Reduced Crop Size (lower Production)A 15.7% drop in crop size directly reduces kernel availability for sales and processing, pressuring revenue and utilisation of expanded capacity. Persistent yield volatility from weather or pests can undermine margin improvements and make forecasting and contract fulfillment more challenging over coming seasons.
Rising Production CostsA structural $20m uplift in key input costs (water, bees, electricity) compresses margins if not fully passed to buyers. As an agricultural processor, Select Harvests faces limited short-term control over these inputs, creating ongoing pressure on profitability and the need for operational or pricing responses.
Pollination Risk From Bee Availability And Varroa ManagementReliance on bee pollination exposes production to biosecurity actions and Varroa-related restrictions. Reduced bee availability raises the probability of lower yields or higher pollination costs, a structural operational risk that can persist across seasons and materially affect crop output and costs.