Greenhouse Farm Opening Q1 2019

Galkacyo, Somalia


Farm Stats
Farm size in sqm 9800
Price meter square $ 10 m2
Minimum order 20 m2
Expected employees 12
Estimated ROI 10-40%
Total investors +80

About the farm

This farm will consist of 50 greenhouse units with possibility to extend up to 200 units. The farm will produce diverse vegetables such as tomatoes which will be sold in the city of Galkacyo and nearby towns. The greenhouses will be fitted with drip irrigation system. The total size of this greenhouse farm will be 9800m2.

Investing in greenhouse farms

You can invest in the food we are growing in this greenhouse and will be eligible to get a share of the revenues from the harvest. Investors can invest in a minimum of 20m2. Your share of the revenues will be calculated based on how much percentage you have invested in the greenhouse. The investment price for this pilot greenhouse is $ 10 per square meter. After paying all the costs related to the farm operations, investors will get 70% of the net revenues from the farm and 30% will go to Ari.farm. Revenues from the harvest will be distributed every 6 months for 18 months or until the investor has recouped at least 30% return on investment. After the investment period ends you can withdraw your money or re-invest.

Our current estimates indicate that this greenhouse farm could produce up to 147000kg per harvest. We expect to sell the produce for a wholesale price of $0.5-1.5 per kg. 12 people will work full-time at the farm. We estimate the operational costs will be around $19000 per harvest. Based on these numbers, we estimate the greenhouse farm could generate a net revenue of around $54500 per harvest of which 70% will go to the investors. It is important to note that these are just estimates and we can only provide real data after the first harvest.

Example investment in greenhouse farm

If you buy 100m2 of this greenhouse for $ 1000, you will own 1% of the greenhouse. If the average harvest generates a net revenue of $ 54500 and total harvests of 4 in 18 months, investors will get 70% of the total net revenue which will be $ 152600 and you will earn 1% of total net revenues which will be $ 1526 . Which is 52% return on investment.

Local impact

This farm is expected to create jobs for a local team of 12 people who are responsible for taking care of the farming operation. They will grow the vegetables, sell the produce and maintain the farm. The harvest will also create seasonal jobs for local vegetables traders. Most importantly, the farm will provide accessible and affordable locally produced food for the community.

Risk assessment

Every investment carries risk and investment with Agrikaab is no different but we try to be transparent and do our best to minimize the risks. These are the potential risk with this project

  • Security [medium] The security situation in this area is unstable. We have a team at the farm at all times. There is potential clan conflict in this city.
  • Failed harvests [medium] There is a risk for failed harvests, specially during the early harvests. We are hiring experienced agronomists to optimise the productivity of the farm.
  • Water cost [high] The cost of water is too high. We are working to build farm ponds to harvest rain water to reduce water costs.
  • Disease [medium] There is always risk for diseases but we have the necessary treatments, pesticides and fertilizers.
  • Theft [low] There is low risk for theft of the produce.

Pictures from the farm

This section will be updated soon.

People who work here

This section will be updated soon.

Our impact

Creates jobs

Our local operation creates jobs for former nomads who work at our farms. They take care of the farms, buy and sell products.

Locally produced food

We are producing locally produced food which are distributed in the local market. We sell organic milk and vegetables at affordable prices.

Supports the local economy

Agriculture is over 75% of Somalia’s economy (GDP). We are bringing global investment to this vital industry for the local economy.

Our global investors

Recognition

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In the news

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2018 © Agrikaab Ltd (Formerly Ari.farm)