(MENAFN- ProactiveInvestors) Shares in AfriAg () shot up 21% after revealing a new distribution deal that will see produce from Mozambique shipped to UK supermarkets.
A 40% owned subsidiary of the AIM listed company has won a contract to transport produce farmed by Vanduzi which is part of Lord ’s Gatsby Foundation.
AfriAg told investors that the majority of the fresh produce will be sold on the shelves of M&S Aldi and Asda.
Chairman David Lenigas describes the contract as “transformational” and says it will grow AfriAg by an “unimaginable” amount.
“The AfriAg acorn has just turned in to an oak tree with this morning's news on the Lord deal” he told his 1700 followers.
Under the contract with Vanduzi the AfriAg SA subsidiary will transport baby corn and chili from Mozambique through Zimbabwe to South Africa’s Johannesburg's International Airport. From there it will be airfreighted worldwide to Vanduzi's customers.
Further volumes of produce will be distributed throughout South Africa.
Vanduzi currently exports between 30000 to 35000 kilograms of baby corn and chili each week and this is expected to grow by around 15% by June.
Also some 70000 kilograms of perishable produce is shipped from South Africa to Vanduzi and according to AfriAg the return loads are a key part of the new partnership.
In today’s stock market statement Lenigas said: "This is one of the most significant contracts won by AfriAg to date and we are proud to be working with such a blue chip client moving significant quantities of fresh produce from Gatsby's Mozambiquan farming operations to dinner tables here in the UK and Continental Europe."
On AIM AfriAg shares gained 21.74% on Thursday to trade at 0.42p.
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