21st Apr 2015 07:20
LONDON (Alliance News) - United Cacao Ltd SEZC Tuesday said it has launched a small farmer finance programme in Peru which, if concluded successfully, will double its project area.
The company said it has launched Programa Alianza Producción Estratégica Cacao, under which it will offer low-cost financing for the planting of CCN-51 variety cacao to selected families in the local area around its Tamshiyacu plant. It will then buy the 'wet' cacao beans harvested by the farmers for fermentation and drying at its fermentation facilities which will open later this year.
The programme is planned to cover more than 3,250 hectares of small farmer plantings by 2018, which would double its current project area. The project is subject to the company securing the necessary working capital to roll out the programme on a large scale and on it putting in place a micro-finance facility.
"PAPEC is an incredibly powerful initiative to deepen our relationship with the local communities and reduce poverty in the area around our existing operations. In addition, it allows United Cacao a unique opportunity to significantly increase its revenues over the long-term by expanding its planted area, comprising wholly-owned estate and PAPEC area, to a total of 6,500 hectares," said United Cacao Chairman Dennis Melka.
Shares in United Cacao were up 10% to 209.00 pence, one of the best performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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