Persian Lime

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Valle Verde

Apartado, Colombia

Overview

The World’s Gateway to Exquisite Colombian Lime

Valle Verde, LP is a Limited Partnership structure that has been established as a Cayman Island Exempted Limited Partnership for the purpose of acquiring and developing a total of 1,240 m2 of citrus packing facility located in Apartado, Antioquia in the country of Colombia. The Partnership was established by Farmfolio LTD (“Farmfolio” or the “General Partner”) to embark on the new venture. The Partnership will be the only Tahiti Lime packing facility in the region and has already gained the support of numerous growers in the region as a long-awaited solution for exporting Colombian lime throughout the world. Uraba has the highest road and port development endeavors in Colombia and as such is strategically positioning this export opportunity to acquire a significant share of the global markets. The objective is to develop a more efficient way to deliver fresher and more environmentally responsible Lime from Colombia. Throughout the last 18 months, Farmfolio has been developing global promotion desks and establishing its La Dona brand in wholesale markets in Asia, Europe, and US markets. It is anticipated that the primary customer for the Partnership’s facility will be Farmfolio’s La Dona. Simultaneously, Farmfolio’s Colombian team has developed a network of growers with over 1,800 of lime production that will supply the Valle Verde, LP’s facility.

Market analysis indicates that the profitability of Lime in many cases can exceed that of Orange. Tahiti Lime, especially, has become a true trend with the substantial headroom for upside profit given strong appetite for this cross border fruit from key consumer markets like the US, Germany, Netherlands, France and recently China. It is, in fact, the most commonly grown variety of lime in the world. It is the intention that the Tahiti Lime being packaged will be marketed under Farmfolio’s La Dona brand and backed by the quality, consistency & traceability that the brand stands for. This will strengthen the market perception of this new product line.

Summary

Share Price Number of Shares Total Capital to Raise Avg. 10 Year Yield 10 Year Total Return IRR
$1,000 2,500 $2,500,000.00 11.92% 231.07% 11.02%

Rating

Scale AAA AA A BBB BB B
Points 10 9 8 7 6 5

Rating Details

Political Risk — 8

The Colombian political currently stable and is projected to improve with the further economic development of the country.

Currency Risk — 9

The Colombian Peso is currently at an all-time high against the USD (3400 to 1). The 10-year average price of the currency is between 2000-2200. The currency is historically tied to the price of certain commodities, primarily oil, due to its export levels, however, with oil approaching 20-year lows, it could be an opportunistic time to invest in peso-denominated assets.

Climate Risk — 9

GP is located in the humid tropical climate of the Northern Carribean coast of Colombia. This area experiences large amounts of rainfall between the months of April-November, however, is not subject to traditional tropical risks such as Hurricanes.

Management Risk — 8

The property has been family owned and operated since 1910. Strong background in cattle management and agroforestry implementation.

Financial Risk — 8

The company currently maintains a low Debt to Equity Ratio of 15%, strong track record of financial performance in cattle grazing, and potential for increased performance further modernization of the ranch.

The Investment

This is an offer to investors of Units in Valle Verde, LP, set up to engage in a Tahiti Lime packing house in Colombia. The entity seeks to raise $2,500,000 USD from investors for a 60% stake in the Partnership. Farmfolio’s Colombian team has developed a network of growers with over 1,800 acres of lime production that will supply the Valle Verde, LP’s facility. This earned trust from growers and new practices brought forth by the general partner in order to mitigate risk in purchase pricing swings from this new Lime Grower network ensures a steady inflow of high quality which will set the partnership’s production aside from the rest creating the consistency that today’s demanding markets are looking for.

Throughout the last 18 months, Farmfolio has been developing global promotion desks and establishing its La Dona brand in wholesale markets in Asia, Europe, and US markets. It is anticipated that the primary customer for the Partnership’s facility will be Farmfolio’s La Dona Brand.

This is an offer to investors of Units in Valle VerdeTahiti Lime, especially, has become a true trend with the substantial headroom for upside profit given strong appetite for this cross border fruit from key consumer markets like the US, Germany, Netherlands, France and recently China. It is, in fact, the most commonly grown variety of lime in the world. It is the intention that the Tahiti Lime being packaged will be marketed under Farmfolio’s La Dona brand and backed by the quality, consistency & traceability that the brand stands for. This will strengthen the market perception of this new product line.LP, set up to engage in a Tahiti Lime packing house in Colombia. The entity seeks to raise $2,500,000 USD from investors for a 60% stake in the Partnership. Farmfolio’s Colombian team has developed a network of growers with over 1,800 acres of lime production that will supply the Valle Verde, LP’s facility. This earned trust from growers and new practices brought forth by the general partner in order to mitigate risk in purchase pricing swings from this new Lime Grower network ensures a steady inflow of high quality which will set the partnership’s production aside from the rest creating the consistency that today’s demanding markets are looking for. Throughout the last 18 months, Farmfolio has been developing global promotion desks and establishing its La Dona brand in wholesale markets in Asia, Europe, and US markets. It is anticipated that the primary customer for the Partnership’s facility will be Farmfolio’s La Dona Brand. Market analysis indicates that the profitability of Lime in many cases can exceed that of Orange.

 

Colombian Tahiti Lime

The Colombian fruit sector has been working with the government to create a horticultural plan that prioritizes an increase in the production of Tahiti Lime. One of the advantages is that this product is highly durable and due to Colombia’s location in the tropics, production can be done for most of the year. Already, Colombian Tahiti Lime is being exported to various countries in Europe including Belgium and the United Kingdom. There is a strong demand for Colombian Tahiti Lime even from other South American countries. For instance, in 2018, Argentina’s Ministry of Commerce, Industry and Tourism authorized sanitary eligibility for the entry of Colombian Tahiti Limes into the country. The benefit is an even wider market for Colombian Tahiti Lime. In fact, it is also estimated that the United States’ most imported citrus fruit from Colombia is Tahiti Lime. During Q2 2019 the Farmfolio team conducted due diligence to over 20 lime farms and the team has secured sourcing which equates to more than 1,500 acres from lime producers.

Go to Market

The principal customer for the Lime facility will be the La Dona Fruit Co, which is a Farmfolio company. La Dona fruit is already distributing Pineapples in global markets and has been preparing to cross-sell limes to its existing customers. The initial feedback has been very strong, particularly in windows of production opposite Brazil and Mexico.

La Dona Fruit Co launched its import and promotion desk in Rotterdam, Holland. Founded by Edna Vergara in 1977 and re-launched in 2018 with Farmfolio, La Dona Fruit Co specializes in the Ultra-Premium Pineapple from Chorrera, Panama. In 1999, Edna Vergara lobbied the Panamanian government to allow her to experiment with the newly developed MD-2 pineapple seed developed by Del Monte. After several trials, Enda gained permission to begin commercial development in Chorrera. Fast forward to 2007, Edna organized and built the first internationally certified packing facility and was named the first female agriculture person of the year in Panama. Today, La Dona exports its golden pineapples to 10 countries with a focus on high color and high sugar content pineapple.

In partnership with Farmfolio, Edna and her son Paul Vergara successfully raised over 4 million USD to expand the farm, upgrade facilities, and establish direct import companies in Asia, Europe, and the United States. The newly opened Dutch promotion desk will service EU, Middle Eastern, and Russian markets.

Beginning in late July 2019, La Dona will offer its Ultra-Premium “Perfect Pineapple” shipped via air, High Color Super Sweet Pineapple and Sweet Pineapple shipped via container. All products will be available for pickup or delivery from La Dona’s cold storage facility in Ridderkirk.

Farmfolio Founder and Director of International Marketing for La Dona Fruit Co, Dax Cooke states: “Edna Vergara and the La Dona brand are symbols of hope for all small farmers with vision and perseverance. The love and passion that the Vergara family put into their work are why La Dona Pineapple is the very best in the world! Through our import/ promotion desks, La Dona will change the game in terms of service for customers by offering 48-hour delivery from our Ridderkirk cold storage facilities.” Cooke will be heading the European launch of La Dona Fruit and plans to establish a regional presence in Barcelona, Copenhagen, Istanbul, Madrid, Milan, Munich, and Paris. The company expects to ship 500,000+ cases of its premium fruit to EU markets annually amongst other tropical fruits.

Colombia

The Republic of Colombia is a sovereign state largely situated in the north of South America with land and territories in North America. It is bounded on the north by the Caribbean Sea, on the west by the Pacific Ocean and shares part of its northern border with Panama. It is capital city is Bogota and the country’s urban centers are concentrated in the Andean highlands and the Caribbean coast.

Topographically, Colombia has the second-highest biodiversity in the world as its territories encompass the Amazon rainforest, highlands, grasslands, deserts, islands, and coastlands. The implication is a wide diversity in plant and animal species. Historically, Colombia has been an agrarian but rapidly urbanized in the 20th century. With its population of 49 million inhabitants (2018), it is the third-most populous country in Latin America after Brazil and Mexico. This population is expected to grow to 55.3 million by 2050.

Colombia is considered the gateway to South America as it is located in the continent’s northwestern region, and connects the continent with North and Central America. The country is an attractive investment destination for companies and investors looking to do business in Latin America. The country boasts of vast natural resources and a well-diversified economy with an estimated GDP over $330 billion (2018) expected to grow to about $415 billion in 2023 (Statista). It is the third-largest economy in Latin America with annual GDP growth of 4.9%.

The Colombian production of horticultural products is concentrated in the regions of Antioquia (27.1%), Santander (12.9%) and Valle del Cauca (9.3%). Colombia’s investment portal estimated that exports of fruits and vegetable sector reached 48 destinations around the world in 2017. Some of the notable recipients are The Netherlands, with exports of US $61.8 million, the United States, with exports of US $19.1 million and the United Kingdom, with exports of US $18.3 million.

 

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Location

Free Trade Zone, Apartado - Antioquia

Overview The World’s Gateway to Exquisite Colombian Lime Valle Verde, LP is a Limited Partnership structure that has been established as a Cayman Island Exempted Limited Partnership for the purpose of acquiring and developing a total of 1,240 m2 of citrus packing facility located in Apartado, Antioquia in the country of Colombia. The Partnership was

Persian Lime

The advantages of the Persian lime in commercial agriculture compared to the key lime are the larger size, absence of seeds, hardiness, absence of thorns on the bushes, and longer fruit shelf life. They are less acidic than key limes and do not have the bitterness that lends to the key lime’s unique flavor. Persian limes are commercialized primarily in six sizes, known as 110’s, 150’s, 175’s, 200’s, 230’s and 250’s.

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