Jatropha planting programme

Up to 31 March 2009, D1 has an interest in total Jatropha planting of over 220,000 hectares worldwide. Planting is concentrated in Southern Africa, India and South East Asia.

Managed plantations are those farms where land and labour is controlled by D1, either through its subsidiaries or joint venture partners. Under contract farming, the farmer plants his own trees on his own land. D1 and its partners assist with the provision of seedlings and the arrangement of bank finance for planting, and offer a buyback of harvested grains with an offtake agreement, subject to a floor price and the achievement of agreed quality standards, and provide support and advice during cultivation, and monitor the condition of the crops. Seed and oil supply agreements are arm’s length supply contracts with third parties whereby D1, either directly or through joint venture partners, has offtake arrangements in place over future output from jatropha plantations which the third party is developing. D1 has limited involvement in this planting and relies on third parties to measure and manage the crop effectively.

The rights to some planting are shared with third parties, such as joint venture partners, with whom D1 has worked to achieve rights to planting of jatropha. As such, offtake from these areas of planting may well be shared with those third parties.