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Dekel Agri-Vision PLC said on Thursday its production of crude palm oil and palm kernel oil dropped in February.
Shares in Dekel Agri-Vision were down 13% at 5.50 pence on Thursday in London.
The West African agriculture company said that crude palm oil production in February dropped 41% to 3,057 tonnes in February from 5,163 tonnes the previous year.
Dekel Agri-Vision explained that in February production normally ramps up as it is crude palm oil high season. It added that high season is now expected to start in April. As a result, it also expects March production to be lower than last year.
Production of palm kernel oil also fell, though less drastically, dropping 4.1% in the month to 259 tonnes from 270 tonnes the previous year.
Despite this, crude palm oil and palm kernel oil both recorded higher prices per tonne in February against the previous year. Crude palm oil rose 24% to $979 per tonne and palm kernel oil rose 86% to $1,447 per tonne.
Executive Director Lincoln Moore said: ‘Short term, we remain on track to deliver a second consecutive year of record revenue despite the unusually late start to the high season. Based on current market conditions, we anticipate our sales prices will remain at record levels with the potential to increase further in the coming months with international prices feeding into local prices and the potential to export CPO at prices closer to the international price, similar to our successful PKO export strategy.’
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