Agriterra Ltd Cocoa Update (7490X)
February 13 2013 - 2:00AM
UK Regulatory
TIDMAGTA
RNS Number : 7490X
Agriterra Ltd
13 February 2013
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
13 February 2013
Agriterra Ltd ('Agriterra' or the 'Group')
Cocoa Update
Agriterra Ltd, the AIM listed pan African agricultural company,
is pleased to announce that it has expanded its cocoa and farming
operations in Sierra Leone, through its wholly owned subsidiary
Tropical Farms Ltd ('TFL').
In line with increasing the Group's production base and to
complement in particular its growing cocoa trading operations, TFL
has completed the acquisition of a 50 year lease, with a 21 year
extension option, over a previously producing cocoa and coffee
plantation covering 1,208 hectares, located 40km from Kenema in
south-east Sierra Leone ('the Plantation'). The Plantation, which
was previously run by Beresfords, the international plantation
group prior to the civil war, will be rehabilitated and redeveloped
in order to recommence the production of cocoa, coffee and
additional cash crops. A further 546 hectares, located contiguously
to the north of the Plantation has also been signed on the same
terms as the Plantation.
The Group has already invested significantly in the
rehabilitation and development of the Plantation. A modern nursery
is being installed, which will be the largest and most technically
advanced current cocoa production facility in Sierra Leone. The
nursery has an irrigation system capable of supporting capacity of
up to 500 hectares worth of seedlings. The nursery covers a green
area of 1.6 hectares and has a total size of 1.7 hectares. It
currently contains 250,000 seedlings in the germination process,
which once matured, will be used to plant a 200 hectare area that
is in the process of being cleared. 56 acres are already under
cocoa cultivation.
A total of 160 workers are currently being employed from the
local community. Machinery purchased includes two excavators, two
backhoes, one D6D bulldozer and three tractors, which are being
utilised for road construction within the plantation area and for
20km of feeder roads for the surrounding communities.
In line with the Board's desire to rapidly expand its cocoa
plantation business, TFL is actively negotiating to secure a
further 1,200 hectares, contiguous to the north of the existing
Plantation and a further 800 hectares to the south. The Group hopes
to announce the completion of these negotiations in the near
term.
Andrew Groves, Agriterra Chief Executive said, "Through TFL we
have already established a successful cocoa trading business. With
this acquisition and investment we are now entering the second
phase of our growth strategy focussed on developing our own
plantations. We have an excellent international and Sierra Leone
national team who have the experience and expertise to rapidly
scale up our in-country operations with the aim of becoming Sierra
Leone's leading cocoa company. The plantation is in a highly
productive and suitable area for cocoa production, and with the
investment programme already underway, we are looking forward to
the plant out this season and increasing our production.
"Importantly, there is significant growth potential for our
Sierra Leonean business which is already contributing at a Group
level and complementing our expanding Mozambique beef operations.
We have an extremely strong treasury, having received an initial
US$28 million from the sale of our legacy oil asset, and I look
forward to completing additional acquisitions of land and building
shareholder value further."
** 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 Tel: +44 (0) 20 7107
8000
Rick Thompson Seymour Pierce 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 5,650 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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