14 Oct 2010

Olam will do full review of struggling NZFSU

8:16 pm on 14 October 2010

The Singaporean food giant Olam International, which recently acquired 78% of New Zealand Farming Systems Uruguay, says it will undertake a full review of the struggling business.

NZ Farming Systems, which is trying to create dairy farms in Uruguay using New Zealand techniques, says milk production is down while costs are rising.

As a result, it says, earnings this year will be significantly below forecasts, and it won't become profitable until 2015, which is three years later than planned.

The managing director of Olam's coffee and dairy business, Vivek Verma, who takes up a seat on Farming Systems' board, says his first task is to review the business to determine what the problems are.