Landcorp posts narrowed loss

Landcorp Farming, the country's biggest farmer, has produced a narrowed half-year loss helped by higher milk prices and cost control reports Stuff. The SOE today revealed a net operating loss of $6.3 million for the six months to December. That compares to a loss of $10.3m in the same period of the previous year. Landcorp said higher milk prices boosted dairy income by 16 percent to $39.1m. This helped offset a 19 percent fall, largely thanks to the strong New Zealand dollar, to $33.9m in returns to meat producers. Landcorp said it had managed expenditure "rigorously" with total expenses falling 14 percent to $72.2m, although some purchasing had been delayed until the second-half given price trends for the likes of  fertiliser and fuel. Chairman Jim Sutton said Landcorp expected to report a small operating profit for the full 2009-10 year. "Like all other New Zealand farmers, Landcorp faces volatility and uncertainty in product prices and this is currently compunded by abnormally high exchange rates," Sutton said. "Earlier expectations for 2009-10 have been overtaken in recent months by retreating prices for sheep meat, beef and venison but also a pleasing recovery in dairy prices." For the half-year Sutton said Landcorp reported a total return to its government shareholder of $22.3m including a $32.1m gain on the revaluation of livestock and financial instruments. This compared to a $2.9m loss in the same period of the previous year. Landcorp farms about 1.5m stock on 105 properties covering 374,900 hectares.