Dekel Agri-Vision reports solid production growth for October

West Africa-focussed agriculture company Dekel Agri-Vision updated the market on its production in October at the Ayenouan palm oil project in Côte d'Ivoire, reporting a 28.2% increase year-on-year.

The AIM-traded firm said local crude palm oil prices continued to increase as well, resulting in a 2021 monthly high of €960 for October 2021.

That was a 50.9% increase on average realised crude palm oil prices when compared to October 2020.

Looking at its cashew project, Dekel said commissioning began in early October as planned.

While it was continuing to advance towards first production, it warned that supply and final shipment challenges would now lead to a delay on the first production milestone, which was expected in mid-November.

“A year of strong production and even stronger prices continues to set Dekel up for a record year of financial performance in our palm oil operation in 2021,” said executive director Lincoln Moore.

“Given current prices remain materially higher than we achieved in this year's high season earlier in the year we remain optimistic of a further uplift in the financial performance of the palm oil operation in 2022.”

Moore described the delay in beginning first cashew production due to supply challenges as frustrating.

“However, a substantial amount of the commissioning phase has been completed successfully and we are also supplementing locally sourced components which should still see our first production occur in December.”

At 1537 GMT, shares in Dekel Agri-Vision were down 3.92% at 4.9p.