Executive Summary: This business plan outlines a strategy to purchase and optimize the profitability of a 436-acre farm in Azua, Dominican Republic. The farm is fully solar-powered, equipped with irrigation systems and water reservoirs, and currently produces three high-value crops that are well-suited to the fertile land in the area. The plan includes obtaining USDA organic certification, which will make the farm even more attractive to customers who value organic produce. In addition, the plan calls for creating value-added products from the existing crops, such as freeze-dried fruit, guacamole, and avocado oil, which can increase profitability and create new revenue streams. Finally, the plan includes turning the farm into a tourist destination, offering farm tours and featuring a full-time kitchen centered around organic avocado recipes. By combining these strategies, the plan aims to create a highly profitable and sustainable business that can continue to grow and expand over time.
Market Analysis: The global avocado market is projected to experience significant growth, with a CAGR of 5.3% from 2021 to 2028, reaching $23.56 billion by 2027, largely driven by increasing demand from the U.S. and Europe. As the second-largest avocado producer in the Caribbean region, the Dominican Republic is well-positioned to benefit from this trend, having produced over 150,000 tons of avocados in 2020. With our farm located in the heart of the Dominican Republic, we have easy access to a large local market and can source from the farming community surrounding the property to ensure a consistent and abundant supply. Furthermore, our farm has significant export potential to high-demand regions such as the United States and Europe, offering investors a unique opportunity to tap into a lucrative and rapidly growing global market.
Marketing and Sales Strategy:
The business will leverage the growing demand for avocado and organic food and position itself as a unique farm-to-table destination for tourists. We will promote the farm both locally and globally through social media campaigns, local ads, and partnerships with local hotels and tour operators. Further, we plan to offer free samples of our value-added products and invite potential customers to experience the avocados produced by the farm. Additionally, we will build a strong online presence by creating an e-commerce site for people to purchase our products directly from the farm.
Operations and Management: The farm has a successful production record, and updates will be made to improve the efficiency of the farming process. The farm is already equipped with a solar system, water reservoirs, and an irrigation system that provides year-round irrigation to the orchards. The certification process for USDA organic will take place during the first 12 months of ownership with the help of organic certification consultants. The implementation of a full-time kitchen centered around organic avocado recipes will offer unique dining experiences to tourists and create job opportunities for the local community.
The business generates significant revenue through its farming operations, and value-added products create additional revenue streams. Further, the plan to create an e-commerce site, a tourism destination, and a full-time kitchen will bring additional revenue streams to the business. The average revenue for producing and processing avocados in the Dominican Republic is estimated at $7,000 per hectare per year. With 436 acres of production, the business is expected to generate $3.5 million in revenue each year, with the potential to increase sales with future expansion.
Conclusion: The business plan starts with a profitable 436-acre farm in Azua, Dominican Republic, that will be expanded to include value-added products and services such as a fully operational kitchen centered around organic avocado recipes, farm tours, and an e-commerce site. Overall, the business aims to grow and diversify its revenue streams while increasing the farm's capacity, adding unique experiences to customers, and creating job opportunities in the community.