Rain puts extra drain on Asian Citrus' bottom line
Persistent heavy rain from April to August last year led to higher production costs for orange plantation operator Asian Citrus. Typhoon Vicente triggered rainstorms and gales in the Guangxi Zhuang autonomous region, where the company's plantations are located.
Persistent heavy rain from April to August last year led to higher production costs for orange plantation operator Asian Citrus.
Typhoon Vicente triggered rainstorms and gales in the Guangxi Zhuang autonomous region, where the company's plantations are located.
"We are considering diversifying into processing other agriculture produce, such as corn and red bean, to maximise the utilisation of our plants at times when fruit supply is limited or affected by weather," Eric Sung, the firm's finance director, said.
We are considering diversifying into processing other agriculture produce, such as corn and red bean, to maximise the utilisation of our plants at times when fruit supply is limited or affected by weather
Total production volume fell by about 6 per cent at the group's two operating plantations, with the Hepu plantation's output dropping 26.9 per cent to yield 23,838 tonnes, compared with 44,906 tonnes the previous year.
"Fertilisers and pesticides were washed away and had to be applied in greater quantities to ensure healthy growth of the orange trees," Asian Citrus executive director Tommy Tong said.
Fertilisers and pesticides were washed away and had to be applied in greater quantities to ensure healthy growth of the orange trees
Fertilisers made up about 56 per cent of costs . The firm said the rise in mainland wages drove up labour costs 28.9 per cent to 41.9 million yuan (HK$52.2 million).
