Southeast Ivory Coast provides suitable conditions for the growth of productive oil palms. The 2009 planting program is already yielding and the company’s land package is expected to grow considerably in the future.
- 1,886 hectares of company owned estates planted
- Contracts with over 5,000 local smallholders and cooperatives covering 27,000 hectares of existing plantations
- Ayenouan Agreements concluded in 2008 and 2009, covering 17,000 hectares of oil palm estates
- Under the terms of the Coopalen Supply Agreement, DekelOil will purchase production of the Coopalen Cooperative's 10,000 hectares
- Rights over 24,000 hectares of expansion land at Guitry
DekelOil has been granted rights over 176 oil palm estates covering 2,363 hectares of land within a radius of approximately 80 kilometres of Ayenouan village. To date, the company has planted 1,886 hectares of oil palms at these agricultural sites (Bonua and Aboisso).
The process of preparing the land and planting of the oil palm trees is undertaken by DekelOil Côte d'Ivoire management and personnel, together with local contractors. Once planting is complete, the maintenance of the plantations is managed by DekelOil's local supervisors and contractors, and the on-going work is co-ordinated by head agronomist Dr. Benjamin Adon.
Company estates are expected to yield between 20 and 24 tons of Fresh Fruit Bunch (FFB) yield per annum once fully mature.
Long-term harvesting contracts are in place with over 5,000 local Ayenouan smallholders, covering approximately 17,000 hectares of existing oil plantations. Under the terms of the agreements, DekelOil Côte d'Ivoire has agreed to acquire on an exclusive basis the FFB produced by the Ayenouan Farmers. DekelOil is responsible for the transportation of the FFB from the respective plantations to the mill and has agreed to pay the AIPH published price for the FFB, subject to any adjustment to reflect crop quality.
More than 5,000 agreements have been concluded to date with individual smallholders. In each case, DekelOil first conducted due diligence, which confirmed the number of hectares and oil palm per hectare potential, assessed the quality of the palms and estates, and ensured that logistical access was suitable for efficient FFB collection and transportation.
DekelOil has committed to:
- Purchase 100% of smallholder yields
- Transport the FFB to the mill
In addition, DekelOil Côte d'Ivoire has executed a conditional sale contract with La Coopérative Coopalen, which oversees 10,000 hectares of oil palm estates. The 20-year contract becomes effective at the start of effective operation of the mill (marked by the production of 1,000 tonnes per year). Under the terms of the Coopalen Supply Agreement, DekelOil Côte d'Ivoire will purchase the entire production of the Coopalen Cooperative and collect and transport the FFB to the mill within 48 hours of their harvesting. The price of the FFB is set by the AIPH, subject to variation based on the quality of the crop.
Smallholder output will initially be used to supply the majority of mill throughput.