Last checked at 13 Jul 2010 07:00
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture
13 July 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, is pleased to announce a positive update on its grain processing and cattle ranching operations in Mozambique.
·; The Compagri maize processing facility in Tete ('Compagri') has re-opened and the buying programme from local farmers is underway
·; A new management team has been appointed to oversee operations at Compagri, led by Jean Bernard Guimbeau, who has extensive agricultural management experience in southern Africa and Miguel Cruz, a Mozambican national, who has been the Southern Area buying manager at the DECA facility in Chimoio for four years
·; A scaled and controlled ramp-up of production and marketing is planned at Compagri with the mill anticipated to achieve full capacity by the end of 2010
·; Trading at DECA facility in Chimoio is buoyant, with over 4,500 tonnes of maize purchased in the first 24 days of the buying season. Total purchases are expected to be in excess of 20,000 tonnes for the whole buying season and current stock stands at 17,000 tonnes
·; Demand for both DECA maize meal and bran is strong, with June 2010 maize meal sale tonnages approximately 100% up on June 2009
·; Mozbife cattle ranching operations are performing encouragingly - PD (pregnancy diagnosis) tests have been completed on all cows and heifers with an 82% pregnancy rate achieved
·; First calves expected in November which will increase total herd to in excess of 1,700 head
Agriterra Executive Director Euan Kay said, "I am delighted to report that operations at Compagri have recommenced and I am confident that under the stewardship of Jean Bernard Guimbeau our second maize processing facility will replicate the increasing success achieved at our flagship facility in Chimoio. The buying season has now commenced and we are achieving strong inflows at the DECA facility, with more than 4,500 tonnes bought in only 24 days. In addition, demand for, and consequently sales of, our maize meal and bran products remain robust as we build critical mass in the market place and our geographic reach extends.
"Our cattle ranching operations are also performing strongly, with a high rate of pregnancies achieved following the first round of PD tests. These calves, which are expected in November, will increase our total herd to over 1,700, as we rapidly look to expand our herd to over 5,000 head by 2012. In addition, fencing and feedlot construction are well advanced."
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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 |