State owned national farm company, Landcorp registered decline in its net operating profit in the midst of challenging times for the New Zealand's agriculture sector. The company's net operating profit stood at $6.9 million by June against $11 million in the financial year 2007-08.

The recently released company's 2009 annual report indicates rise in operating income to $174. The report states, "The decline reflected a sharp fall in the annual payout to dairy producers New Zealand-wide, high costs on some production inputs, the continuing impact of severe drought in the previous year and a slowdown in the section sales of property development subsidiary Landcorp Estates."

The report maintained that agriculture is undergoing tough times due to challenges posed by global financial crisis and subsequently decline in demand of Agri-products. However, SOE pledged to continue its work toward its vision-"to become, quite simply, the world's best agribusiness."

The company has already implemented diversification in the agriculture sector specially focusing on dairy and deer farms. Dairy contributed 34 per cent of total revenue of farm operations in 2008-09 and it has become principal occupational activity at 38 farms of Landcorp.