Dekel Agri-Vision sees indications that FFB volumes are lifting

Dekel Agri-Vision Plc (LON:DKL), the West African agriculture company focused on building a portfolio of sustainable and diversified projects, has provided a February production update for its Ayenouan palm oil project in Côte d’Ivoire and an update on progress regarding the ramp-up of production of our large-scale cashew processing plant at Tiebissou, Côte d’Ivoire.

Key Highlights

Palm Oil Operation

·      As per guidance in last months update, Fresh Fruit Bunch (‘FFB’) volumes in February did remain lower than prior year.  However, the Company saw an increase in volumes in the last 5 days of the month.  This increase in volumes has continued into early March and FFB volumes are currently ahead of March volumes produced last year.

·      The local market consensus is that the FFB high season did not commence until late February.  Whilst there can be no guarantees that higher volumes will be sustained, the Directors are buoyed by the fact that FFB volumes have improved materially over the past 2 weeks.

·      The Company is continuing to see strong local Crude Palm Oil (‘CPO’) demand resulting in CPO sales prices remaining close to record levels at €984 per tonne.  Strong local demand is driving a local price premium.   During February, the CPO price achieved was c.5% higher than the international CPO price.  Palm Kernel Oil (‘PKO’) prices have decreased from their all time peak levels last year and the international price is currently trading at around €1,025.  With regional PKO demand softening, sales are being carefully managed to optimise prices.

·      The CPO extraction rate of 23.3% was a record for the month of February and together with the CPO price premium being achieved; the Company’s gross margin percentages remain healthy, albeit the Directors would clearly like to see the early March momentum in FFB volumes continue to enhance overall gross margins.

Feb-23Feb-22Change
FFB processed (tonnes)9,41813,683-31.2%
CPO Extraction Rate23.3%22.3%4.5%
CPO production (tonnes)2,1983,057-28.1%
CPO Sales (tonnes)2,1023,660-42.6%
Average CPO price per tonne€984€9791.0%
Palm Kernel Oil (‘PKO’) production (tonnes)13125949.4%
PKO Sales (tonnes)Nil407n/a
Average PKO price per tonnen/a€1,447n/a

Cashew Operation

·      The Raw Cashew Nut (‘RCN’) buying season has now commenced and the Company is now actively purchasing RCN. 

·      The backlog stock of unpeeled cashew inventory announced last month is now largely completed and are seeing an uplift in daily production figures.  As stated last month, the Company will commence publishing financial statistics on a quarterly basis at the end of March with the reporting date on or around the 15th following each quarter.

·      Customer feedback for the Company’s cashew products continues to be extremely positive out of Rotterdam and the US which bodes well in terms of maximising prices as production continues to ramp up.

Lincoln Moore, Dekel‘s Executive Directorsaid: “Following a slow start to the Palm Oil Operation high season it is pleasing to see indications in the early March that FFB volumes are lifting.  With CPO prices and CPO extraction rates remaining strong we are keen to capitalise on these supportive factors and look forward to reporting stronger results next month for the Palm Oil Operation as well as our first quarterly production report for the Cashew Operation.”

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
X
LinkedIn
Dekel Agri-Vision PLC

More articles like this

Dekel Agri-Vision PLC

Palm Oil futures rise amidst crude oil price surge

On Tuesday, Malaysian palm oil futures saw an upward movement in response to rising crude oil prices, although the gains were somewhat constrained by weaker soft oils. The benchmark palm oil contract (FCPOc3) for August delivery

Dekel Agri-Vision PLC

Sustainable Palm Oil for Health and Beauty

Sustainable palm oil, derived from the fruit of oil palm trees, is a versatile ingredient that supports both internal health and external beauty. It is beneficial for heart health by helping to reduce cholesterol levels, as

Dekel Agri-Vision PLC

Transforming palm pil production for a greener future

Palm oil, a versatile product found in a myriad of everyday items from chocolate to shampoo, has come under scrutiny due to the environmental damage associated with its production. However, sustainable palm oil offers a solution

Dekel Agri-Vision PLC

Strengthening cashew production in Côte d’Ivoire

The National Agricultural Research Centre (CNRA) and the Cotton-Cashew Council (CCA) are joining forces on a project aimed at enhancing the competitiveness of cashew nuts in Côte d’Ivoire. A primary objective of this collaboration is the

Dekel Agri-Vision PLC

Palm oil futures rise on stronger crude oil prices

Malaysian palm oil futures roseon Thursday amid stronger crude oil prices, though the gains were capped by a dip in prices of rival edible softs. The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives

Dekel Agri-Vision PLC

Palm Oil futures rise tracking Chicago soyoil

Palm oil futures edged up on Thursday, tracking Chicago soyoil, as the contract consolidated after a recent fall, while market participants awaited fresh tradingcues. The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange was

Dekel Agri-Vision PLC

Palm oil futures rebound, tracking soyoil and crude oil gains

Malaysian palm oil futures rebounded on Friday after declining for two sessions, tracking gains in rivals soyoil and crude oil. The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange rose 21 ringgit,

Dekel Agri-Vision PLC

Palm Oil futures end losing streak amid rise in oil prices

Malaysian palm oil futures snapped a five-day losing streakon Friday amid a jump in oil prices. The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange was up 40 ringgit, or 1%, to 4,024

Dekel Agri-Vision PLC

Rising demand for sustainable Palm Oil in Africa

The Roundtable on Sustainable Palm Oil says demand for sustainable palm oil is on the rise in Africa, as financial institutions drive sustainability in the industry through certifications. Elikplim Agbitor, the head of Africa at the

Dekel Agri-Vision PLC

Dekel Agri-Vision production update: Palm oil operation strong

Dekel Agri-Vision Plc (LON:DKL), the West African agriculture company focused on building a portfolio of sustainable and diversified projects, has provided its Q1 2024 production for the Ayenouan palm oil project in Côte d’Ivoire and the cashew processing plant at

Dekel Agri-Vision PLC

Palm Oil futures rise on lower inventories outlook

Palm oil futures settled higher on Tuesday, snapping three consecutive sessions of losses, supported by the prospect of lower inventories, but higher premiums capped gains. The benchmark palm oil contract for June delivery on the Bursa