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Select Harvests (ASX:SHV) completes $129M Piangil purchase
  • Australia's largest almond grower Select Harvests (SHV) has completed its $129 million purchase of the Piangil Almond Orchard in northwest Victoria
  • Piangil is a high-quality orchard located in the Sunraysia almond-growing region
  • The purchase is expected to increase Select Harvests' almond production by approximately 4600 tonnes in the 2021 financial year
  • Additionally, the company is continuing to see strong sales in California with a 21.5 per cent year-on-year increase
  • This spike is due to the historically low prices of almonds
  • On market close, Select Harvests is up 0.19 per cent and is trading at $5.34 per share

Select Harvest (SHV) has completed its $129 million purchase of the Piangil Almond Orchard in northwest Victoria.

Piangil is a high quality orchard located in the Sunraysia almond-growing region.

The Australian-leading almond grower signed the deal with United Almonds, Bright Light Agribusiness and Lake Lucas Almonds and announced the purchase in October.

The purchase will include 1566 hectares of almond orchards, of which 1177 hectares are mature planting and 389 hectares are immature.

"The acquisition of the Piangil Almond Orchard will increase Select Harvests’ planted area by 20 per cent from 7696 hectares to 9262 hectares and is expected to increase Select Harvests’ almond production by approximately 4600 tonnes in FY2021," Managing Director Paul Thompson said.

"We have been working closely with the Piangil operations team during the pre-completion period to ensure a smooth ownership transition. Our immediate focus post-completion will be to invest in equipment and infrastructure to improve almond quality, harvest risk mitigation and irrigation efficiency," he added.

The November Almond Board California Report shows the demand is continuing to respond to the historically low almond prices, with shipments up 21.5 per cent year on year and record monthly shipments for the first four months of the season (August to November).

So far, the current crop is 60 per cent sold, which is up from this time last year's result of 53 per cent.

"The continuing strong shipment numbers out of California and Australia are a positive sign for Select Harvests 2021 almond marketing campaign. It is very pleasing to see continued strong demand from the India, China and European markets," Paul said.

"Tree health and crop outlook remain positive, with appropriate contingencies
in place for the forecasted wetter conditions over the harvest period. With nut size now established, our focus has turned to weight accumulation, harvest preparation and orchard hygiene," he concluded.

On market close, Select Harvests is up 0.19 per cent and is trading at $5.34 per share.


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