DekelOil increases palm oil output with new mill in Ivory Coast

Palm oil company DekelOil expects revenue to grow following the completion of a new mill in the Ivory Coast this year.

Palm oil company DekelOil expects revenue to grow following the completion of a new mill in the Ivory Coast this year.

Executive Director, Lincoln Moore, said the mill will increase capacity to 70,000 tons of crude palm oil once up and running within the next seven to eight months. The project has taken five years of hard work, he said.

He anticipates production will increase to up to 50,000 in 2014, generating revenues between $35m and $45m.

"The key thing for us is to develop and build the mill which is due to arrive on the Ivory Coast in early March," he told Sharecast.

"Most of the ground work has been done for down the road completion."

Moore said the plans for the new mill came on the back of strong demand for palm oil.

An estimated 80% of demand comes from the food industry as palm oil is used in products including margarine, instant noodles, chocolate and processed foods.

Consumers goods such as soaps, detergents, cosmetics and pharmaceutics also contain palm oil.

Once the mill begins production, the firm will look to sell palm oil to major Ivory Coast refineries and commodity traders as well as export to bordering countries.

While the palm oil industry has come under fire for the clearing of rainforests, Moore insisted the company had ensured the protection of the environment through its investment in old farm plantations.

"There is a benefit from the fact that we are regenerating old areas such as rubber plantations," he said.

Following the completion of the mill, Moore said the firm hopes to construct a second mill of the same size in the area and is also considering acquisitions in Cote d'Ivoire, West Africa.

RD

Recommended

Too embarrassed to ask: what is short selling?
Too embarrassed to ask

Too embarrassed to ask: what is short selling?

Short sellers are often accused of unfairly driving share prices down to make a quick buck. But short selling is a perfectly legitimate – if risky – t…
26 Jan 2021
Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

The FTSE 100 is set for a makeover with an influx of new tech stocks
UK stockmarkets

The FTSE 100 is set for a makeover with an influx of new tech stocks

The FTSE 100 – the dullest index in the world – is about to reinvent itself as a host of new firms list on the market. The change is long overdue, say…
24 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021
Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021