On Wednesday night we had a severe hail storm at our Boort olive grove which removed thousands of tons of fruit from the trees (see photos below). We estimate the loss to be in the order of $5m which is approximately 10% of the estimated total 2013 crop value. We expect our crop insurance policy will cover a proportion of this amount but we will still wear a material cost from this event.
We have taken numerous measurements since the hail storm including collecting and weighing all the fruit from representative trees and counting the fruit that is damaged but still on the trees. We are also working closely with the insurance assessor however this claim is unlikely to be finalized until after harvest when the actual yields will be known.
Fortunately the groves at Boundary Bend and Wemen were not impacted.
In the next couple of weeks we will email you a more comprehensive update with our audited half yearly results. However prior to then I can say that the international price of olive oil continues to rise, sales of Cobram Estate and Red Island are going exceptionally well and we are ahead of budget year to date.