1. Executive Summary
This project proposes the development of a combined plantation of coconut (Coconut) and betel nut / areca nut (Betel nut) trees in Bangladesh, aimed at tapping into growing domestic and export demand. Most important, the chosen crops are suited to Bangladesh’s climate, require moderate inputs compared with other commercial crops, and offer long-term yields. The plantation will establish the plantation on selected land parcel (for example 5 hectares) with appropriate spacing, management, and market linkages. After the gestation period, the plantation would provide a stable source of cash income.
This profile lays out the key aspects: market demand, location, technical plan, cost and revenue projections in Bangladeshi taka (BDT), risk factors and viability.
2. Market Opportunity
2.1 Betel Nut Market
Betel nut cultivation in Bangladesh has been growing rapidly. In the northern region like Rangpur, farmers are harvesting up to 800 nuts per tree in favourable conditions. (Business Post)
A bundle of 80 pieces of betel nut sells for around Tk 250–400 depending on size and quality. (The Daily Star)
In districts such as Satkhira, 1,350 bighas on which betel nut is grown produced around 450 tonnes, valued at about Tk 20.25 crore (BDT 202.5 million). (Daily Post)
Another study found average annual net income from betel nut for households of ~ Tk 78,345. (agro.icm.edu.pl)
Thus, the demand and income potential for betel nut are substantial in Bangladesh.
2.2 Coconut Market
Coconut demand in Bangladesh is also rising. For instance in Tangail district, a small coconut plantation (15 trees) yielded profit around Tk 10,000–15,000 annually. (The Financial Express)
In an upazila of Bhola district, green coconuts worth at least Tk 3 crore per month are sent to other parts of the country. (Daily Observer)
Green coconut pieces are recently selling at unprecedented prices—large size may fetch Tk 150–200 per piece in premium markets. (Dhaka Tribune)
Also, high yield Vietnamese varieties being cultivated locally give up to 250–350 nuts per tree per year in trials. (Daily Observer)
So coconut plantation offers both domestic beverage market (green coconut water), nut/coproducts for industry, and export potential.
2.3 Combined Plantation Rationale
By combining both betel nut and coconut on the same land (or adjacent parcels), you gain diversification and more stable cash flows. Betel nut trees often do well even on marginal land where other crops struggle. (Business Post) Coconut trees offer high-value green commodity and by-products (leaves, coir, husk) for additional income.
Thus, this combined model is strategically sound.
3. Location & Site Selection
Location: Coastal/lowland or alluvial zones of Bangladesh that are suitable for coconut and betel nut—e.g., Bhola, Satkhira, Cox’s Bazar, Rangpur periphery.
Land size: Example: 5 hectares (≈12.35 acres) to allow economies of scale.
Soil & climate: Well-drained soils, high humidity, moderate salinity tolerant zones for coconut, and betel nut handles marginal land.
Access: Proximity to a road/market for transporting harvest; access to nursery saplings, water and labour.
Land history: Preferably fallow land or low‐yield farmland to minimise opportunity cost.
4. Plantation Plan & Technical Details
4.1 Crop Selection
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Coconut: Use high-yielding varieties (e.g., Vietnamese imported variety) yielding 250–350 nuts per tree/year. (Daily Observer)
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Betel nut (areca palm): Use proven commercial varieties that start yielding in 4-7 years. (The Daily Star)
4.2 Spacing & Planting
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Coconut: Typical spacing ~ 8 m × 8 m → about 150–160 trees/acre (~372 trees/hectare) depending on terrain.
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Betel nut: Spacing may be ~ 6 m × 6 m or larger; commercial farms in Bangladesh sample had 200–2000 trees over 2 acres. (Business Post)
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Intercropping: While trees are young (years 1-4), you may inter-crop vegetables or seasonal crops for extra income.
4.3 Gestation & Yield Profile
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Coconut trees take ~2½ years for some high-yield varieties to start bearing. (Daily Observer)
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Betel nut trees begin small yields around year 4, full yield later. (The Daily Star)
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A mature coconut tree may yield 250–350 nuts/year in good variety; average in Bangladesh currently low (~21 nuts/tree/year per old data) but improvement possible. (barc.portal.gov.bd)
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Betel nut yields from 300–800 nuts/tree/year (region dependent). (Business Post)
4.4 Maintenance and Input
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Land preparation, pit digging, sapling procurement, planting.
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Fertiliser, pesticide/weed control, irrigation (especially in initial years).
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Harvesting labour: Coconut climbing, betel nut bunching. A study found manual coconut harvesting cost ~ Tk 40/tree. (barc.portal.gov.bd)
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Transport to market or collection center.
5. Financial Projections (in BDT)
Below is a simplified projection for a 5-hectare project combining both crops. The values are illustrative and must be refined with local land cost, labour and variety cost.
Table 1: Key Assumptions
| Item | Unit | Value |
|---|---|---|
| Land area | hectares | 5.0 |
| Coconut trees (planting density) | trees/ha | 350 |
| Total coconut trees | trees | 1,750 |
| Betel nut trees (planting density) | trees/ha | 200 |
| Total betel nut trees | trees | 1,000 |
| Coconut start bearing year | years | 3 |
| Betel nut full bearing year | years | 4 |
| Coconut average nuts/tree/year at maturity | nuts | 300 |
| Betel nut average nuts/tree/year at maturity | nuts | 600 |
| Coconut average selling price per nut (or per piece) | BDT | 30 |
| Betel nut price per nut (average) | BDT | 2.0 |
Table 2: Estimated Yield & Revenue at Mature Stage (year 5)
| Crop | Trees | Nuts/year/tree | Price per nut | Annual revenue BDT |
|---|---|---|---|---|
| Coconut | 1,750 | 300 | 30 | 1,750 × 300 × 30 = 15,750,000 |
| Betel nut | 1,000 | 600 | 2.0 | 1,000 × 600 × 2 = 1,200,000 |
| Total annual revenue | – | – | – | 16,950,000 |
Table 3: Estimated Annual Costs at Mature Stage (year 5)
| Item | Amount (BDT) |
|---|---|
| Fertiliser/chemicals/maintenance (both crops) | 1,500,000 |
| Labour & harvesting | 1,000,000 |
| Irrigation, water, other utilities | 300,000 |
| Transport & marketing | 200,000 |
| Miscellaneous & contingency (5%) | 100,000 |
| Total annual cost | 3,100,000 |
Table 4: Estimated Annual Profit at Mature Stage (year 5)
| Item | Amount (BDT) |
|---|---|
| Total annual revenue | 16,950,000 |
| Total annual cost | 3,100,000 |
| Annual net profit | 13,850,000 |
Table 5: Investment & Return Summary
| Item | Amount (BDT) |
|---|---|
| Initial planting & establishment (years 1–2) approx | 8,000,000 |
| Payback period based on mature profit | 8,000,000 ÷ 13,850,000 ≈ 0.6 years (after maturity) |
| ROI (year 5) | ≈ 173% annual return |
Note: These numbers are illustrative; real results will vary based on variety, spacing, yields, market price, land cost and management.
6. Risk Analysis & Mitigation
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Market price fluctuation: Prices may fall (e.g., betel nut price drop in Pirojpur this year). (The Daily Star) Mitigate by securing forward contracts, establishing export linkages or value-addition (e.g., processed betel nut products).
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Variety yield risk: Using low-yielding varieties reduces revenue (e.g., average coconut yield in Bangladesh ~21 nuts/tree/year). (barc.portal.gov.bd) Mitigate by sourcing high-yielding varieties and adopting proper agronomy.
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Pests, disease & weather: Coconut mite, root wilt; betel nut early years vulnerable. Mitigate through good nursery, integrated management, insurance.
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Land tenure & access: Secure long‐term lease or ownership.
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Harvesting/labour risk: Skilled climbers needed. Mechanisation may help (e.g., dehusker machine payback in Bangladesh). (barc.portal.gov.bd)
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Long gestation period: Trees take years to full production. Mitigate by inter-cropping early years for interim income.
7. Implementation Timeline
| Year | Activities |
|---|---|
| Year 1 | Land preparation, sapling procurement, planting both crops, irrigation setup, intercropping. |
| Year 2 | Continue establishment, fertilizer/pesticide program, begin minor yield (especially betel nut). |
| Year 3 | Coconut starts bearing; betel nut increases; focus on harvesting, marketing. |
| Year 4 | Full betel nut production; coconut increasing; refine market linkages. |
| Year 5 onward | Both crops in full production; revenue stream stable; potential for value-addition (coconut water processing, nut processing, export). |
8. Social & Environmental Impact
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Diversifies rural income, creating skilled employment (harvesting, transport, processing).
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Encourages use of marginal/fallow land, improving land productivity.
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Tree crops enhance soil and ecosystem services (shade, erosion control).
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With proper management this plantation has moderate environmentally friendly footprint.
9. Exit & Expansion Strategy
Once plantation is established and running profitably, investors may:
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Expand by acquiring adjacent land and plantation phases.
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Add value-addition units: coconut water bottling, betel nut processing, export packaging.
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Consider agro-tourism (tree orchard visits, farm stays) or carbon credit programmes.
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After 20-30 years, replanting strategy for next crop cycle.
10. Conclusion
The combined coconut and betel nut plantation in Bangladesh offers compelling economics with moderate risk. Most important: it is not speculative—it leverages existing market demand, proven cultivation in Bangladesh, and favourable conditions. With good management, your investment can yield a stable, long-term cash flow and capital appreciation.
📞 Call to Action
If you’re ready to move ahead—or want a bankable project profile tailored for Bangladesh or abroad—get in touch. We produce full project documentation, feasibility studies, financial modelling, and investor-grade profiles.
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Website: www.projectprofilebd.com
Let's turn this plantation vision into a bankable reality.
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