Tanzania: Obtala Resources' own fruit plan further expands Morogoro operations
The company said the fruit orchards would offset costs made from buying in fruit from contract farmers. The additional land will allow for expanded revenues and cost savings and mean it will not need to buy in. It will hold an 80% interest in the management company that will run the plot with a local partner holding the remainder. A lease over the land will run for an initial 15 year period renewable for a further 15 years thereafter.
The production of the fruits will dramatically benefit financially from the incentives gained from the recently awarded Export Processing Zone licence (EPZ), Obtala also noted.
Using mango saplings from the local government nursery, Obtala wants to plant a 60 hectare orchard, containing 20,000 mango trees. The group is also looking at planting pineapples, with two crops expected over 30 months.
Africa- focused Obtala has two food processing businesses. One is in Tanzania, while the other is a cannery in Lesotho. It also has a rapidly growing timber business in Mozambique.
Morogoro started life utilising dried tomatoes, but more recently the firm has identified the excellent potential to process and sell other dried fruits abundant within the region, specifically, mango, pineapple and bananas.
The firm is also mulling building a canning facility at Morogoro, which would mean a considerable increase in volumes. The plan is to produce both canned and glass jar products which will deliver increased revenues.
Source: proactiveinvestors.co.uk
