Landcorp, the country's biggest farming company, said its operating profit fell 36 per cent and was forecast to halve in the current year with prices expected to be generally lower.
The state-owned farmer said its operating profit fell to $27 million in the 12 months ended June 30, from a record $42 million on the same basis a year earlier. Sales fell 4 per cent to $210.5 million.
The decline in operating profit mainly reflected the impact of "significant reductions" in prices for milk and timber in a year when sales fell even as the volumes produced rose.
The company will pay the Government a dividend of $20 million, down from $27.5 million in the previous year.
Landcorp said net operating profit for 2013 would be about $13 million, based on current product prices.