The Next Big Investment Opportunity is . . . Coconuts?


David J. Drummond

You probably never would have guessed it, but coconuts are relied on by a wide variety of industries and millions of people throughout the world. They have now become one of the hottest alternative assets available. Why? Coconuts can produce coconut water, coconut oil, activated carbon, coconut milk, soaps and cosmetics, biofuel, medicine, cooking additives, and that’s only to name a few uses. In fact, nearly one third of the world population depends on them for basic food and as a vital economic resource. Coconuts can allow any investor to tap into a high number of markets.

When most people think of coconuts, tropical drinks, desserts, or coconut milk might be the first few things that come to mind. That barely scratches the surface of what uses can be found for what is harvested by the iconic coconut tree. For years, the coconut has been used as a valuable source of food and medicine. They provide a very nutritious source of meat, juice, oil, milk that nourished populations for generations.

Here is a list of health problems that have been treated through the use of coconuts in traditional medicine:

Abscesses Flu Skin Infections
Asthma Gingivitis Sore Throat
Baldness Gonorrhea Swelling
Bronchitis Painful Menstruation Syphilis
Bruises Jaundice Toothache
Colds Kidney Stones Tuberculosis
Constipation Lice Tumors
Cough Malnutrition Typhoid
Dropsy Nausea Ulcers
Dysentery Rash Upset Stomach
Earache Scabies Weakness
Fever Scurvy Wounds

Coconut water has also been soaring in popularity over the past six years. It’s become very successful in the US and the UK for sports recovery drinks and vitamin enhanced water because it has high levels of electrolytes, potassium, calcium, and magnesium. The rapid growth of sales for this product can also be attributed to investments from celebrities in Vita Coco, including Madonna, Matthew McConaughey, and Demi Moore. Vita Coco also brought in the pop star, Rihanna, as their spokeswoman.

Coconut oil has also flooded the markets. In 2012, coconut oil was accounted for 26% of new food and drink products. It has been described as one of the healthiest oils on earth after being connected to strengthening the immune system preventing obesity.

If that wasn’t enough, scientists and industry executives are starting to recognize coconut oil as an alternative fuel source. Over the past few years, politicians and environmental activists have established the need for cleaner energy sources and they gained an impressive amount of support. Unlike fossil fuels, Coconut oil is a renewable source and can be transferred into clean energy. It can be used as a direct substitute for petroleum diesel, an additive to petroleum or bio-diesel, or even as a base ingredient to bio-diesel fuel.

The Coconut tree itself can offer a wide variety of products to almost any industry, from the root to the tip. As a matter of fact, it is the center of agricultural life in the Philippines, describing it as “The Tree of Life”. This country is the world’s top exporter of coconut products, with annual reports reaching more than 1 billion US dollars. Coconut trees have been a profitable revenue producing commodity for decades.

Coconut trees can be found throughout Nicaragua where there are plenty of plantations. The country’s natural conditions will provide some of the best results in growth and quality of the trees and coconuts. Unlike other countries that produce coconuts, Nicaragua has transformed itself into one of the safest and fast growing countries in its region. It is economically, politically and socially stable, making Nicaragua the “go-to” country for international business investments.

Maderas Futuro, S.A. is a dedicated and environmentally focused tropical timber and alternative agri-development company in Nicaragua. The business is primarily focused on helping individuals and institutions find risk-adverse investment assets that produce above average financial returns in the rapidly growing market in Nicaragua.

Maderas Futuro’s next endeavor is The Nicaragua Coconut Project, which is designed to accommodate investors with comprehensive diversification through a strategic and multilayered approach. The goal is to provide both individual and institutions with the opportunity to access the rapidly expanding agricultural space, while tapping into one of the fastest growing emerging markets. It is already established that the worldwide demand for coconuts are at consistently high levels, but the demand coming from the various industries and the marketplace are rising more and more by the day.

The Nicaragua Coconut Project is designed to include the highest level of security and flexibility for owners by providing direct personal ownership in the plantation, as well as easy exit strategies if needed. Coconut trees offer an ideal investment opportunity because they generate annual multi-year crops that are sold to local and export buyers producing annual multi-year revenues. The trees have a very productive life up to sixty years, which provides owners with additional estate planning opportunities. Investors who take part in the program will see year-round coconut production, as well as revenue and capital appreciation on the farmland.

Maderas Futuro operates several sustainable and profitable plantations with a sensitive focus on the environment.