Aquaponics Greenhouse
All of the financials referenced on this page are based on the company’s brochure for the project written in 2019. Obviously, there may be some differences between what was projected and reality; that’s normal. Please discuss this with the owner since he has already received harvest payments and can set the right expectations.
This is an aquaponic project that simultaneously grows lettuce or other greens along with crawfish. It originally grew tilapia but found that crawfish sell better and provide a higher yield.
A natural question is, what’s the difference between hydroponic and aquaponic growing systems? In simple terms, hydroponic means that the crop is being grown either directly in water or in a medium where the water supplies all the nutrients without relying on soil that may or may not provide all the nourishment the plant needs.
Aquaponics is the system of farming plants and fish together in a mutually beneficial single system, harnessing the very best of aquaculture (farming of aquatic animals) and hydroponics (growing plants without soil).
95% more efficient than traditional agricultural methods, aquaponics uses the waste from fish or other aquatic animals to fertilize the plant crop. Simple, efficient and economical. This is controlled-environment agriculture at its finest and the epitome of recycling.
While the company has plans to export, until now the crop has been sold to restaurants and other local outlets. My understanding is that the Covid lockdowns in Thailand had a significant impact on the company because there were no tourists. No tourists, no high-end restaurants. No restaurants, no buyers.
However, with Thailand back open to tourists and drawing new expats and remote workers, the outlook is good for future crops.
Selling locally has the benefit of reduced transportation costs. Additionally, should restaurants and retailers request other products, the aquaponic systems allow for a quick pivot to meet market demand.
Midas Aquaponics is a division of Midas Agriculture. The midasaquaponics.com website is no longer functional and was transferred to the midasagriculture.com site as the company expanded its scope.
Midas began business in 2015 and fifteen months after formation they built their first greenhouse. 2017 brought their first lettuce and fish harvests. The company has since expanded to grow premium tomatoes, Japanese melons, sweet peppers and Japanese cucumbers.
Midas Agriculture partners with farm management company Agriwize to handle the day-to-day routines of operating your own fully managed greenhouse in Thailand. Agriwize specializes in sustainable farm management services. They meet GAP, CODEX, IFOAM and United Nations Global Compact guidelines in all of their practices.
You can find the farm on Google Maps, which shows the completed complex. I also found this YouTube video of the operation.
Unlike most greenhouse offers, the Farm Management Agreement for this company stipulates that the farm manager will be fully responsible for the upkeep, repair and management of the systems. Every other greenhouse venture I’m aware of places many of those costs on the investor.
You own the aquaponic system but not the land. Harvest payments are made twice yearly in US dollars. The 16.73% annualized ROI is based on a 20-year projection, which is fairly typical for an agribusiness proforma. Instead of a set annual maintenance fee based on costs, 25% of the gross net revenues is assessed.
At $35,000 USD, this offer may be undervalued. If the proforma projections of nearly $5,000 annual net returns hold, your investment would be paid off in about 7 years. I generally look for a return that will pay off my initial investment within 7 to 10 years, so this is on the lower end of that goal.
Because this is an existing and successfully operating aquaponics unit, this is a great opportunity to buy an agricultural asset that will yield immediate returns.
This is an especially great deal since you’re paying the same price for the system that the original buyer did several years ago.
If you’re interested in more details, including the company brochure, full financials and how to be put in contact with the seller, click the link below and learn how this opportunity can be a part of your portfolio.
Copyright Alternative Ag Investors – All Rights Reserved 2024