10 Apr 2012

Landcorp positive about financial year ahead

6:32 am on 10 April 2012

The country's biggest farmer Landcorp says it expects to have a good year despite most commodity prices easing over the past few months.

Landcorp has announced a 31% increase in its half-year net operating profit, to $11 million.

That's been driven by high commodity prices, mainly due to increasing demand from China.

Prices for dairy, meat and wool, however, have been easing over the past few months, mainly due to ongoing economic troubles in the eurozone, as well as a drop off in expected economic growth in China.

Landcorp chairman Jim Sutton says a good financial performance in spite of that is the reason the outlook for the next six months remains positive.

"The way lamb has held its value well into the season in the face of pretty sad economic conditions in most of our market countries, that is very encouraging for the future," he says.

The state-owned company expects to pay the Government a dividend of $15 million for the 2012 season.