Record half-year for TasAg

By Phil Boeyen, ShareChat Business News Editor

Tuesday 13th February 2001

Tasman Agriculture (NZSE: TAS) has posted a record half-year profit, up by 77% to just under $4.9 million.

The company had sales of $22.2 million compared with $19.3 million for the previous year's six months to November.

The dairy farming company says the interim result is underpinned by a very favourable outlook for farm gate milk payouts.

It says increased milk solids production and New Zealand forecast farm gate payouts improved the core operating earnings before interest and tax to $8.51 million, compared with $5.45 million in the same period in 1999.

Milk solids production rose 2.7% to 7.75 million kilos despite having divested nine dairy units at the end of the previous milking season.

Tasmanian farm gate milk payouts also improved during the period.

The company says milk flows remain on track to achieve current season production targets it is confident that milk processing co-operatives, Kiwi and NZDG, will pay premiums above the NZDB base price to bring the year end farm gate payout to $4.80 to $4.90 per kilo of milk solids.

TasAg is also expecting another A$1.98 million from Australia under the Dairy Structural Adjustment Programme following the deregulation of the Australian liquid milk market.

It says that will bring the total anticipated receivable for Australian deregulation payments by TasAg to
A$4.93m.

More than $120 million in farm sales proceeds is due in June and the company says it is currently assessing future options.

"Capital efficiency will be a high priority and shareholders will be advised of any major decisions taken by the Board in this regard as they occur," the company says.

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