Select Harvests completes Piangil orchard purchase

Select Harvests has completed its Piangil orchard purchase. See what effect it will have on its annual crop.

Select Harvests has increased its almond plantings by 20 per cent with the purchase of a Piangil orchard.

SELECT Harvests has completed the purchase of a 1566 hectare almond orchard at Piangil for more than $129 million.

The listed almond producer and processor announced on October 1 it had reached agreement with United Almonds Limited, Bright Light Agribusiness Pty Ltd and Lake Lucas Almonds Pty Ltd to buy the orchard for $129 million plus reimbursement of growing costs this year.

The deal included the 2021 almond crop, 1177ha of mature trees and 389 ha of immature trees, plus 61ha of unplanted land.

Select Harvests also gained 1877ML of high reliability water entitlements, and 622ML of low reliability water entitlements.

Select Harvests’ managing director Paul Thompson said the acquisition increased the company’s planted area by 20 per cent to 9262ha and was expected to add another 4600 tonnes of almonds to next year’s harvest.

“We have been working closely with the Piangil operations team during the pre-completion period to ensure a smooth ownership transition,” Mr Thompson said.

“Our immediate focus post-completion will be to invest in equipment and infrastructure to improve almond quality, harvest risk mitigation and irrigation efficiency.”

Mr Thompson also reported strong demand for almonds from India, China and Europe as a positive sign for Select Harvests’ 2021 marketing campaign.

In another positive sign for next year’s crop, reports from California show the large US almond crop is already 60 per cent sold, compared with 53 per cent at the same time last year.

The US produces 80 per cent of the global crop.

Select Harvests hopes much of the US crop would be sold before the Australian harvest begins about April next year.

Select Harvests’ share price fell 18 cents to $5.16 in early trading today.

MORE

SELECT HARVESTS' PROFIT DOWN AS US DROPS PRICES

SELECT HARVESTS BUYS PIANGIL ORCHARD

ANOTHER RECORD ALMOND CROP