Plantations Written Down

Oct. 3, 2017, 6:23 a.m.


EXTENSIVE cyclonic damage from TC Winston in February has resulted in Future Forest (Fiji) Limited’s having to write down the biological asset value of its plantations in Ra, its recently released annual report noted.

It also confirmed poor growth performance of its Sigatoka plantations, which were not damaged by Winston, with subsequent damage assessments in Ra after the June 30 balance date determining that the entire Ra Teak Plantation asset should be written down.

“Also post balance date inspection of the company’s Sigatoka teak plantations recommended these plantations be written down,” the Directors’ report said.

“While these plantations were not damaged by Cyclone Winston, first, lack of weeding (because of financial constraints) and some poor sites reduced growth rated below commercial requirements. Therefore, the entire FFF plantation estate of 229.81 hectares has been written down.”

The company commenced trials to re-establish the Ra teak plantations, and will clean up and prune the plantation as well recommence weeding and pruning in Sigatoka, if funds become available.

It says cyclonic damage meant it could only supply part of $1.6 million worth of teak seedlings contracted to the SPC’s Reforestation Project, but remains optimistic of restoring greater plantation areas then prior to Winston, upon the implementation of two new contracts to the same project.