United Cacao Ltd SEZC (LON:CHOC) CEO Dennis Melka talks to DirectorsTalk about the drop in cacao prices and the good news regarding recent court rulings.
The Directors believe that the Group has the potential to be a global low-cost producer of cacao for the following reasons:
- cacao is an indigenous tree species to the Iquitos area;
- the high recorded yields and low disease incidence of its IMC-67 and CCN-51 variety planting material;
- the ample availability of cost-effective agricultural labour in the Peruvian Amazon region;
- the Peruvian Amazon is a zero corporate income tax zone until 2048 pursuant to the Law 27037 – Promotion of Investment in the Amazon and there are no agricultural export taxes in Peru;
- the excellent climatic conditions and rainfall of between 2,500 mm – 3,000 mm per annum with no dry season;
- the strategic location in the Amazon Basin in an area well-served by river barge and ocean-going freighters; and
- the freehold title of its estates which allows for vastly improved government and community relations in a developing market environment when compared to leased, concession or communal rights land common in Asia or Africa.
United Cacao Ltd SEZC seeks to be the world’s largest and lowest cost corporate grower of cacao when it expects to complete the planting of its existing 3,250 hectare estate in 2017. As at the end of September 2015, the Company had a total planted area of 1,199 hectares (comprised of 1,150 hectares of owned estates and an additional 49 hectares under PAPEC) and expects to have a total planted area of 2,200 hectares by 31 March 2016 (comprised of 2,000 hectares of owned estates and 200 hectares under PAPEC).
