INDUSTRY | FUNDING OPPORTUNITY | PROPERTY SIZE |
Agroindustrial | $5M USD | 500 Acres |
Executive Summary: Our sustainable 500 acre avocado farm is strategically located in San Jose de Ocoa, near the Ocoa River, and surrounded by other avocado farmers. Our farm currently has approximately 27,000 avocado trees; a blend of Hass and Tropical varieties, as well as tomato and pigeon pea production, which is sold to local restaurant and hotel chains. With additional acreage available to expand our operations, we intend to capitalize on this opportunity to grow our business further. In addition, we plan to start a Madagascar vanilla project, which will add revenue and diversification to the property.
As we transition our property to a regenerative farm program, we have the added advantage of two water reservoirs, ensuring that our crops are well-watered and our yields are high. Our primary goal is to become the leading supplier of avocados and tropical fruits in the region and beyond. We will achieve this by prioritizing sustainable agriculture, producing high-quality organic products, and utilizing modern farming techniques. We will also build strong relationships with our customers and take advantage of digital marketing strategies to reach a wider audience.
Market Analysis:
The global avocado market is projected to grow at a CAGR of 5.3% from 2021 to 2028, reaching $23.56 billion by 2027, with increasing demand from the U.S. and Europe. Our farm is located in the Dominican Republic, the second-largest avocado producer in the Caribbean region, with over 150,000 tons of avocados produced in 2020. We have access to a large local market and can source from the farming community surrounding the property to ensure an abundant supply. Our farm also has export opportunities to the United States, Europe, and other regions with high demand for avocados. We will focus on supplying both Hass and tropical avocados to capitalize on the projected annual increase of 5.5% in Hass avocado consumption from 2021 to 2028.
Marketing and Sales Strategy:
To ensure our products reach our target market, we will implement a comprehensive marketing and sales strategy. Our primary focus will be on building a strong brand reputation by producing high-quality, healthy, and tasty avocados. We will also use digital marketing techniques, such as social media and search engine optimization, as well as online marketplaces to reach a wider audience. Additionally, we will build strong relationships with local and international distributors, supermarkets, and restaurants to maximize our sales potential.
Operations and Management: By purchasing this property we will inherit a team of experienced farmworkers who will continue to work with us. We will also hire additional staff to help with the expansion of our operations. Our management team will be responsible for overseeing the day-to-day operations, financial management, marketing, and sales. We will also implement modern farming techniques to ensure we maximize our yields while minimizing costs.
Financial Projections:
We project that this farm will generate significant revenues, with annual revenue expected to reach $3 million by the third year of operation. We will achieve profitability within the first two years, with a profit margin over 30%. Our primary revenue streams will come from the sale of avocados, but we will also generate additional revenue from the production and sale of sustainably grown tomatoes, madagascar vanilla extract, and other organically grown vegetables. We will reinvest a portion of our profits into expanding our operations and increasing our production capacity.
Conclusion: Our regenerative avocado farm in San Jose de Ocoa is well-positioned to become the leading supplier of avocados in the region and beyond. With the added advantage of the Ocoa river nearby, two water reservoirs, a strategic location, and an experienced team, we are confident in our ability to achieve our business goals. Our primary focus will be on producing high-quality organic avocados, building strong relationships with our customers, and utilizing modern farming techniques to maximize yields and minimize costs.
We are committed to sustainable agriculture and will continue to implement regenerative farming practices to ensure the long-term health of our land and the surrounding environment. By prioritizing the well-being of our farm and our community, we are confident that we will be able to achieve our vision of becoming the premier avocado supplier in the industry.
