Shares of Asian Citrus Holdings Limited (ACHL.L) were losing around 3 percent in the early morning trade in London after the Hong Kong-based agricultural company Friday reported sharp decline in the expected supply of summer oranges from Hepu Plantation in the first half as well as its selling prices, impacted by Typhoons.
In a statement, the company said that it has concluded negotiations on the pricing with its customers for the forthcoming summer orange crop. Pursuant to recently signed supplier agreements, the company will supply a total of 20,100 tonnes of summer oranges from Hepu Plantation in the first half. This represents a decrease of approximately 59.4% from last year's production output of 49,540 tonnes.
Based on current information, it is anticipated that the average selling price of the company's summer orange crop will be approximately 33.5% lower than the prior year.
The company noted that the production yield from Hepu Plantation was materially impacted by the previously announced damage sustained from Typhoon Rammasun and Typhoon Seagull in July and September 2014, respectively. The selling prices also were affected by the extensive typhoon damage from the Typhoons and the consequent poor appearance of oranges infected by citrus canker.
Asian Citrus said its Board believes that the reduction in the anticipated average selling price and the production volumes of the summer orange crop, the Typhoons and citrus canker as previously announced, will continue to adversely influence the performance of the Group's agricultural produce operations.
Asian Citrus were trading at 5.95 pence, down 2.86 percent.
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