Almond grower Select Harvests may expand into macadamia nut production

Almond processor Select Harvests is looking at branching into other nut crops, with macadamia the likely choice.

Select Harvests is considering expanding into macadamia production.

ALMOND grower and processor Select Harvests may consider branching out into growing other nut types.

Speaking at Select Harvests’ annual general meeting in Melbourne last week, chairman Michael Iwaniw said the company was investigating whether to invest in growing other nuts.

Mr Iwaniw said established orchards were preferred because setting up a nut plantation on greenfields sites meant production did not begin until three years after planting and it took seven years to reach full maturity.

He said Select Harvests had “the right skill set” in growing other nut types.

Mr Iwaniw told The Weekly Times, the company had looked at buying Websters Limited’s walnut plantations some years ago but did not progress a purchase.

But he said macadamia plantations were the logical choice for a number of reasons.

“Firstly, the demand for macadamias is growing,” he said.

“Secondly, they are native to Australia.

“Macadamias are also grown in northern NSW and Queensland, so they would give us genetic diversity.”

Select Harvests is well cashed up to expand into other nuts.

At the end of September, the company’s bank debt had been extinguished, but net debt, which included finance leases, had been reduced to $27.4 million, about half the $58.9 million recorded at the end of the previous financial year.

Mr Iwaniw said bank debt had now climbed, as limited income had come in since September while the company had accrued costs to produce the current crop.

But he said Select Harvests was in a “very good position” to invest in more plantations.

Mr Iwaniw said China — Select Harvests’ main export market — had stopped buying almonds as a result of Chinese factories being closed due to the Covid-19 health scare.

That meant almond exporters had to sell into other markets, depressing prices.

He said Select Harvests had six months to clear this year’s crop before the new Californian crop came on to the market.

“I am pretty sure the market will rebound,” he said.

Select Harvests’ shares fell 50cs — or 5.76 per cent — to $8.18 on Friday as a result of the AGM presentations.

Peter Hemphill’s family owns shares in Select Harvests.