Waikato dairy exporter Open Country Cheese predicts it will double the amount of milk processed this season following a solid performance last year.
The company's latest annual report records a $1.87 million net surplus in the year to May as Open Country more than doubled revenue to $42.4 million.
The
surplus after tax of $780,000 compares to a deficit of just under $450,000 in the previous period - its first year of operation - when no tax was paid.
The 128 per cent jump in revenue compared to a 113 per cent rise in expenses to $39.5 million.
Performance had exceeded prospectus projections. Revenue had been higher than projected due to good cheese prices and increased sales.
The number of suppliers had grown from 26 last season to more than 100 in the current season.
Open Country expected more than 160 million litres of milk to be processed this season.
It was exporting cheese to over 20 countries and production was due to double to more than 18,000 tonnes.
Although demand for Open Country cheese remained firm there was some easing in prices.
In a reference to a decision not to appeal against the Commerce Commission's confirmation that Fonterra's capital profits from investments can affect the price it charges competitors for milk, Open Country said, "We are looking at alternative ways to protect the company's interests".
It was working to get access to export quota rights now held by Fonterra. The unwinding of Fonterra's rights is due to start next year and finish by 2010.
Former National Cabinet minister Wyatt Creech had ended involvement in day-to-day business development and will now confine himself to his director's role, the report said.
