# From Palm Oil to Cashews: How Dekel Agri-Vision is Transforming the Agricultural Landscape

- Link: https://www.directorstalkinterviews.com/from-palm-oil-to-cashews-how-dekel-agri-vision-is-transforming-the-agricultural-landscape/4121168732
- Published: 2024-08-15T12:25:59+01:00
- Author: Anthony Fox

**[Dekel Agri-Vision plc](https://www.directorstalkinterviews.com/company/dekel-agri-vision-plc/dkl.l)**(
[LON:DKL](https://www.directorstalkinterviews.com/company/dekel-agri-vision-plc/dkl.l)),
a multi-commodity agricultural business based in West Africa, continues to make 
strides in its operations, particularly in the palm oil sector. The company’s latest
production update, covering July, highlights the ongoing success of its palm oil
activities, setting a positive tone for the rest of 2024.

### Strong Palm Oil Performance

Dekel’s palm oil segment remains a cornerstone of its business. The company reported
a 7% year-on-year increase in crude palm oil (CPO) sales for July, aligning well
with market expectations. As Research Analysts Nick Spoliar and Charlie Cullen from
Zeus Capital point out, “July production was well-aligned to our and the market’s
expectations,” a clear indication of the steady progress Dekel is making in this
area.

One of the standout aspects of the July update is the significant improvement in
the extraction rate, which saw a 7.43% year-on-year increase. This improvement is
not just a technical success; it directly impacts profitability by enhancing gross
margins. With international CPO prices recovering and local prices closing in on
those international levels, Dekel’s palm oil business is well-positioned to continue
delivering strong financial outcomes throughout FY24.

### A Growing Presence in the Global Market

Dekel’s role in the global food chain cannot be overstated. Despite holding a sub-
10% share of the local market, its sustainably sourced palm oil is crucial not only
as food but also as a fuel substitute. This dual utility underscores the strategic
importance of Dekel’s products in a world increasingly focused on [sustainability](https://www.directorstalkinterviews.com/sustainability-green-stocks-news)
and resource efficiency.

Looking ahead, the outlook for Dekel’s palm oil operations remains bright. As Spoliar
and Cullen observe, “We see good ongoing growth drivers for the company’s sustainably
sourced palm oil activity against a backdrop of scarcity of supply locally and internationally.”

### The Promise of Cashew Operations

While palm oil has been a steady performer, Dekel’s move into cashew processing 
represents a major growth opportunity. Although there were some delays earlier in
the year, the recent acquisition of remedial machinery is expected to turn things
around. This machinery is anticipated to significantly boost cashew processing, 
transitioning the business from a loss to profitability by FY25.

According to Zeus Capital, “As cashews deliver, the scale of the business is set
to be transformed,” with overall revenues forecasted to reach €45 million by FY26,
a significant increase compared to previous levels. The potential for growth in 
the cashew sector is immense, and Dekel’s strategic investments here could redefine
the company’s future.

### Final Thoughts

Dekel Agri-Vision is on a strong path, driven by its robust palm oil operations 
and the promising developments in its cashew business. As the company continues 
to execute its strategic plans, it is poised to not only enhance profitability but
also to play an increasingly vital role in global food security and sustainable 
energy. With a solid foundation and exciting prospects, Dekel is a company to watch
as it continues to grow and thrive in the dynamic agricultural sector.

Share on: