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Agriterra says Mozambique beef operation 'going from strength to strength'

Africa-focused Agriterra is ‘going from strength to strength’, according to director Andrew Groves. His comments follow an update on the group’s Mozbife field-to-fork beef operation in Mozambique.

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Africa-focused Agriterra (LON:AGTA) is ‘going from strength to strength’, according to director Andrew Groves.

His comments follow an update on the group’s Mozbife field-to-fork beef operation in Mozambique in which it revealed stocking ratios have significantly increased at the Mavonde and Inhazonia farms.

This is the result of the implementation of phase-two of the firm’s irrigation programme, due to be completed in the final quarter.

Once it has, a total of 490 hectares will be irrigated, giving the firm’s three ranches, including Dombe, a capacity of 13,800 animals.

In its progress report Agriterra also revealed Vanduzi feedlot is currently well stocked with around 1,800 animals. It will be able to provide 600 animals per month to the abattoir from June.

This will cater for the increasing demand from the company's four butcheries - in Chimoio, Beira, Tete and Manica - as well as additional volume contracts.

The company’s new retail outlet in Beira, Mozambique’s second city, is performing “extremely well”, generating revenues in excess of US$70,000 per month since opening.

Director Groves added: "Mozbife continues to perform as it delivers an upward trajectory through optimising its operations in order to achieve its development objectives for beef.

“With carrying capacity increased across its 19,850 hectare ranches, herd and breeding stocks expanding, feedlot operations being optimised and retail units experiencing strong demand, the beef business is showing increasing earnings visibility and scalability.

“This, in tandem with our grain and processing business and the continued development of our 3,200 hectare cocoa planation in Sierra Leone, set against a backdrop of increased interest in sustainable supply, make us excited about the future.”

The group is financially well endowed with US$8mln in cash. Its net asset value was US$57.5mln as the end of November, compared with a market capitalisation of less than half that figure.

Quick facts: Agriterra

Price: 5.475 GBX

AIM:AGTA
Market: AIM
Market Cap: £1.16 m
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