Mango Farm
The good news on this resale is that the 3 hectares were planted years ago and there have already been harvests. As of the date of this posting, the 2022 harvest statements have not been released, so be sure to ask the owner about current and past harvest payments.
All of the financials referenced on this page are based on the company’s brochure for the project written in 2014. Obviously, there may be some differences between what was projected and reality; that’s to be expected.
Originally from India and Southeast Asia, Mangos are the most consumed tree fruit in the world with strong demand in Panama and beyond.
Like citrus trees, mango trees reach maturity after 5-7 years and produce pretty consistently thereafter, depending on weather conditions. In fact, mango trees are commercially productive for 60 to 80 years.
The farm was planted with a proprietary cultivar called the Lady Victoria. Based on the Alphonso variety, the LV has an 85% fruit-to-seed ratio. Imagine a cross between peach, nectarine, apricot and melon with light notes of honey and citrus… that could be the fruit from your mango farm!
The Lady Victoria was developed to have strong bio-insecticide qualities to promote resistance to pests, fungus and bacteria, providing a higher yield per tree than other cultivars. The trees are grafted onto very hardy rootstock that is well adapted to the Panama environment; this gives the tree additional abilities to withstand the worst that Mother Nature can throw at it.
While the company has not been exporting because of the logistics nightmares created by Covid, they have in the past and certainly could in the future. The company has its own cold storage facility in Rotterdam and, obviously, easy access to the Panama Canal which combine to make shipping to Europe fairly straightforward.
In addition, the company has a contract with an internationally renowned processing firm to produce mango puree. This is important because the puree has a two-year shelf life, making it easy to export and allows the company to sell at peak price while using fruit that retailers may shun because of minor bruising or inconsistent size.
The company prides itself on being innovative and their R&D team has developed processes using organic fertilizers, the production of natural pesticides and fungicides that give excellent results while protecting the environment. These methods result in long-term, high-yielding crops of superior quality that benefit both the grower and the consumer.
The farm management company has implemented the Global G.A.P. international agricultural and smart farming standards throughout all of their operations worldwide. This is a set of farm management practices that ultimately create positive social and environmental impacts.
The management company has also developed processes and technologies to maximize the use of organic wastes for the production of fertilizers and extraction of natural products from plants to be utilized in agriculture as natural pesticides and fungicides. The artificial intelligence-driven drip irrigation system supplies water and nutrients directly to the roots of each tree, significantly reducing water use.
Pests are always a risk in agriculture so it’s important to know how this risk is mitigated. Your mangos are protected by a windrow of neem trees that are planted around the perimeter of the plantation.
The neem tree also comes from India and when its fruit and leaves are blown into the field they are broken down in the soil. The resultant compounds help to “fix” nitrogen in the soil, reducing the need for chemical fertilizers.
More importantly, the oil in the neem seeds and leaves is an extremely helpful bio-pesticide, effective against 600 different insect species and plant diseases including aphids, white flies, nematodes, spider mites, powdery mildew and fungus.
The company also creates a natural pesticide spray from the neem seeds and leaves, which is used on crops in the field as well as their greenhouse operations.
This project is managed by one of the premier farm development and management companies in Panama. The company is vertically integrated and prides itself on being a “seed-to-table” company; they develop the land, grow the saplings, make their own natural fertilizers, do the planting, manage the crop, conduct the harvest, do the processing/packing and manage the sales.
As an investor, this means it is truly a turn-key operation. In fact, your fruit is sold before it is picked.
The company has been around since 2012, owns processing facilities in Peru, manages crops in Panama (limes, plantains, dragon fruit, mangos and greenhouses), built their own cold storage facility at the port of Rotterdam and have multiple cooperative agreements with local farmers in Panama, Mexico, Costa Rica and Peru to sell their produce to retailers and wholesalers around the world.
The company’s farm management division is an international water and agricultural consulting and management company that develops land and operates both organic and conventional farms in a cost-effective manner, focusing on the minimization of the use of harmful chemicals often found in fertilizers, pesticides, and fungicides, while at the same time replenishing the nutrients needed by the soil.
The owner has 3 hectares of the Lady Victoria mango; 2 were purchased in April of 2014 and another in August of the same year. As a result, you are buying a farm with mature trees. As noted above, the price is $55,000 per hectare, although the owner has indicated a willingness to come down on the price if a single buyer takes all 3 hectares.
The plantation was originally developed to allow for intercropping; growing locally consumed pigeon peas between the rows. In 2018, the company decided to end that practice and instead plant more trees on each hectare. As a result, each hectare now has over 100 trees on it instead of the original 45. This allows the trees to be kept at a lower height, reducing the cost of harvesting.
All of the hectares are titled in the name of the owners. Transferring title will require hiring an attorney in Panama.
You will receive freehold title for each hectare of land you purchase. This includes the land, the trees and a state-of-the-art irrigation system. Each assigned plantation is hand-picked and calculated for the production for your specific assigned area.
There are 2 contracts – 1 for the land and another for the farm management agreement. The second contract outlines the fact that there is an annual $5,000 crop care contribution per hectare, which is already deducted from your net proceeds.
The Annual Crop Care Contribution is the expense for the harvest, maintaining the greenfield and monitoring the irrigation system for each hectare, pruning, grafting and other activities to ensure the highest crop quality and quantity.
The farm management agreement also outlines that there is a 70%/30% spilt of the net harvest returns. In other words, you get 70% of the net proceeds. This is important because it ensures that the company has skin in the game; if you don’t make money they don’t either.
Most agribusiness investment projects you come across begin planting the trees or building the greenhouse once payment is made. This is a unique opportunity since your farm is not only already planted but producing.
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.
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