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My neighbor wants to sell 15 rai of producing Palm oil in Issan. He wants 1.5m and it doesn't have a channot yet but its been applied for. Seems expensive? but its right next door to my house. Is Palm oil farming profitable? it's at around 4.5BHT per kg atm. Not sure if it would be a good return on my investment. Looks like hard work too. too hard for me, I would have to pay staff. Your thoughts?
15rai for 1.5m is not such a bad price just for the land alone. Where are you in Thailand? province or local large city will do, no specifics necessary
100k per rai aint expensive. If it truely is in line for channot coversion (id doubt it) then it'll go up multiples of what you'd pay. Leaving the chanot aside you need to know how old the palms are to gauge their prodiction averages and how long they will still be producing at an economic amount before they'd need digging out and replanting, assuming you'd still want palms. If you just want to ensure you don't have noisy neighbours in future and you have someone to pass it on to its cheap imo.
Edit. As BC says it depends on the locality but 100k per rai is cheap nowadays and you are unlikely to lose on it. Make sure you are water tight on the paperwork.
Sounds small enough to be part of a diversified crop project, if you already had other crops. Rubber, fruit trees and other crops which offer varied success.
In isolation, palm oil could be a risk, or a winner. Is there a market for it locally? Do you need equipment as well as staff to process raw material.
Sometimes, all that work is best let to the Thai to fuck it up, instead you doing it for them.
Find out why he wants to sell. Personally I wouldn't buy into any money making scheme in Thailand.Quote:
Originally Posted by Nikk
Don't even think about it until this changes.Quote:
Originally Posted by Nikk
100K/Rai is cheap nowadays, especially if it right next to your land and already has mature Palms. What age are they? They are, on average, productive from year 4 onwards and for 25-30 years.
How far away to the nearest distribution centre and will you transport or use a third party? Does the land have an electricity supply or the road have it so you can have easily? DO you have good access to water in the dry season?
I don't know where you are in Isaan, but if my neighbour was selling similar I'd think seriously about it.
Most Thais will come out with 'it's going to get Chanote title soon'. Until it happens don't believe them. If the guy selling the land was making money then he wouldn't be selling it. IMOQuote:
Originally Posted by Troy
100k a rai?
I'll buy it for the kid if you don't want it.
Once it's got a chanote. :)