New Zealand Farming Systems Uruguay has obtained a tax concession from the Uruguay government worth up to $35 million.
Chairman John Parker says the concession aims to encourage investment in economic growth and employment in Uruguay.
It recognises the company's investment in developing dairy farms and infrastructure like milking sheds, roading, electricity and irrigation.
NZFS says the concession will be worth $US20 - $US25 million and will be available to offset its tax liability when it becomes profitable, which it expects will be in the 2011-12 financial year.
Farming Systems is subject to a $110 million takeover offer by its major shareholder, Olam International of Signapore, which says the dairy farm development company has been badly run, but it has the money to fix it.
Shares in Farming Systems Uruguay rose 1 cent to 57 cents on Friday morning.
