Citing rising demand for its recent proprietary varieties and benefits from the U.S.-Mexico suspension agreement, Vancouver-based Village Farms International reports adjusted earnings hit $12.9 million for 2013, up from $1.6 million the year before.
“We plan to continue to escalate production of these new varieties as well as other types of produce at our production facilities in both the U.S. and Canada,” Michael DeGiglio, chief executive officer, said in a news release.
“The company’s rapid rebound in late 2012 to normalized pricing for its core varieties in the tomato category is partially a result of the revised 16-year old U.S. suspension agreement with Mexico,” DeGiglio said in the release.
That agreement provided definitions for greenhouse-grown product.
“The result is a striking reduction (greater than 90%) of the rampant practice of mislabeling Mexican-grown field or adapted-field product as greenhouse produced product,” he said.
The $12.9 million does not include $15.9 million in insurance proceeds for 2013.
Village Farms International also credits the return to full-year production in 2013 of half of its 40 damaged acres in Marfa, Texas.