:. Food Industry News


Camellia Says Trading Conditions Tough, Shares Hit

Source: Reuters
03/10/2008

London, Oct 2 - Britain's Camellia Plc, which has subsidiaries ranging from agriculture to financial services, said global trading conditions were "difficult", but it was well placed to withstand any forthcoming recession.

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The group, which produces tea, citrus fruits and nuts, said in an trading update on Thursday that higher energy and fertiliser costs were a concern, although tea prices remained firm.

Its operations in Brazil could also be affected in 2009 by recent volatility in maize, soya and wheat prices, it said, while its private banking arm, Duncan Lawrie, would be hit by lower investment management income.

But the group's diversity and cautious borrowing policy meant it was "well placed to withstand any forthcoming recession."

Camellia's shares were down 8.7 percent at a two-and-a-half year low of 6,300 pence at 1408 GMT, giving a market capitalisation of 175.1 million pounds ($309.7 million).



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