Farmer-owned animal genetics co-operative Livestock Improvement (LIC) says dairy farmers flush with monster payouts gave it a record first-half profit of $25.38 million for the six months to November 30.
This compared with $19.09 million in the same period of 2008, but the co-operative warned that the currentsecond half of the year to May 31 was likely to be a different story.
LIC chairman Stuart Bay said the November windfall reflected the buoyancy in the market during the first six months of the season.
High international commodity prices last year meant farmers supplying the nation's biggest dairy processor, Fonterra, averaged nearly $900,000 in the payout cheques, based on a payment of $7.90/kg, while farmers at the much smaller Westland co-operative set a national record with $8.29/kg.
But international prices have since plunged, with the Fonterra payout expected to be closer to $5/kg.
"The 2008/2009 year will go down as a game of two halves," said Bay.
"The first six months of the season reflected the buoyancy dairy farmers were enjoying on the heels of a record payout.
"The second half of the year will, however, deliver a different result with farmers adjusting their businesses to cope with the reduction in payout."
He noted LIC was a very seasonal business with demand for services reflecting activity on-farm, particularly in the spring.
Even amid last year's buoyant prices, the $19.09 million surplus at six months translated to just $15.63 million for the full year to May 31.
Unaudited figures show the November half-year had revenue of $105.45 million in 2008, ($89.15 million in 2007).
After deducting wages, materials, depreciation and other expenses, the earnings before taxation were $36.36 million ($28.49 million). Calculated on the $25.38 million profit, the earnings per share for the half-year were 86c (65c).
LIC said its balance sheet showed total equity of $182 million and an equity ratio of 71 per cent.
