7th May 2015 08:20
LONDON (Alliance News) - Asian Citrus Holdings Ltd said Thursday it expects the 2015 winter harvest from its Xinfeng Plantation to be significantly reduced compared to the previous year, which in turn will have a knock-on effect for its results in the year to end-June 2016, as it tackles Huanglongbing disease amongst its orange trees.
Huanglongbing, also known as citrus greening disease, is a a bacterial plant disease not harmful to humans. It can be difficult to detect, with symptoms that may not be noticeable for more than a year after the tree has been infected. Once infected the disease is fatal to the tree, it destroys the production, appearance and economic value of citrus trees and diseased trees produce bitter, hard, misshapen fruit and die within a few years.
It confirmed that the rate of infection at Xinfeng is currently expected to be around 18% of the total orange trees, and in an effort to stop the disease spreading it expects to remove around 300,000 trees this month. This will cost CNY12 million, which will be incurred in the fourth quarter of its current financial year.
Its insurance policy does not cover damage from the presence of any diseases, so this will not be reimbursed.
Shares in Asian Citrus are trading down 10% at 6.75 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
ACHL.L