LONDON (Alliance News) - Obtala Resources Ltd Wednesday said it has recruited food-industry entrepreneur Julie Dedman to develop a route to market for various food products and said it would build its farm and production development plans at the agribusiness around her requirements ahead of the company securing a food and safety certificate.
Meanwhile, Executive Deputy Chairman Stephen Murphy has stepped down from the board to take charge of the company's African Home Business to try to turn the business around.
The vertically integrated agri-processing, farming, timber and retail company continues to try to secure a food and safety certification for the farm and drying unit at the agribusiness centred in Morogo, Tanzania, and said the final audit inspection by the independent consultants is expected in early June.
While the audit and certification process continues, the company has been developing the fresh fruit and vegetable business opportunity with the sales of over 16 varieties of product commencing locally in Tanzania.
The company is currently supplying three companies in Dar es Salaam, including Food Lovers Market, which is a large South African operator with more than 100 fruit and vegetable city stores throughout Southern Africa and as far afield as Australia.
"The target objective is to supply (in excess of) 200 tonnes of fresh produce per month into Dar es Salaam, which is listed as Africa's fast growing city by the African Development Bank. The sales revenue generated will significantly reduce the overall operating cost for the dried fruit operation which will re-commence once certification is awarded," said Obtala.
Obtala said it has hired Dedman and her team as a consultant and strategic partner to provide services to facilitate a route to market for various food products. Dedman runs nine multi-million pound companies in a variety of sectors ranging from food manufacturing to clean air facilities, facilities management and the manufacturing of surgical ophthalmology instruments.
"The expertise and experience which Julie and her team brings will fast-track our certification process and quality of production leading to a more sustainable and higher level of route to market," said Obtala.
"We will build our farm and production development plans around Julie's requirements, focusing on margin optimization and returns. I firmly believe that this relationship will rapidly deliver realizable benefits for all stakeholders as we build on the debt-free asset platform we have built thus far," said Chairman Francesco Scolaro.
In addition, Obtala said Executive Deputy Chairman Murphy has stepped down from the board to focus on Obtala's African Home Stores business and its subsidiaries including Life Comfort Solutions. Murphy will take up the role of interim managing director of African Home Stores "with the full support of Obtala".
Obtala said Murphy would be "bringing his retail expertise in Ireland and the UK to the implementation of a strategic plan to restore profitability and improve the business model for its new regional store roll-out".
Obtala shares were up 11% to 10.00 pence per share on Wednesday morning, recovering from an initial decline to 8.30p.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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