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ML Macadamia loses $42,000


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POSTED: Tuesday, November 10, 2009

ML Macadamia Orchards LP swung to a $42,000 loss in the third quarter from a year-earlier gain of $886,000 that was entirely due to a crop insurance recovery for the production year ended June 30, 2008.

Last quarter, the company received $157,000 in crop insurance claims, the company said yesterday.

The insurance payments stem from a policy that provides coverage if the production in designated blocks is less than 75 percent of a 10-year moving average.

ML Macadamia, the state's largest grower of macadamia nuts, also said last quarter's harvest of

6.5 million pounds was 4 percent lower than the year-earlier period even though it was significantly better than the historical average for the period.

The decrease in nut production last quarter at the Kau orchards was attributable to lower rainfall from October through April during what is considered the pre-flower, flower and pollination periods, the company said.

Protracted inclement weather that began in late December and continued through April had a negative impact on pollination and nut-set at the Keaau and Mauna Kea orchards.

Total revenue was nearly flat at $5.69 million compared with $5.76 million a year ago. Macadamia nut sales fell 3.7 percent to

$4.4 million from $4.6 million, while contract farming revenue rose 8.8 percent to $1.3 million from $1.2 million.

The loss per Class A unit was 1 cent compared with a gain of 12 cents a unit a year ago.

MONEY TALKS

Third-quarter loss

$42,000

Year-earlier net

$886,000