The Costa Group has announced the closure of two of its grape farms as it looks to scale down production of the fruit.
Farms at St George in Queensland and Menindee in New South Wales have been closed, a 'regrettable' decision that had 'not been taken lightly', according to a report by ABC Rural.
The group, Australia's largest horticulture producer, has made the move as a result of changed industry and market conditions.
Richard Lomman of the Australian Table Grape Association called the news a blow to both communities, adding that larger grape supplies, particularly from the Emerald region, had led to oversupply and prices being squeezed.
It follows last week's announcement that the Costa Group is set to pursue an initial public offering (IPO) with a potential enterprise value of A$800m to A$1bn.
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