Three Acre Farms incur losses from high production costs

The Three Acre Farms PLC Group recorded a 30% net loss of Rs.145 million for the nine months ended 30 September 2009 after breeder farms continued to suffer losses due to the high cost of production and the poor demand in the market for day-old-chicks.

This is in comparison to a net loss of Rs.111 million during the corresponding period in 2008. According to the company’s interim financial statements, the management has taken necessary steps to curtail production by early culling the parent birds in order to minimize the losses. With seasonal demand expectations in the next quarter, the management believes that the losses would be minimized.

The company’s income statement shows that Group revenue declined by 7% for the period under review to Rs.629 million from Rs.675 million last year. The Group’s operating losses totalled Rs.63 million, a 17% increase from last year’s losses of Rs.54 million.