Rural services firm Allied Farmers said profit fell in its first half because of a decline in calf processing sales.
The Hawera-based company said profit was about $420,000 in the six months end December 31, versus $610,000 in the same period a year earlier.
According to the company, the livestock business typically has ongoing livestock sales which earn commissions with two significant seasonal impacts: calf processing sales in the spring which impact the first-half result and dairy herd sales in the autumn which are captured in the second half.
"Due to a combination of several factors such as lower tallies, less favorable US exchange rate and poorer skin prices, the calf processing sales in the six months to December 2016 are 15 per cent lower than the comparative period, with a reduced margin," it said in a release. The impact was partially offset by higher livestock commissions on the back of improved livestock pricing, it said.
It noted, however, forward sales herd contracts due for settlement predominantly in May are "significantly ahead of the same time last year" and it expects the first half impact will be recovered in the second half.
Allied Farmers shares last traded at $0.075.