Dairy Brands predicts big profit hike

By Phil Boeyen, ShareChat Business News Editor

Friday 6th October 2000

Dairy Brands is forecasting an improved profit of $1.5 million for the current financial year and has announced plans to sell two of its 14 dairy farms.

Dairy Brands chairman, Peter Jensen, says the company will sell its Murrayfields farm in North Canterbury and Pukeuri in North Otago, and will reinvest the proceeds in its remaining 12 farms.

"We plan to improve profitability by continuing to invest in our properties to allow optimum performance. Dairy Brands will continue to investigate further land investment opportunities that are consistent with our consolidation strategy."

Mr Jensen says the company is forecasting a profit of around $1.5 million for the 2000/2001 financial year, compared with $119,000 to the end of May. He says the improved profit will follow the full implementation of new farm management systems including production monitoring, feed planning, the management of supplementary feed, and on-farm supervision.

"Over the last three years, three farms have been successfully converted to company-managed operations. The conversion programme will ensure that Dairy Brands captures the revenue from production, increasing our return on investment and profitability".

"The sale of the Murrayfields and Pukeuri farms is consistent with Dairy Brand's policy over the last few years of developing its role as a farmer and not just a property owner through the conversion of its farms from 50/50 sharemilking contracts to company-owned and managed operations".

Mr Jensen says Dairy Brands' vision is to be an efficient large-scale farmer, running a profitable and sustainable farming business.

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