A fair investment in agroforestry systems
Contract term of approx. six years
Investment starting at 3,000 euros
On a global scale, the demand for fine cocoa is constantly increasing. The market value for sustainably produced cocoa is, when compared to the prices of conventional bulk cocoa, much higher and consistently stable. ForestFinance plants high-quality fine cocoa for you in Panama, together with other shade-giving trees. Protected by other trees and plants the fine cocoa trees grow naturally into a cocoa forest, a sustainable and profitable agroforestry system.
Your investment in CocoaDirectInvest II means investing in a sustainably managed agroforestry system which generates regular returns from high-quality fine cocoa. After approximately six years we sell the fully productive cocoa trees and pay out the proceeds to you.
We are building cocoa forests – join us!
You decide how much cocoa forest you want to build with us.
Please note: numbers and percentages (decimal points) are displayed according to the German way of writing.
Your CocoaDirectInvest II contract consists of two contract parts: a property lease contract and a forestry and administration services contract. You can choose the size of the plot in 0.1-hectare-steps.
You are investing in an agroforestry system with cocoa trees to sustainably produce high-quality fine cocoa in Panama. Agroforestry systems combine parts of agriculture and forestry systems which means an agroforestry system is a highly biodiverse mixed forest consisting of crop plants and perennial woods.
Panama has excellent conditions for cocoa farming due to its fertile soils and centuries-old tradition of cocoa cultivation. The tropical climate is perfect for an agroforestry system, allowing shade-giving trees to grow rapidly and to provide protection for thriving cocoa trees.
Based on our long-term professional experience and intended method of agroforestry management we expect the cocoa trees to bear fruit in year four and thus to harvest approx. 50 kilograms of fine cocoa per 0.1 hectares, which we will be able to sell for 2.55 euros per kilogram.
In year five we expect to harvest 65 kilograms of fine cocoa per 0.1 hectares, which we will be able to sell for 2.73 euros per kilogram, according to our forecast. In year six, the cocoa trees are expected to reach their highest level of production with 140 kilograms of cocoa per 0.1 hectares and a price of 3.00 euros per kilogram.
The calculated net proceeds for fine cocoa, less marketing and management costs (in total 224 euros per 0.1 hectares), of approx. 500 euros per 0.1 hectares and the proceeds from the fully productive cocoa trees amounting to 3,500 euros in year six are based on our forecast for the expected amount of fine cocoa, the quality of the product as well as the price.
The calculated returns are based on forecast harvests and sales of fine cocoa as well as the sale of cocoa trees at the end of the contract term. With CocoaDirectInvest II you invest in a natural raw material. Thus, the exact time of the cocoa tree sale can only be forecast. Also, it is up to the agroforestry manager to decide on the economically best time for the cocoa harvest.
*IRR (Internal Rate of Return) is a method of dynamic investment calculation which is used to calculate the average annual return.