(MENAFN- ProactiveInvestors)--ADDS SHARE PRICE-- Palm oil producer DekelOil (LON:DKL) has signed up to a Word Bank-backed programme will subsidise the cost of the plants its sells to smallholders. The AIM-listed group said it is a founder member Projet d'Appui au Secteur de l'Agriculture de Côte d'Ivoire (PASC) set up to support and improve the industry in the Ivory Coast. The initiative is 70% funded by the World Bank and its International Finance Corporation offshoot with the remainder coming from the local industry. The plan is to plant 10000 hectares of new palm oil plantations in the country while the strategy for the current year is improve the quality of the roads in the area and set aside 5000 hectares for cultivation for smallholders. The artisanal growers are key to Dekel's plans as they currently supply the company's 51%-owned Ayenouan plant. Under the agreement the PASC will also subsidise half the firm's costs of supplying nursery plants to the local farmers. Dekel set aside 140000 of these seedlings this year for smallholders and 420000 in 2016. Director Lincoln Moore said: "DekelOil is the first to sign-up to this programme in Cote d'Ivoire and we are pleased to be working in partnership with the World Bank and IFC to expand the local palm oil industry which supports thousands of local small holders communities and families." A recent trading update revealed Ayenouan produced 21836 tonnes of crude palm oil (CPO) in the six month period which included the peak harvest between March and June. That represented a 53% increase on the 14242 tonnes that were produced in the whole of 2014. The average sales price was US$619 per tonne which was above the international benchmark in the same period. The shares up 6.5% in the year to date rose a further 1.9% in morning trade and were changing hands for 1.07p each. At this price the company is worth £17.7mln.
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