Services face challenging outlook

Costa Group buys Atherton avo farms

ACTIVITY across Australia’s vast services sector lifted in June for a fourth consecutive month, but businesses are becoming troubled by high energy costs.

The Australian Industry Group’s Performance of Services Index rose 3.3 points to 54.8 during the month, above the 50-point level indicating expansion.

Ai Group chief executive Innes Willox said the sector ended the financial year in positive territory, but conditions remained patchy across the sub-sectors.

“On the business inputs side, more businesses across a wider range of sectors are telling us that energy pricing and availability outlook is highly challenging,” Mr Willox said.

“The energy problem has become real and immediate for Australian business.” MELBOURNE-BASED vegetable and fruit grower Costa Group has moved to make avocados a core focus through its joint acquisition of far north Queensland’s Lankester Avocados business.

Lankester has three farms in the Atherton region, with 130ha planted and another 60ha to be planted over the next 12 months.

Costa, built by grocer and former Geelong Football Club president Frank Costa, and Macquarie Agricultural Funds Management have agreed to acquire Lankester Avocados.

“Our production and supply period will now span from February to August, bringing us closer to achieving 52-week supply and our ultimate goal to be the number one grower, packer and marketer of avocados,” Costa Group CEO Harry Debney said yesterday.