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Almond producer faces uncertain future
Australia
Sunday 09 September 2007
Almond producer Select Harvests is facing an uncertain future due to tax changes and a lack of water that could affect investment, a clouded world trade outlook, and tough retail competition.
However, the company is confident it has a sound business model that will guarantee long-term growth.
Managing director John Bird said federal changes to managed investment schemes (MIS), if not reversed, would curtain investment in almonds after 2007-08. The changes will abolish tax deductions for non-forestry MIS, but Timbercorp will run a test court case against the Australian Tax Office.
''New developments will require alternative investors and project structures,'' Mr Bird said.
However, almonds were a good long-term investment, and the company aimed to plant more almond orchards.
Mr Bird said despite the test case, Select Harvests would consider alternative structures and channel for new almond projects, or diversify to alternative locations or into other nut crops.
The company would plant another 5000 (2000 hectares) acres this year, as the 2007 crop had pushed existing plants to capacity.
A new plant would push capacity to 40.000 million tons annually.
Mr Bird said water restrictions appeared likely this year, which may require the purchase of temporary water. Plans had been made for tree and crop management with less water.
However, the company is confident it has a sound business model that will guarantee long-term growth.
Managing director John Bird said federal changes to managed investment schemes (MIS), if not reversed, would curtain investment in almonds after 2007-08. The changes will abolish tax deductions for non-forestry MIS, but Timbercorp will run a test court case against the Australian Tax Office.
''New developments will require alternative investors and project structures,'' Mr Bird said.
However, almonds were a good long-term investment, and the company aimed to plant more almond orchards.
Mr Bird said despite the test case, Select Harvests would consider alternative structures and channel for new almond projects, or diversify to alternative locations or into other nut crops.
The company would plant another 5000 (2000 hectares) acres this year, as the 2007 crop had pushed existing plants to capacity.
A new plant would push capacity to 40.000 million tons annually.
Mr Bird said water restrictions appeared likely this year, which may require the purchase of temporary water. Plans had been made for tree and crop management with less water.
