Substantial Progress at Lonrho Agriculture

13 January 2009
Content from a Premium Partner
Lonrho (London)
press release

Lonrho Plc (AIM: LONR), the conglomerate with a structured portfolio of African investments, is pleased to announce that it's wholly owned agricultural subsidiary Lonrho Agriculture has made significant progresson its strategy towards vertically integrating its operations. It continues to become a significant producer, processor and deliverer of agricultural products from the African continent to key African and European and Middle Eastern markets.

The company announced today that it has signed a development agreement with the Angolan Government to develop 25,000 hectares of agricultural projects in Angola.

Agricultural projects

Lonrho Agriculture has signed an Agreement with His Excellency Engineer AlfonsoPedro Canga, the Minister of Agriculture and Rural Development of Angola and Carlos Alberto Jaime, the Director ofGesterra, Gestao de Terras Aravais, the Government Agricultural Promotion agency.

The agreement is for the development by Lonrho Agriculture of 25,000 hectares of agricultural projects in the Provinces of Uige, Zaireand Bengo in Angola.This will be in close co-operation with the Government of Angola and work closely with the Governments initiatives to promote agricultural reconstruction and development.

Lonrho agriculture is also currently undertaking feasibility studies in co-operation with the Governments of Malawi and Mali for 25,000 hectares of agricultural land on the banks of Lake Malawi and for a five year potential development of up to 100,000 hectares in the Niger Delta in Mali.

Logistics and Agri Processing

Lonrho Agriculture remains focused on developing  international standard agri processing, storage and handling facilities that meet stringent European import requirements and  developing and operating the necessary chilled logistics networks to ensure that fresh produce from Africa can reach markets in Europe and elsewhere in prime condition.

Lonrho Agriculture's existing 'Rollex' operation has expanded it's processing and packing operations from 3,500m2to 4,908m2 to meet expected demand. The facility is located airside at Johannesburg International in South Africa.

This facility's revenues in the 12 months ending December2008 have increased by 25%over the corresponding period. The company is a major supplier to the South African market and major retailers in Europe including Marks & Spencer and Tesco.

The previously announced 1,810m2 fruit salad processing line at the Johannesburg facility is now delivering processed fruit salad in South Africaand opening lucrative export markets inEurope. The fruit salad facility is forecast to add turnover of US$ 20 million to the Rollex operations in 2009.

The 480m2 cold store and export processing facility inWindhoek,Namibia,has surpassed expectations and now exports 15 tons of fresh fish from Windhoek to Frankfurtand Gatwick on a daily basis.

The company's agricultural engineering consultants MBB (www.MBB.co.za) have recently completed site surveys for the new cold store and agri processing facility that the company announced that it is developing at Lilongwe, Malawito commence the delivery of produce from Malawito service the fast growing Middle Eastmarket.

Further agri processing facilities are under negotiation and planned to be developed in Harare inZimbabwe, the Niger delta in Mali and Luanda inAngola.

David Lenigas, Lonrho's Executive Chairman commented:

"Lonrho sees the potential forgrowth in theagricultural sectorinAfricaas a significant and real opportunity. Lonrhohad a long traditionin large scale agricultureinAfrica. We believe thatLonrho Agricultureprovides the ability to successfully vertically integrate the market, enablingthe company toproduce, source, process, pack and deliver produce from across the Continent to markets in Africa, Europe and the Middle East.

"It is the vertical integration of theAfrican agricultural industrythat isthekey to success. It is the ability to not only grow produce, but to deliver it to a global market that willmeet the growing shortagesof food production."

LONRHO ENQUIRIES

LonrhoPlc +44(0)2070165105

DavidLenigas,Executive Chairman +44(0)7881825378

Geoffrey White, Chief Executive Officer +44 (0)7717 307 308

Emmade Borchgrave,ExecutiveDirector +44(0)7867785177

Pelham PR

CharlesVivian +44(0)2077436672, +44(0)7977297903

James MacFarlane +44(0)2077436375, +44(0)7841 672831

Read the original article on Lonrho.

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