THE INVESTMENT OPPORTUNITIES, STRATEGIES AND BENEFITS
“A dreamer is one who can only find his way by moonlight, and his punishment is that he sees the dawn before the rest of the world” -Oscar Wilde
- Pili Nut Opportunities
Pili Nut Opportunities include:
- Financing of production and post-harvesting/processing
- Nursery establishment/development
- Infrastructure development (i.e, pili nut processing plant/center)
- Establishment of a buying station for export and domestic market
- Inputs provider to farms
- Establishment of your own orchard/plantation farm
- Investing in an established pili nut farm
However, regardless of your business background, I do not encourage investment in your own active operating business, such as those above, unless you plan to be actively involved in the day to day operations.
Operating a business anywhere in the world is very time consuming and stressful during the startup time – yet in the Philippines, being a foreign country to you, and being still regarded as a “third world” country, ripe with corruption and a bloated and generally incompetent beauracracy, your challenges will be one hundred fold more.
Key Considerations on Pili Nut Farming Investment
Land Ownership
- A foreigner cannot take title to land in the Philippines (you can “buy” it – but you will never be able to get title transferred to your name) – Philippine law
- A Filipino citizen can own land, but not more than 5 hectares of farm land
Note: A Philippine corporation (like Philagrivest, Inc) which can qualify as an Agri Toursim site is exempt from the 5 hectare requirement
Prices/Revenue from trees
It is important to note that the kernel averages only 10 to 20% of the weight of the harvested drupe. Thus, each tree from which you harvest 25 kg of drupe, only equals about 3 to 5 kg of saleable shelled nuts after removing the pulp and shell.
Based on actual revenue numbers tracked by the Bureau of Agricultural Statistics, Department of Agriculture – Philippines, one can compute projected returns from an investment in pili nut farming.
However, quarter to quarter and year to year, the prices for drupe, shelled nuts and kernels vary by as much as 100% or more. Due to the limited supply of pili nuts, prices vary considerably.
For example, in 2013 prices per kilogram ranged as follows
- Drupe = Php 15 to Php 30
- Pili nut (kernel with the shell = Php 30 or Php 70
- Pili nut (the kernel) = Php 300 to Php 480
- Processed and packaged kernel ready for export = Php 900
How much gross revenue can be earned from 10 hectares of pili nut trees? It is highly variable, depending on the time of the year and supply/demand factors. In general, 10 hectare can yield as much as 50,000 kg of drupe. This could equate to 40,000 kg after removal of the pulp, and be the equivalent of between 4,000 to 8,000 kg of edible kernels.
Note: there are significant production costs incurred to de shell the drupe, clean, roast, process and package the kernels for sale, which will reduce the “net sales price” for kernels.
- How the investment works?
WANT TO CREATE A SOLID MONTHLY INCOME? FOR AT LEAST 75 YEARS TO COME…How does it work?
1) The main product with which to make good, on-going, residual income are the pili nuts from our pili nut trees; this is an export product in great demand in China for their famous Chinese festive desserts known as ‘moon cake’. The oil is also used in luxury perfumes.
The world’s demand for pili nuts is 10x higher than the Philippines can ever produce…
Harvesting at the farm will start around 2015 which will provide a residual income to supplement one’s pension for at least 75 years to come…
2) While the pili nut tree matures (they are still young and don’t give produce yet) we use the land to grow some ‘Quick Cash Crops’ in between the trees plus we have some other products as to diversify the farm to create good ROI before the ‘main harvest’ of the pili nuts starts.
3) Investor makes an investment in Philagrivest, Inc.
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- Residual Income - The Investment Benefit...
Residual income (also called passive, or recurring income) is income that continues to keep coming in long after the initial effort or financial investment has been expended.
Compare this to what we focus on for earning income: trading hours for dollars (a pay check) – a “one-shot” compensation or payment in the form of a fee, wage, commission or salary.
The single greatest advantage of residual income is that once things are set in motion, you continue making money from your initial efforts, while gaining time to devote to other things.
For most people, when they think of earning residual income, they think they have to
1. Write a book or create a software program, invent some gadget, or record a song.
2. Become an actor and draw residual income from their movies, TV SHOWS, or commercials.
3. Be Michael Jordan and get a royalty off of every pair of “Air Jordan” shoes that are sold, or
4. Create their own “McDonald’s” franchise system.
5. Buy a bond – yet, the average yield on U.S. government, corporate and mortgage bonds stands at about 2%!!! Stock Market valuations suggest a long-term return of about 6% – at best!
6. Build a large “mulit-level” marketing business – like Amway, Herbalife or New Skin, etc
7. Purchase either residential or commercial real estate – and rent it out . . . and HOPE it appreciates in value…
However, “at the end of the day”, we all come to the reality that we do not possess the amount of money nor the incredible and very unique talent it takes to create such forms of residual income.
The Social Security or Old Age Pension plans in many countries is also a form of residual income – however, the problem with this is that it takes close to 40 to 50 years of labor before it starts being paid out, and nowadays such pension residual income is being cut across the board, one way or the other, by every country.
So What is the Average Person to Do?
Firstly – get involved with a business – participate in the Free Enterprise System
What are the traits of a “Perfect Business”?
- Minimum or no inventory
- Minimum overhead
- Minimum employees
- No accounts receivable
- Your control your calendar
- Unlimited income potential
- No educational requirements
- Generates residual income
- Has a product in continuing high demand
What business in the Philippines possesses these traits + is a business you as a foreigner can have ownership interest in?
Perfect Business – ownership shares in Pili Nut and Organic farming in the Philippines
– No inventory to store, no overhead to worry about, no employees to manage, as the farm is managed by a team of highly educated and experienced agricultural specialists. The Board of Directors of the company is represented by foreigner stockholder investors. Primary consultant to the company is also an expat.
– Not like a passive commercial or residential real estate investment where one is continually replacing tenants, and, as we have found out in recent years – the value of such residential properties have significantly dropped in value in all markets around the world.
– GENERATES RESIDUAL INCOME – once the Pili Nut begin to be harvested after 5 years of growth, it produces nuts for harvest on an ongoing bases for 75 years. That spells 75 years of company income dividends to company shareholders.
– Diversified and “in demand” product – Food! While waiting for the initial harvest of the Pili Nuts, the farm is planting quick growing crops such as vegetables (to include a large hydroponic greenhouse operation) and various fruits which are sold on nearby Boracay Island, which draws over 1 million tourists annually.
– By owning a piece of Philagrivest, Inc, which owns the farm land, the investor indirectly owns the land, so the financial risk to the shareholder is the extent of the amount of his stock investment – YET, the value is secured by the underlying value of the farm property (which has risen on Tablas Island approximately 20% per year for the past two years).
- Why Invest in the Philippines?
There is another option – where you can live a life of luxury. More Americans, Australians, and Europeans than ever are choosing to live in this number #1 retirement haven.
Why the Philippines
While many other countries are experiencing ‘bad weather’, the Philippines has become a popular place for anyone who wants to expand their horizon, enjoy a better life, have fun and make some money overseas.
The Philippines is a place where your dwindling pension or savings can still be used to live in luxury on a typical retirement income; you can even walk out your front door, cross the white sand, and dive into warm, turquoise waters – and you don’t have to be a millionaire to do it!
“Life is more fun in the Philippines”, as the tourist adage goes . . . The Philippines is famous for its vibrant culture, hospitality, friendly English-speaking population, natural attractions, and tropical climate. Foreigners can expect the good life in the Philippines at an affordable cost.
- Have one or two maids, and a driver?
- Wake up every morning and go to bed every night free of frustration and anxiety over money
- Live healthier with less stress
- Find meaning to your life – discover what you are going to do with the best years of your life
- Reinvent yourself – clear the slate and start over
- Nurses and caregivers readily available to care for you if desired for an unbelievably low cost per day – week – or even ‘live in’…
- Start your own business in a beautiful tropical paradise
- Travel and make life one big adventure, exploring to ancient and exotic locations in Asia – all at your doorstep!
- Live in a country where elders are respected and treated with dignity
- Be financially free in a tropical paradise
As quoted below from the Philippines Retirement Authority website (www.pra.gov.ph):
GEOGRAPHY
The Philippines is an archipelagic nation made up of 7,107 islands spanning 1,840 kilometers north to south. It is part of the Southeast Asian region, and is bordered by Taiwan to the north, Indonesia and Malaysian Borneo to the south, the South China Sea to the west, and the Pacific Ocean to the east. The Three main Philippine Island groups are Luzon, Visayas, Mindanao. The Capital is Manila. Time Zone is GMT +8 hours.
CLIMATE
Generally, Philippines has a tropical climate. March to May is hot and dry. June to October is rainy, November to February is cool. Average temperatures: 78F/25C to 90F/32C; humidity is 77%.
LANGUAGE
Understanding each other will not be a problem between the retirees and Filipinos. Almost every Filipino can understand and speak some English. In fact, we are the third largest English-speaking nation in terms of population.
Two official languages are Filipino and English. Filipino which is based on Tagalog is the national language. English is widely used and is the medium of instruction in higher education. Eight (8) major dialects spoken by majority of the Filipinos: Tagalog; Cebuano; Ilocano; Hiligaynon or Ilonggo, Bicol, Waray, Pampango, and Pangasinense.
RELIGIONS
Some 83% of Filipinos are Catholic. About 5% are Muslim. The rest are made up of smaller Christian denominations and Buddhist.
COST OF LIVING
The principal appeal for retirement in the Philippines is the lower cost of living. Housing, food, and labor costs are quite reasonable. Global Filipinos and foreign retirees can retire in the Philippines and enjoy not only the lower cost of living but also the very favorable currency exchange rate.
The Philippines’ monetary unit is the Peso. Foreign currency may be exchanged at any hotels, most large department stores, banks and authorized money changing shops accredited by the Central bank of the Philippines. International credit cards such as Visa, Diners Club, Bank Americard, Master Card, and American Express are accepted in major establishments.
WORLD-CLASS MEDICAL AND HEALTH SERVICES
In terms of medical services, our facilities are comparable to the best anywhere else. Our highly trained medical personnel and caregivers are in demand all over the world not only for their competence and expertise but most especially for the care and compassion they show to their wards. Healthcare, a top priority of the senior market, is an expertise of the Filipinos who are world-renowned for their excellent healthcare practitioners.
FILIPINO HOSPITALITY
Filipinos are naturally warm, friendly and hospitable. We have a ready smile for everybody and our religious background that is predominantly Catholic makes service to others an innate trait.
TELECOMMUNICATION EDGE
Every retiree can avail of the country’s continuously improving telecommunication facilities. They can keep abreast of what is happening around the world and keep in touch with their relatives and friends back home.
ECO-TOURISM DESTINATION
Philippines can provide the retirees endless choices of world-class destinations that will bring them closer to Mother Nature with clean air and beautiful sceneries. The white sand beaches of Boracay and Panglao and the virgin islands of Palawan often referred to as “the last frontier” are truly unforgettable places that entice the visitors to come back in the Philippines.