Ellah Lakes is targeting to start palm oil production in the first half of 2025. The company is also targeting palm kernel oil production in the future as it looks to consolidate its revenue base.
This was disclosed by Chuka Mordi, the company’s managing director, during its Annual General Meeting held on December 5.
Speaking to BusinessDay, Mordi said, “We start oil milling between Q1 and Q2 in 2025. The mill is almost fully installed and the commissioning should be by January-February and then production commences. We’ll be selling the kernels for a while. Then we’ll be producing palm kernel oil because we intend to acquire a palm kernel mill.”
The commencement of the oil milling business is expected to shore up the company’s revenue, after two years of skeletal operations with no revenue generated in one of those years. Mordi highlighted that the company’s piggery operations are already generating revenue, with a current stock of approximately 500 pigs and a plan underway to scale up the business.
Read also: Ellah Lakes hands 1,200 Enugu farmers rice seeds to boost production
Ellah Lakes posted a revenue of N780,000 in the financial year ending July 2024. However, it ended the year with a net loss of N893.9 million. During the AGM, the company’s shareholders voted to switch its financial reporting year from the current June-July cycle to a January-December cycle. The shareholders also voted as the company kick-started the process to convert its debt to equity.
The company carries total liabilities of approximately N2.7 billion, including a N940 million loan from the Central Bank of Nigeria (CBN) through FCMB, which has been reduced to N658 million. Beyond this amount, the remaining liabilities of Ellah Lakes are slated for conversion into equity.
Since its acquisition of Telluria Farms, a 2,400-hectare oil palm plantation in Edo State in 2019, Ellah Lakes has transformed its operations to focus on oil production. However, the three-ton mill, which was paid for in 2022, is yet to commence operations.
Mordi acknowledged a delay in the commencement of the company’s farm operations in Ondo State. He highlighted that certain clauses in the contract with the Ondo State government have been adjusted, hence the delay. The company had previously secured a lease for 5,000 hectares from the Ondo State Government for the cultivation of maize, cassava, and soybeans.
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