Timbercorp loses $19 million on table grapes

Managed Investment Scheme giant Timbercorp anticipates a $19 million loss after having to replace varieties on its table grape project.

The company has revised down its profit projections to $44 million taking into account the ``one off provision’’ to take into account losses from varieties that failed to attract the premium expected, as well as losses while the new plants mature on the 412 hectare project.

Timbercorp spokesman Matt Trewin said the company had ``bitten the bullet’’ because it wanted the Euston project to make money.

``The vines were healthy and productive, but (the product) wasn’t attracting the premium we wanted to achieve,’’ Mr Trewin said.

``We’ve had to cop the $19 million … its pretty much payment of management and rent, and part of it is also lost cashflow.’’

Mr Trewin said the project, which equates to 1 per cent of Timbercorp’s land and about 3 per cent of its revenue, was not indicative of the performance of other Timbercorp projects.

Mangement company Costa Exchange oversees the table grape project for Timbercorp, and had recommended either removing or grafting the under-performing varieties.