Managed Walnut Orchards

A unique opportunity in the Republic of Georgia.

WALNUTS.GE offers a fully fledged farm management service. We oversee every step from the purchase of the seedling to the sale of the fruit.

Legal Structure

  • The investor holds a lease title for 99 years (plus option right) to his piece of land. All contracts are officially registered with the Georgian Public Service Hall.

  • A management contract assigns WALNUTS.GE to manage the orchard during its lifecycle. It also guarantees the use of all amenities and machinery of the company.

  • A success fee of 10% assures aligned interest of investors and management company.

  • Investors are registered as Small Business Individual Entrepreneurs (IE), resulting in a mere 1% Revenue taxation in Georgia (rather than 15% corporate tax).

Orchard

  • Every piece of investment land is integrated into our large scale plantation in the Udabno Region of Kakheti, Georgia.

  • Thanks to the abundance of water in the territory of Georgia, water supply is guaranteed through a channel system connecting the orchard to the Iori River.

  • We install a modern 3-line drip irrigation system made by Netafim in Israel.

  • Trees are planted in a 7x5m distance for a total of 285 trees per planted hectare.

  • We use Chandler or Howard Walnut trees from the USA or Turkey with either Regia or Paradox rootstock.

  • Every orchard has direct access to a local road (no 4×4 needed), so that investors can visit on site any time throughout the year. The orchard is currently 10km away from the next main road, but once works on the Kakhetian Highway are completed the distance will be reduced to 3.5km to the highway.

Cost Breakdown

  • We’ll guarantee that no additional fees will be levied until the orchard provides them with a first harvest.

Managed Walnut Farmland
Land Size 1 ha
Tree Number 285 Chandler or Howard Walnut
Title 95-years registered Lease + Option Right
Planting Year 2019/20
Taxation 1% on Revenue
No extra cost until production start
Replant dead trees Free during first 4 years
Installment Plan 40% upfront, 60% within next 12 months
Price 85 000 USD
Invest now

Yield Forecast

Agricultural yields vary strongly depending on weather conditions. Generally speaking, walnut trees take about 4 years to enter into production and have a minimum life cycle of 30 years, which can go up to 70 years if conditions are good. We are using UC Davis for our average yield forecasts. They forecast an annual production of 6.5t/ha when fully grown in the 7th year. A well-managed modern day orchard can outpace these, especially when using highly productive varieties like Chandler. Our Turkish producers achieve yields of 8t/ha or more, which we use as our optimistic scenario. The pessimistic scenario assesses a freeze in the first year resulting in a complete replanting of the orchard and a disease that forces to prune 30% of the orchard to its minimum during the second year.

Price forecasts

Walnut prices are fluctuating from year to year according to global supply and demand. Since weather and world production are outside our control, a grower must focus on producing high-yielding trees and quality nuts. Chandler Walnuts are some of the most desired walnuts on the market. In-shell Chandler FOB prices have ranged in recent years from 2000 USD/t to 4500 USD/t. We us a price of 3500 USD/t in our models. You can follow live price updates for walnuts on Tridge.com

ROI

With respect to price and yield forecast we’ve created several ROI scenarios All return data is after expenses and management fees.

Managed Walnut Farmland Royalty Units
Land Size 1 ha 71 ha
Tree Number 285 Chandler or Howard Walnut 15400 Chandler Walnut
Title 95-years registered Lease + Option Right Revenue Sharing Agreement
Planting Year 2019/20 2017/18 8400 trees, 2018/19 7000 trees
Taxation 1% on Revenue 0% witholding
No extra cost until production start
Replant dead trees Free during first 4 years
Installment Plan 40% upfront, 60% within next 12 months
Price 85 000 USD 10 750 USD

We offer sophisticated individual to own productive farmland and gain direct exposure to a continous stream of passive income.

Invest now