KEY POINTS:
Kiwifruit processor Satara Co-operative Group has posted a 30 per cent rise in first half net profit to $1.7 million.
The company today said it was forecasting to pack 12.5m trays this year, a slight increase on the prior year, with this season including a significant increase in fruit packed early in the season that qualified for Kiwistart payments.
The overall quality of fruit supplied to the packhouse showed a marked improvement on the previous season and all facilities were again fully used with additional short term commercial coolstorage sought to accommodate the crop.
Revenue from ordinary activities was up 3.7 per cent for the six months to the end of June to $38.7m, while business input cost increases continued to be a challenge and were being dealt with through efficient use of labour and effective contracting, Satara said.
Onshore fruit loss was significantly lower than at the same time last year.
Yields and crop profiles improved for leased and managed orchard activities, with the orchard division producing 1.9m trays from leased orchards in the 2008 harvest, the company said.
Current indications from Zespri were that fruit value returns would be higher than the previous year due to strong market pricing and more favourable exchange rates.
The final result for the division would depend on the actual fruit value realised, which would become known with more certainty in the next six months.
Satara's coolstore in Wedgewood St, Katikati was completely lost in a fire in June, although the adjoining packhouse was undamaged.
Payouts for the loss under the company's insurance policies were being received, the company said.
Insurers had formally accepted a claim for the kiwifruit fruit lost in the fire, meaning growers' fruit value payments were protected.
Satara shares last traded at 95c in late July, down from a year high of $1.12 last October.
- NZPA
