Greenhouse Canada

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‘Challenging economic times’

June 19, 2009  By The Canadian Press


June 19, 2009, Vancouver — Village Farms Income Fund (TSX:VFF.UN), a
Vancouver-based producer of greenhouse vegetables, says it’s suspending
its monthly distribution for the foreseeable future as the company
tries to save cash in the current recession and prepares to convert
into a corporation.

June 19, 2009, Vancouver — Village Farms Income Fund (TSX:VFF.UN), a Vancouver-based producer of greenhouse vegetables, says it’s suspending its monthly distribution for the foreseeable future as the company tries to save cash in the current recession and prepares to convert into a corporation.

The company had paid half a cent a unit for May, but said Friday it will end that distribution.

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“The fund believes it is prudent to conserve cash in light of the current challenging economic times as well as to provide capital for growth initiatives and to create a reserve for the cost of converting the fund to a corporate structure by the end of 2009.”

Last month, Village Farms reported its first quarter net profits fell to US $640,000 from $3.3 million in the first quarter of 2008, while revenues dropped to US $21.4 million from $28.5 million.

The company said North American consumers bought less fresh produce because of the recession and competitors cut prices to stay in business.

Village Farms, with about 1,200 employees, is one of the largest producers, marketers and distributors of greenhouse grown tomatoes, bell peppers and cucumbers in North America.

The company operates greenhouses in British Columbia and Texas and sells its vegetables to distributors throughout the United States and Canada.

It plans to change to a corporation from a fund because federal tax changes that go into effect in 2011 will begin taxing funds as regular corporations.

Village Farm units last traded at 87 cents a unit on the TSX.


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