PPCS suffers tough times

The country's biggest meat company, Otago-based PPCS, is likely to follow rival Affco's warning last week of lower profits.

PPCS completed its fiscal half-year on Friday and its publicly released report late this month or early next month might not make pretty reading.

"It will be in the public arena and you will get your answer then," chairman Reece Hart said.

He admitted times were tough in the industry. Listed meat processor Affco last week issued a profit alert citing lower prices, currency concerns and the weather. "If you study what's happened in the industry with other companies, it's been a poor six months for the industry," he said.

Chief executive Stewart Barnett said "trading conditions for the first six months have been difficult with the higher dollar".

He would not comment on whether the company would announce a loss for the first half of this financial year.

The company had not found any nasty surprises within Richmond, which was trading to expectations in line with other North Island processors, he said.

PPCS completed the $140 million takeover of Hawkes Bay-based Richmond in 2004.

Formed in 1947, Primary Producers Co-operative Society, started marketing meat for farmers disillusioned with existing companies.

- NZPA