Results are pleasing. Not a great result but all things considered it could have been a lot worse.
Looking forward I like their progress with expanding the company owned orchards. Western Australia is due to have more acreage planted in winter of 2011 for Stage 2 and planning/negotiations are underway for Stage 3 with a 4th stage to come down the track. A small purchase in the Robinvale area.
Looks like we now have a full year's figures for a base case scenario for the management of the Olam owned orchards. Not as lucrative as when they were owned by Timbercorp but far from a total loss for SHV.
Floods have had minimal impact with 1 to 2% of trees needing replaced and dividend maintained at last year's level.
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