Affco profit helped by good lamb-growing weather

By LIAM DANN

Listed meat processor Affco says it is back on track to match last year's half-year profit of $10.8 millon.

In December the company gave a warning that tougher trading conditions were likely to cause profits to fall when compared with the same period last year.

At that time North Island meat processors were struggling as poor spring conditions and low lamb numbers combined with increased killing capacity to squeeze their margins.

Yesterday chairman Sam Lewis said trading conditions had improved during the second quarter of the year.

Stronger trading meant the profit for the half year to March 31 would not materially alter from last season, he said.

Lewis was reluctant to elaborate on the details of the improvement before the release of the half-year result next month.

It is likely that good late summer and autumn lamb growth has boosted the number of lambs being processed.

Last month rival meat company Richmond said its processing plants were coming under pressure because of good lamb growing conditions.