EXECUTIVE SUMMARY
GABRIEL POP MEMORIAL FARMS COLUMBIA, TOLEDO, BELIZE
PROVEN PRODUCT – IT’S CHOCOLATE!! A $100 BILLION INDUSTRY WORLDWIDE
HIGH DEMAND – WEAK AND VARIABLE SUPPLY HIGH AND INCREASING PROFIT MARGINS FROM MULTIPLE PRODUCTS MADE FROM BELIZE SPECIALTY FINE FLAVOR CACAO
SOCIAL REWARDS HELP IMPROVE THE LIVES OF CACAO FARMERS AND CHOCOLATE WORKERS IN BELIZE WITH LIVING WAGES AND BENEFITS BY SUPPLYING A CHANNEL TO MARKET FOR THE CACAO FROM HUNDREDS OF SUBSISTENCE FARMERS
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PROFESSIONAL MANAGEMENT
SUSTAINABLE AGRICULTURE INCOME
TURNKEY FARMING OPERATIONS,
CASH FLOW FROM CACAO FARMING
CACAO BEAN PROCESSING,
AND CHOCOLATE BAR SALES
CHOCOLATE MANUFACTURING AND SALES ALL DONE FOR YOU
REVENUE SOURCES FOR YEARS TO COME A LEGACY INVESTMENT FOR YOUR HEIRS
INFRASTRUCTURE ALREADY IN PLACE 50,000 SAPLING CAPACITY NURSERY, FERMENTATION & DRYING DEPOT WITH
HELP ERADICATE CHILD AND SLAVE LABOR IN THE CACAO INDUSTRY
80 MT ANNUAL CAPACITY, FULLY OPERATIONAL CHOCOLATE MAKING FACTORY AND KITCHEN
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SPONSOR Who is AgroNosotros? 4
OUR SPONSOR AGRONOSOTROS (AGN) IS A PIONEERING EFFORT TO VERTICALLY INTEGRATE THE SPECIALTY COFFEE AND FINE FLAVOR CACAO INDUSTRIES, BEGINNING WITH INTERNATIONAL COFFEE FARMS (ICFC) IN PANAMA IN 2014 AND PEINI CACAO PLANTATION IN BELIZE IN 2016.
AgN is currently operating 12 specialty coffee
Our multi-lingual, multi-national team of experts
farms in Boquete, Panama and 5 fine flavor cacao
cover the entire value chain from seed to bean to
farms in Southern Belize.
finished product.
With proprietary state-of-the-art coffee and
In-house agronomists and biologists and our
cacao processing facilities, a quality testing
trained staff in both countries apply our unique
laboratory, on-site nurseries and high-end retail
“Art of Coffee and Cacao Science” across our
facilities in both Panama and Belize, AgN has the
network of farms.
infrastructure in place to grow, process and sell Specialty Agriculture crops to a global market.
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THE OFFERING The purpose of this opportunity is to develop and operate certain cacao farms in Belize, specifically the “Gabriel Pop Memorial Farms”, turnkey
PEINI CACAO PLANTATION, LLC LIMITED LIABILITY COMPANY INTERESTS UP TO ONE HUNDRED (100) CLASS A UNITS $29,500 PER UNIT MINIMUM 2 UNITS $59,000
managed by Peini Cacao Plantation Ltd. (the “Operator”). The Units include proportional participation
PEINI CACAO PLANTATION LTD. will manage on a
in the Gabriel Pop Memorial Farms cacao
turnkey basis the Gabriel Pop Memorial Farms.
farming operations and an additional bonus participation in the manufacture, distribution
MAHOGANY CHOCOLATE LTD. will manage the
and sale of various finished chocolate bars
manufacture, distribution, and sale of
sold internationally in the Caribbean region
various finished chocolate bars.
known collectively as “CARICOM”, by a wholly-
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owned and operated affiliate of the Sponsor,
Proportional profit sharing from both activities will
specifically Mahogany Chocolate Ltd. (the
accrue to the benefit of the Unit holders, pursuant
“Manufacturer”).
to the Profit-Sharing Agreement.
Peini Cacao Plantation, LLC | www.peinicacaoplantation.com
SUSTAINABLE AGRICULTURE PEINI CACAO PLANTATION LTD., THE OPERATOR, IS IN THE BUSINESS OF ACQUIRING SUITABLE RAW LAND AND/OR UNDERPERFORMING CACAO FARMS AND DEVELOPING THOSE FARMS INTO HIGH VALUE-ADDED FARMS PRODUCING FIRST QUALITY FINE FLAVOR CACAO.
Once acquired, a plan is put in place to finance the
This value-added development needs time to
development and operations of the ideal fine flavor
“harvest” the extra rewards. Newly planted cacao
cacao farm from scratch.
saplings will produce their first crop in years 3 or 4 and then continue to produce higher-quality
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This is the purpose of this Offering by Peini Cacao
and greater quantities of cacao for many years to
Plantation, LLC.
come.
Implementing our “Art of Cacao Science” our team
Down the road, as the farms reach the 25-year-old
of experts conduct a series of tests such as soil
stage, a plan is in place to rotate out the oldest
and leaf analysis before putting a plan in place to
trees first until the entire farm is renovated with
develop these farms.
new cacao trees.
Peini Cacao Plantation, LLC | www.peinicacaoplantation.com
Saplings sourced from the proprietary Peini Cacao Plantation Ltd. nursery will be planted in-between existing rows, 2 to 3 years before the older tree is past its peak, where it can grow safely in the shade of the older trees. Once the new sapling is ready to produce its first crop, the older trees will be removed, turned into compost/fertilizer and returned to the soil. This continuous process gives us an ongoing series of 25-year cycles of production, increased profits in the form of more cacao, higher quality cacao, a more reliable and consistent supply of cacao and higher sales prices for the cacao beans.
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SOCIALLY SUSTAINABLE BEAN BUYING PROGRAM Peini Cacao Plantation Ltd., a subsidiary of AgroNosotros, the Sponsor of this Offering, began operations in Belize in 2016 to bridge the gap between farmers and the current and quickly growing number of chocolate manufacturers world wide that are looking for a reliable supplier of Belize’s excellent, fine flavor cacao. At the time of writing, Peini has 154 native Maya cacao farmers signed up to our Socially Sustainable Bean Buying program. With plans in place to increase that number to 500 farmers over the coming years.
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Belizean cacao farmers produce some of the most
Every year, 20% of the value of their bean sales is
in-demand, fine flavor cacao in the world. But, the
returned to them, above and beyond the sale of
channel to market is broken and has been severely
the beans themselves, in the form of FREE saplings
damaged by non-governmental organizations that,
from our nursery. As of the summer of 2019 we
with the best of intentions, attempted to distribute
have donated 30,000 saplings to the farmers in
Belize cacao internationally but have failed to
our program.
deliver. Our objective is to give subsistence farmers the Under-capitalized and poorly managed, they
confidence they need to grow out their farms,
have continuously let down the local Belize cacao
knowing that Peini will be there to buy their beans.
farmers. Peini Cacao Plantation Ltd. is not in the business Peini has stepped in to become a steady, stable, and
of buying out all the land in Belize to meet the
consistent buyer for local cacao farmer’s wet beans.
enormous global shortage in fine flavor cacao.
Peini pays a fair price so that local farmers can
Instead we are training and supporting the local
operate sustainably and care for the needs of their
cacao farmers of Belize so that together we can
families. In addition to providing a steady channel
rejuvenate the cacao industry and restore pride in
to market their harvest, and at a fair price, Peini also
Belizean cacao.
provides ongoing training, micro-financing, and a FREE sapling program for local farmers.
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INFRASTRUCTURE ALREADY IN PLACE In 2017 and 2018 Peini Cacao Plantation Ltd. designed and built one of, if not the biggest, fermentation and drying depot in Belize. The key to producing a steady supply of consistent high-quality cacao for buyers world-wide, is centralized processing. We purchase all of our cacao beans wet, and within 8 to 12 hours of being harvested, the beans are brought straight to our depot and placed in our traditional 3-tier fermentation boxes.
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With the capacity to handle 9.6 tonnes at a time, the beans ferment for 6 -7 days. Our cacao quality team performs “cut tests� on random batches daily to ensure even and full fermentation. Once fermentation quality is satisfied, the beans are transferred to our passive solar drying beds. Here they are raked and turned a minimum of 3 times daily for another 6 - 7 days exposing the beans to direct and indirect sunlight, until they reach an exact moisture content of 6.5%. At this stage the dried beans are taken to the hand-sorting tables where any imperfect beans and any debris is removed. The Class 1 beans are bagged and sent to the Mahogany Chocolate Ltd. factory and kitchen to be processed into proprietary chocolate bars. For more information visit www.peinicacaoplantation.com/processing
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WHY AGRICULTURAL REAL ESTATE?
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Firstly, the long-term operation of agricultural
Additionally, an investment in agricultural real
land has proven to be one of the most reliable
estate should focus on
and traditional paths to significant gains in wealth over many generations of the world’s wealthiest
• a crop that is in high, and increasing, demand,
families.
• a crop with established and proven channels to
Secondly, this participation in income-producing
• a crop that is non-perishable so as to mitigate
market the crop yield, agricultural land over long periods of time, along with the careful and constant management of the land to improve crop yield and quality, has
risk factors, and • a crop with sustainably high profit margins consistently available.
proven to add to the wealth-generating benefits of agricultural land.
Agricultural land that produces a crop meeting all these characteristics will assure a high probability for success. That perfectly describes the economics of cacao and chocolate and the business model of this Offering by Peini Cacao Plantation LLC.
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YOUR RETURN! The goal of the Peini Cacao Plantation LLC business model is to return annually at least a. the currently available risk-free market rate of return, and b. an amount that compensates for the business risk of the opportunity, plus c. a percentage above that total to compensate for the time-value-of-money.
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Currently, based on a 20-year discounted cash flow
Prior to the 80/20 split described above up to 10%
model, the target IRR, or average annual rate of
of the gross operating profits will be allocated
return, is 13.8%.
to the Sponsor´s Social Sustainability Program which includes local cacao farmers and chocolate
The target minimum IRR is based on a distribution
manufacturing personnel.
to owners of 80% of the net profits. The Sponsor will be allocated 20% of the net profits as
Distributions and operations reporting will be
compensation for services.
made annually, depending on the actual harvest season and the timing of the sale of the cacao produced from the Gabriel Pop Memorial farms. Accounting will be performed and reported under GAAP or similar guidelines by the Sponsor. Audited financial information will not be prepared or provided.
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Peini Cacao Plantation, LLC | www.peinicacaoplantation.com
HOW WILL THE INVESTOR RETURNS BE ACCOMPLISHED? BY THE “ART OF CACAO SCIENCE”
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Peini Cacao Plantation, LLC | www.peinicacaoplantation.com
This is where the real value-added part of this opportunity comes into play. Simply put, adding capital, crop science and experienced local and professional business and farm management is the key. Pretty basic principles, right? Using capital that the local farmers do not have to maintain the farm and otherwise manage the cacao trees is the base of the crop science that adds value. Utilizing Peini´s team of agronomists and biologists, we can identify scientifically exactly what the soil needs and provide the appropriate inputs. In 2017, Peini started a proprietary nursery to grow sought-after and in-demand varietals of cacao. Adding thousands of trees of high-quality varietals right from the outset, will ensure that Unit Owners reap extra benefits as time passes.
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Peini Cacao Plantation, LLC | www.peinicacaoplantation.com
By using Peini’s proprietary nursery and technology, we have complete control over the finished product, with fully vertical integration from the seed, to bean, to chocolate bar. Having access to capital to develop the farms allows the planting of new “fresh” trees that will continue to produce cacao for many years to come. With capital, this cycle can be repeated about every 25 years or so. Many subsistence cacao farmers have trees 40 years old and in declining production. Peini´s access to capital breaks this “chain of poverty” by providing farmers higher prices for their beans and with access to modern automated processing equipment Peini can produce higher quality and a more consistent supply of quality cacao, raising sales prices and “floating all boats”.
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Peini Cacao Plantation, LLC | www.peinicacaoplantation.com
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Peini Cacao Plantation, LLC | www.peinicacaoplantation.com
With added capital, 21st century cacao science,
Additionally, the very high margin business of
business and farm management, and time, these
wholesaling and retailing gourmet and candy
extra rewards will be added to the profits of what
chocolate bars internationally in the CARICOM
already has potential to be a highly lucrative
region, presents a timely opportunity to capitalize
business model. This will benefit all involved, from
on a growing trend in high quality chocolate
the passive investors, right down the chain to the
consumption preferences around the world.
local farmhands themselves. All of this begins at the farm but does not end there. The opportunity to profit from the processing of cacao beans purchased from the local farmers at higher prices provides stability for them with a known buyer and cash always at hand. It also ensures the downstream related companies involved in chocolate manufacturing, including Mahogany Chocolate Ltd., a reliable source of premium fine flavor cacao.
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CACAO EDUCATIONAL ADVENTURES TRIPS 22
Whether it is prior to investing, or after having already done so, hundreds of our investors have accepted our invitation to do their own “boots on the ground” tour and due diligence experience. Visit us on-site in southern Belize, walk our farms and meet the team, and get to know some of our local Maya farmers and gain first-hand knowledge of Peini’s unique processing systems and facilities. It all makes for a fascinating, and profitable (!) education. As we like to say, it’s education for effective action. Experience for yourself the impact of our proprietary socially-sustainable bean buying program, as well as our FREE sapling program for local farmers. You will never look at chocolate the same way again!
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It is an amazing 4 to 5 day experience that you will always remember. Come for just the tour or stay longer, after all it is the Caribbean! Visit the farm tour page on www.peinicacaoplantation.com or the Events page on www.agronosotros.com for up-to-date details on our tours.
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TESTIMONIALS The Peini Cacao tour gave me a sense that my
The financial numbers show a promising investment,
potential investment was going to do more than just
but it was the in-person, real-world experience that
make some solid returns. For most investments,
convinced me that this was a good deal. When I
anyone can sit and stare at a computer screen and
can shake a local farmers rough hands, look into
analyze the numbers. Taking part in this trip allowed
his eyes, hear his story, and see the sweat running
me to conduct proper due diligence with all of
down his face, I can tell he means business. When I
my senses. Watching the process from nursery to
can meet the crew that process and transport the
chocolate shop, hearing all the animals sounds in
beans, I can tell that they know what they are doing.
the jungle or the waves at the resort beach, taking
When I can watch the Chocolatier and his staff work
in all the aromas of the land and the chocolate
their magic, I can taste the quality of the product…
shop, feeling the jungle humidity and the sun on
literally. Knowing that my investment is going to
my skin, and certainly tasting the fine quality, end
have secondary benefits to the community as a
product were absolutely the best parts of the trip.
whole, only makes the deal even……. sweeter. AUSTIN M
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Peini Cacao Plantation, LLC | www.peinicacaoplantation.com
What a “Sweet” Tour! As a coffee farm parcel owner in Panama, I was
It was enlightening to see the entire chocolate
familiar with David and Darren’s operation and how
production process: from seed to bean to bar. I
they run things. However, when I visited the coffee
learned a tremendous amount about the chocolate
farm it was just them and my family; I was not on a
business and chocolate making in general. I also
group tour. This was my first group tour and it was
love the fact that they run the entire operation
indeed “sweet” in many ways. First off they did a
just as they do their coffee operation with social
great job with the travel arrangements.
sustainability in mind first and foremost!
It was logistically a difficult tour because of the
Lastly, it was wonderful to meet some great like-
multiple flights and ground transportation involved
minded investors and colleagues and hopefully
and it all went seamlessly-kudos to them on that.
future business associates. I highly recommend the tour for a great experience and a great time!
Secondly, it was great to meet the entire teamfrom Andres to Armando to everyone else, it was
ERIC F
clear they all took great pride in their work and they provided a tremendous amount of education as well as great conversation.
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Peini Cacao Plantation, LLC | www.peinicacaoplantation.com
“The cacao farm tour to southern Belize was such an incredible experience! AgroNosotros provided a schedule full of education, exploration, and excellent hospitality. The team is so knowledgeable and passionate about cacao! The trip was full of interesting and like-minded investors, many of which have been involved in residential real estate and are just branching out into agriculture. We learned everything about how chocolate is made, from caring for the cacao trees, to harvesting the pods and the struggles local Belizean farmers have faced in the past to consistently sell their product within the time window necessary. The business model they have successfully used for coffee in Panama is now being implemented in the next big industry to come out of Belize — CACAO! It’s an exciting opportunity. LAURA
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Peini Cacao Plantation, LLC | www.peinicacaoplantation.com
PEINI CACAO PLANTATION, LLC COLUMBIA, TOLEDO, BELIZE
Visit Our Farm Tour Page www.peinicacaoplantation.com
Explore Upcoming Events www.agronosotros.com