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OVERVIEW GLOBAL ORANGE MARKET

Worldwide, the orange production for the season 2016/2017 is expected to be 2.4 million tonnes greater than in the previous campaign. According to estimates of the USDA, 49.6 million tonnes will be harvested this year. The greater production in Brazil will more than compensate for the reductions recorded in China and the US. South Africa is suffering from damaged fruit. Due to unclear causes, many oranges have been damaged. Also in Italy, cultivation is facing challenges. Other countries around the Mediterranean have reported more positive results.

US reveals estimates
The US estimates that the production will be 470,000 tonnes lower than last year and will reach 4.9 million tonnes. Citrus greening is taking a toll on the sector in Florida. This state accounts for nearly 60% of the US orange cultivation. The remaining 40 percent is grown in California. Florida focuses on the processing industry, while California is focused on the fresh market.

Brazil starting the season
The first oranges were shipped in week 18; however, there are concerns about the EU's phytosanitary requirements for the fruit. This makes it difficult to meet the European demand. Like other countries in the southern hemisphere, Brazil is trying to increase its market share in the European market.

According to estimates, the harvest will be up to 27% greater and amount to 18.2 million tonnes. This will break down the downward trend of recent years. The favourable weather conditions are the reason for the good harvest. The largest part of the production, 12.9 million tonnes, is intended for the processing industry.


Here is what the experts say:

“The best sector in the world that I know right now is probably agriculture. Everybody should become a farmer or rancher. Farming is going to be one of the greatest industries of our time for the next 20 to 30 years. I’m convinced that farmland and cattle are going to be one of the best investments of our time.”
Jim Rogers, 2009 (Jim Rogers cofounded the Quantum Fund with George Soros which gained more than 4,000% in 10 years, while the S&P rose less than 50%).

The primary drivers underpinning current and future farm land and cattle values are the massive global population growth, personal income growth, and need for proper nutrition. All of these factors ultimately dictate a rapid increase in the global demand for food, which creates measurable value of farm land.

Supply and demand, location, management and productivity are all keys to both short and long term land values as the limited availability of prime farm land continues to compete with real estate development.

Food production will be a dominant discussion in the immediate future, and prime land located near population and/or shipping hubs to the world will always prove to be a good stable investment with a capital appreciation that outpaces the rate of inflation.


 

During the last 50 years Paraguay has quietly developed into one of the most financially and politically stable countries in Latin America. The country has long been known for its growth in agriculture and one of the largest exporters of beef in the world.

Listed below are some key factors about orange growing in Paraguay:

  • The Paraguayan market is very favorable for oranges. The country is experiencing rapid economic growth, and demand is so high that 80 percent of its annual consumption imports from neighboring countries. The few plantations that do exist are regularly sold out long in advance. We can therefore sell our entire harvest within the country, and do not have to export it.
  • Paraguay offers ideal conditions for growing very high-quality oranges. It is subtropical, with ample rain, year-round sunshine, and the very short winters required to make the fruit sweet. The soil is also ideally suited for citrus crops.
  • While owning a whole plantation would not be financially viable for most individual investors, dividing it up into lots makes it available to a large number of people at a relatively affordable cost. Smaller lots also offer more transparent prices, and are easier to sell in the future if you so wish. They therefore provide a relatively high degree of liquidity.
  • We invite you to share with us in this exciting, financially sound and highly lucrative project in Paraguay, far from the economic volatility of the world's markets.
 
Anytime we invest in anything, obviously a major concern is "Who's in Charge?" This issue becomes of even greater concern when we consider investing outside of the United States and especially so when we are thinking about investing in Latin America.

The safest investment in agriculture in Latin America is when you have your investment secured by your ownership of the land and that the lot(s) are properly registered andrecorded with the government where the land is located. Unlike other productive assets, land does not depreciate. In fact, it usually appreciates over time.

With corporate farming in Paraguay for example, management companies will buy thousands of acres of land and then sell investments in the produce they grow secured by lots that are fully owned by the investors. Some of these management companies are run by Europeans with years of experience in the management of agriculture properties and the investment opportunities associated with them.

One such company in Paraguay is the German company Agri Terra KG, a general partnership under German law and managed by the brothers, Carsten and Michael Pfau. Carsten and Michael came to Paraguay over 20 years ago and have an unbroken record of successful management of investments in agriculture and cattle. They both have business degrees from two of the top universities in Germany. Agri Terra KG is domiciled in Munich in the state of Bavaria.


As an investor, you buy a specific lot of land, one of many forming the large orange plantation in Paraguay. Each lot is clearly marked with a boundary stone and numbered sign. The lot is titled in your name as owner with the country's land registry.

The investor then enters a “Farm Service Contract” with the farming company, which includes implementation of your lot, planting the trees, all required infrastructure and crop care. The farming company will harvest and sell the produce from your lot and share the net profit with the investor, according to the Service Contract terms.

You can find out more about Paraguayan agriculture investing by contacting:

Paraguay AG Invest which is the sales department for Agri Terra KG.

Contact:
USA: 239 / 204 4364
Email: david@paraguayaginvest.com
Internet: www.paraguayaginvest.com