ASX-listed agribusiness developer, Alterra Ltd, has reached a significant milestone at its planned 300-hectare Carpenters avocado development in Pemberton, WA, with the company planting the first batch of avocado trees across an initial five hectares of land.
Perth-based Alterra is also progressing the Carpenters project feasibility study that includes geotechnical and hydrological studies. It is looking to finish the feasibility study by the end of this year.
Water capture and storage capacity are paramount to the success of Carpenters, a former blue gum plantation, with the WA Department of Primary Industries and Regional Development estimating that approximately 7.5 megalitres of water per hectare is needed to produce avocados in Pemberton.
Being able to efficiently capture and use water “on farm” has been the primary focus in the company’s design plans for the water storage facilities at the property.
One of the two proposed dams – the smaller Dam 2 – has been recently prepared to hold an initial 30 megalitres of water in the medium term, which Alterra says will be sufficient to fulfil the requirements of the first five hectares.
Alterra Chief Executive Officer, Oliver Barnes said: “The initial planting will provide Alterra with real-time field data that will be used to manage risk, improve production efficiency and optimise return on capital for our investors.”
Last month, the company raised $1.72 million in a share placement to new investor and now major shareholder, Emanuel Exports, and existing major shareholder Sandon Capital Investments.
Alterra is also hoping to put together a development capital syndicate of potential investors in Carpenters, and to that end, has housed the project in a special purpose vehicle called Carpenters Beedelup.
If the planting of the initial five hectares of avocado trees goes well, the company intends finalising the clearing and preparation of a total of 100 hectares of land ahead of the proposed planting of 90 hectares of avocado trees next year as part of the phase one development.
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By Matt Birney
