An ''extremely difficult'' trading year for farmers is forecast to affect PGG Wrightson's final result for the year to June.
The company is forecasting earnings before interest, tax and depreciation to be in the range of $40 million to $48 million, compared with $55 million for the corresponding period last year.
The three main factors were climatic conditions across Australia and New Zealand, lower livestock values and lower earnings from Agri-feeds after its sale to the 4Seasons Feeds Ltd joint venture.
Livestock values had been in decline since the beginning of the financial year, first in sheep and more latterly in beef, deer and dairy, PGG Wrightson managing director George Gould said.
While volumes and market share remained solid, prices were back about 30% compared with last year and that had a material impact on group earnings.
''The business of PGG Wrightson reflects to a great degree the fortune of our farmer clients and this has been an extremely difficult trading year,'' Mr Gould said.
Climatic extremes in Australia with two record wet years followed by record-breaking high temperatures this year had frustrated the company's efforts to build earnings in Australia.
Consequently, the Australian seed business, while important to the group strategically, was not forecast to contribute significantly to group earnings this year.
Climatic conditions in New Zealand had also been a factor with the whole of the North Island and much of the South Island in one of the most extensive droughts on record.
The company is due to announce its results on Tuesday.
