WHO WE ARE

DAEBAK is a registered Limited company in Uganda. DAEBAK is leading an innovative transition to a new generation in commercial agriculture investment model in East and Central Africa in the short term and whole of Africa in the long term. This WIN WIN investment model is strongly built on detail study, research, and dedication coupled with big agricultural infrastructure investment.

Why Agricultural Investment
In any other real estate investment, the buyer carries the risk to pay the operational cost ,manage and operate  the facility. In the investment model implemented in our  farmland projects, we never charge any management fees at any time.
In Macadamia farmland project, the investors investment pays itself within 4 to 10 years for the investment date and gets net profit for the next years. The value of the investors land rises to at least the double at the beginning of year 4 from the investment planting date.

At DAEBAK we listen to you. Your ideas are a stepping stone to the next investment innovation
Contact us for an innovative investment discussion……

WHY INVEST

WHAT MAKES DAEBAK FARMLANDS ATTRACTIVE
Based on  forbes, farmlands represents a $9 trillion market globally, with historically high returns and low volatility. A growing population driving demand for high-quality food coupled with a finite and decreasing supply of land, means that farmland will only become increasingly essential over time.

Shrewd institutional investors are beginning to take notice, but with managed farms from DAEBAK, we eliminate the confusion and provide the experience needed to capitalize on what could be the more untapped investment class.

New applications of technology have the potential to make farmland the most attractive. DAEBAK makes it simple for investors to diversify their portfolios, with access to professionally managed farmland investments.

Attracting Famous Investors
Investments in farmland are much more common than you think, as many of the world’s largest investors and climate change advocates already understand the benefit of agricultural investing, and how it can help them preserve the environment, increase on food security and grow their wealth.

Smart, Sustainable and Strategic Investment
The Farmland is an excellent addition to any investment portfolio. It is inflation-resistant and contra-cyclical to many conventional equity investments. Most importantly, it is a real asset that will always maintain high  level of intrinsic worth.

FOREIGN INVESTMENTS & CURRENCY
Uganda enjoys a unique location along the equator, in the heart of the Sub-Saharan Africa within the East African Region, with readily available skilled human resource that is not only entrepreneurial but also creative and strategically located for regional trade and investment.

DAEBAK understand that as investors broaden their investments by expanding into different countries and investment assets, they typically also bear the risk associated with fluctuations in exchange rates. At DAEBAK understand that fluctuations in home or foreign currency, can either enhance or reduce the returns associated with foreign investments since it plays a significant role in investing. we have formulated our investment model to downplay currency fluctuation effects.
DAEBAK also understands that,  it’s a good thing for investors to diversify a portfolio, because it comes along with opportunities which outweigh the risks.

HOW DAEBAK REDUCES CURRENCY RISK
Investments and Returns in USD
To reduce this risk, DAEBAK has chosen agricultural investment projects which have high international and local demand, high market sale value hence best return on investment. The global demand for Macadamia nuts is high but the production is low hence making it the most expensive nut in the whole world with the lowest cost of production, highest market demand and high return on investment.

Furthermore, the currency in which the nuts are sold as nut-in-shell for further processing can be chosen strategically depending on which currencies offer the best opportunity to maximize returns. Macadamia nuts and associated food and cosmetic products destined for the Middle East, Asia, Canada or United States of America etc. are priced in US dollars and this is the reason DAEBAK investments and returns are calculated in USD.

Managed Farmlands Investment Module
By investing in professionally managed farmlands with DAEBAK, the currency risk involved in purchasing machinery and equipment for land preparation, operation and maintenance, is carried out by us and not the investor.
Material needed such as fertilizers, shelters, storage and transport, are all susceptible to currency risk. The management has done a detailed risk assessment and put in place mitigation measures for the protection of our investors interests.

FLEXIBLE PAYMENT PLANS
Invest at your convenience
DAEBAK offers installment sales on nearly all farmlands. This means you can get agricultural lands on freehold lease contract. Once you complete your payments, we will transfer the land time to you names with a 99-year leasehold title notarized by the government of Uganda.

In addition to installment sales, we offer agricultural lands at discounted cash prices.

Full Ownership after Complete Payment
In a cash payment property sale, the title deed is made in the buyer’s name within 14 working days from the date of sale. But in the case of an Installment Land Sales Contract, the buyer doesn’t get the property title deed until all the payments have been made.

DAEBAK agrees that the investor makes the payment over a period of 24-month in installments, after paying 55% of the total price as a down payment.

Until the whole amount is fully paid, DAEBAK stays the legal owner of the property. However, DAEBAK proceeds with clearing and preparing the land to plant the trees. When the full amount is paid in full, we transfer the property title deed to the investor’s name.

 

Break-Even Analysis

HOW TO INVEST FEASIBILITY STUDY LAND DEFINITION Planted macadamia farmland. 75 macadamia trees per acre.

LAND LOCATION
Hoima District – Uganda.

TITLE DEED STATUS Investors will own 99 years lease hold land title deed under their names.

INVESTMENT DEFINITION On this specific property, DAEBAK will run the macadamia orchard business on behalf of the landowner. DAEBAK has professional and dedicated human resource and no charges on farmland management and operation shall made until the 1st harvest period.
Our investors never have to deal with management and operational costs from their pockets.

MINIMUM INVESTMENT
The minimum land size a foreign investor can buy 50 Acres, which requires an investment of USD162,830.14.

WHAT DOES THE PRICE INCLUDE
Land Preparation
Clearing the land,Ploughing, soil preparation, water drilling, irrigation installation and finally planting the macadamia trees.

Land Management
Maintenance of the lands, from watering and caring for the trees, to ensure healthy growth, and protection from illness and infection.

Harvest Efforts
Preparing and collecting the harvest of the produce of the trees in an organized and efficient manner to ensure no waste.

Selling The Harvest
Transporting the harvest ,storage until the sale,marketing,arranging the sale and final transport to the local and international buyers.

PROCESSES AND CONTRACTS
Step 1- Analysis
The first step to getting started is to talk to one of our investment advisors, where you discuss your investment goals as an investor, and the advisor assesses whether an investment with DAEBAK is suitable for you.

Step 2 – Presentation
DAEBAK investment advisor will give you background information into vision and mission. You will be given detail of how the investment process works, and provide details about available projects and land sizes, investment feasibility calculations, and documents to suit your needs.

Step 3 – Reservations and Bookings
Investors can have the project and land of their interest reserved or booked for a 50% fee. During that time, they will be examining the contracts and agree on a payment plan; This is particularly useful for investors who would like to visit our lands in Uganda.

Step 4 – Sales and Management Contracts
DAEBAK requires two agreements to be drafted for each investment. The first is for the purchase of the 99 year lease hold land and investors receive the land title deed for their investment. The second contract is the agreement of farmland management and operation by DAEBAK.

Step 5 – Payment and Fees
Once all the contracts are in place, the payment for the investment is due. For investors who require a payment plan, this is included and detailed in the contracts. If payments are completed upfront, then we initiate the title deed transfer immediately.

Step 6 – Land Preparations and Operations 
With contracts in place, payments agreed on, and down or full payment received, farm management starts and investors can receive periodic updates on the progress in writing and media (photos, videos and live streams when available).
Further to that a six (6)monthly meeting will always be held with all investors.

Step 7 – Secondary Income Generation
There is an option for secondary income generation. The investment advisor will share the detail at the end of the session. If the investor opts for secondary income projects, they will start to receive their income once operations start and the amounts are transferred to them.

Step 8 – Harvest and Crop Sales
Once the project comes to maturity and trees start to produce, we sell the crops and transfer the returns to our investors. Depending on whether the investor chooses to have the crops sold locally or exported internationally.

HOW WE REDUCE RISKS
1- Our Choice of Agricultural Real Estate
2- International Currency Risk
3- Perishable Food Risks
4- Climate and Natural Disaster Risk

HOW THE SYSTEM WORKS
Investor buys Macadamia Farmland Projects with a 99 years’ leasehold land title freehold (%100 ownership) title deeds.

DAEBAK constructs high quality infrastructure and plants 18 Months grafted macadamia nut trees.

DAEBAK manages the entire farm management operation, maintenance and marketing process with the most professional and dedicated team.

DAEBAK sells the harvest at the highest market price and generates high income for the investors.

DAEBAK take only 20% of the net profit from the sales and the 80% is for the investor

INVESTMENT ANALYSIS
Income generation for the macadamia nuts increases every year.
Macadamia nut trees start generating income 5 years after plantation and the immediately starting giving revenue.
Profit start being realized in the eighth (8th to 9th) year after planting.
From the 10th year, the trees stay at the same productivity all lifetime (60+ years).

INCOME CHART

Chart Explanation
As it is shown that income generation of macadamia farmlands starts increases every year.

How we calculate these values:
-The Lowest Sale Price of Macadamia nuts in Shell is USD 1.57/kg
-Estimated Annual Operational Cost including harvesting USD 400/per acre
-Packaging cost: USD 0.20/kg
-Management Fees: 20% from Net Profit
-Management company covers all operational costs until the 1st harvest!
Note: Numbers stated in this chart are calculated after deduction of annual operational cost, harvest cost and taxes.
It should be not that Uganda has the most favorite tax incentives for agricultural investors .

In case we are at year 9 and we have 1 acre of land area

Cost Production Minimum Revenue Profit

Annual Operational Cost: USD 301 annual operational cost (7% value increase according to inflation) so in year 9 it becomes USD 490.63

Harvest Cost: USD 0.20/kg – According to Minimum Production project land will generate 3500 kg therefore harvest cost will be USD 700.00

Annual operational cost (USD 490.63) + Harvest cost (USD 700.00)

= USD 1,190.63

Min 40kg/tree

In 1 acre we have 75 trees, so we have minimum 2,800.00 kg production

 

Sale price in shell: USD 1.57/kg so 2,800.00 kg x USD 1.57= USD 4,396.00

Revenue – (OPEX Costs) = USD 3,205.37

 

80% of the profit for land owner = USD 2,564.30

Which is equal to 79% of net initial investment amount

 

 

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ABOUT US

DAEBAK is leading an innovative transition to a new generation in commercial agriculture investment model in East and Central Africa in the short term and whole of Africa in the long term.

CONTACT
  • DAEBAK (U) LTD
    P.O Box 3679 Kampala
  • (256 ) - 779 136 949
    (974 ) - 307 779946
  • info@daebak-ug.com
    tmoris@daebak-ug.com
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