Agriculture
September 08, 2011
Landkom International Plc has announced that it managed to harvest only about 26,200 tonnes of rapeseed this season, which is half of what we had modeled for the company’s 2011 rapeseed harvest. This total is also only half of what would normally be expected for a rapeseed harvest from almost 13,000 hectares of land. Landkom is now short of rapeseed, as it still has to honor forward contracts under which the company is obligated to deliver 30,000 tonnes of this crop. Management indicates that the company will not be able to report pre-tax profit in 2011. We therefore place our recommendation for Landkom “Under Review”.
