Select Harvests has paid the price for a "challenging year" of fire, rain and poor prices, posting a fall in full year net profit after tax to $4.8m for the 12 months to September 30.
Although its average almond price returns were static at $6.80 a kilogram Select's net profit was was down 68 per cent on the previous year's $15.1m.
Total crop yields actually increased by 7500 tonnes to 29,000t, exceeding industry averages, but a flood of US nuts pushed global almond markets to historic lows.
Adverse damp weather at harvest, the varroa mite biosecurity restrictions to bee supplies during orchard flowering and a fire at the company's northern Victorian processing plant provided further operational challenges and costs.
On-farm soil conditioners developed from recycled nut processing trash and state of the art processing sorters delivered the highest possible quality crop from a wetter than normal nut harvest.
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Wet conditions and the factory fire reduced the company's warehousing and fumigation capacity leading to higher warehousing and distribution costs, but lower irrigation water prices helped keep production cost rises to 4.4pc on the prior year.
The fire broke out on Boxing Day last year when about 5000 tonnes of almond hulls spontaneously ignited at its Carina West processing plant near Mildura.
The blaze spread to cause only minor building damage, but the loss of some storage and materials handling gear.
In recent months flooding has impacted several orchards and related infrastructure, but damage has not been material, although was being monitored.
Select has sold, or committed for sale, 73 per cent of last season's crop with the balance held back to target premium price opportunities and for internal value-add processing.
Last year's global prices were dampened by a strong early sell off of the 1.3 million tonne Californian crop as US growers tried to recover higher input costs and COVID-19 prompted a slowdown in buyer purchases.
Global market patterns were expected to see normalised trading this financial year and rising prices for 2022-23, partly because drought has reduced Californian yields and shipping freight disruptions have also been easing.
Select Harvests will pay a two cents a share fully franked dividend on February 3 to shareholders registered on December 9.
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Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
