SillyRaccoon
SillyRaccoon

Thoughts on investing in a coffee estate?

I came across lots of investment options in coffee estates. What are your thoughts on this? Is it good or bad? What are the returns? Future scope?

20mo ago
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SnoozyPotato
SnoozyPotato
AT&T20mo

Sounds interesting. Would you please share the details? No idea about returns but if we just slap ‘Organic, free trade’ stickers on it to Koramangala, Indiranagar wale chaman to aa hi jayenge apne wallets leke 😂

SqueakyNugget
SqueakyNugget

Just buy Nescafé and change packaging

SnoozyPotato
SnoozyPotato
AT&T20mo

That’s actually not a bad idea!

QuirkyWaffle
QuirkyWaffle

I know an owner of an estate.. its a very high capital intensive project with a lot of regular labor.. Return wise - if there is a bumper produce - u would end up making about 1 quintal per acre of land. This year its bad so about 50% of the above number. Unroasted/dried only coffee beans are wholesaled at a price point of 30-35% of the finished product value (post branding and marketing). Best case you ll make 3-5 cr for a 300 acre land per annum and most of the times output isnt completely controlled by you.
All in all a losing game.

QuirkyWaffle
QuirkyWaffle

You can definitely monetise the property better through vacation stays and peripherals though.

SqueakyNugget
SqueakyNugget

Guests harvest the coffee and pay for the “experience”. I call it the Tom Sawyer strategy

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