Investing in Truffles
Perigord Truffles of Tasmania currently offers two means by which to invest in the truffle industry:
The French black truffle industry
in Tasmania was initially established under a joint venture arrangement with farmers. A joint venture arrangement was developed because the company’s
market research strongly indicated that farmers would prefer to be involved in
an industry where they could concentrate on production. The information gained
from a series of farmer focus groups held around the state was that having a
coordinated approach to the research, harvesting and marketing of truffles was the
most desirable approach. Farmers indicated that they were not interested in
having to train their own truffle harvesting dogs and then compete with other
farmers to sell their truffles in the market.
Perigord Truffles of Tasmania recognises that some farmers will want to "do it themselves" and we can provide the trees and support services for them to do so. However, it is the firm belief of the company that both the growers and PTT are more likely to see a higher return on investment when trees are sold under a joint venture arrangement. For more information on your investment options, please feel free to contact us.
Under the joint venture arrangement, landholders interested in growing truffles have their properties assessed by PTT for a site considered to be suitable for the production of truffles. The minimum size of a truffière under the joint venture is one hectare. Those landholders with a suitable site, purchase inoculated hazel or oak seedlings from the company. Initially, for management reasons, we had restricted the joint venture arrangements to Tasmania. However, in 2001, PTT decided to expand to the mainland. Truffières have now been established in the colder regions of Victoria and NSW.
The joint venture arrangement means that all of the truffles harvested are sold through the company to ensure efficient marketing and distribution of the crop and to maintain quality control. As part of the arrangement, the company provides technical advice to the growers; conducts research and development; and is responsible for training truffle dogs and harvesting the crop.
Currently, there are
75 hectares of truffle
plantations in Tasmania, and a number of joint venture
and non-contract sites in Victoria and NSW. For the approximate location of
these sites, see Map of Sites.
An outline of the joint venture arrangement is as follows. It is the grower's responsibility to purchase the trees and to provide the land, labour and infrastructure necessary for production. Perigord Truffles of Tasmania provide the following at no additional cost to the grower.
- An ongoing consultancy service, which
includes advice on:
- Initial site inspection
- Interpretation of soil analysis and recommendations for corrective nutrient applications
- Pre-planting cultivation and weed control
- Advice on planting procedure
- Irrigation design and scheduling
- Fencing design
- Pruning techniques
- Regular monitoring of the soil pH and nutrient levels
- Annual maintenance program
- PTT's agronomist will regularly visit all truffières
- Crop harvesting with specially trained dogs
- Product grading and quality control
- Marketing of all truffles produced.
- Developing the international market for Australian truffles
- Developing value added truffle products for that portion of the crop that is not suitable for the fresh restaurant market
- PTT retains sole marketing rights
- The company will undertake to pursue and co-ordinate all available research and development funding for both production and marketing
Income derived from the sale of truffles is equally
divided between the company and the growers.
Farmers should appreciate that there is a lead-time involved in the preparation of the sites before the inoculated trees can be planted.
Tree Sales and Support Services
Perigord Truffles of Tasmania are now offering non-contracted tree sales for those people who have decided that they would like to 'do it themselves'. These trees are well established (typically about one year old) and have been inspected to ensure that the Tuber melanosporum fungus has successfully colonised the root system. The trees are provided with an information sheet on how to establish and maintain your truffière.
In addition to providing the inoculated oak and hazel trees, we can also provide support services in the form of technical advice, harvesting and marketing.
Technical Support
Our technical support service is on a fee for service consultancy basis covering such areas as;
- Advice on site selection
- Soil testing and interpretation
- Recommendations for corrective nutrient applications
- Pre-planting cultivation and weed control
- Irrigation design and scheduling
- Fencing design
- Pruning techniques
Truffle Harvesting
Perigord Truffles of Tasmania have appointed Mr. Steve Austin of Sydney to train dogs for the truffle harvest (see Harvesting).
We plan to have skilled dog handlers strategically located in those areas of southern Australia where our trees have been planted. This harvesting service will be available on a fee for service basis to people who have purchased our trees.
Marketing of Truffles.
PTT’s objective is to be the principal supplier of French truffles in the Southern Hemisphere.
As the industry expands, the company will be strategically placed in the domestic market, capitalising on the market research and development already undertaken. We are also developing relationships with potential markets in Europe, Asia and the United States of America.
The development of a range of value added truffle products in association with chef, Tim Pak Poy, is another key plank to our marketing strategy.
Growers purchasing trees from Perigord Truffles of Tasmania will have the opportunity of having their truffles marketed under the company’s brand name. We firmly believe that a coordinated approach to the harvesting and marketing of the truffles will ensure maximum returns on production.
A five hectare truffière will be established in the Goulburn District, NSW in the autumn 2007. Expressions of interest are being sought to lease the truffière. The truffière will be established adjacent to an existing truffière which was established in 2002.
The total establishment cost per 0.5 hectare is $16,000, which includes inoculated trees, cultivation, fencing and an irrigation system.
The truffles will be harvested and produced in Joint Venture with Perigord Truffles of Tasmania. The land will be leased from the farmer, who will manage the truffière under an agreement with the investor.
The farmer will receive lease and management fees.
For more information on how to invest in the truffle industry, please contact us.
Please Note. The cultivation of truffles is not a simple science. Perigord Truffles of Tasmania offers no guarantee that you will find truffles and we advise that you consult us about investing in truffles.