Obtala to expand orchards in Tanzania
After raising USD17.3 million in the period, Obtala said it has turned attention towards laying the foundations required for significant and sustainable increases in productivity.
For the Agriculture division in Tanzania, Obtala said detailed hydrological and soil analyses covering more than 1000 hectares of farmland in Morogoro was completed in the first quarter of 2017, confirming that the farms on which the company currently has long-term leases can support a minimum of 900 hectares of orchards.
"Having conducted trials of multiple melon varieties during the fourth quarter of 2016 we have elected to concentrate on growing the Caribbean King variety for the market in Dubai, while continuing to provide smaller quantities of yellow honey dew which are proving more popular in the local African market," said Obtala.
"Having extensively studied crop choices, our medium-term plan to drive revenues is to develop large scale, high value orchards. With appropriate irrigation and silvicultural practice, orchards deliver high yields as they approach maturity after six to seven years. Return on investment, especially on a risk-adjusted basis is amongst the highest offered in the sector with earnings before interest and tax typically above 50%," said the company.
The company is expecting to plant 80 hectares of high value annuals in 2017, predominantly melons but also including butternut and onion.
source: lse.co.uk
