New Zealand fresh fruit grower and exporter Turners & Growers suffered NZD 18.9 million losses (US$15.9 million) for 2011 as the Psa virus and Europe's deteriorating economy tanked its bottom line.

The company’s annual statement to the New Zealand Stock Exchange said the largest contributing factor was a revaluation of orchard and bio assets, particularly its kiwifruit orchards due to the Psa disease. The net loss due to this write-off was NZD 20.9 million (US$17.6 million).

A worsening economic situation in its top receiving market of Europe and a strong New Zealand dollar were also contributing factors in the revaluation.

Furthermore a takeover bid from German BayWa resulted in legal fees of NZD 3.1 million (US$ 2.6 million) in 2011.

Pipfruit export returns, including the Jazz Apple variety also disappointed, with a strong local currency, high base cost and research tariffs cutting further into profits.

The company said the devaluations were one time write-offs and that despite the poor results, 2012 was trading on plan.

Managing director Jeff Wesley, who has been at the helm since 2005, announced he would be standing down and that the search was on for a replacement.

Related stories: NZ: T&G to write down US$17M in assets.

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