- Agriterra posts a pre-tax loss of $1.3m for the six months to the end of November - down from $2.2m last time.

Revenues of $8.1m were down from $9.4m a year ago but the cost of sales fell to $7.3m from $7.9m and operating expenses of $2.3m were down from $3.7m a year ago.

Chairman Caroline Havers said: "The African agriculture market remains an area of growth potential, with Mozambique having particularly strong prospects because of the eagerly anticipated establishment of a liquefied natural gas industry in the north of the country.

"As and when this industry gains sufficient development and production traction in Mozambique, it is expected to significantly change the economy of the entire country, which we believe will translate into consequential growth in our revenue potential.

"In the shorter term however, it must be acknowledged that the first six months of FY-2017 have been very challenging in our primary grain and beef markets in Mozambique.

"In the immediate future there is also a potentially significant agricultural risk arising from an outbreak of fall armyworm (in combination with the African armyworm) in the Sub-Saharan Africa region, which poses a risk to various staple food crops, including maize.

"The outbreak is moving in a general North to South trajectory, and to date the most affected countries have been Zimbabwe and Zambia; there have been no confirmed outbreaks in Mozambique.

"Regional Governments are implementing measures to control the infestation, and the UN Food and Agriculture Organisation is assisting in a region wide response to this risk.

"We are therefore optimistic that the effect of this outbreak will be mitigated to the maximum extent possible."

At 8:05am: [LON:AGTA] Agriterra Ltd share price was +0.01p at 0.17p

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