Last checked at 15 Feb 2010 07:00
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture
15 February 2010
Agriterra Ltd ('Agriterra' or 'the Company')
Operations Update
Agriterra Ltd, the AIM listed company focussed on the agricultural sector in central and southern Africa, announces an update on its maize processing, milling and cattle ranching operations in Mozambique.
·; The Chimoio milling and processing facility had a record buying season in 2009, increasing total maize purchases by 40% to 35,000 tonnes (2008 buying season: 25,000 tonnes)
·; Construction is now underway to increase the capacity at Chimoio to over 50,000 tonnes by end 2010
·; The DECA product has a strong market presence, commanding 80% of market share in key regions such as Beira, and its geographic reach is spreading nationwide. The product is now being sold regularly as far south as Chokwe near Maputo, nearly 1,000km from Chimoio
·; At the Tete milling and processing facility, 8,000 tonnes of maize was purchased during the 2009 inaugural buying season and the product is now penetrating the market in the Tete region and surrounding areas
·; Demand is expected to increase in the Tete Province due in particular to increased coal mining activities in the area
·; The breeding programme is progressing well on Mozbife's Dombe and Mavonde ranches, where the total head of cattle is now approximately 1,000
·; The Mavonde Ranch is now cleared and irrigated, and the land is currently being planted with various pasture grasses. All cattle are tagged and recorded
·; A 50km boundary fencing programme at the Dombe ranch is now underway and paddock fencing and the installation of water reticulation systems are due to start shortly
·; The abattoir planning is progressing on schedule, with the initial target capacity of 50 head per day increasing to 100 per day with the addition of modular systems
Agriterra Executive Director Euan Kay said, "2009 was a record buying season with a 40% increase in purchased maize. Prices were favourable, and we are confident this will translate into higher margin which in-turn will provide increased cashflow and further improve our already strong treasury. Our aim now is to focus on expanding the capacity of both our maize facilities and rapidly build critical mass, in order to capitalise on the increased demand for our product, as we expand our geographic reach and look to open up export markets.
"With regards to our beef operations, we have also made strong progress preparing the ground and irrigation systems on both our Mavonde and Dombe ranches and our breeding programmes are advancing well. We see that beef demand in Mozambique is likely to continue to grow and we intend for Mozbife to be at the forefront of the domestically reared beef market."
** ENDS **
For further information please visit www.agriterra-ltd.com or contact:
| Andrew Groves | Agriterra Ltd | Tel: +44 (0) 20 7408 9200 |
| Jonathan Wright | Seymour Pierce Ltd | Tel: +44 (0) 20 7107 8000 |
| Richard Swindells | Ambrian Partners Ltd | Tel: +44 (0) 20 7634 4700 |
| Hugo de Salis | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
| Susie Callear | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |