Opportunities
To access more information about the types of opportunities available:
Background
We have formed a joint
venture company with Mycorrhizal Systems Ltd (UK) called The Australian
State Truffle Enterprise Pty Ltd (T.A.S.T.E for short). Mycorrhizal
Systems Ltd has, through its director, Dr Paul Thomas, developed a
holistic approach or methodology to the introduction of the mycorrhizal
mycelium to the root system of the chosen tree species without
contamination from other fungus species. This intellectual property and
the rigorous management system that follows is the pre-requisite for a
successful commercial truffle enterprise. T.A.S.T.E has full access to
this intellectual property.
Business Type:
It is a new independent Australian agri-business.
The Business Rationale
With the sine curve
fluctuations in the returns from various farming endeavours many
farmers/landholders have been motivated to embark into new business
enterprises from economic necessity. The common denominator with all
farmers/landholders is that they have land. The challenge was to find
an industry that would allow farmers/landholders to diversify without
diverting too much land away from their main endeavour and one that
would offer a potentially good return on investment (ROI). An even more
promising scenario would be one that combines two or more different
industries that are unconnected in a market sense. This would create a
fall-back situation if each industry ebbed and flowed independently of
its counterparts. This is the business idea and the three industries
that we wish to combine are:
black truffles
carbon sinks
forestry
What is a truffle?
Truffles are uniquely
flavoured edible fungi and can be thought of as a form of ‘under-ground
mushroom’ that grow on the roots of certain tree species.They have a
pungently scented aroma. Despite their relatively unglamorous
appearance black truffles are highly prized for their culinary value.
So much so that retail prices currently command around A$2500 - $3200
per kilogram.
What is a carbon sink?
A Carbon Sink is a reservoir
of carbon that accumulates and stores carbon for an indefinite period.
Trees store carbon. Australia is introducing a carbon emission trading
scheme.
Why forestry?
One has to plant trees to
grow truffles and also to store carbon so why not choose a host tree
for the truffle that has benefits in the forestry sense? Our choice of
the oak tree provides the benefits of a good host tree for the truffle,
a good sized-tree for the indefinate storage of carbon and an
appreciating asset in the form of an exotic hardwood.
Why is it a good idea to join the three?
Mycorrhizal means a symbiotic association between a fungus and the roots of a plant.
The relationship between the
mycorrhizal system (truffles in this case) and the tree is a symbiotic
one - in other words they help each other. So, not only is the tree
feeding the mycorrhizal system which produces truffles, but the
truffles, in return, add to the tree's vigour and health - so it tends
to grow at a better rate than an equivalent tree without a mycorrhizal
attachment and consequently store carbon at a greater rate. The early
application of forestry techniques in the plantation will produce a
more valuable lumber harvest than if left to its own devices.
What our service is:
1. An
organisation that produces trees inoculated with the black truffle
spore for regional State distributors to sell to existing
farmers/landowners under a share-farming arrangement.
2. An
organisation that provides a technical systemisation to its regional
distributors to allow them to advise and consult to their landowners.
2. An organisation accredited to trade in carbon.
How it works:
The Australian State Truffle
Enterprise (T.A.S.T.E) has established a nursery on mainland Australia
in a climate conducive to the growing of black truffles.
T.A.S.T.E has established the first prototype regional distributorship on a State basis.
This distributor seeks to
encourage farmers/landholders, in a pre-determined climatic area
suitable for growing truffles, to enter into a share-farming agreement.
The distributor's task is to
establish share-farming agreements with local landowners (basically
farmers with a spare hectare of suitable land and a willingness to
diversify). The distributor establishes the plantation in cooperation
with the landowner/farmer under the strict protocols issued by
T.A.S.T.E. T.A.S.T.E supplies DNA certified saplings for the
plantation. The distributor maintains the plantation and monitors it's
progress by routinely collecting data for T.A.S.T.E to process and
report on. The distributor eventually organizes the harvesting and
facilitates the export of the truffles. At this point the dividend
from the harvest is distributed in accordance with the share-farming
agreement.
T.A.S.T.E provides distributor with technical direction with regard to maintaining the trufferie as a carbon sink.
The distributor provides a management consultancy to establish the truffle plantation as a carbon sink.
T.A.S.T.E establishes a distribution network for marketing the truffles
T.A.S.T.E establishes further regional distributorships
T.A.S.T.E becomes an accredited carbon trader
Why will this business will appeal to consumers?
The business will appeal to
the regional State distributor as it offers a unique opportunity to
build a profitable business with little threat of competition.
The business will appeal to
the farmer/landowner as it offers him a further choice in
diversification as well as a better return per hectare of land than
traditional farming pursuits. It also offers the potential to offset
carbon credits against farming activities as well as provide a second
income stream, however modest. This diversification extends to the
asset growth inherent in an exotic hardwood plantation.
The business will appeal to
the consumer, the hospitality and food industry, as it will increase
supply of a most desirable but hard-to-obtain culinary product.
Why our business will be profitable?
Because the product is
difficult to obtain and is extremely seasonal it demands a high price.
At A$2,500-$3,200 per kg retail the black truffle is in fine company
with caviar, foie gras, pata negra and saffron.
As the trees take several
years before they produce truffles it will take many decades before the
truffle demand is matched by supply.
What are the growth opportunities?
A guesstimate of world
truffle production would be under 120 tonnes. In 1900 France's
production alone was in the order of 1-2,000 tonnes.
Business Partners
From the brief synopsis above you can see there are three associated business components:
T.A.S.T.E
The Regional Distributor
The Landowner
The opportunities available to you are:
1. Establishing a trufferie (optional) and regional distributorship
2. Establishing a trufferie as an existing landowner
If neither of these options
appeals then you could just purchase trees from T.A.S.T.E on the
assumption that you have access to your own technical expertise.
» Click here to contact T.A.S.T.E today