Location & Overview
In mid-2023, ForestFoods embarked on an exciting new venture by acquiring a 12-hectare greenfield site in Mwapala, nestled in the picturesque Shimba Hills of Kwale County. This diverse property, starting at the top of a ridge and gently sloping down to flat ground, is teeming with native grasses, shrubs, indigenous trees, and an existing eucalyptus plantation. It is surrounded by various landowners and smallholder farmers, primarily focusing on staple crops, cashew, coconut, and citrus.
Project Vision
The Shimba Hills site will serve as a nucleus/incubation farm with a school dedicated to training local farmers participating in our outgrower program. Our focus is on cultivating high-value spices, nuts, and fruit crops, including:
Spices: Vanilla, cocoa, cinnamon, nutmeg, cardamom, ginger, turmeric
Nuts: Cashew
Fruits: Citrus, dragon fruit, and other Indian Ocean & South East Asian varieties
Additionally, we aim to grow high-value timber species such as mahogany, mvule, African blackwood (false ebony), Asian teak, and other valuable hardwoods.
Climatic Advantages
The Shimba Hills region boasts unique climatic conditions ideal for high-value crops. The area enjoys the best rainfall along the Kenyan coast, with an annual average of 1,000 mm. The altitude of 190 meters above sea level and significant nighttime temperature drops compared to the coastline create a unique agroecological zone perfect for our diverse crop range.
Market Opportunities
There are robust market opportunities along the Kenyan coast for annual crops like vegetables and herbs. We have identified potential export markets in the UAE and Eastern Europe for value-added and processed products. Additionally, ongoing conversations with a coastal processor aim to explore opportunities in coconuts, goats, fodder, and fruit juice.
Expansion Potential
The Shimba Hills project has an impressive expansion potential of over 500 hectares in the surrounding area. The terrain of the Shimba Hills, characterized by gentle slopes, is well-suited for agroforestry, allowing for sustainable and profitable agricultural practices.
Key Financial KPIs
Our financial model for the Shimba Hills project is built for a 10-hectare area and does not include outgrower schemes and processing/value addition. Key financial KPIs for the initial phase include:
Projected Revenue: USD 1,000,000 by Year 4
Operating Expenses: USD 600,000 annually
Net Profit Margin: 40% by Year 5
Return on Investment (ROI): 25% annually
Payback Period: 4 years
Investment Opportunity
ForestFoods is launching a "Shimba-centrique" cohort and invites investors to be part of this transformative agroforestry project. By investing in the Shimba Hills project, you will contribute to sustainable agricultural practices and benefit from lucrative market opportunities. This project is poised to become a model for sustainable and profitable farming in the region.
ForestFoods is dedicated to regenerating landscapes and feeding the growing population through responsible farming methods for a healthy planet and healthy people. Join us on our journey to make a significant impact in the East African agricultural sector.
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