As a young investor, you must be keen on where to invest your hard earned money for sustainability.
Am not condemning anything here ,just giving an open personal opinion. Being from the Agricultural and Real estate Background.
Let’s Assume the Cost of land in a good area 50x100ft is 40Millions, Cost of constructing 4 standard self contained double room units is about 90Millions Total investment will be 130Millions.
Imagine they pay you 250k per month for these rooms meaning a month you collect 1M, A year that’s 12M, remove things like renovations paying the security personnel and maintenance, you remain with 10M a year.
You will need 13 years to get out your initial investment and start earning a profit. However the good thing is the value of the land has grown and you may think of selling off the property.
Assuming you have 40Millions at your disposal:
You can buy 4 acres of land in a distant area like 70kms from kampala, each at 7Millions. That’s 28Millions.
1 acre of land accommodates about 450
coffee seedlings if we consider standard spacing of 10ftx10ft.
If each clone/cutting is bought at Ugx 1,500, you will need Ugx 2.7M for all the 4 acres.
Preparing the garden will cost Ugx 200,000 per acre. That’s a total of Ugx 800,000 for all the 4 acres.
Digging holes (pitting) & planting. Each hole will cost Ugx 600. That makes Ugx 1.1M for all the 4 acres.
Manure application. 3 Elfs per acre per year. That’s 12 Elfs for 4 acres in a year. Each Elf costs about Ugx 100,000. That’s Ugx 1.2M for all the 4 acres in one year. Thus Ugx 2.4M in 2 years when your coffee starts giving maximum yields.
Get a simple irrigation system at around 3M
Intercrop it with beans, pumpkins, banana plantation (not more than 305 plants) etc to help you pay the 2-4 employees in those 2 years. PLUS other Miscellaneous costs .
That’s a total of 38Millions invested!
Good quality and well managed coffee clones can start yielding very well in the 2nd year after planting and each tree can give you 3kgs of dry beans.
Each Kg is about 5000shs hence each tree can make you about 15000shs per season and a year 30,000shs
In 4 acres we have 1800 trees *30,000 = 54Millions a year
In 5 years you can make over 250Million
Remember the yields keep on increasing as per the age of the coffee plant.
This money can be enough for you to acquire the best rental apartments in the area of your preference after 5 years
Contact us for Land sourcing, Farm setup and all planting materials and services.
Remember the farmer will have extra large surface of land for future use like forestry, fish farming, piggery, poultry or even selling plots when the value appreciates unlike the rental investor whose land will be all occupied. Invest Wisely.
Leave a comment on what you think ,let’s brain storm.