Dekel Agri-Vision reports fall in palm oil production
11th Oct 2024 11:19
(Sharecast News) - West African agriculture company Dekel Agri-Vision updated the market on production in the third quarter on Friday, for its palm oil and cashew operations in Côte d'Ivoire.
The AIM-traded firm said the Ayenouan palm oil project saw a slight decline in fresh fruit bunch (FFB) volumes and crude palm oil (CPO) production, with FFB down 10.2% and CPO output down 7.5% year-on-year.
Despite that, the CPO extraction rate improved to 19.9%.
The decrease in CPO sales, down 36.2% compared to the third quarter of 2023, was attributed to timing differences due to last year's high season arriving late.
Average CPO prices for the third quarter stood at €777 per tonne, slightly lower than the €817 per tonne seen a year earlier, but international prices remained strong at around €950 per tonne.
Palm kernel oil (PKO) prices rose 8.9% year-on-year, reflecting stronger localised demand dynamics.
In the cashew operation, Dekel confirmed the arrival and installation of new shelling and peeling equipment, with commissioning overseen by a specialist consultant.
The company said it expected to see significant improvements in production capacity and quality in the coming weeks.
Cashew sales prices also improved, rising over 30% since the first quarter of the year.
"The palm oil operation continued its consistent performance during 2024," said executive director Lincoln Moore.
"With CPO prices remaining very supportive we are tracking well for another year of profitability."
Moore said that with all the cashew operation new equipment installed, a significant focus of the group was now on completing the necessary testing so the company could increase production quantity and quality as quickly as possible.
"We are hopeful we can announce the successful implementation of the new shelling and peeling equipment to the market over the coming weeks."
At 0849 BST, shares in Dekel Agri-Vision were down 3.26% at 1.31p.
Reporting by Josh White for Sharecast.com.