MANAGED Investment Scheme giant Timbercorp has anticipated a $19 million loss after having to replace varieties on its Euston table-grape project.
The company has revised down its profit projections to $44 million for this financial year, after it made a "one-off provision" to cover expenses while the properties are not making money.
The issue stems from losses on varieties that failed to attract the premium expected, as well as losses while the new plants mature on the 412ha project.
Timbercorp spokesman Matt Trewin said the company had "bitten the bullet" because it wanted the project to make money.
"The vines were healthy and productive, but (the product) wasn't attracting the premium we wanted to achieve," Mr Trewin said.
"We've had to cop the $19 million; it's pretty much payment of management and rent, and part of it is also lost cashflow."
Victorian Farmers Federation's Sunraysia branch MIS spokesman Bill McLumpha said the loss "exposes horticultural MIS for the misallocation of taxpayer resources and scarce water that they are".
"They are an economically corrupt model, they're fundamentally flawed and as this case illustrates, are continuing to produce deeply flawed economic, social and moral outcomes," Mr McLumpha said.
"They've put resources into having government to let them continue - this is a timely example of why that mustn't be allowed to happen."
Mr Trewin said the project, which equates to 1 per cent of Timbercorp's land and about 3 per cent of its revenue, was not indicative of the performance of other Timbercorp projects.
Costa Exchange, which manages the table-grape project for Timbercorp, had recommended either removing or grafting the under-performing varieties.
