Jatropha a 'Disappointment', D1 Oils Admits

(Agrimoney.com) D1 Oils put its hands up to out-of-pocket investors in jatropha, admitting that the once-lauded oilseed had been a "disappointment", as the group unveiled – yet another – strategy shift.

Steven Rudofsky, the D1 Oils chairman, acknowledged that the oilseed, which a decade ago was raised as an abundant source of biofuels for its ability to grow on poor soils, "has been a disappointment to the investment community".

...Of the five listed jatropha-focused businesses, only one, Sydney-listed Jatoil, has raised its market capitalisation from flotation, broker Hardman & Co has revealed, in a report named "Plant with a bad name".

...However, Mr Hawkins held out hope that jatropha could yet become an "important" biofuels crop, a theme echoed on Thursday by Mr Rudofsky.

"The jatropha paradigm is beginning to realise its potential albeit more slowly than initially thought," Mr Rudofsky said.

"Plantings made in the middle of the 2000s are finally reaching maturity, and we expect a trajectory of solid growth in revenues in the coming years."

However, D1 revealed that its own plans for exploiting the plant would no longer come from developing jatropha meal as a livestock feed, nor on operations in Indonesia, Malawi or Zambia, with the group paring back to its Indian operations.

...The group's new board - which also includes Nicholas Myerson, son of activist investor Bryan Myerson who failed in a bid to buy D1 last year – "is enthusiastic and optimistic about the outlook", Mr Rudofsky said. READ MORE