Business
Acquisition of Cocoa Business in Sierra Leone
Acquisition of Cocoa Business in Sierra Leone.
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[{"type":"text","content":"\n \nRNS Number : 3332K Agriterra Ltd 13 July 2011 \n \n\nAgriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture\n13 July 2011\nAgriterra Ltd ('Agriterra' or 'the Company')\nAcquisition of Cocoa Business in Sierra Leone\n \nAgriterra Ltd, the AIM listed company focussed on the agricultural sector in Africa, is pleased to announce that it has entered into an agreement to acquire the entire issued share capital of Tropical Farms Ltd ('TFL'), a cocoa company based in Sierra Leone. This acquisition will provide the Company with a platform to expand into cocoa production through TFL's regional expertise and established buying operations and represents the first stage of establishing a substantial cocoa business in West Africa. The Board is focussed on achieving security of supply through the forging of long term relationships with farmers and out-grower schemes, in addition to the implementation of farm management initiatives and eventually, the development of the Company's own cocoa plantations. \n \nTFL's business model complements Agriterra's established and profitable maize buying and processing operations in Mozambique and is in line with the Company's strategy of building a pan-African agricultural company with other divisions already including maize farming and milling, cattle ranching and feedlot facilities and imminently abattoir services.\n \nTFL was established in 2008 to provide a high quality, sustainable and traceable cocoa buying operation head quartered in Kenema in the eastern region of Sierra Leone. With four buying centres currently in operation and a direct buying register of approximately 2,000 farmers across Sierra Leone, the Board of Agriterra believes that TFL has established a valuable base of 'out-growers' which can now be rapidly expanded under the Agriterra umbrella. It is the Company's intention to develop additional community buying centres across the district, whilst also providing additional solar drying and fermentation facilities, in order to increase total buying capacity and guarantee sources of supply. This model will provide TFL with security of supply at farm level with traceability without the need for local agents.\n \nThe Board of Agriterra also intends to implement additional initiatives to help increase yields for its out...