|Contract Period : 10 years|
|Location : Jonggol, Jawa Barat|
|Expected Return : 7-20% per year|
|Harvest Period : Every year after 2nd year (approximately)|
|386 tree plantation have been sponsored by 205 people|
|305 tree left|
Indonesia actually has many seeded fruits but unfortunately, most farmers are not as savvy on planting economically. One of them is the Deli Water Apple. Water Apple (Guava) can bear fruit over time and has a high level of sweetness and a wide-open market. The challenge is how to plant Deli Water Apple in large numbers to achieve economies of scale to drive the market.
iGrow’s partner Jonggol Farm will provide an area of 5 hectares, which is enough to plant about 5,000 Deli Water Apple in tabulampot – because this fruit can be planted in tabulampot effectively.
The Deli Water Apple planting contract will continue for 10 years, assuming that after 10 years, the plant has a decrease in productivity and needs rejuvenation. The revenue share for sponsorship is 40%, farmers 40%, donation to the beneficiary 10%, and iGrow administration 10%.
With that pattern of results, it is predictable that sponsors will be able to enjoy the results in the range of 13% per year. The revenue share can be expected as it continues to increase until the 8th year, and finally decreases in the 10th year.
The sponsors are also given the option to take the physical plant, if the sponsor wants to move the plants to their own land, but this is limited until the third year. All costs associated with the transfer will be the responsibility of sponsor.