15 Aug 2008

NZ farm group intends to expand in Uruguay

6:04 am on 15 August 2008

New Zealand Farming Systems Uruguay plans to raise more capital to further expand in South America.

The farm development group made a net loss of $7.9 million after paying a performance fee for the year to the end of June.

PGG Wrightson set up the company to manage dairy farms in South America, and received a $US13.6 million performance fee.

That fee is based on the shareprice, which rose to $1.74 in June, from its listing price of $1 in December.

The company imports New Zealand agriculture techniques in Uruguay, and spent $US84 million buying farmland there, bringing its total landholding to 36,300 hectares.

Chief financial officer Andrew Clark says the company is now in its second year and plans to raise more capital. It is still converting farms to New Zealand systems.

He says the company plans to buy more land.