Dekel Agri-Vision (AIM:DKL), the West African agriculture company, said crude palm oil (CPO) production at its Ayenouan project in Côte d'Ivoire fell 10.3% in August compared with the same month last year, as the operation moved through its seasonal low period.
Early September data suggests the low season trough has now passed, with CPO production levels beginning to recover.
CPO sales volumes fell 25.7% as the company timed sales to optimise realised pricing, while the extraction rate held stable at 19.4%.
CPO sold at €945 per tonne during the month, down 1.2% year-on-year and continuing to trade at a discount to international prices, which remain above €1,200 per tonne.
Palm kernel oil sales prices rose 10.3% to €1,334 per tonne, while production jumped 114.5% year-on-year, reflecting elevated kernel stock flagged in the prior month's update.
At the Tiebissou cashew processing plant, raw cashew nut processing rose 16.3% to 681 tonnes, with cashew production and sales up 66.6% and 113.7% respectively.
"We remain confident in the Cashew Operation's continued solid growth year on year heading into the fourth quarter," said Youval Rasin, Dekel's chief executive officer.
Detailed quarterly production and sales figures for the cashew operation are due in October.
News Intelligence what this means for the company
Dekel's palm oil mill saw August production fall 10.3% year-on-year due to seasonal weakness, though early September data suggests recovery has begun; the cashew operation posted double-digit growth across processing, output and sales. This marks a reversal from the prior month's trend—in August we reported H1 2026 CPO production up 7.3% year-on-year and May output surging 31.9%, so the August decline signals the seasonal pattern reasserting itself after a strong first half.
The palm oil weakness is temporary and seasonal, with recovery already visible in early September; the cashew operation's sustained momentum (processing up 16.3%, sales up 113.7% year-on-year) continues to offset CPO headwinds and supports management's confidence in Q4 growth. However, CPO pricing remains under pressure at €945/tonne versus €1,200+ internationally, and the company's ongoing capital restructuring—including a €13.3m bond refinancing in progress—means near-term execution on debt replacement remains material to the investment case.
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