Agriterra Ltd, the AIM listed pan African agricultural company, is pleased to announce a further expansion to its multi-commodity agricultural product range and a positive update at its beef and maize operations in Mozambique.
Overview:
- Diversification of portfolio and revenue stream through acquisition of a 2,500 hectare farm with a producing banana plantation, macadamia orchard and land capacity for cattle
- 50 acre banana plantation producing initial weekly yields of approximately 7 tonnes – production anticipated to increase significantly with development of plantation
- Macadamia orchard planted – commercial production targeted within 24 months
- Significant expansion of banana plantations, macadamia orchard, and cattle pasture planned to maximise revenue generation
- Farm located approximately 25km north of the Group’s Mavonde Stud Ranch and irrigated by bordering Nyadzonya river
- Work underway to increase capacity at Mavonde Stud Ranch by 100% following purchase of adjoining 1,000 hectare farm
- 48 billion litre Mavonde dam now full with capacity to irrigate ranch for four years and support head to hectare growth – current stud breeding herd stands at 900 head and target to expand to 2,500 head by end 2013
- Strong initial trading at Chimoio beef retail unit – sales of $1,000 to $1,500 per day and increasing
- Second beef retail unit expected to commence trading in Tete by 31 January 2013
- Maize milling operations at Compagri operating near full capacity and generating improved revenues
Euan Kay, Agriterra Executive Director said, “The purchase of additional acreage in Mozambique provides a strong boost to our rapidly expanding beef operations, which are already producing significant revenues for the Group. Turnover will be further enhanced by our new retail units, where initial daily sales of up $1,500 have been reported from our first shop in Chimoio. In addition to this, Group revenues will be further bolstered and diversified by the acquisition of a producing banana plantation and macadamia orchard. With a strong development strategy in place to maximise the value potential of this new land, we are well set to enhance shareholder value and strengthen Agriterra’s position as a pan-African agriculture business.”