New Zealand Farming Systems Uruguay says it expects to make a profit this financial year - if it doesn't experience drought first.
The dairy farm developer's losses widened by a tenth to $US8.7 million in the year to the end of June, due to higher farm expenses.
But chief executive David Beca says he expects a vast improvement on the back of better pasture growth, rising milk production and milk prices averaging 37 US cents a litre.
Mr Beca says the return to profit could be better or worse, depending on the global demand for dairy products and the possibility of drought affecting milk production.
The firm's chairman, Vivek Verma, confirmed it will raise about $US115-120 million from investors to fund new capital expenditure and repay a loan, though he says the structure and timing of that is yet to be decided.
Farming Systems is 83%-owned by Singapore food group Olam International.