Higher milk production lifted corporate dairy farmer Tasman Agriculture's profit 36.6 per cent to $12.58 million in the year to May 31.
Core operating earnings before interest and tax were $17.19 million, up 22.2 per cent.
The company reported a tax credit of $820,000 compared with a debit last year of the
same amount.
The profit improvement was due to increased milk solids production and payout in New Zealand, and improved performance of the Tasman non-dairy operations. Milk solids production increased 12.9 per cent to 18.13 million kg, up from 16.06 million, the company said.
Looking ahead, it said international dairy commodity prices had strengthened throughout the first half of 2000. Significant price increases had occurred in milk powder and other protein-related products due to reductions in export subsidies (in line with WTO limits) and falling international stocks.
"Market conditions for butter and cheese are improving more slowly, but signs are emerging of a modest strengthening trend assisted by the economic recovery in Asia and Latin America," the company said.
Appreciation in international dairy prices had coincided with the continued fall of both the Australian and New Zealand currencies against the US dollar. "Continuation of these conditions will boost future farm gate milk payouts," it said.
- NZPA
