Seeka Kiwifruit Industries has announced it expects to take a hit to its balance sheet following a disastrous bacterial outbreak to crops on the other side of the world.
The Te Puke-based company is New Zealand's largest fully integrated kiwifruit suppli
Seeka Kiwifruit Industries has announced it expects to take a hit to its balance sheet following a disastrous bacterial outbreak to crops on the other side of the world.
The Te Puke-based company is New Zealand’s largest fully integrated kiwifruit supplier. It grows about 1000 hectares of kiwifruit and packs a fifth of the national crop from its own and other orchards.
It is a cornerstone shareholder in Opotiki Packing and Coolstorage (OPAC) which owns an 84 hectare orchard in Italy currently battling a outbreak of a bacterial disease.
OPAC’s board has determined that the full cost of its $7.16 million investment should be written off leading to a loss for the financial year to December 31, 2009.
As a result, Seeka has announced to the stock exchange it will record its share of the loss in its own group financial results for the year to March 31. As a result, it will reduce its investment in OPAC from the current level recorded at $4.209 million.
Any impact would be non-cash and was expected to be less than $1 million.
