Agriterra Ltd Operations Update & Acquisition of Land (7362V)
January 17 2013 - 2:00AM
UK Regulatory
TIDMAGTA
RNS Number : 7362V
Agriterra Ltd
17 January 2013
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
17 January 2013
Agriterra Ltd ('Agriterra' or 'the Group)
Mozambique Operations Update & Acquisition of Land
Package
Agriterra Ltd, the AIM listed pan African agricultural company,
is pleased to announce a further expansion to its multi-commodity
agricultural product range and a positive update at its beef and
maize operations in Mozambique.
Overview
-- Diversification of portfolio and revenue stream through
acquisition of a 2,500 hectare farm with a producing banana
plantation, macadamia orchard and land capacity for cattle
-- 50 acre banana plantation producing initial weekly yields of
approximately 7 tonnes - production anticipated to increase
significantly with development of plantation
-- Macadamia orchard planted - commercial production targeted within 24 months
-- Significant expansion of banana plantations, macadamia
orchard, and cattle pasture planned to maximise revenue
generation
-- Farm located approximately 25km north of the Group's Mavonde
Stud Ranch and irrigated by bordering Nyadzonya river
-- Work underway to increase capacity at Mavonde Stud Ranch by
100% following purchase of adjoining 1,000 hectare farm
-- 48 billion litre Mavonde dam now full with capacity to
irrigate ranch for four years and support head to hectare growth -
current stud breeding herd stands at 900 head and target to expand
to 2,500 head by end 2013
-- Strong initial trading at Chimoio beef retail unit - sales of
$1,000 to $1,500 per day and increasing
-- Second beef retail unit expected to commence trading in Tete by 31 January 2013
-- Maize milling operations at Compagri operating near full
capacity and generating improved revenues
Euan Kay, Agriterra Executive Director said, "The purchase of
additional acreage in Mozambique provides a strong boost to our
rapidly expanding beef operations, which are already producing
significant revenues for the Group. Turnover will be further
enhanced by our new retail units, where initial daily sales of up
$1,500 have been reported from our first shop in Chimoio. In
addition to this, Group revenues will be further bolstered and
diversified by the acquisition of a producing banana plantation and
macadamia orchard. With a strong development strategy in place to
maximise the value potential of this new land, we are well set to
enhance shareholder value and strengthen 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: +44 (0) 20 7408
9200
David Foreman Seymour Pierce Ltd Tel: +44 (0) 20 7107
8000
Rick Thompson Seymour Pierce Ltd Tel: +44 (0) 20 7107
8000
Andy Cuthill MC Peat & Co LLP Tel: +44 (0) 20 7104
2332
Susie Geliher St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
Notes
Agriterra Ltd is an AIM listed agricultural company with five
divisions: beef, maize, cocoa, fruit and palm oil. Its cattle
ranching business, Mozbife, has a herd in excess of 5,400 head, a
land holding of over 21,000 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 also owns a proximal banana plantation and macadamia
orchard.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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