Farming Systems Uruguay may have to sell land to raise cash

NZ Farming Systems Uruguay half year results: Revenue - $US8m up 6.8pc Loss -$US9.8m up 30pc New Zealand Farming Systems Uruguay has posted an after-tax loss of US$8.917 million ($17.80m) for the six months to December 31.

It said today that it will need more capital by June, and if it cannot borrow the money, it may sell some of its land.

The company - in which big rural servicing company PGG Wrightson has an 11 per cent stake - lost more in that six months than in the same period last year (US$6.808m) and in the full year to June 30 2008 (US$7.956m).

Its earnings before interest and tax (ebit) for the six months were US$9.5m.

NZFSU is facing a shortfall in budgeted cashflows, because of lower milk prices and production.

It has a plan to conserve cash by slowing development. A local funding programme raised US$16m during the first half of the year, but further funding will be required by June.

To read the full NZ Herald story click here

Posted: 20 Feb 2009

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