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 Durian orchard investment. Is anyone doing it?, durian orchard investment

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TSlainux
post May 2 2008, 03:35 PM, updated 7y ago

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I am looking into buying a durian orchard near Bentong area. However, I have no clue about orchard. If anyone of you have experience owning a durian orchard, please kindly offer your 2cents.

There are 2 pieces of land I am looking into. One is around 7 acres, the other is 4 acres just right on the side of the road with electricity.

7 acres land:
- w/o electricity, but have a private bridge that can be locked, better security
- all matured tress on a hill with a big river
- about RM400k+

4 acres land:
- w/ electricity, just right on the side of the road, easy access
- currently someone is living on the lot next to it, easy to get help from neighbor.
- also w/ mature trees, already flowering w/ small durians
- selling around RM300k

I am more toward the 4acres land, due to the easy access and a nice neighbor. My intention is to use it also as a vacation home. But, since the durian coud generate income for me, I might as well pick a right one to maybe help bring in extra cash?

My questions:
- how hard is it to take care of a durian orchard?
- what is the monthly cost like? the baja and worker, and etc
- what is the whole sale price for D24 and Musang King
- what can be done to maximize profit? Can i plant other things in between?
- usually how many fruits per tree?
- isn't easy to get a loan for this? Is it same as housing loan?

An input is highly appreciated.

This post has been edited by lainux: May 2 2008, 03:37 PM
4Rings
post May 2 2008, 05:29 PM

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My in-law had been in this business for many years. They had sold the orchard because durian price has gone down tremendously over the years.
Not really profitable.
ykc
post May 2 2008, 05:31 PM

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why not plant oil-palm instead?
Gen-X
post May 2 2008, 06:09 PM

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QUOTE(lainux @ May 2 2008, 03:35 PM)
I am looking into buying a durian orchard near Bentong area.  However, I have no clue about orchard.  If anyone of you have experience owning a durian orchard, please kindly offer your 2cents.

There are 2 pieces of land I am looking into.  One is around 7 acres, the other is 4 acres just right on the side of the road with electricity.

7 acres land:
- w/o electricity, but have a private bridge that can be locked, better security
- all matured tress on a hill with a big river
- about RM400k+

4 acres land:
- w/ electricity, just right on the side of the road, easy access
- currently someone is living on the lot next to it, easy to get help from neighbor.
- also w/ mature trees, already flowering w/ small durians
- selling around RM300k

I am more toward the 4acres land, due to the easy access and a nice neighbor.  My intention is to use it also as a vacation home.  But, since the durian coud generate income for me, I might as well pick a right one to maybe help bring in extra cash?

My questions:
- how hard is it to take care of a durian orchard?
- what is the monthly cost like?  the baja and worker, and etc
- what is the whole sale price for D24 and Musang King
- what can be done to maximize profit?  Can i plant other things in between?
- usually how many fruits per tree?
- isn't easy to get a loan for this?  Is it same as housing loan?

An input is highly appreciated.
*
RM300-400K, go calculate how many times you think you be staying there for the rest of your life and how many durians you can buy with that money.

As mentioned 4Rings, durian prices have fallen over the years. Nowadays can get durians anytime from Thailand.

The important thing about durian tress is you need somebody to take care of it. How often do you have time to visit the orchard? You need a realiable worker to maintain the orchard like cutting grass, spray chemicals onto tress (need pump if trees are high), putting fertilizers and etc. How sure are you that the worker will do the work if you do not supervise? Worst still he go sell the chemicals you bought.

Also during fruiting time, are you there to ensure that there is no theft or your worker selling the durians without or knowledge? Also the durians are prone to be eaten by monkeys and squirrels.

As for profit, i doubt you get back your capital by selling durians or enough to cover your maintenance cost. Just hope that the area will develop and you make profit from appreciation of the land price.

My, advise, if you have no time to visit the orchard frequently to supervise your worker, better don't go into it. Another thing, when the durian start falling down, it starts falling down everyday until all gone. Would you be there for 2 weeks straight to see your durians falling and picking them?

The easy way out is to let other maintain your orchard and they get to sell the durians and in return you get to eat all the durian you want. But if they fail to maintain your trees properly, within few years all the trees will be in bad shape.

mphpopular
post May 3 2008, 07:33 PM

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try refer to Jabatan pertanian or something agensi like tat. Under government...

For pertanian, although you is chinese, but if you have a good proposal, you still able to get loan from them.

Remember calculate your money management (risk toward profit)


syazwanreno
post May 3 2008, 07:37 PM

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better change the durian into something else....

durian is sooo cheap now....
jeffblazed
post May 3 2008, 09:15 PM

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QUOTE(syazwanreno @ May 3 2008, 07:37 PM)
better change the durian into something else....

durian is sooo cheap now....
*
true better buy and empty land and plant palm oil better...that selling price is inflated a lot it should be less than rm100 for the 7 ekar land.....

KooHei
post May 3 2008, 10:05 PM

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QUOTE(lainux @ May 2 2008, 03:35 PM)
I am looking into buying a durian orchard near Bentong area.  However, I have no clue about orchard.  If anyone of you have experience owning a durian orchard, please kindly offer your 2cents.

There are 2 pieces of land I am looking into.  One is around 7 acres, the other is 4 acres just right on the side of the road with electricity.
maybe not durian... have you been into agriculture business before..? try other... more higher returns guarantee
any investors..? rolleyes.gif
TSlainux
post May 5 2008, 01:12 PM

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Actually, the trees are currently being maintained, so if i take over it, the same person will be maintaining it for me. So, it shouldn't be an issue for that. But, I am just not sure how much will the fertilizer and chemical cost. As long as the monthly maintenance is low, it shouldn't be an issue.

I know that durian price has gone down, thus I am looking for the graded durians. This orchard has all Musang King and D24 which cost more.

I thought oil palm is more work, since it needs to be done twice a month. Plus you need a bigger lot in order to really see the profit?

I am actually buying this piece of land as a vacation home. I am just trying to see whether the durian will generate enough income to pay my mortgage.
Canopies
post May 5 2008, 01:59 PM

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plant gaharu woood in between ...^^
am_eniey
post May 5 2008, 06:37 PM

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QUOTE(ykc @ May 2 2008, 05:31 PM)
why not plant oil-palm instead?
*
This is the best idea so far
jongkolkhoo
post May 9 2008, 12:53 AM

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dig a pond , rear fish .. you can stay ,eat durian and fishing while relaxing. income to pay mortgage from durian? not for a person who knows nothing about durian orchard. my family chop down durian trees and planted rubber and palm oil many yrs ago. the only piece of land (10 acre) with fruit also chop down. Now only left rubber and palm oil. NO more free unlimited durian, langsat, etc festival. if you buy, can invite me to taste your future musang king ka?
TSlainux
post May 9 2008, 02:58 PM

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Surely no problem. You are invited if i buy the orchard land.

My idea is simple. If I can get someone local to help me out, i think the income from durian should be enough to pay for my mortgage. So far, i have gathered quite some info. I am looking forward how else to utilize that piece of land to generate income.

I am also thinking of opening to the orchard to public for home stay during the durian season. They can stay over night and enjoy unlimited of fruits. Also, fishing in the pond. What kind of fish to rear to generate income? Someone i met there rear Japanese Koi, and is doing quite well. But, it is a rather niche market.
jiaxun
post Jun 28 2009, 03:26 AM

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QUOTE(lainux @ May 9 2008, 02:58 PM)
Surely no problem.  You are invited if i buy the orchard land.

My idea is simple.  If I can get someone local to help me out, i think the income from durian should be enough to pay for my mortgage.  So far, i have gathered quite some info.  I am looking forward how else to utilize that piece of land to generate income.

I am also thinking of opening to the orchard to public for home stay during the durian season.  They can stay over night and enjoy unlimited of fruits.  Also, fishing in the pond.  What kind of fish to rear to generate income?  Someone i met there rear Japanese Koi, and is doing quite well.  But, it is a rather niche market.
*
You need to check whether the durian tree is
-what type of durian? Musang? D24? or just Kampung?
-old? or young? (Age affect the production)
-tall? short? (Affecting chemical spray)
-on flat land or slide land? (Affecting the taste of durian)

1acre needs 50kg of fertilizer. And each 50kg fertilizer around RM200. (fluctuates depends on the supplier mood)
Then, whether a durian well be tasteful or no taste depends on the quality of the fertilizer and the frequency you use the fertilizer.

Pesticide, everytime durian season will need to spray to prevent your durian spoil by bug

From information that you've given, I assume that 7 acres is further away from the main road, and there will be risk of having wild boar in your orchard once in a while, unless the land is completely surrounded by fence.

Durian tree on flat land tends to produce green coloured durian.
Durian tree on slide land tends to produce dried-leaf like coloured durian. (bitter taste with higher price)
yhtan
post Jun 28 2009, 12:52 PM

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QUOTE(lainux @ May 2 2008, 03:35 PM)
I am looking into buying a durian orchard near Bentong area.  However, I have no clue about orchard.  If anyone of you have experience owning a durian orchard, please kindly offer your 2cents.

There are 2 pieces of land I am looking into.  One is around 7 acres, the other is 4 acres just right on the side of the road with electricity.

7 acres land:
- w/o electricity, but have a private bridge that can be locked, better security
- all matured tress on a hill with a big river
- about RM400k+

4 acres land:
- w/ electricity, just right on the side of the road, easy access
- currently someone is living on the lot next to it, easy to get help from neighbor.
- also w/ mature trees, already flowering w/ small durians
- selling around RM300k

I am more toward the 4acres land, due to the easy access and a nice neighbor.  My intention is to use it also as a vacation home.  But, since the durian coud generate income for me, I might as well pick a right one to maybe help bring in extra cash?

My questions:
- how hard is it to take care of a durian orchard?
- what is the monthly cost like?  the baja and worker, and etc
- what is the whole sale price for D24 and Musang King
- what can be done to maximize profit?  Can i plant other things in between?
- usually how many fruits per tree?
- isn't easy to get a loan for this?  Is it same as housing loan?

An input is highly appreciated.
*
My grandfather owned a small durian orchard, roughly 2-3 acres, mainly D101 and D24
i can tell u that durian price is not as high as 60's and 70's, is not very profitable, i collect those durian with my grandfather and everyday got around 200kg, the wholesale price for normal durian is around 50cent per kg, D24 D101 is roughly RM1-2 per kg, one day earning could be RM100 or lesser than that, Musang King could fetch up to RM10 per kg if i'm not mistaken

u can plant some fruit tree in between, banana, Mangosteen etc

the only way of taking loan is mortgage loan, the interest will be higher than housing loan AFAIK

QUOTE(lainux @ May 5 2008, 01:12 PM)
Actually, the trees are currently being maintained, so if i take over it, the same person will be maintaining it for me.  So, it shouldn't be an issue for that.  But, I am just not sure how much will the fertilizer and chemical cost.  As long as the monthly maintenance is low, it shouldn't be an issue.

I know that durian price has gone down, thus I am looking for the graded durians.  This orchard has all Musang King and D24 which cost more.

I thought oil palm is more work, since it needs to be done twice a month.  Plus you need a bigger lot in order to really see the profit?

I am actually buying this piece of land as a vacation home.  I am just trying to see whether the durian will generate enough income to pay my mortgage.
*
seriously, if u want to generate income by this orchard, u don't sell it to wholesale, get a transport and send it into KL and sell it, from selling it yourself u can get a better price

TSlainux
post Jun 29 2009, 02:37 AM

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QUOTE(jiaxun @ Jun 28 2009, 03:26 AM)
You need to check whether the durian tree is
-what type of durian? Musang? D24? or just Kampung?
-old? or young? (Age affect the production)
-tall? short? (Affecting chemical spray)
-on flat land or slide land? (Affecting the taste of durian)

1acre needs 50kg of fertilizer. And each 50kg fertilizer around RM200. (fluctuates depends on the supplier mood)
Then, whether a durian well be tasteful or no taste depends on the quality of the fertilizer and the frequency you use the fertilizer.

Pesticide, everytime durian season will need to spray to prevent your durian spoil by bug

From information that you've given, I assume that 7 acres is further away from the main road, and there will be risk of having wild boar in your orchard once in a while, unless the land is completely surrounded by fence.

Durian tree on flat land tends to produce green coloured durian.
Durian tree on slide land tends to produce dried-leaf like coloured durian. (bitter taste with higher price)
*
Great information there. Mind I ask do you own an orchard?

I didn't get the piece of land, the landlord last min increased the price b4 I offered a lower price.

Saw another orchard earlier this year, but things didn't work out. Still looking for an orchard though. If anyone come across a good one (cheap, w/ river, with a hill, near road...), plz kindly PM me. thumbup.gif


Added on June 29, 2009, 2:40 am
QUOTE(yhtan @ Jun 28 2009, 12:52 PM)
My grandfather owned a small durian orchard, roughly 2-3 acres, mainly D101 and D24
i can tell u that durian price is not as high as 60's and 70's, is not very profitable, i collect those durian with my grandfather and everyday got around 200kg, the wholesale price for normal durian is around 50cent per kg, D24 D101 is roughly RM1-2 per kg, one day earning could be RM100 or lesser than that, Musang King could fetch up to RM10 per kg if i'm not mistaken

u can plant some fruit tree in between, banana, Mangosteen etc

the only way of taking loan is mortgage loan, the interest will be higher than housing loan AFAIK
seriously, if u want to generate income by this orchard, u don't sell it to wholesale, get a transport and send it into KL and sell it, from selling it yourself u can get a better price
*
A friend of mine actually owns 50acre of durian orchard. They told me can get around RM4-5 for D24. ANd the agent told me can sell musang at 14-16/kg!!


This post has been edited by lainux: Jun 29 2009, 02:40 AM
jiaxun
post Jun 29 2009, 03:17 AM

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QUOTE(lainux @ Jun 29 2009, 02:37 AM)
Great information there.  Mind I ask do you own an orchard?

I didn't get the piece of land, the landlord last min increased the price b4 I offered a lower price.

Saw another orchard earlier this year, but things didn't work out.  Still looking for an orchard though.  If anyone come across a good one (cheap, w/ river, with a hill, near road...), plz kindly PM me.  thumbup.gif
*
It currently belongs to my family members. I did help out during the time when the price of durian was high back then, and few years back when the price dropped tremendously(where the lowest grade of durian is 10cents/kg).

Actually, Bentong's land will be very expensive because many people from KL tends to buy the land there due to the distance factor. Perhaps you can find your land at Raub?

About the labor thingy, you can hire indons to look after your land after you've bought it. The experienced worker working for us(more than 8 years) and is given certificate by Jabatan Pertanian during the visit few months back isn't costing us more than RM1k/month.
But then, you will have to apply for permit.

There's still much for you to learn and same goes to me.


QUOTE(lainux @ Jun 29 2009, 02:37 AM)

Added on June 29, 2009, 2:40 am
A friend of mine actually owns 50acre of durian orchard.  They told me can get around RM4-5 for D24.  ANd the agent told me can sell musang at 14-16/kg!!
*
Yes, currently the price is around the range.
yhtan
post Jun 29 2009, 11:49 AM

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QUOTE(lainux @ Jun 29 2009, 02:37 AM)
Great information there.  Mind I ask do you own an orchard?

I didn't get the piece of land, the landlord last min increased the price b4 I offered a lower price.

Saw another orchard earlier this year, but things didn't work out.  Still looking for an orchard though.  If anyone come across a good one (cheap, w/ river, with a hill, near road...), plz kindly PM me.  thumbup.gif


Added on June 29, 2009, 2:40 am

A friend of mine actually owns 50acre of durian orchard.  They told me can get around RM4-5 for D24.  ANd the agent told me can sell musang at 14-16/kg!!
*
too bad the price for that is for Pahang area, which nearer to KL
my place, near Kluang and Segamat, supply is more than demand, and shipment to Singapore getting stricter than before, that is why the price is so low, during 90's many owner chopped it down and plant oil palm to get a better return
jiaxun
post Jun 29 2009, 02:46 PM

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QUOTE(yhtan @ Jun 29 2009, 11:49 AM)
too bad the price for that is for Pahang area, which nearer to KL
my place, near Kluang and Segamat, supply is more than demand, and shipment to Singapore getting stricter than before, that is why the price is so low, during 90's many owner chopped it down and plant oil palm to get a better return
*
And there were times where the price of oil palm dropped until RM50 per 1 tonne(1000kg). Oil palm trees is harder to take care and palm oil fruits are frequently being stolen, by outsider and also insider(worker). One of my family members have oil palm orchard.

Banana is the easiest-to-plant fruit tree and fastest growing and production of fruit. You need very little of fertilizer or not at all. Grade A and Grade B banana is being sold for RM1/kg and RM0.50/kg respectively to supplier. We have a deal with our experienced worker where he will do all the jobs and we will sell the banana, and he earn 50% from the profit.

there's no sure thing in agriculture.
cute_boboi
post Jun 29 2009, 05:43 PM

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Last Sat survey durian price in KL Chinese area.

D24 from RM10-12/kg ohmy.gif
Musang King RM23/kg shocking.gif


Crazy price, I did not buy any to eat. Then, I goto KL Malay area and buy kampung D24 (not pure D24) at RM6/kg. Just to taste only, not yet go all the way.

Therefore, unless you are willing to load and bring it back to KL in 4WD or lorry and sell yourself, the middlemen won't pay high price for it.

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