TIDMAGTA
RNS Number : 0707C
Agriterra Ltd
11 April 2013
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
11 April 2013
Agriterra Ltd ('Agriterra' or the 'Group')
Expansion and Development of Cocoa Plantation, Sierra Leone
Agriterra Ltd, the AIM listed pan African agricultural company,
is pleased to provide an update on the rapid development and
expansion of its cocoa farming operations in Sierra Leone, through
its wholly owned subsidiary Tropical Farms Ltd ('TFL'), in line
with Agriterra's strategy to build a vertically integrated
pan-African agricultural group.
Highlights
-- Accelerated development initiatives underway at 1,200 hectare
plantation in south-east Kenema to facilitate commercial large
scale cocoa production
-- 200 hectares cleared to date - intention to clear full 1,200
hectares by Q4 2013 and complete planting across entire plantation
by Q4 2014
-- Acquired further 400 hectares in line with expansion strategy
- scheduled to begin clearing land in 2014 ahead of planting cocoa
and potentially coffee in 2015
-- Advanced negotiations to acquire additional 1,600 hectares
contiguous to the north-east of the current plantation
-- Discussions underway to acquire further 1,550 hectares
adjacent and south of the plantation for further ramp up of
production in the mid term
-- Potential supplementary cocoa nursery planned - construction
to be completed by Q1 2014 enabling the cultivation of up to 1
million seedlings for planting across 1,000 hectares in 2014
-- Developed local infrastructure to support plantation growth -
improved road to Kenema and constructed four management houses
Andrew Groves, Agriterra Chief Executive said, "I am delighted
to report on the continued growth and development of TFL's farming
operations. The expansion of the Plantation underpins TFL's efforts
to become a leading agricultural producer, in addition to its
established cocoa trading business. The forward pricing environment
for cocoa is positive, with the International Cocoa Organisation
forecasting that demand is expected to exceed production by 45,000
tonnes in the season to September 2013. We are therefore confident
that our expansion into cocoa will benefit greatly from the future
demand fundamentals, and with defined development plans to maximise
the value of our increasing land holding, I am confident that we
are well set to generate significant revenues for the Group and
complement our revenue being generated from our beef business and
grain processing operations."
In February 2013 TFL acquired a 1,200 hectare plantation located
40km from Kenema in south-east Sierra Leone ('the Plantation'),
which previously produced cocoa and coffee. To maximise the value
of the land and diversify the Group's product offering, TFL has
implemented a defined development programme to expand its land
under cultivation. 200 hectares have been cleared to date ahead of
the commencement of planting in Q2 2013, and TFL expect the
remaining land to be cleared by the end of Q4 2013. TFL plan to
have fully planted the Plantation by the end of Q4 2014.
In addition to developing the Plantation, TFL recently acquired
a further 400 hectares, located contiguous to the north-east of the
Plantation, which the Group plan to begin clearing in 2014 in order
to plant cocoa seedlings in 2015. Furthermore, TFL is in advanced
negotiations to acquire an additional 1,600 hectares located to the
north east of the current Plantation. Once acquired, TFL intend to
clear the new land in 2015 to allow cocoa planting in 2016. TFL is
also in discussions to acquire a further 1,550 hectares, located to
the south-east of the Plantation. Depending on the success of
coffee trials, the Group plan to potentially target this land for
coffee farming, thus further diversifying Agriterra's competitive
agricultural offering.
A new cocoa nursery is currently being planned to support the
Plantation's development. The proposed nursery will be fully
irrigated and have the capacity to support up to 500 hectares worth
of seedlings. Combined with the established nursery, TFL expects
they will cultivate 1 million cocoa seedlings for planting in 2014.
Furthermore, TFL has also focussed on improving local
infrastructure. This includes improving the roads that connect the
Plantation to Kenema and developing a plantation road network,
building four new management houses and beginning the preparation
work for the construction of a 2,000m sq warehouse outside Kenema,
which TFL expects to complete by Q3 2013. The warehouse will
support cocoa produced internally by TFL at the Plantation and also
handle cocoa and coffee bought by TFL's out-grower trading
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 Cantor Fitzgerald Europe Tel: +44 (0) 20 7894
7684
Rick Thompson Cantor Fitzgerald Europe Tel: +44 (0) 20 7894
7684
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 5,450 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 Group also owns a proximal banana plantation and macadamia
orchard.
The Group'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 Group'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 Group 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
MSCGGUGWCUPWGQU
Agriterra Ld (LSE:AGTA)
Historical Stock Chart
From May 2024 to Jun 2024
Agriterra Ld (LSE:AGTA)
Historical Stock Chart
From Jun 2023 to Jun 2024