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(Alliance News) - Dekel Agri-Vision PLC on Monday reported continuing monthly increases in production but said this remained well below last year's record levels
Dekel Agri-Vision is a palm oil and cashew grower in West Africa.
The company said in a monthly update that it achieved a 15% improvement in the volume of fresh fruit bunches compared to last month, but it remained 42% lower than the record volume achieved last year. Fresh fruit bunches are are used to make palm oil.
The company said volumes in October are showing signs of improvement, but remain "materially lower" than at the same point last year.
While there was a monthly improvement in crude palm oil extraction rates at 21% compared to 19% last month, production remained 36% lower than last year's figures.
Sales of crude palm oil were 47% lower, reflecting the reduction in fresh fruit volumes. Crude palm oil is trading at EUR1,030 per per tonne, close to a record high.
The company said it continues to progress its cashew operation, with production capacity expected to reach 75% of the level required to process 10,000 tonnes per annum in October.
It is now integrating the last two peeling machines which, when fully operational in the next few weeks, will complete the operational value chain.
Executive Director Lincoln Moore said: "The cashew operation is now on track in terms of production capacity to reach the company's goal of processing 10,000 tonnes of raw cashew nuts in 2023. Whilst crude palm oil volumes remain below the record second half of 2021 results, crude palm oil volumes are showing signs of improvement and crude palm oil extraction rates are relatively strong. Crude palm oil and palm kernel prices achieved remained close to all-time highs which is important as we edge closer to the next high season in early 2023."
Shares in Dekel Agri-Vision were trading 5.6% lower at 2.79 pence each in London on Monday afternoon.
By Chris Dorrell; chrisdorrell@alliancenews.com
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