Agriterra Ltd Expansion of Beef Retail Business & Board Changes (0849K)
April 14 2015 - 2:00AM
UK Regulatory
TIDMAGTA
RNS Number : 0849K
Agriterra Ltd
14 April 2015
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
14 April 2015
Agriterra Ltd ('Agriterra', 'the Company' or 'the Group')
Expansion of Retail Business in Mozambique and Board Changes
Agriterra Limited, the AIM listed pan-African agricultural
company, is pleased to announce the expansion of its retail
butchery operations in Mozambique through the opening of a new unit
and distribution centre in Nampula.
This ongoing retail expansion strengthens Agriterra's
"field-to-fork" model, which comprises beef ranches, feedlot,
abattoir and butcheries and represents further positive steps in
the implementation of the Company's growth strategy to roll out
retail units across Mozambique, building upon the existing Group
infrastructure and network.
In addition, the Company announces that two of its non-executive
directors, Euan Kay and Michael Pelham are stepping down from the
Board with immediate effect.
Nampula - Distribution centre and retail unit
-- New distribution centre and retail unit opened in the city of
Nampula, the capital of the Northern Mozambican Province of Nampula
and the third largest city in Mozambique, with a population of
500,000.
-- 600m(2) site incorporates a distribution centre to serve
Northern Mozambique and a retail butchery to cater for the rapidly
increasing local demand for quality beef products.
-- The Nampula unit commenced trading on 1 April 2015 and sales
are in line with internal management expectations and increasing
quickly.
-- The Nampula site will support plans for further retail
expansion into Northern Mozambique where significant growth is
anticipated as a result of increased activities from international
oil and gas, liquefied natural gas ('LNG') and other resource
companies.
Expansion Strategy
-- The Nampula site provides a platform to expand into Northern
Mozambique and to supply the rapidly growing Northern provinces of
Nampula and Cabo Delegado - accordingly, two initial satellite
retail units are planned in Nacala and Pemba during the 2015
calendar year.
-- Agriterra is evaluating the potential for various additional
satellite sites around the new Nampula distribution hub, both in
Nampula itself and the surrounding areas.
-- Additional, smaller satellite retail units are also planned
to leverage off the Company's existing infrastructure at Dondo
(near Beira) and a second retail unit in the major city of
Beira.
Phil Edmonds, Chairman of Agriterra, said, "Our beef retail
business is an essential component of our field-to-fork strategy
and provides the Group with direct access to the Mozambique
domestic market. Our retail business has proven to be a real
success story since opening the doors of our first unit just over
two years ago, and the expansion of our retail network remains a
core pillar of our strategy to capture further market share within
Mozambique. The domestic demand for quality beef products in
Mozambique continues to increase providing Agriterra with a
significant, and constantly growing, captive audience. The growth
in our domestic market is particularly encouraging as it provides
us with the scale and capability to target export sales. We are
actively evaluating export opportunities which, if successful,
could dramatically scale up our beef business in the medium term. I
look forward to providing further news regarding our domestic
expansion plans and export strategy in due course.
"I would also like to take this opportunity to thank both Euan
and Mike for their support during their time on the Board and wish
them both all the best as they now look to focus on their other
interests."
**ENDS**
For further information please visit www.agriterra-ltd.com or
contact:
Andrew Groves Agriterra Ltd Tel: +44 (0)
20 7408 9200
David Foreman Cantor Fitzgerald Tel: +44 (0)
Europe 20 7894 7684
Rick Thompson Cantor Fitzgerald Tel: +44 (0)
Europe 20 7894 7684
John Beaumont Peat & Co. Tel: +44 (0)
20 3540 1723
Susie Geliher St Brides Partners Tel: +44 (0)
Ltd 20 7236 1177
Charlotte St Brides Partners Tel: +44 (0)
Heap Ltd 20 7236 1177
This information is provided by RNS
The company news service from the London Stock Exchange
END
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