Tandou blames weather for disappointing year
Thursday, 5th June, 2014
Tandou Limited is blaming the weather for an expected reduction in its cotton yield this year.
The agribusiness and water investment company said the yield from its harvest at its Tandou Farm and Hay operations could be up to 20 per cent below expectations.
That would be the worst result since 2011 when Tandou resumed cotton production after four years without a crop due to the drought.
The company said it now expects average upland cotton yields at both sites to be eight bales per hectare, compared to the 10.2 bales in 2013, 9.8 in 2012 and 9s in 2011.
Tandou said the impact of prolonged extreme heat in late summer was exacerbated by cold conditions and more than 200mm of rain during the final growing period during late March and early April.
“This is a disappointing outcome for the company however initial classing results indicate that the cotton quality is relatively good and we have avoided the significant colour discounts that have been experienced in other areas,” CEO Guy Kingwill said.
Meanwhile, Mr Kingwill said Tandou had seen strong appreciation in its water portfolio in line with “the broad strengthening” in the water entitlements market over the past 12 months.
“In particular the company has seen an unrealised gain in values of approximately 15 per cent of its investment in water entitlements associated with the Bundygoola acquisition earlier this year.”
Shares in Tandou closed half a cent lower to 45 cents yesterday.