Ann: Change of Director's Interest, Appendix 3Y - Neil Chatfield, page-4

CGC’s segments are very labour intensive, all of their berry, avocado and citrus are harvested by hand, traditionally using low cost hard working backpackers and islanders. Labour costs are skyrocketing. Orchards are paying 20-40% more for workers who do 50% less.

Also very hard (ie, expensive) to get shipping containers a present. A lot of the 2PH citrus goes to China.

Avocado: CGC quoted relatively low avocado yields and the avocado price has continued to fall.
Low yields x low price x high labour cost = almost definitely running at a loss

Berries: Low commodity prices. Much higher labour costs due to lack of workers.

Citrus: no news (isn’t necessarily god news). I believe the SA government heavily subsidised a large crew of Tongans to help CGC with their Riverland citrus harvest, but it probably still wasn’t enough.

The business fundamentals are good. Not a bad time to buy if you are happy to wait a while for things to turn around.