Landcorp has announced a half-year profit of $2.5 million to the end of December, but the drought has absolutely hammered its operations since then.
the State-owned farming enterprise said it was on track in December to make a profit of $6 - $8 million for the full year.
But the drought has taken its toll since then and Landcorp now says it is unlikely it will report a profit for the full year, and also unlikely it will pay a full year dividend.
Landcorp runs dairy, sheep, beef and deer properties across 375,000 hectares of land in New Zealand and has about 1.5 million animals on its farms.
Chief executive Chris Kelly said Landcorp will break even, at best and a dividend to the Government is unlikely this year.