Business
Opens Second Operation in Tet
Opens Second Operation in Tet.
About this update from Pacsco Limited
[{"type":"text","content":"\n RNS Number : 9140S Agriterra Ltd 28 May 2009 \n \nAgriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture\n28 May 2009\nAgriterra Ltd ('Agriterra' or 'the Company')\nOpens Second Operation in Tete, Mozambique\n\nAgriterra Ltd, the AIM listed company focussed on the agricultural sector in central and southern Africa, has opened its second agricultural buying and processing facility in Mozambique. The Compagri operation, located at Tete, was set up to replicate the Company's successful DECA facility at Chimoio, which has been in operation since 2005 and has the capacity to process approximately 50,000 tonnes of maize per annum, collected from approximately 350,000 local producers in the Manica province of Mozambique. The construction of the Tete facility was funded primarily from internal cash flow, delivered under the budget (approximately US$ 8.9 million) and on schedule, to coincide with the advent of the maize buying season in the Tete Province. \n\nAs at Chimoio, operations at Tete are focussed on the purchase of maize from indigenous out-growers, which is then processed into corn flour, a key African food staple. The total storage capacity for maize is currently 12,600 tonnes, consisting of four 1,500 tonne silos and one 600 tonne silo, and an additional two large warehouses with capacity to store 3,000 tonnes each. The average milling capacity is currently 80 tonnes per day, which could be raised to a maximum of 120 tonnes per day when a 24 hour rotational shift basis is utilised. \n\nOn the conclusion of the next buying season, which lasts from June until late August/early September, the Company will evaluate whether the total silo storage should be increased. The infrastructure required to increase Compagri to the maximum capacity of 50,000 tonnes has already been developed meaning future expansion can be achieved for the next buying season in 2010, with minimised additional expenditure. \n\nAgain, as at Chimoio, the strength of the Company is in its logistics capability. All purchases are effected through strategic buying points serviced by the Company's own trucking fleet.\n\nAt Tete, the Company is also evaluating the viability of diversifying its product range to include other agricultural produce such as beans and ground nuts. It is the Board's opinion that the di...