An Excellent Offshore Investment has to do with Olive Oil

Sept. 6, 2010 - PRLog -- There are many offshore investment opportunities. Some are complex and have to do with tax advantages and rates of exchange. Others just have to do with something very clear and understandable. The later is what this investment is all about.  A Spanish company, Espacios Verdes, is planting olive trees in Algeria. Through its subsidiary, Desert Vert, the company is planting 1, 500 hectares (3,750 acres) with the Arbequinia olive tree. This is a variety of olive known for its high oil content, excellent taste properties, and adaptability to intense culture (maximizing production per unit of area).

Why Olives and Why Algeria?

The investment opportunity exists because the government of Algeria is planning to plant a million hectares of olive trees. The world wide market for olive oil is expanding with a six fold increase expected between 1990 and 2020. The current leading producers are Spain, Portugal, Italy, and Greece and it is quite unlikely that these producers could double production much less increase six fold. Thus there is an opportunity for other nations with similar climate, soil conditions and expertise to profit. Algeria plans to put a total area of one million hectares into olive production. This amount of land, if in one block, would be equal to a hundred kilometers on a side. Espacios Verdes is part of this project. The opportunity for the individual investor comes from the fact that Desert Vert (Espacios Verdes) is going to allot 500 hectares at one hectare for each investment increment to private investors.

What Espacios Verdes/Desert Vert Plans to Do

The company will plant the Arbequinia variety of olive on its project. This olive tree is small, matures fast, and can be planted in large numbers in a small space (hyper-culture). Besides harvesting olives the company will build a modern processing plant. The subsidiary, Dessert Vert, will grow olives, harvest olives, process olives, and export olive oil. The oil from the Arbequinia olive is high quality and prompt processing at the company’s plant will assure low acidity and high price.

How Investors Can Benefit

Each investment increment will provide the investor with interest on his investment starting the first year. At the third year the interest will diminish and the investor will receive $2 per liter of olive oil produced on his or her hectare. A hectare of Arbequinia in hyper-culture can produce 11,000 kilos of olives a year. This olive can yield 200 liters of oil per 1,000 kilos of olives. Thus one hectare can yield 2,200 liters of oil. The investor will receive $2 US per liter along a reduced interest starting the third year. The investment runs for ten years and the investor gets his or her money back along with interest and payment for olive oil production in the tenth year. The company expects investors to double their money.

This investment does not have to do with tax advantages or currency rates. Monies earned will be repatriated to investors in US dollars. The project will have land, a functioning olive orchard, and a processing plant. This is meant to be a long term, money making proposition with assets to back it up. It should be noted, by the way, that there are olive trees that are known to be 2,000 years old. People who grow olives and make olive oil are typically in it for the long haul.

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