Kakuzi Limited has wound up its canned pineapple joint venture with Del Monte Kenya Ltd. A notice by the company, however, indicated that the company is negotiating a new joint project agreement, but gave no indications on the new terms. At the same time, the agro-based company has announced a 27 per cent growth in operating profits to Sh321 million for the period ended December 31, last year. Although the conditions of the new agreement are still unclear, an official at the company who spoke on condition of anonymity said that the terms under the new agreement are different. "The terms are not the same as that of the previous agreement. That is all I can say," said the source. The firm has planted 226 hectares of avocadoes and 61 hectares of pineapples in a joint venture with Del Monte Kenya Ltd.

It is understood that the long-standing canned pineapple deal with Del Monte enables the Thika-based agro-based company to export a diversified portfolio of agricultural produce to its foreign markets. The principle contributions to operating profits last year were derived from avocado, forestry, tea and fresh pineapple," said Dr Terry Fowkes, the company’s chairman in a statement, on Wednesday. He said the continuing strength of the shilling throughout the period under review had an impact on revenue in local currency as the company receives the bulk of its income in foreign currencies. The company’s sales rose eight per cent to Sh1.5 billion last year from Sh1.4 billion the previous year, as finance costs declined 20 per cent to Sh51 million from Sh63 million. The directors did not recommend the payment of a dividend for the second year in a row. - Source: The Standard