New RE poised to be appointed to Timbercorp mango and avocado schemes

Huntleys is expected to be appointed as the new responsible entity (RE) for Timbercorp's mango and avocado schemes.

A growers meeting will be held in Melbourne tomorrow morning where it is expected a vote on replacing the RE will be held.

The mango schemes consist of 1,065 hectares of crop planted in Queensland and the Northern Territory.

According to the Korda Mentha creditors report, minimal management of the mango crop has been undertaken since Timbercorp went into administration. The crops were managed by One Harvest Group, but the company terminated its management agreements due to non-payment of invoices. Simpson Farms will now manage the crop on a temporary basis until September this year, according to the administrator.

Korda Mentha estimates the scheme will need $14 million to maintain the avocado crop and prepare it for the 2010 harvest. There is 1,007 hectares of crop in Queensland, which were sold through a number of schemes.

The avocado harvest is underway at present and Simpson Farms will continue looking after the plantations until September.

Korda Mentha estimates it will cost $23 million to maintain the crop for next year's harvest.

Meanwhile, the Timbercorp investor action group AAGRI has been encouraged in its push to change the RE for all schemes after a meeting with the Australian Securities and Investments Commission (ASIC) yesterday. Siger Super Services adviser Kerree Bezencon told Money Management the meeting "was positive".

"We have agreed to work together and look for solutions in our push for a new RE," she said.

"We are exploring a number of options with ASIC."