NZ Farming Systems Uruguay reported a full-year operating loss of $US15.6 million ($NZ23.1 million), as the company was hit by drought and falling dairy prices.
The result for the 12 months to the end of June compared with an operating loss of $US8.8 million in the previous corresponding period.
Chairman Keith Smith said it was a difficult year with failing dairy prices, an international credit crunch and a 30-year drought hard on the heels of previously difficult climatic conditions.
Revenue doubled to $US15.8 million from $US7.8 million, as milk volume more than tripled to 44.6 million litres from 13.4 million litres the previous year.
Milk revenue doubled to $US10 million.
The company, which has 18 farms in Uruguay, reported a net loss after tax of $US45.9 million from a loss of $US8 million a year earlier.
That result included livestock writedowns of $US20.2 million and a modest writedown in land values.
Total fair value adjustments were $23.9 million.
While uncertainty remained over milk prices, expectations were for gradual improvement during the coming year, Mr Smith said.
It was likely the next year would continue to be difficult, although global supply should continue to fall through cow culling and farm closures around the globe.
Eventually that should lead to a supply and demand situation similar to that of two years ago, he said.
