How to Invest in Oranges?
own your own orange plantation in Paraguay
Investing in an active orange plantation is very easy. The steps below demonstrate how to:
Step 1 - Buying your Lot
As an investor, you buy a specific lot of land which is part of a large orange plantation in Paraguay. The land will be registered in your name with the land registry. The title deeds, registry entry and other ownership documents sent to you by courier.
You also sign a contract which authorizes the local farm management company to farm the land on your behalf.
- each lot is clearly marked with a boundary stone and numbered
- each lot is about 5,000 square metres / 1.23 acres, with space for at least 320 orange trees
Step 2 - Planting the Orange Trees
Once your land is bought, the saplings (small trees) will be ordered from a specialist citrus nursery. It takes up to six months before the saplings are big enough to be planted.
They are specifically cultivated to suit the plantation’s soil and climate. When ready, the saplings are planted by our experienced farmers in the pre-prepared soil.
- the saplings are bought at some of the largest and most respected orange growers in neighbouring Brazil and Argentina, simply because there are not enough available in Paraguay
- we grow eight different orange varieties, chosen for their high yields: Valencia, Navel (Ombligo), Ruby, Navel (late), Midnight, Valencia (late), Pera Rio, Folha Murcha, and Hamlin
Step 3 - Growing the Orange Trees
Over the next three years, our farm management partner will tend the saplings until they grow into sizeable trees and produce fruit for the first time.
In the unlikely event that any of your trees die before fruiting, they will replant up to 10 percent of the total number at no additional cost to you.
- you are very unlikely to lose any trees before they bear fruit
- organic soybeans are planted between the rows of trees to add nitrogen to the soil, and the proceeds of these are paid to you as well
Step 4 - Harvesting your Oranges
Your oranges will be picked as soon as they are ripe. You receive the net income of your plot once a year (up to 35% ROI). The yield curve of an orange tree is a parabola. It rises from one year to the next until the tree reaches its maximum output, stabilises for several years, and then gradually declines.
After a lifetime of 25 years, the trees become less productive and therefore less profitable. They are then sold as firewood to make space for new trees or other uses, whichever you prefer. The firewood results in an additional payment of around $8,000 after the last harvest.
- the average tree produces 150 to 200 kg a year when mature, so the harvest from your lot may easily exceed 48 tonnes
- your income is paid annually net (minus 10% Paraguay taxes) to your nominated bank account
- first investors payout for 2018 harvest exceeded forecast by 3%