Produce company T&G Global expects to report a pre-tax loss of up to $34 million due to the damages to its Hawke’s Bay orchards caused by Cyclone Gabrielle. The company has forecast a pre-tax loss of $28 to $34 million this year after assessing damage from February’s cyclone. It reported a pre-tax loss of $3.3 million last year following heavy rains during the apple harvest and supply chain disruptions.
While most of the company’s owned and leased orchards were not impacted by the cyclone, four orchards were severely impacted, representing about 13% of the company’s planted hectares in Hawke’s Bay. A further 22% of the planted hectares in Hawke's Bay were impacted to a varying extent and were expected to have reduced productive capacity for two-to-three years.
The company’s New Zealand apple crop had been fully harvested and while its overall New Zealand supply volumes were down 19% on last year, the crop was 14% sold, and the pricing outlook appeared strong, particularly for its premium Envy apple.
Source: stuff.co.nz