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Source: ONE News -
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NZ Farming Systems Uruguay (NZFSU) says it has had a very difficult year, reporting net loss after tax of $45.9 million for the year to the end of June, compared with $8 million the year before.
The company, which uses its New Zealand dairying expertise on farms in Uruguay, had in January predicted an annual loss after the country was hit by the worst droughts in 30 years.
NZFSU chairman says falling dairy prices and the international credit crunch also made for a difficult operating environment.
Operating losses of $US15.6 million ($NZ22.8 million) were up on $US8.8 million in the same period the year before.
NZFSU says its overall result was impacted by $20 million in livestock writedowns and modest writedowns on land values.
However, revenue nearly doubled from $US7.8 million to $US15.8 million this year led by higher milk volume and milk revenue.
And, the company is positive on business prospects in the medium term.
"We believe a number of factors including the positive pasture performance under irrigation, continuing development of the local Uruguayan farming talent and the expectation that dairy prices have bottomed out give us good reason for this confidence," Smith says.
Smith also says the company's $30 million bond issue in July provided much needed development funding.
Shareholders in NZFSU include rural servicing company PGG
Wrightson which has an 11% stake.
