Sharechat Logo

Comvita shares rise after CEO downplays myrtle rust risk to manuka honey industry

Tuesday 27th June 2017

Text too small?

Comvita shares rose to a two-week high after the honey health products maker downplayed the risk posed to the manuka honey industry by the Myrtle Rust fungal disease. 

The shares gained 3.6 percent to $5.70 after Te Puke-based Comvita said Myrtle Rust's risk to the wider industry was low, based on its analysis on Australian outbreaks of the disease. 

"Neither our Australian JV partner Capilano or apiary businesses in Tasmania, with whom we have been speaking, have had any reports of myrtle rust being found in Leptospermum species since the fungus was discovered in mainland Australia in 2010 and Tasmania in 2015," chief executive Scott Coulter said in a statement. "There has been no impact from myrtle rust on their honey production."

Comvita's shares took a double whammy from the outbreak, which coincided with a poor honey harvest and aggressive competition through China's informal online trading channels which weighed on earnings. 

Coulter said the New Zealand discovery of Myrtle Rust was consistent with Australia's experience so far and that the fungal disease hadn't been found on wild manuka plants, only in plant nurseries and domestic environments. 

Still, Comvita is still treading carefully with procedures to identify and report the disease, regular inspections of its nursery stock, and a treatment regime for plants before they're moved from nurseries. The company is also investigating ways to breed plants resistant to the disease and what it can learn from Australia's outbreak. 

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Investore Property Limited (Investore) today announced its financial results for the twelve months ended 31 March 2020 (FY20).
Rabobank GDT Analysis - Event 261
SkyCity Entertainment Group Limited - Update on COVID-19 Impacts and Recent Trading
ANZ announces sale of UDC Finance
Foley Wines Limited Announces Harvest Result, Earnings Outlook and Development in Martinborough
JUST MY VIEW - BRENT KING
BLIS delivers substained profitable growth
Infratil - Full year results announcement for the year ended 31 March 2020
COMVITA LIMITED Announces NZ$50 Million Equity Raising to improve balance sheet flexibility and build resilience
GMT’s delivers statutory profit of $284.4 million before tax

IRG See IRG research reports