Cotten and grain grower,Tandou, is expecting a change in profitability due to doubling of income from its expanding water entitlements business. Earning fron water business are expecting to tatal $5.8 million in the six months to june 30,up from $2.8 millionin the previous year.
The company holds water entitlements in the lower Darling, Murrumbidge and lower Murray water source.
Tandou is situated near Menindee in far west NSW This Country is very marginal with very low rainfall,so water entitlements is a key for success,it grows cotten,wheat and barley crops.
Tandou orchard and vineyard sale is expected for settlement in 2013 for $1.25 million.
The Company has pointed out it is expecting a Profit in between $5-$6 million for the six months to june.
Farming operation were expected to deliver $2.3 million in earnings for the period and the first cotten crop in 5 years was expected to yeild about 9 bales per hectare.
Cotten plantings are going to increase by 60 percent for the 2012 crop and 2300 hectares of ceral crops have been planted this winter.
Mr Guy Kingwill said the company is confident of planting 6500 hectare of cotten in 2012-2013.
DYOR
Shearer
TAN Price at posting:
40.5¢ Sentiment: Hold Disclosure: Not Held
