Sunny forecast for Blue Sky Meats

Friday 28th July 2000

Invercargill-based Blue Sky Meats' annual result to March reflects the final effects of the 1999 drought and the improved conditions for meat exporters this year.

Shareholders in the public unlisted company met in Invercargill yesterday where chairman Barry Thomas outlined "a very encouraging outlook for the future."

The excellent spring conditions and high bobby calf prices during 1999, combined with a reasonable sheep kill, had seen the plant working seven days a week for the first time. A year earlier, the drought has caused shifts to be closed early. The company was able to pay an additional $7 per lamb to farmers compared with the previous year.

Market growth in the US had been constrained after an imposed 40% tariff but prices have increased. The UK remains the biggest market but inroads are being made into Japan and China.

Blue Skies had turnover of $60.1 million in the year to March, a profit of $2.25 million after tax of $1.1 million. A final 10c a share dividend takes the total dividend for the year to 18c.

- Chris Hutching

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