February 20, 2013

Agriterra launches second beef retail unit in Mozambique

Agriterra Ltd. announced the opening of its second beef retail unit in Mozambique, as part of its strategy to maximise the margin of its rapidly growing integrated beef business. 

The Retail Unit, located in Tete, is being supplied by carcasses from Agriterra's newly constructed 4,000 head per month capacity abattoir located in Chimoio, which commenced operations December 2012. The new unit complements Agriterra's first beef retail unit, which opened in Chimoio in December 2012 and continues to perform well.  It is the Group's intention to roll out a further four retail units in 2013.  Cattle for both units are being supplied to the abattoir from the Group's own ranches at Mavonde and Dombe, and the feedlots at Vanduzi, as well as being bought from the local community.     

Euan Kay, Agriterra Executive Director said, "With the roll out of our beef retail units now underway, the margins from our beef operations will improve significantly.  Our ranches continue to grow both in terms of land size and head count, our herd now standing at 5,650 head, and the abattoir at Chimoio is benefiting both our business and the local community.  I look forward to updating the market on further developments as we continue to expand our in-country operations through organic growth and targeted investment."

Agriterra Ltd is an AIM listed agricultural company with five divisions: beef, corn, cocoa, fruit and palm oil. Its cattle ranching business, Mozbife, has a herd in excess of 5,650 head, a land holding of over 21,000 hectares, a feedlot, a 4,000 head per month capacity abattoir and retail units. In addition to selling meat from its own herds, throughput for the feedlot and abattoir will be supplemented using cattle bought in from local communities.