Favourable weather and buoyant prices contributed to the result, up from $3.2m in the same period in 2010.
The state farmer’s dairy revenue was up 2.5% to $53m on 5% growth of milk production.
But chairman Jim Sutton says the outlook is clouded by uncertainties in the global economy and demand for commodities, including milk, meat and wool.
“New Zealand’s agricultural production has particular exposure to consumer demand levels in Europe, where issues of debt and financial stability have yet to be resolved.”
Current conditions give a sound basis for the company to prepare for uncertainties, Sutton says. “We will continue to look past year-to-year fluctuations in climatic conditions, product pricing and exchange rates. We will own, manage, invest and produce with a medium and longer term view.”
In the reported half year Landcorp’s farm product revenues increased 14% to $104 million compared with the same period in 2010.
Livestock revenues were up 27% and meat prices were at historically strong levels, the company says. Dairy herds entered the season in excellent condition and grass growth remained favorable in most regions.
Total expenses for the half year rose to $87m (2010-11: $80.5m). Cost pressures remain high, particularly on fertiliser, fuel and other basic inputs.
