29th Sep 2015 11:14
LONDON (Alliance News) - United Cacao Ltd SEZC Tuesday reported a wider pretax loss in the first half of 2015 but said that its small farmer out-growing scheme is on track and that it will begin to achieve profitability in 2019.
The cacao plantation company based in Peru, said that its pretax loss in the six months to June 30 widened to USD1.9 million from USD1.1 million in the first half of 2014, but that it expects to achieve net income profitability in 2019.
United Cacao said it achieved a total planted area of 1,167 hectares under its Programa Alianza Producción Estratégica Cacao programme, compared with a total planted area of 556 hectares as at December 31.
PAPEC is a small farmer out-grower scheme designed to lift thousands of families out of poverty and provide the company with stable, long-term processing income. Under the programme, United Cacao expects to achieve a total planted area of 1,950 hectares by the end of 2015, and 3,000 hectares by the end of 2016.
United Cacao said it intends to maintain the PAPEC programme planting rate at approximately 250 hectares per year until the company achieves net income profitability. It will then be expanded rapidly in subsequent years to achieve the previously stated objective of 3,250 hectares of small farmer out-grower estates, thereby taking the company's total planted project area to approximately 6,500 hectares by 2021.
"We are delighted at the progress the company has made thus far in 2015. We are now the largest cacao estate in Peru, which is the global low-cost location for the production of cacao, and by year-end, we expect to be the largest cacao estate in Latin America. Upon completion of planting of the company's owned estates in early 2017, we expect to be the largest corporate cacao estate in the world," Chairman Dennis Melka said in a statement.
"Whilst the global chocolate confectionary market continues to grow, the three main cacao producing countries, Cote d'Ivoire, Ghana and Indonesia, are all now experiencing a contraction in production, thereby providing a significant opportunity for the company. Our small farmer out-grower programme, PAPEC, continues to advance and improve the livelihoods of hundreds of families near our estate," he added.
Shares in United Cacao were trading up 2.2% at 209.58 pence midday Tuesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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