MACADAMIA PRODUCTION PROJECT

Project description

The Macadamia production project spans Kasungu, Mchinji, and Lilongwe districts in Central Malawi, and Mzimba district in Northern Malawi. The project aims to expand Press Agriculture Limited's farming business in Malawi, leveraging its existing 1,000-hectare macadamia nut farm for export markets. As one of Malawi's largest landowners, Press Agriculture Limited has the potential to increase macadamia cultivation to 2,607 hectares in the coming years. With growing demand for macadamia in South Africa, Europe, and other export markets, this project will boost Malawi's macadamia production, increasing profitability and strengthening the country's export earnings.

According to the World Macadamia Organisation, global demand for macadamia nuts, measured on a kernel basis, is projected to increase significantly from 64,000 metric tons in 2022 to 137,000 metric tons in 2027, representing 2.1-fold growth. Malawi is the seventh top producer of macadamia nuts, valued at EUR 28.2 million, with a global market share of 3%.

Press Agriculture Limited's macadamia production project will leverage this projected global demand to produce more macadamia and seeks investors to develop the farm for macadamia production. The company's estates have a total of 2,607 hectares of land close to perennial rivers and dams, which will enable the project to develop irrigation systems, with all tree orchards covered through drip irrigation. The necessary management expertise for macadamia cultivation is already in place.

The macadamia production project will be implemented in phases over a period of 5 to 8 years and will be complemented by production of annual crops such as legumes.

Financial requirements

Total project costs are estimated at EUR 13 million (US$ 15 million).

Financial feasibility

Profitability is estimated to be EUR 49 million (US$ 55 million) in 15 years.

Proposed investment model

The proposed financing structure combines debt and equity financing based on the financial capability of the interested investors. Press Agriculture Limited will contribute its own land as equity.

Contact

The Chief Executive Officer

Press Agriculture Limited

Private Bag B352

Kasungu.

Email: Chief Executive Officer, Christopher Beya, cbeya@palku.mw