CÔTE D’IVOIRE – In the fiscal year 2023, British agribusiness company Dekel Agri-Vision achieved a notable 27% increase in turnover from the sale of palm oil (CPO), reaching 33.8 million euros (US$37 million) compared to 26.6 million euros (US$29 million) the previous year.
This positive outcome was primarily fueled by a nearly 50% surge in the volume of palm oil sold, amounting to 38,896 tonnes.
Despite a decline in the average selling price of CPO on the international market from 1,025 euros (US$1,121) to 869 euros (US$951), the company expressed overall satisfaction with its performance.
The increase in CPO supply by 51.7% to approximately 39,000 tonnes, driven by significant growth in the production of fresh fruit clusters (+56%), contributed to this positive outcome.
Lincoln Moore, the executive director of Dekel Agri-Vision, highlighted the success of ten consecutive months of rising CPO production, resulting in the outstanding 51.7% increase in CPO production for 2023 compared to the previous year.
He emphasized that this, combined with relatively high CPO prices compared to historical levels, made the fiscal year 2023 one of the best annual financial performances for the palm oil business.
Looking ahead, analysts identify improving the extraction rate of crude palm oil as one of the main challenges for the upcoming fiscal year. The extraction rate stood at 21.4% in 2023, down from 22.1% the previous year.
Additionally, the company aims to stabilize production in its cashew segment, which faced technical difficulties with machines in the cashew shelling and peeling sections.
Dekel Agri-Vision, operating a nursery and extraction plant producing 60 tonnes of oilseeds per hour at its Ayenouan site, experienced a surge in palm oil production at its Ivory Coast location.
Fresh fruit bunch production reached 182,362 tonnes in 2023, marking a 56% increase from the previous year. Crude palm oil production grew by 512%, reaching 39,073 tonnes in 2023.
While palm oil production achieved remarkable growth, Dekel noted that prices fell, leading to a 21% decline in its shares.
The company also reported an increase in palm kernel oil production and sales, but with reduced average sales prices.
In addition, the cashew operation, which commenced production in 2023, faced daily production challenges due to technical issues with machinery, with plans for improvement in subsequent quarters.
Dekel Agri-Vision acknowledges the growing palm oil industry in Ivory Coast, presenting investment opportunities in response to local demand and the global significance of palm oil usage for both consumption and industrial purposes.
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