Winter orange production in Asia fell 71% year on year in the second half of the year.

Sina Financial News, November 7, according to the Caihua news agency, Asian Fruit Industry (00073-HK) announced that it is expected that the average price of the winter orange harvest at the group Xinfeng plantation will increase by about 2.6% compared with last year. However, the expected average selling price of the Hepu plantation will be reduced by about 40.2% compared with last year, reflecting the extensive damage caused by typhoons, especially Typhoon Weimasun in July this year, and the appearance of fresh oranges infected with citrus canker.

According to a recently signed supplier agreement, Xinfeng plantation will supply 113600 tons of winter oranges in the second half of this year, down about 7.8 per cent from the actual production of 123228 tons in the same period last year. The decrease reflects the effects of low temperature, freezing rain and frost on the flowering of fruit trees in Xinfeng at the beginning of this year.

According to the recently signed supplier agreement, the group will supply only 7100 tons of winter oranges from Hepu plantations in the second half of this year, a decrease of about 71.3 per cent compared with the actual production of 24699 in the same period last year.

Due to the reduction in production at the two plantations and the expected reduction in the average selling price of the winter orange harvest at Hepu Plantation, the company's board of directors estimates that the income and profit of the Group's agricultural division for the financial year ended June 30 next year will be lower than the actual figures for last year.