TIDMAGTA 
 
RNS Number : 9140S 
Agriterra Ltd 
28 May 2009 
 

Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture 
28 May 2009 
Agriterra Ltd ('Agriterra' or 'the Company') 
Opens Second Operation in Tete, Mozambique 
 
 
Agriterra Ltd, the AIM listed company focussed on the agricultural sector in 
central and southern Africa, has opened its second agricultural buying and 
processing facility in Mozambique. The Compagri operation, located at Tete, was 
set up to replicate the Company's successful DECA facility at Chimoio, which has 
been in operation since 2005 and has the capacity to process approximately 
50,000 tonnes of maize per annum, collected from approximately 350,000 local 
producers in the Manica province of Mozambique. The construction of the Tete 
facility was funded primarily from internal cash flow, delivered under the 
budget (approximately US$ 8.9 million) and on schedule, to coincide with the 
advent of the maize buying season in the Tete Province. 
 
 
As at Chimoio, operations at Tete are focussed on the purchase of maize from 
indigenous out-growers, which is then processed into corn flour, a key African 
food staple. The total storage capacity for maize is currently 12,600 tonnes, 
consisting of four 1,500 tonne silos and one 600 tonne silo, and an additional 
two large warehouses with capacity to store 3,000 tonnes each. The average 
milling capacity is currently 80 tonnes per day, which could be raised to a 
maximum of 120 tonnes per day when a 24 hour rotational shift basis is utilised. 
 
 
 
On the conclusion of the next buying season, which lasts from June until late 
August/early September, the Company will evaluate whether the total silo storage 
should be increased. The infrastructure required to increase Compagri to the 
maximum capacity of 50,000 tonnes has already been developed meaning future 
expansion can be achieved for the next buying season in 2010, with minimised 
additional expenditure. 
 
 
Again, as at Chimoio, the strength of the Company is in its logistics 
capability. All purchases are effected through strategic buying points serviced 
by the Company's own trucking fleet. 
 
 
At Tete, the Company is also evaluating the viability of diversifying its 
product range to include other agricultural produce such as beans and ground 
nuts. It is the Board's opinion that the diversification of its product range 
will strengthen the Company's growth strategy by enabling year round processing 
of a variety of products, ultimately spreading any potential risk associated 
with individual commodity production. 
 
 
Agriterra CEO Andrew Groves said, "The opening of the Tete facility should 
contribute significantly to our operational and financial performance. By 
replicating the success of our Chimoio operation we can build on our current 
position and become a leading agri-operation in southern and central Africa, 
servicing the local and export markets as well as gaining further exposure to 
buyers such as the UN Food Programme, one of DECA's major customers. Tete, which 
was developed to schedule and under budget, has the capability to process 
additional maize if required, and we will continue to monitor the plant's 
capacity in order to fully utilise the facility's revenue generating potential. 
The diversification of our product range will also add a further facet to the 
Company, one which we believe will reinforce our investment case and deliver 
additional revenue streams at minimal risk to shareholders." 
 
 
** ENDS ** 
 
 
For further information please visit www.agriterra-ltd.com or contact: 
+--------------------+------------------------------+-------------------------+ 
| Andrew Groves      | Agriterra Ltd                | Tel: +44 (0) 845 108    | 
|                    |                              | 6060                    | 
+--------------------+------------------------------+-------------------------+ 
| Jonathan Wright    | Seymour Pierce Ltd           | Tel: +44 (0) 20 7107    | 
|                    |                              | 8000                    | 
+--------------------+------------------------------+-------------------------+ 
| Hugo de Salis      | St Brides Media & Finance    | Tel: +44 (0) 20 7236    | 
|                    | Ltd                          | 1177                    | 
+--------------------+------------------------------+-------------------------+ 
| Susie Callear      | St Brides Media & Finance    | Tel: +44 (0) 20 7236    | 
|                    | Ltd                          | 1177                    | 
+--------------------+------------------------------+-------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCDDLFLKEBFBBK
Agriterra Ld (LSE:AGTA)
Historical Stock Chart
From May 2024 to Jun 2024 Click Here for more Agriterra Ld Charts.
Agriterra Ld (LSE:AGTA)
Historical Stock Chart
From Jun 2023 to Jun 2024 Click Here for more Agriterra Ld Charts.