Produce company T&G Global predicts about $30 million in losses after cyclone

Crops throughout Hawke's Bay, including orchards and vineyards, were damaged by Cyclone Gabrielle. Photo / RNZ / Sally Murphy

Produce company T&G Global is forecasting a loss of $28 to $34 million for this financial year after Cyclone Gabrielle severely affected the group’s Hawke’s Bay plantings.

Chief executive Gareth Edgecombe said about a third of the group’s planted hectares were damaged by the cyclone - 13 per cent were severely damaged and another 22 per cent would be less productive over the next two to three years.

Most of T&G’s orchards were not impacted by the cyclone, however, Edgecombe said.

In February, the exporter reported a full-year loss of just under $1m, with revenue down 4 per cent, after quality issues with its Envy brand apples and easing overseas consumer demand.

Edgecombe said T&G’s New Zealand apple crop had been fully harvested, though overall supply volumes were down 19 per cent on last year.

The pricing outlook appeared strong, with 14 per cent of the crop sold.

“The cyclone will clearly have a significant impact on T&G’s 2023 financial performance.

“A cost-reduction programme has been implemented in response to the cyclone and is expected to result in material cost savings in 2024 and beyond.”

Meanwhile, the group’s new automated packhouse in Whakatu, Hawke’s Bay was fully operational as scheduled.

- RNZ