Crop Size Decline / Supply VolatilityA material 15.7% crop drop tightens sellable volumes and increases revenue and margin volatility. Lower output raises per-unit costs, risks failing to meet contract volumes and makes earnings more sensitive to price and weather over the medium term.
Rising Structural Production CostsA persistent $20m rise in key input costs (water, energy, pollination) compresses margins unless passed to customers. In an agricultural supply chain, these costs are structural and can persist, reducing free cash flow and requiring productivity or price actions to restore margins.
Pollination Risk From Bee Availability / VarroaBee shortages tied to Varroa mite management pose sustained pollination risk, directly threatening yields and timing of harvests. Mitigating this may require higher contract costs or capitalized alternatives, increasing operating complexity and production risk over coming seasons.