DECA

Mozambique update

RNS Number : 0736I
Agriterra Ltd
28 June 2013
 



Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture

28 June 2013

Agriterra Ltd ('Agriterra' or the 'Group')

Update

 

Agriterra Ltd, the AIM listed pan-African agricultural group, is pleased to announce a further update on operations in Mozambique.

 

The Company is pleased to confirm that its beef operations at the Mavonde Stud Ranch, Vanduzi feedlot, Dombe and Irmaos Ranches are all progressing well and continue to perform strongly as reported in the RNS dated 11 June 2013.  They are unaffected by highly localised security incidents in the country. Furthermore the Company is not expecting any future disruption to these businesses.

 

As reported, there have been a small amount of isolated incidents on the road from Chimoio to Maputo and the Company has taken the decision to refrain from sending transporters to the capital as a short term measure.  The Company's maize farming/milling facilities centred in Chimoio, Tete and Beira, its abattoir at Chimoio and beef retail outlets are all running normally with sales unaffected.  The Company's third beef retail outlet targeted to open in Maputo is likely to be delayed by two to three weeks.

 

Agriterra Director Andrew Groves said, "Our businesses in Mozambique continue to perform.  Our operations are not in areas that have been affected by the reported isolated incidents but as a precautionary measure we have taken the decision on our transporters.  We do not believe there will be any material impact on the performance of the Company and I look forward to updating shareholders on all aspects of the business, including our cocoa plantation in Sierra Leone, as we continue our investment in the growing African agricultural sector and build a fully integrated 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 7000

Rick Thompson

Cantor Fitzgerald Europe

Tel: +44 (0) 20 7894 7000

Andy Cuthill

MC Peat & Co LLP

Tel: +44 (0) 20 7104 2332

Susie Geliher

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 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 6,500 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 is supplemented with 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 includes buying, trading and production operations.  The Company holds over 1,200 hectares of land for cocoa cultivation and also has a strong buying register with three main hub stores, 41 satellite stores and a direct buying register of more than 3,500 farmers across the country.  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. 

 


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