LONR Lonrho

    
  Lonrho PLC
  13 January 2009
   


    13th January 2009

    LONRHO PLC
    ("Lonrho" or the "Company")
    
"Substantial Progress at Lonrho Agriculture"


    Lonrho Plc (AIM: LONR), the conglomerate with a structured portfolio of African investments, is pleased to announce that it's wholly
owned agricultural subsidiary Lonrho Agriculture has made significant progress on its strategy towards vertically integrating its
operations. It continues to become a significant producer, processor and deliverer of agricultural products from the African continent to
key African and European and Middle Eastern markets. 

    *     The company announced today that it has signed a development agreement with the Angolan Government to develop 25,000 hectares of
agricultural projects in Angola.

    Agricultural projects

    Lonrho Agriculture has signed an Agreement with His Excellency Engineer Alfonso Pedro Canga, the Minister of Agriculture and Rural
Development of Angola and Carlos Alberto Jaime, the Director of Gesterra, Gestao de Terras Aravais, the Government Agricultural Promotion
agency. 

    The agreement is for the development by Lonrho Agriculture of 25,000 hectares of agricultural projects in the Provinces of Uige, Zaire
and Bengo in Angola. This will be in close co-operation with the Government of Angola and work closely with the Governments initiatives to
promote agricultural reconstruction and development.  

    Lonrho agriculture is also currently undertaking feasibility studies in co-operation with the Governments of Malawi and Mali for 25,000
hectares of agricultural land on the banks of Lake Malawi and for a five year potential development of up to 100,000 hectares in the Niger
Delta in Mali.


    Logistics and Agri Processing

    Lonrho Agriculture remains focused on developing international standard agri processing, storage and handling facilities that meet
stringent European import requirements and developing and operating the necessary chilled logistics networks to ensure that fresh produce
from Africa can reach markets in Europe and elsewhere in prime condition. 

    Lonrho Agriculture's existing 'Rollex' operation has expanded it's processing and packing operations from 3,500m2 to 4,908m2 to meet
expected demand. The facility is located airside at Johannesburg International in South Africa. 
    This facility's revenues in the 12 months ending December 2008 have increased by 25% over the corresponding period. The company is a
major supplier to the South African market and major retailers in Europe including Marks & Spencer and Tesco.

    The previously announced 1,810m2 fruit salad processing line at the Johannesburg facility is now delivering processed fruit salad in
South Africa and opening lucrative export markets in Europe. The fruit salad facility is forecast to add turnover of US$ 20 million to the
Rollex operations in 2009.

    The 480m2 cold store and export processing facility in Windhoek, Namibia, has surpassed expectations and now exports 15 tons of fresh
fish from Windhoek to Frankfurt and Gatwick on a daily basis.

    The company's agricultural engineering consultants MBB ( www.MBB.co.za ) have recently completed site surveys for the new cold store and
agri processing facility that the company announced that it is developing at Lilongwe, Malawi to commence the delivery of produce from
Malawi to service the fast growing Middle East market. 

    Further agri processing facilities are under negotiation and planned to be developed in Harare in Zimbabwe, the Niger delta in Mali and
Luanda in Angola. 


    David Lenigas, Lonrho's Executive Chairman commented:
    
"Lonrho sees the potential for growth in the agricultural sector in Africa as a significant and real opportunity. Lonrho had a long
tradition in large scale agriculture in Africa. We believe that Lonrho Agriculture provides the ability to successfully vertically integrate
the market, enabling the company to produce, source, process, pack and deliver produce from across the Continent to markets in Africa,
Europe and the Middle East. 

    "It is the vertical integration of the African agricultural industry that is the key to success. It is the ability to not only grow
produce, but to deliver it to a global market that will meet the growing shortages of food production."






     LONRHO ENQUIRIES

 Lonrho Plc                               +44 (0)20 7016 5105
 David Lenigas, Executive Chairman        +44 (0)7881 825 378
 Geoffrey White, Chief Executive Officer  +44 (0)7717 307 308
 Emma de Borchgrave, Executive Director   +44 (0)7867 785 177
                                           
 Pelham PR                                 
 Charles Vivian                           +44 (0) 20 7743 6672
                                          +44 (0) 7977 297903
 James MacFarlane                         +44 (0) 20 7743 6375
                                          +44 (0) 7841 672831
                                           


This information is provided by RNS
The company news service from the London Stock Exchange
 
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