Operations Update (5139U)
October 18 2010 - 2:00AM
UK Regulatory
TIDMAGTA
RNS Number : 5139U
Agriterra Ltd
18 October 2010
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
18 October 2010
Agriterra Ltd ('Agriterra' or 'the Company')
Operations Update
Agriterra Ltd, the AIM listed company focussed on the
agricultural sector in central and southern Africa, is pleased to
announce record buying and sales in an update on its grain
processing and cattle ranching operations in Mozambique.
Processing and Milling:
DECA - Chimoio
-- Successful buying season with very strong inflows from local
farmers - currently buying from circa 350,000 smallholders
-- Approximately 22,000 tonnes of maize total through put
-- Sales continue to exceed expectations and are significantly
ahead of last year: May up 174%, June up 208%, July up 149%, with
August and September up over 100%
-- The milling operation has been running 24 hours a day, 7 days
a week since the beginning of October, which will increase
production by a further 30% from current record levels
Compagri - Tete
-- Higher than anticipated inflows of grain this year with over
13,000 tonnes of grain now in stock
-- Milling operations commenced
-- New local management team in place and operations performing
strongly under new leadership
-- Expansion potential high as local recognition of the
operation grows
General
-- Agriterra holds the largest reserve of maize in
Mozambique
-- Strong demand particularly with the wheat shortage - DECA and
Compagri well positioned to cope with demand owing to increased
stock levels
-- Prices for finished product expected to increase as demand
continues to rise
-- Exporting of bran, the by-product of the maize processing
operation, will commence this month to Zimbabwe, where demand is
strong
MOZBIFE Cattle Ranching
-- Received Centro de Promocao de Investimentos approval (Major
Project Investment Approval) from Government which will allow the
Company to aggressively move forward with its expansion plans
-- Currently has over 1,600 head of cattle across two
ranches
-- Calving season on both Mavonde and Dombe ranches has started
with regular veterinary checks reporting cattle in good
condition
-- Mavonde irrigated pasture area extended to almost 300
hectares in anticipation of large number of calves
-- Final planning for 42,200 Megalitre irrigation dam completed.
This dam will be situated on the Mavusi River and push back
approximately 8km when full. Construction is envisaged to start in
early 2011. On completion this will supply water for a further
400Ha of irrigated pasture
-- The Dombe Ranch cattle are being purchased in large numbers
from the local population for fattening on grass before moving to
the feedlot
-- The Vanduzi abattoir/feedlot project is progressing well with
first feed pens completed and boundary fencing progressing well.
First cattle are expected at the feedlot imminently
-- Extensive land clearing and preparation currently underway
for planting of 200Ha maize crop to ensure feed security of
feedlot. This will be followed by a 300Ha crop of soya beans for
feedlot purposes
Agriterra Executive Director Euan Kay said, "We are making
fantastic progress in all areas of the business. The record buying
season at both DECA and Compagri continues and the sales of our
maize and bran are at levels never experienced. We are the largest
holder of maize in the country and are increasing milling capacity
to cater for demand.
"Our beef operations are also progressing extremely well, with
the granting of Major Project Investment Approval paving the way
for a rapid investment programme. The herd is increasing, now
standing at over 1,600 head and we are expecting the first arrivals
of cattle at our Vanduzi feedlot imminently. In tandem with this,
the land clearing and preparation programme that is currently
underway will provide additional maize, and subsequently soya, to
ensure our beef operations continue to expand which we believe will
deliver significant value to shareholders."
** ENDS **
For further information please visit www.agriterra-ltd.com or
contact:
Andrew Groves Agriterra Ltd Tel: +44 (0) 20 7408
9200
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 Geliher 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
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