Record high milk product prices helped lift revenue at state-owned enterprise Landcorp to $76.8 million for the half year to the end of December.
Revenue from milk rose to $39.5m in the six month period, from $21.6m in the corresponding period a year earlier when total revenue was$60m.
The company said it considered operating profit before tax to be the most meaningful measure of its profit under new international accounting standards. That figure was $9m for the latest year, up from a loss of $5m a year earlier.
The increase was due mainly to increased dairy income due to higher milk solid prices, and to the timing of profits in property development subsidiary Landcorp Estates.
Along with the high milk product prices, relatively stable international beef prices and a recovery in venison prices had largely offset relatively depressed returns for lamb and wool, and continuing effects of the high New Zealand dollar, Landcorp said.
Farm costs were under significant inflationary pressures, most notably from rising fuel and fertiliser costs. The effects of that were expected to become increasingly apparent during the second half.
