Agriterra Ltd Mozambique Beef Operations Continue to Expand (9929F)
May 01 2014 - 2:00AM
UK Regulatory
TIDMAGTA
RNS Number : 9929F
Agriterra Ltd
01 May 2014
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
1 May 2014
Agriterra Ltd ('Agriterra' or 'the Company')
Mozambique Beef Operations Continue to Expand
Agriterra Ltd, the AIM listed pan-African agricultural group, is
pleased to announce a positive operations update from Mozbife
Limitada ('Mozbife'), the Company's expanding beef business in
Mozambique.
-- Excellent progress made across the Company's field to fork beef business
-- Stocking ratios are being significantly increased at the
2,350 hectare Mavonde and 2,500 hectare Inhazonia farms through the
implementation of Phase 2 of the Company's multi stage irrigation
role out programme
-- On completion of Phase 2 in Q4 2014, a total of 490 hectares
of land will be irrigated allowing additional animals to be
accommodated on the land
-- Post Phase 2, the Company's three ranches will have a carrying capacity of 13,800 animals:
o Mavonde breeding ranch (2,350 hectares) will have 370 hectares
irrigated pasture with total carrying capacity of 5,600 animals,
comprising the breeding herd and their calves of up to 12 months
old
o Dombe breeding ranch (15,000 hectares) has a planned capacity
of 6,000 animals comprising the breeding herd and their calves of
up to 12 months old
o Inhazonia grass fattening ranch (2,500 hectares) will have 120
hectares irrigated pasture with carrying capacity in excess of
2,200 steers aged between 12-15 months prior to them being sent to
the feedlot
o Further land acquisitions of 7,000 hectares contiguous to
Inhazonia are also being assessed
-- The Company's breading herd currently stands at 4,800 with a
further 1,300 cattle being fattened at the ranches which will later
pass through the feedlot
-- Further to the three ranches, the Vanduzi feedlot is
currently well stocked with 1,800 animals, and able to provide 600
animals per month to the abattoir from June 2014, to cater for the
increasing demand from the Company's four butcheries in Chimoio,
Beira, Tete and Manica as well as additional volume contracts
-- As forecast in the Company's interim results on 26 February
2014, the new retail outlet in Beira, the second largest city in
Mozambique, is performing extremely well, generating revenues of in
excess of US$70,000 per month since opening and on an upward
trend
-- With strong demand for beef and an increasing herd carrying
capacity, the Group is looking at expansion opportunities in
northern and central Mozambique, to take advantage of the resource
and extractive industries growth, as well as increasing demand from
the local population - Mozambique growth rates are forecast to
continue as one of the fastest growing economies in sub Saharan
Africa, significantly above the average world rates.
Agriterra Director Andrew Groves said, "Mozbife continues to
perform as it delivers an upward trajectory through optimising its
operations in order to achieve its development objectives for beef.
With carrying capacity increased across its 19,850 hectare ranches,
herd and breeding stocks expanding, feedlot operations being
optimised and retail units experiencing strong demand, the beef
business is showing increasing earnings visibility and scalability.
This, in tandem with our grain and processing business and the
continued development of our 3,200 hectare cocoa planation in
Sierra Leone, set against a backdrop of increased interest in
sustainable supply, make us excited about the future.
"We have a well-capitalised business with a cash and cash
equivalents of US$8 million and net asset value of US$57.5 million
as last reported in November 2013, against a current market
capitalisation of $25 million. The Group is going from strength to
strength and with continued optimisation and expansion the true
value of this business should be recognised."
** 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
John Beaumont Peat & Co. Tel: +44 (0) 20 3540
1723
Susie Geliher St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
Charlotte Heap 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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