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Warning bell for pineapple growers
17 May 2004
Golden Circle has warned its pineapple grower shareholders they might be in for a rough ride, after announcing plans to float. Interim CEO Robin Ferris warned that new quality and availability requirements may spell the end for some growers.
Golden Circle needs a cash injection of about $50 million, Mr Ferris stated. The company reported its first-ever net loss in 2003 - of $31.1 million - and shareholders received no dividend. Mr Ferris said the float would position the company for an ASX listing in three to five years but suggested a major consortium may seek full control before then.
Under a new scheme, Golden Circle's growers will be paid a premium for pineapples that meet strict quality and delivery criteria. Mr Ferris said Golden Circle realises some growers won't be able to meet these criteria and will have to exit the industry. Some rationalisation of the industry is inevitable, he said.
Herald Sun, 15/5/04, page 93.
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