?
The group behind all of those successful offers has launched a new investment… Tropical avocados.
What’s the difference between the new Tropical avocado and the Haas?
The Tropical is big and round and has a bright skin that’s smooth. In Panama, where this plantation is located, the Tropical is a firm favorite. When I go to the market here, it’s the only avocado I see, and it’s often the only one you find throughout Latin American markets these days, and that trend is expected to extend into North America and Europe.
Consumers like Tropical avocados because they are nearly four times larger than the Haas… but sell for about the same price.
Plus, the “Slim Avocado,” as this Tropical variety has been called, has a full 50% less fat content than its Hass cousin…
Avocado Mania
Meantime, the global appetite for avocados in general is expanding dramatically. Today you find them on restaurant menus everywhere… from avocado toast and avocado burgers to table-prepared guacamole and avocado-topped pizza
The worldwide market for avocados continues to expand, and wholesalers all over the world are specifically interested in the Tropical avocado. The group behind the new opportunity in Panama has buyers lined up.
The fact that the plantation is 100% certified organic means premium pricing. While avocados in general are experiencing a surge in consumption, organic avocados in particular are being referred to as “green gold” because of their growing demand and rising price.
Ripe Annual ROI Of As Much As 48% For 30 Years (And Beyond)
This new plantation opportunity, like everyone that has preceded it, is fully turnkey. The farm management company plants and then manages the trees on your behalf. It’s responsible for the sale of your harvest, and, as I mentioned, they’ve already got commitments from buyers in Europe and the United States. In fact, nearly everything these guys grow has been pre-sold.
The price is US$45,000 per hectare.
The annualized return on investment (that is, the internal rate of return, or IRR) over 30 years works out to 16.53%. That factors in many things, including the first several years when your trees are growing and too young to bear fruit.
What that means in dollars and cents is that an investment of US$45,000 yields a return of more than US$10,000 per year starting in year 5, the first year of full production (a partial crop is projected in year 4).
That return increases gradually each year in the projections based on expected increases in the market price and additional production from the trees, as they don’t fully mature until around year 20.
At year 20, with full production, the projected ROI is 48% every year.
While these projections are calculated over 30 years, keep in mind that avocado trees have a productive lifespan of 60-plus years, meaning that these trees could generate cash flow for generations of your heirs.
I’ll remind you again that, to date, every fruit crop this company has offered has sold out to Live and Invest Overseas readers… in some cases within a matter of weeks.
Lief Simon
