Mozambique Trading & Operations Update

RNS Number : 2924T

Agriterra Ltd

12 December 2012

 



Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture

12 December 2012

Agriterra Ltd ('Agriterra' or 'the Company')

Mozambique Trading & Operations Update

Agriterra Ltd, the AIM listed pan African agricultural company, is pleased to announce a positive update from its beef ranching and maize buying, processing and farming operations in Mozambique.

Overview

·    115% increase in group revenues in first half of financial year to 30 November (FY 2012/2013: $11.4 million, FY 2011/2012: $5.3 million)

·    Chimoio abattoir fully operational - production slaughter commenced 3 December 2012 

·    Building up abattoir operations to full expanded capacity of 4,000 head per month from current throughput of over 200 head per month

·    Retail unit in Chimoio commenced business on 11 December 2012 - additional retail unit due to open in Tete by the end of December 2012

·    Acquisition of additional 1,000 hectare land package contiguous to Mavonde Stud Ranch to support an enlarged breeding herd of up to 10,000 head once developed and irrigated

·    Total current herd of 4,779 head and target to expand to 10,000 head by 2015

·    Record maize meal sales achieved from maize processing operations and new monthly milling records set

Euan Kay, Agriterra Executive Director said, "The first half of this financial year has been highly successful with our grain processing operations performing extremely strongly, and our beef operations expanding and beginning to generate material revenues for the group.

"The investment programmes, which we executed at both our beef and grain operations, have created a solid foundation for sustainable growth and expansion, and this is now translating into significant revenue generation.  As our abattoir operations continue to build towards full capacity, and our retail units take market share, our turnover and margins should continue to grow, significantly enhancing shareholder value and strengthening Agriterra's position as a pan-African agriculture business."

** ENDS **

For further information please visit www.agriterra-ltd.com or contact:

Andrew Groves	Agriterra Ltd	Tel: [phone]
Jonathan Wright	Seymour Pierce Ltd	Tel: [phone]
David Foreman	Seymour Pierce Ltd	Tel: [phone]
Andy Cuthill	MC Peat & Co LLP	Tel: [phone]
Susie Geliher	St Brides Media & Finance Ltd	Tel: [phone]

Notes

Agriterra Ltd is an AIM listed agricultural company with four divisions: beef, maize, cocoa and palm oil.  Its cattle ranching business, Mozbife, has a herd in excess of 4,500 head, a land holding of over 17,350 hectares, a feedlot, a 4,000 head per month capacity abattoir and retail units.  In addition to selling meat from its own herds, throughput for the feedlot and abattoir will be supplemented using cattle bought in from local communities.

The Company's maize buying and milling operations, DECA and Compagri, are located in Chimoio and Tete in central and north-western Mozambique respectively.  These collect maize from circa 350,000 farmers using the Company's own vehicle fleet, process it into maize meal, the African staple, and then sell it back to the local market, into supermarkets and to the World Food Programme.

Agriterra's cocoa business is based in Sierra Leone, through its 100% subsidiary Tropical Farms Limited, which is currently a buying and trading operation, but provides an ideal conduit to branch out into cocoa production in West Africa.  Its strategy is to establish itself as a secure, sustainable and traceable source of supply to meet the requirements of the major cocoa consumers who are placing increased emphasis in this area.

The Company has expanded its portfolio of agricultural products through the addition of palm oil, and holds a lease over approximately 45,000 hectares of brownfield agricultural land in an area suitable for palm oil production in the Pujehun District in the Southern Province of Sierra Leone.  This area of Sierra Leone, which is close to the Liberian border, receives one the highest levels of rainfall in Sierra Leone, which in itself, receives some of the highest rainfall globally.  In addition, the lease area is located on the equatorial belt, which is the most favourable geographical location for palm oil production. 

 

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