Affco has announced a 57.9% drop in net profit to $25.37 million for the year to September 30 and is cancelling its final dividend because of uncertainty over the future.
Last season started well with farmers receiving reasonable prices for lambs after several years of dismal returns and Alliance Meats made an operating surplus of $42.1 million from a turnover of $1.5 billion in the same period.
But Silver Fern Farms would have only made a profit of less than $7m if it hadn’t received the one-off payment of $37m from PGG Wrightson in compensation for its failed merger bid.
Calls for changes to the meat industry died down last season when prices improved. This announcement from Affco, following SFF’s disappointing result and expectations of lower prices this season will reignite debate on where the industry should go and the best way to get it there.
Posted by homepaddock 
Homepaddock 