Farming and logistics firm ESV Group has released an update for the quarter to 31st December relating to its Mozambique, grain-trading and Ukraine operations. As announced in November, the group has disposed of its jatropha plantations in Mozambique, for a sum of 4 million dollars, payable in three tranches. An initial payment of $1.1 million was received upon the signing of the agreement and the net receipt of $575,000, representing the second stage receivable of $1 million less payments for remaining payroll creditors, is said to be imminent. The final $1.9 million is due upon delivery of the Jatropha farming rights for the second plantation area, which are currently awaited from the Mozambique authorities.

In the Ukraine, a fall in grain exports of 21% to 20 million tonnes has been reported for 2009, after a record harvest in 2008. This impacted on grain levels shipped through ESV’s Kherson terminal during the final quarter, with volumes down 26% on the same period in 2008. ESV said that discussions with strategic partners regarding further expansion of the grain handling and storage facilities at the site were ongoing. Due to the uncertain market conditions the firm has continued to keep its grain trading operations on hold.
 
Mawkishly noting the prospect of world food shortages thanks to expanding populations, ESV added that it was well-positioned to take advantage of demands for rising dietary standards in emerging economies, thanks to its position as a supplier to the grain and seed markets.
 
At a mid-price of 0.225p ESV is capitalised at just $1.61 million. The lack of any activity in grain trading and the lower volumes of grain exports continue to indicate difficult times, but the fact that the proceeds of the Mozambique sale give the company more cash than its current market capitalisation means that the shares are, at worst, a hold.