Farming Systems Uruguay Ltd said an underlying positive trend is expected to continue in milk prices as economies in key international dairy markets improve.The company said the average milk price received by the company in December 2009 was US29c per lit
Farming Systems Uruguay Ltd said an underlying positive trend is expected to continue in milk prices as economies in key international dairy markets improve.
The company said the average milk price received by the company in December 2009 was US29c per litre, up from US27c in November and US24c in October. The company's financial forecasts reflect an average milk price of US25c per litre for the 2009/10 season.
"The price outlook for the balance of the year remains somewhat uncertain, with ongoing volatility in prices struck by the Fonterra online auction system.
"However, an underlying positive trend is expected to continue in milk prices as economies in key international dairy markets improve."
The company produced 42.1 million litres of milk in the six months to December 31, an increase of 70 percent over 24.6 million litres in the December 2008.
The company has described its 2009 financial year as difficult, with falling dairy prices, the international credit crunch and a one in 30 year drought hard on the heels of previously difficult climatic conditions, all affecting its operations.
The increased production reported today reflected a production curve consistent with the growth of farming operations.
Weather conditions remained favourable, with regular rainfall during this summer to date, the company said today.
At a forecast production level of 80-85 million litres for the 2010 financial year, the company is projecting loss at the earnings before interest and taxation level.
