New Zealand Farming Systems Uruguay says it is confident of meeting budgets this year after reporting a bigger-than expected loss to June.
The farm developer lost $US7.6 million in the year to June, a drop of 13% compared with the previous year.
Revenue rose by half, to $43 million due to milk production increasing by half to 152 million litres.
In February the company said it expected to break even, but in a market update in June it revised that to a $3 - $5 million loss.
The pace of expected growth has been curbed by dry weather conditions, pushing feed costs up, which resulted in gross earnings losses of $5.9 million.
Chief executive David Beca has declined to give a new profit forecast but says it will be mainly driven by the milk price.
The company's projects for the year include further irrigation and completion of several dairy units, which should help it meet budgets.
But the company is due to repay $110 million in loans by the end of the year, and it's currently considering a pro rata right issue of up to $135 million from shareholders.
The farm developer is 85% owned by Singapore's food group Olam International.
