5 Feb 2015 09:02
5 February 2015
AfriAg plc
("AfriAg" or the "Company")
AfriAg wins prestigious logistics contract with Gatsby (Africa)
AfriAg (AIM: AFRI) is pleased to announce that its 40% owned specialist African agri-logistics group AfriAg (Pty) Ltd ("AfriAg SA") has been awarded the contract to transport fresh produce farmed by Vanduzi, part of the Gatsby Foundation's sizeable Mozfoods (SA) operations in Mozambique, to countries such as RSA, UK, Holland, Germany, and potentially future markets including the UAE.
The majority of Vanduzi's fresh produce will end up on UK and European supermarket shelves such as Sainsbury, Tesco, M&S, Aldi and Asda plus leading international fresh food supplier, Bakkavor.
This renewable 2 year contract with Mozfoods SA (trading as "Vanduzi") covers a co-operated, cost optimised, refrigerated delivery service, meeting the high transportation standards dictated by the Vanduzi farming operations. This further extends to export customers in the UK, EU and South Africa. In order to optimize vehicle usage and minimize costs, return loads of fresh produce purchased in South Africa will be transported back to Vanduzi, Mozambique.
Under this contract, AfriAg SA is now transporting Vanduzi baby corn and chili orders through Zimbabwe into South Africa. Once at Johannesburg's International Airport, the produce is airfreighted worldwide to Vanduzi's customers. The remaining produce is being distributed by truck throughout South Africa.
Vanduzi export volumes of baby corn and chili, which are currently running at between 30,000kg to 35,000kg per week, and there is a forecast estimated growth of 15% to the month of June 2015. Perishable volumes from South Africa to Vanduzi are currently running at 70,000 kg per week. The return loads are a key part to the AfriAg partnership with Vanduzi as they make the operations more efficient for both AfriAg and Vanduzi.
About Vanduzi:
Vanduzi (www.vanduzi.co.mz) has 1,750 employees and is Mozambique's largest exporter of fresh produce. The company is also a significant player in the sourcing, production and distribution of fresh fruit and vegetables to the Mozambican local market.
Vanduzi specialise in the production, processing, marketing and distribution of baby corn, plus several varieties of chilis and Edamame beans to both European and South African retail markets. In addition, Vanduzi procures, processes and transports fresh produce to remote food service/catering sites within Mozambique. These food service providers cater for local mining companies and large offshore rigs, which are currently exploring potential gas and mineral deposits.
About Gatsby:
Gatsby (www.gatsby.org.uk) is a Foundation set up by Lord David Sainsbury.Since its inception, Lord Sainsbury has invested, through the Gatsby Foundation, more than £1 billion to business and recognised charitable organisations.
The Gatsby Foundation also operate in areas that Lord Sainsbury and his Trustees are particularly passionate about. It is common belief that investment can make significant inroads into the socio-economic plight of many Africans and the Gatsby Foundation is currently active in six tightly-focused areas:
· Plant science research
· Neuroscience research
· Science and engineering education
· Economic development in Africa
· Public policy research and advice
· The Arts
David Lenigas, Executive Chairman of AfriAg, commented:
"This is one of the most significant contracts won by AfriAg to date and we are proud to be working with such a blue chip client moving significant quantities of fresh produce from Gatsby's Mozambiquan farming operations to dinner tables here in the UK and Continental Europe."
"AfriAg has now dedicated five large branded refrigerated trucks to this significant 24/7 logistics operation and the Company is now making plans to further increasing the size of the refrigerated truck/trailer fleet in Africa as a result."
Alastair Peat, Supply Chain and Logistics Manager for Mozfoods SA, commented: "We (Mozfoods SA) have made a positive step forward by signing a new contract with AfriAg. The partnership is crucial to our ever-expanding business, both for our local and international markets. AfriAg definitely offer us a clear edge in the market through their knowledge and vast experience."
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For further information please contact:
AfriAg plc: +44 (0) 20 7440 0640
David Lenigas
Donald Strang
Nominated Adviser and Broker:
Cairn Financial Advisers LLP +44 (0) 20 7148 7900
James Caithie / Jo Turner / Carolyn Sansom
Public Relations:
Square1 Consulting +44 (0) 20 7929 5599
David Bick
Mark Longson