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Select Harvests’ almond yields above industry standard

Agriculture
ASX:SHV      MCAP $439.4M
20 August 2019 23:08 (AEST)

Select Harvests informed the market today that it’s almond yields are ahead of the industry’s standard and faring better than original forecasts predicted.

Company Managing Director Paul Thompson said “the performance of our orchards has exceeded our most recent forecast. This reflects the quality of the company’s orchard portfolio, our orchard maturity profile, risk mitigation strategies and our continued investment in our horticulture program”.

The company’s Carina West Processing Facility processed crops with more efficiency this year, thanks to new sorting technology and a revised processing line.

“Recent capital investments in our Carina West Processing Facility and in our orchards has resulted in improved productivity, yield, crack-out levels and reduced costs per kilogram,” Paul said.

Now 95 per cent of the crop is processed, which increases the estimated production to 22,200-22,500 million tonnes. Select Harvests advised the additionally 5 per cent is the poorer quality, the tail end of the crop.

Sales to China are expected to encompass 80 per cent of the crop, sold at $8.60-8.70 per kilogram.

According to the company, the orchards are in bloom and bees will be in place over the coming weeks.

Additionally, the 2020 crop is showing positive signs, with trees being in good health and extra protections are to be added. Going forward, water purchases remain a priority.

Select Harvests’ share price is up 10 per cent at today’s market close, currently sitting at $7.81 per share.

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