Listed kiwifruit packing firm Satara Co-operative says its profitably is under threat from a new vine disease.
The Ministry of Agriculture and Forestry confirmed on Monday the bacterial disease PSA has been found on a Bay of Plenty kiwifruit orchard and the industry is now on alert looking for other outbreaks.
Satara says any drop in production due to the disease will hurt its packing arm.
It also says it is too early to say what effect the outbreak could have on its planned merger with Eastpak.
Satara lifted the trading ban it put on its shares after the market closed on Monday, but Seeka Kiwifruit's ban remains in place.
Meanwhile, Turners & Growers says there is no sign the bacteria is present on any of its orchards growing ENZA kiwifruit varieties.