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Money does grow on trees


eyecatcher

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My next door neighbour has 100 longan trees from which he earns 300,000bt once a year.

In the 5 yr I have watched them, a team of 10 or so comes in and spends 3or 4 days in the 1st week of July. In the last two years they arrived end of july and then first week August.

Throughout the year I have seen them only once doing some spraying.

Its now third week August, and no onr has arrived and the fruit is turning black.

Its a shame yet its also surprising that 300k baht is there simply for the picking.

I wish they were mine to manage I can find could use for 300k  even if the owner cannot

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Value of the land Vs income from the trees = probably not profitable.

Lets assume cheap land, 25 rai @ 1Mbht/rai.

Not much of a return for his 25Mbht investment .... 1.2% assuming no picking costs.

 

These have been left on trees near me too, (100s of rai) I'm thinking the price is so low this year it isn't worth employing the pickers.

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Longan prices are high this year. Perhaps the fruit on your neighbours' trees isn't grade AAA. The price drops off rapidly as the quality falls with it being just 1B/kg for the lowest grade. We got 27B/kg for grade AAA this year, I'm guessing due to there not being much grade AAA about. Last year I think was about half that price.

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Have to say I aint seen that many on the markets myself.

I doubt anyone is buying land just to tend fruit trees, my neighbour probably got the land given by the Govt back in the 70s or whenever but such a pity if they dont think there is mileage in picking them.

 

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3 hours ago, BritManToo said:

Value of the land Vs income from the trees = probably not profitable.

Lets assume cheap land, 25 rai @ 1Mbht/rai.

Not much of a return for his 25Mbht investment .... 1.2% assuming no picking costs.

 

These have been left on trees near me too, (100s of rai) I'm thinking the price is so low this year it isn't worth employing the pickers.

Not sure how you are attaching 25rai to 100 trees, they are spaced about 4m apart. I think the plot looks to be about 3 rai

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3 hours ago, BritManToo said:

Value of the land Vs income from the trees = probably not profitable.

Lets assume cheap land, 25 rai @ 1Mbht/rai.

Not much of a return for his 25Mbht investment .... 1.2% assuming no picking costs.

 

These have been left on trees near me too, (100s of rai) I'm thinking the price is so low this year it isn't worth employing the pickers.

No not at all. I watched a friend make around 10 million Baht on the fruit over about 10 years. I believe he said he had around 350 trees (I could be way off - I forget). He didn't pay anywhere close to 1 mil per rai. Less than 1/2 that. He bought very cheap land (no chanote). I forget what they call that class of land but he figured if he was sued over the title he would abandon it rather than defend it. He also had a team come  twice a year and the foreman worked on a commission. I think he told me he paid the guy 1/3. The fruit was dried and he contracted with the Chinese who used it for medicinal purposes. So after paying the guy he made I guess 6.6 mil.

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23 hours ago, BritManToo said:

Value of the land Vs income from the trees = probably not profitable.

Lets assume cheap land, 25 rai @ 1Mbht/rai.

Not much of a return for his 25Mbht investment .... 1.2% assuming no picking costs.

 

These have been left on trees near me too, (100s of rai) I'm thinking the price is so low this year it isn't worth employing the pickers.

Yeah, that's why you don't buy in Thailand. I bought my land in West Virginia. I timber it every ten years; suffice to say B300k/yr is not as much. Money has always grown on and in trees.

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1 hour ago, smotherb said:

Yeah, that's why you don't buy in Thailand. I bought my land in West Virginia. I timber it every ten years; suffice to say B300k/yr is not as much. Money has always grown on and in trees.

Provided you own the land and the trees yourself. Forestry schemes almost invariably end up with investors losing out. That's because when a tree takes anywhere between 10 and 25 years to mature, the promoters have that much time to leach the piggy bank.

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1 hour ago, Lacessit said:

Provided you own the land and the trees yourself. Forestry schemes almost invariably end up with investors losing out. That's because when a tree takes anywhere between 10 and 25 years to mature, the promoters have that much time to leach the piggy bank.

Yes, I own the land and I am in WVs timber management plan.The next cutting, 2020, will be my fourth time.

 

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