US: Village Farms experiences major crop damage

Village Farms announced that it experienced major crop damage at its Marfa and Presidio facilities (total of 82 acres) resulting from a significant hail storm in Marfa, Texas that occurred around 7:30 p.m. on May 31, 2012. The company is in the process of assessing the damage to its crops and facilities, which are fully insured for such events. The company expects that certain sections of these greenhouses may remain operational, some sections will be operational in a few weeks while other sections will not be operational for a couple of months.

The company’s facilities in Fort Davis (40 acres) and Monahans (30 acres) were not impacted by this significant hail storm and are fully operational. The company’s facilities in Delta, British Columbia (110 acres) are fully operational as well and, given the timing of this event, there will be little to no disruption in supply to the Company’s core U.S. and Canadian accounts.

Mike DeGiglio, Chief Executive Officer of the Company stated, "The facilities are typically dark in late June and through July such that the hail damage came at the very end of our annual crop cycle, such that the crop and revenue loss are near their annual low point." He added: "In our 20 year history, we have never experienced such a weather event. We are fortunate that no one was hurt during this weather event and that it occurred at this time of year. We have an experienced team and a crisis management process in place to handle such events."