Murray River Organics rewards growers with a major price hike for its third-party dried vine fruit grown in Australia. In the media release dated 18 January 2019, Murray River Organics Group Limited (ASX: MRG) announced that it had increased prices by up to 25% for 2019 as part of its “Growing Together” program to ensure growers receive a fair return for their fruit commensurate. The move is taken to align growers’ income with the global pricing trends which have witnessed the prices getting doubled in comparable worldwide grower markets in the past few years.
MRO Chief Executive Valentina Tripp stated that, prices that are being paid to growers don’t justify the high-grade fruits being produced in the region. Growers have been severely impacted as price hikes were majorly constrained with over 70% of Australian fruit servicing domestic pipeline, and they were left behind the growth in global demand and prices.
The company further informed that Global Dried Vine Fruit Market is going through substantial growth in demand and Sunraysia Growers are now able to share in this market demand by working in collaboration with the MRO team which is primarily focused on growing export markets.
Mr. Tripp added that MRO is committed to take the Australian dried fruit prices up so that it can strengthen its financial arm to further invest in the industry with new plantings where it already owns the largest dried vine fruit plants in Sunraysia spread over 1000 hectares.
Murray River Organics currently targets to expand its market footprints across the global fruit export market. To strengthen its market position and accelerate growth opportunities, MRO raised capital from several new and institutional investors in November 2018.
More than 80% of MRO’s dried vine fruit is exported around the world. It has export market customers in Japan, Korea, China, Vietnam, Taiwan, and the USA. Moreover, through the launch of MRO brands and its innovative new products, Sunraysia was brought to Asia last year, and for 2019 it plans to introduce an extended range of both organic and natural ‘better-for-you’ category products. Also, the company had received extensive support for its premium and mainstream retail across China and Vietnam during its pre-Christmas visit to these nations.
In today’s trading session, MRG stock price has declined by 3.486% to trade at $0.125 on 23 January 2019 (1:54 PM AEST). Over the past 12 months, the stock price has witnessed a negative price change of 66.23%. But there has been a significant improvement since past few months with stock price up 35.42% over the past three months.
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