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(Alliance News) - Dekel Agri-Vision PLC on Wednesday reported a drop output and sales for its crude palm oil project and plans underway for increased cashew project production.
Shares in Dekel Agri-Vision were down 8.8% at 3.10 pence per share in London on Wednesday.
The West Africa-based agriculture company reported July output for its crude palm oil production is down 46% to 929 tonnes from 1,715 tonnes the same month a year before, due to it being a low season for fresh fruit bunches. Despite this, Dekel Agri-Vision said the extraction rate of 21% achieved, was "solid" considering the low season month.
In addition, average price for crude palm oil in July increased 2.5% to EUR973 from EUR949 a year prior.
However, palm oil sales for the period reflected the lower production output as it more than halved to 1,247 tonnes from 3,047 tonnes the year before.
Looking at Dekel Agri-Vision's cashew project, commissioning for its colour sorter is complete and the transfer of eleven shelling machines is underway. The company said its goal to achieve positive operating cash flow from cashew operations in the fourth quarter remains on track.
Executive Director Lincoln Moore said: "The palm oil operation has enjoyed an 18-month period of operating profitability, which holds us in good stead during the current period of weak [fresh fruit bunch] quantities. With prices remaining high, we are therefore well-placed to take advantage of an expected reversion to mean in terms of [crude palm oil] production during the next high season."
"The cashew operation has taken significant strides during July towards our objective to ramp up production and to deliver positive operational cash flow in [the fourth quarter] this year," Moore added.
By Dominique Pretorius; dominiquepretorius@alliancenews.com
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