NatureBank Asset Management’s (COO:TSX.V) CEO, James Tansey is part of this company that is investing in sustainable commodities.
NatureBank Asset Management is a company that identifies opportunities to invest in sustainable commodity production. There’s a growing global demand for sustainable commodities and everything from tea to coffee to cocoa, we see about $38 billion of purchasing now in sustainable commodities and that’s growing by 10 to 15 present a year and in coco that’s growing by 40 to 50 percent a year we’ve identified a region within Dominican Republic, taken options land there. We’ve secured about $11 million dollars of initial investment.
It’s really like a real estate play, we’re buying distressed land for around $5,000 a hector, investing $10,000 to $12,000 a hectare over three to five years to improve it to full production. At the end of that process the land is worth $27,000 to $30,000 a hector. And we have a fully productive certified, potentially organic but sustainable cocoa plantation. And we can sell right now a hundred percent of any cocoa we produced to the suppliers. The market is very tight.
There’s revenue generated throughout the development process for the cocoa plantations at a lower level because you immediately get some benefit from planting shade crops. So we think there is a big opportunity to revolutionize the way sustainable cocoa was produced to expand the supply into a market where you can basically sell everything you produce at a 20 percent premium.