Overview

Coconut, Teak, and Cattle Production in the Colombian Tropics

Launched in 2016, GP was Farmfolio’s inaugural offering, and successfully raised $2.575 million. These funds were used to acquire equity in the Pietrasanta property, develop 230 hectares of coconut plantation, and sustain operations during development. Since its inception, Farmfolio and its stakeholders have acquired majority control of the land and teak holdings. The Pietrasanta property was chosen for its ideal location to Colombian ports, and strategic access to markets in the US and Europe. Coconut is a market with huge potential for value-added secondary processing, and the global coconut products market was estimated at $5.7 billion in 2018. The addition of the 2017 Burroteka sawmill has added increased value and diversification for GP stakeholders.

Corporate Structure
Burroteka
Burroteka is the first centralized, value-added teak processing facility in Colombia. Its state of the art sawmill has transformed the nation's teak industry, and the Burroteka brand is introducing the world to premium Colombian teak.
Fixed Assets
Land & Structures
Land & Structures
Burroteka currently sits on 2 hectares of land located in Monteria Colombia. The land is currently divided into 5 main structures: 1. Processing line (630 m2) 2. 2 story office (420m3) and staff building with admin offices on the second floor and staff lunch, shower and locker room area on the first floor. 3. Drying & Destacking area (400 m3) 4. Lumber storage Areas (800m3) 5. Lumber Loading Area 6. Two-lane vehicle transit inner road (200m, 50-ton capacity) 7. Log Yard (1 ha).
Montería, Cordoba, Colombia

Burroteka currently sits on 2 hectares of land located in Monteria Colombia. The land is currently divided into 5 main structures: 1. Processing line (630 m2) 2. 2 story office (420m3) and staff building with admin offices on the second floor and staff lunch, shower and locker room area on the first floor. 3. Drying & Destacking area (400 m3) 4. Lumber storage Areas (800m3) 5. Lumber Loading Area 6. Two-lane vehicle transit inner road (200m, 50-ton capacity) 7. Log Yard (1 ha).

Heavy Machinery
Heavy Machinery
In addition to the facility itself, Burroteka makes use of top-of-the-line machinery, including 1 5 ton capacity forklift, 1 Bob-Cat, 2 tractors, 2 forwarders, and 8 mobile stacking carts. This machinery enables the Burroteka team to move and load product efficiently, freeing up the staff for more important tasks.
Montería, Cordoba, Colombia

In addition to the facility itself, Burroteka makes use of top-of-the-line machinery, including 1 5 ton capacity forklift, 1 Bob-Cat, 2 tractors, 2 forwarders, and 8 mobile stacking carts. This machinery enables the Burroteka team to move and load product efficiently, freeing up the staff for more important tasks.

Processing Line
Processing Line
Burroteka's main processing line consists of an entry table servicing log entry of lengths up to 9 feet. Logs are then fed into the main circular saw with the capacity of diameters as large as 34 cm this size suffice's Colombia's teak log sizes which average between 20cm and 25cm in diameter coming from 18-22-year-old forests.
Montería, Cordoba, Colombia

Burroteka’s main processing line consists of an entry table servicing log entry of lengths up to 9 feet. Logs are then fed into the main circular saw with the capacity of diameters as large as 34 cm this size suffice’s Colombia’s teak log sizes which average between 20cm and 25cm in diameter coming from 18-to-22 year-old forests.

Once the main cut takes place then the timber proceeds to 2 edgings processes. The primary process consists of finishing s4s pieces and the secondary process consists of finishing sideboards. After the 2 multi-edge machines finish the job then the timber passes through the exit ramp for sorting.

Drying Kilns
Drying Kilns
Burroteka counts with 2 Italian drying kilns which provide the mill with drying capability of 120 m3 on a weekly basis with relative humidity targets of 8%-12%. KD timber represents 8-15% of the mill's sawn wood output capacity.
Montería, Cordoba, Colombia

Burroteka counts with 2 Italian drying kilns which provide the mill with drying capability of 120 m3 on a weekly basis with relative humidity targets of 8%-12%. KD timber represents 8-15% of the mill’s sawn wood output capacity.

Products
Pietrasanta
Located on a beautiful tract of land near Montería, Colombia, Ganadería Pietrasanta is a venture dedicated to the sustainable production of coconuts, teak forestry, and cattle. Founded in 2016, Farmfolio's management team has turned this historic property into an agribusiness model for the region.
Fixed Assets
Teak Forests
Teak Forests
Pietrsanata's teak forest is comprised of 64 hectares of a teak-reforested area. This area is divided into two sections - 54 hectares of 15 year-old trees and 10 of 10 year-old trees. The average tree density per hectare is 300 trees for the 15 year-old forest and 800 in the 10 year-old forest. The forestry plan was initiated with 1000 trees on average per hectare.

Pietrsanata’s teak forest is comprised of 64 hectares of a teak-reforested area. This area is divided into two sections – 54 hectares of 15 year-old trees and 10 of 10 year-old trees. The average tree density per hectare is 300 trees for the 15 year-old forest and 800 in the 10 year-old forest. The forestry plan was initiated with 1000 trees on average per hectare.

One of the world’s most popular hardwoods, teak is a versatile, environmentally friendly tree that can absorb huge amounts of harmful CO2 from the atmosphere. Its high oil content and tensile strength make teak ideal for outdoor furniture, boat decking, flooring, and many other products. Demand for teak is powered by the growth of the middle class in emerging markets such as India and China.

In a world where black-market forestry runs rampant, the Pietrasanta team has instituted a comprehensive traceability system that allows buyers to make an informed decision about their purchases. Thanks to our system, buyers can verify that our teak is sustainably grown and legally harvested and distributed.

Malayan Dwarf Hybrid Coconut Palm Trees
Malayan Dwarf Hybrid Coconut Palm Trees
The Malayan Dwarf Coconut Palm is one of the most resilient and productive varieties of palm tree on Earth. In this case, 'dwarf' does not refer to the size of the tree but rather the early stage at which the Malayan Dwarf can begin producing harvestable coconuts. Our hybrid variety is highly resistant to the devastating Lethal Yellowing plant disease, and produces exceptional quality fruit.

The Malayan Dwarf Coconut Palm is one of the most resilient and productive varieties of palm tree on Earth. In this case, ‘dwarf’ does not refer to the size of the tree but rather the early stage at which the Malayan Dwarf can begin producing harvestable coconuts. Our hybrid variety is highly resistant to the devastating Lethal Yellowing plant disease, the Malayan Dwarf  is one of the most popular varieties for export.

As with many permanent crops, coconut trees have somewhat longer startup times until harvesting can begin. The advantage here is that although production takes longer to begin, trees can be continually harvested on an annual basis for many years to come. This makes our Malayan dwarf coconut palm trees an asset with high potential for appreciation.

At Pietrasanta, there are over 32,00 tree assets between the ages of 1-3 years of age. Flowering on mature trees has already begun, and trees are expected to start bearing fruit throughout 2020. Production maturity is expected to start on trees around 5 years of age, with projected yields of 100 -150 fruits per tree per annum.

Cattle and Pasture Land
Cattle and Pasture Land
The land on which are cattle are put to pasture encompasses over a thousand acres of lush greenery near Montería, capital of the region of Córdoba, Colombia. An ideal location for agricultural operations of all kinds, this land is a significant asset that will appreciate as regional infrastructure continues to develop.

The basis of a multi-billion dollar worldwide industry, cattle are a critical part of the global food supply. Between beef, dairy, and hides, cattle have many profitable uses. Of vital importance to the rural way of life for people in the region, our cattle are raised using humane, sustainable practices.

Cattle as an asset are vulnerable to depreciation. Cost of feed can be volatile, and reproductive efficiency varies greatly from year to year. In addition, other Latin American countries have dedicated a tremendous volume of resources to cattle production, lowing prices on global markets.

The old ‘El Balsal’ farm was primarily dedicated to ranching, and used to graze over 4,000 heads of cattle per annum, whereas today Pietrasanta herds around 300. Due to environmental and economic factors, the Pietrasanta team plans to phase out cattle operations in favor of the farms’s coconut operations, which are more sustainable and more profitable.

Infrastructure & Equipment
Infrastructure & Equipment
The Pietrasanta team has vastly improved the irrigation system on its property. In addition, we have brought in new heavy machinery and have constructed numerous structures on the property.

The Pietrasanta team has successfully constructed over 600,000 cubic meters of reservoirs and wells, 7 kilometers of three-line power, and 48 km of underground pipe networks. These systems are intended to increase growth rates, mitigate drought risk, and add value to Pietrasanta. Pietrasanta also employs high-end farm equipment on its operation, including trucks, tractors, saws, and electrical generators.

In addition to the beautiful main hacienda building, there are two worker houses, three temporary camps, and office space with high-speed internet access located on the Pietrasanta property. These structures allow Pietrasanta’s team to provide a comfortable living quarters as well as office space to workers, visitors, and key employees.

Nursery
Nursery
The coconut nursery at Pietrasanta is the first Malayan Dwarf Coconut nursery in the country of Colombia. Registered in 2017, the nursery has become the center for the development of coconut genetics. With a genetic program in place, the Pietrasanta is poised to become a solution for growers seeking international markets.

The coconut nursery at Pietrasanta is the first Malayan Dwarf Coconut nursery in the country of Colombia. Registered in 2017, the nursery has become the center for the development of coconut genetics. With a genetic program in place, the Pietrasanta is poised to become a solution for growers seeking international markets.

Products
Summary
Share Price $25,000
Number of Shares 103
Minimum Investment $25,000
Total Capital to Raise $2,575,000
Capital Raised $2,575,000
Avg. 20 Years Yield 21.83%
20 Year Total Return 1000%
IRR 14%
Ownership Percentage
Capital Structure
Type Source % of Total Amount
Private Equity Farmfolio Network 100 $2,500
Capital Uses
Cattle Acquisition (1,200 Head Purchased) $264,000
Coconut Seed Links (32,500) $320,000
Development/Maintenance 3 Years $250,000
Irrigation System $200,000
Heavy Equipment $130,000
Employee Housing Construction $75,000
Nurcery $75,000
2 Farm Vehicles $50,000
Rail Harvesting System $50,000
Miscellaneous $25,000
Operations Office $30,000
2 Shade Houses $20,000
Debt Retirement $492,000
Option Exercise for Share Acquisition (71,944 Shares) $593,538

Team

The Ganadería Pietrasanta project was the first investment opportunity offered by Farmfolio, and the culmination of years of planning, research, and travel. Led by Dax Cooke and Oscar Baracaldo, the investment team identified the Montería region as ideal for agricultural development, and made the decision to move forward with the project after establishing its potential to generate long-term yield.