INTRODUCTION:
The Chrematin Agro Co. Ltd as part of the Agricultural Estate business has a reservation for the Coconuts plantations motivating investors to provide resources for coconuts growing as a business venture.
The Agric Estate Developer has a deep knowledge and experience in coconut farming to produce high production and access to global markets. Plantations are established and maintained for the benefit of investors after going through land acquisition.
The coconut products are both fresh and dry coconuts which constitute a raw material for the manufacturing of coconut oil and also serves as food for consumption.
The dried coconut is referred to as copra which serves as a source of coconut oil, used for making fats for baking and confectionery products. It is also used in the chocolate industry to produce coconut products like, – moist white sweetened coconut, toasted coconut, creamed coconut and tenderised coconut.
The coconut trees can grow on variety of soils. The coastal belt of Ghana, the forest zones of the Western, Ashanti, Eastern and Ahafo areas are all suitable not to talk of the middle belt (transitional belt) of the country.
Coconut trees by the recommended dwarf type sourced from Nigeria and Malaysia can start yielding fruits from 21/2 years when the right application of fertilization and irrigation methods are appropriately utilized.
But the general Agricultural principle is that the Dwarf delivers economic fruits by the 5th year of planting.The peak of fruit yielding is 10 years.The tree has a lifespan of 50years and can be extended for 100years at breakeven point.
There is high growing demand for coconut and its processed products as a result of the benefits of the nuts and the coconut oil.
The local demand for fresh coconuts has outstripped the global demand of use of The coconut for coconut oil.
Investment in the coconut tree plantations is now high as demand for coconut in the Ashanti Region are rising above the supply of the nuts, because of change of consumer taste for more coconuts, as nutrients derived from the water is better than other substitutes.
COCONUT INVESTMENT
Minimum Allowable Farm size is 100 acres
Planting at 69 trees per acre
1st year management fee per acre is $250
2nd year management fee per acre is $200
3rd year management fee per acre is $200
Total management fee for 100 acres = $650.00 x 100 acres
= $65,000.00 Add preliminary cost of + $8,000/100acres
Total Management cost for 100 acres of coconut farm for 3 years
= $73,000.00
NB: Preliminary cost entails cost for survey & Demarcation, soil test, technical support systems etc.
INCOME
Yield after 3 years = 6,000 nuts per acre
Yield after 3 years for 100 acres = 600,000 nuts
Price per nut at $0.20 (20 cents) = 600,000 x $0.20
Income per year = $120,000.00
Less 35% as cost of sales ($42,000.00)
Profit = $78,000.00
OTHER EXPENDITURE
Acquisition Fee at $1,000.00 per acre for 100 acres = $100,000.00 Payable in equal annual Installment from the 5th to the 10th Year
($100,000/5) = $20,000.00