Ugandan Vanilla Farm

Vanilla is the world’s most popular flavor and is the second most expensive spice, behind only saffron; it is currently more expensive per kilo (2.2lbs) than silver: $600 vs $550. Vanilla is an orchid that demands nearly perfect tropical growing conditions and intense hand labor from start to finish. All vines are planted by hand from cuttings, and must be continuously looped, pruned and mulched. Newly planted vines take three to four years to reach production. Every single blossom must be hand pollinated, which happens only one day per year per pod. Every bean is hand harvested. Every bean is hand cured over roughly six weeks. They are vacuum packed and sold in bulk. Unlike other growing regions, vanilla grown in Uganda can be harvested twice a year, in December and in June or July, due to the country’s distinct weather patterns. The top importers include: USA (43%), France (20%), Germany (10%).

Nalubaale Vanilla intends to purchase 40 acres of land on the north shore of Lake Victoria. A production facility (warehouse, offices, bean drying areas, shop, etc) will be built in the first year, the property will be fenced and the 20 farmable acres will be planted. Banana trees are used to shade the vanilla vines, whose delicate leaves require a 50% sun to shade ratio. The banana trees will mature to provide enough shade to begin planting vanilla in six months, at which point the vanilla starters will be planted. Vanilla vines are planted on a host plant, in this case, the Physic Nut (Jatropha Curcas). Coffee plants are seeded intermittently throughout the vineyards to balance soil pH levels. It takes vanilla vines an average of three years to produce its first fruit (nine months after pollination), and six weeks to dry / cure the beans. The timeline to sell our first batch of beans is four years.

Unlike traditional business where a sizable financial investment can achieve most goals, doing business in a country such as Uganda is built on long-term trust and close relationships. We have been in Uganda for a combined 10+ years training locals for both management and farming positions. We have grown incredibly close to our local community which takes years of commitment in a society where this is valued above everything else. Our workers are trained, they’ve got our backs, they know we’re there for the long haul and that we genuinely care for their families’ livelihoods.

Cash Flow Projection

The current market value average is $200,000 gross income per acre; at these numbers 20 acres will produce $4,000,000 per year. (As with any commodity, the price fluctuates season to season based on a number of factors.) 

Three expats will oversee all operations, construction and sales at the farm. Local Ugandans (who have been trained by us for the past 5 years) will manage and train others to work as farmhands. Agricultural data will be managed through an app such as Agworld. This will provide critical information on growing, planning for future years and a way for our business advisors, bio consultants and others to keep track of progress.

The 40 acres of land will all be developed; 20 acres of farmland and 20 acres of production, water tanks, boundary fencing, etc. Once banana trees (planted to protect the vanilla vines) mature, the additional revenue from bananas will continue to offset operating costs. The coffee beans (a byproduct of being a host plant) will start to reach a quantity where we’ll be able to start selling those as well. As growth increases, so will the opportunity to purchase more and more land throughout this region of Uganda. Additional farms would be managed by trained locals, increasing our farmland to near limitless acreage potential.

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