The country's largest farming corporation, Landcorp, says this summer's exceptionally dry weather is adding to its financial worries.
Photo: RNZ / Ian Telfer
The state-owned enterprise's profits plunged 43 percent in the six months to December, compared with the same period a year before.
Chief executive Steven Carden said a big drop in dairy prices last year was mainly to blame, but dry weather this year was hurting milk production, which had dropped the most in areas without irrigation.
"We've found the central North Island dairy farms have been relatively badly hit as have the West Coast farms, the Canterbury and Otago regions have been somewhat buffeted by the fact we have irrigation in those areas."
He said the corporation was reviewing its full-year operating profit forecast.