Agriterra jumps after winning Mozambican cattle grant

Agriterra's shares climbed on Monday after the company's wholly-owned Mozambican subsidiary won a $822,674 grant to create and develop centres for cattle trading and received the first tranche of the funds.

The agricultural company won the grant following a successful application by its local executive team and will now construct kraals, water pits and dip tanks at nine cattle buying centres, as well as operating education programmes focused on animal welfare.

This is anticipated to result in local farmers selling healthier cattle to Agriterra, thereby improving overall margins within the beef processing division, as well as allowing farmers to command an increased sales prices on the animals sold.

The grant was awarded by Fundo Catalitico Para Inovacao E Demonstracao (FCID), which is dedicated to supporting links between large enterprises and small local farmers in the Zambezi Valley and the Nacala Corridor.

The first tranche of $447,196 has been received and the remaining funds are due in August, while it is anticipated that the project will be completed by the end of October.

Caroline Havers, executive chair of Agriterra, said: "Having conducted appropriate studies we are convinced that improved facilities at buying points will have a positive impact on our operations and to have the opportunity to develop these with a partner such as FCID demonstrates the high regard in which our operations are held in Mozambique."

Agriterra's shares were up 11.94% at 7.64p at 1204 BST.