Drought hits PPCS results Two seasons of drought and the collapse of the sheepskin market have hit New Zealand lamb exporters hard. Major processor PPCS, trading in London as the New Zealand Lamb Co, reports pretax profit halved to less than £5m on turnover of about £280m for the year ended August 31. The margin squeeze was in part self inflicted as the producer cooperative paid over the odds for lambs to assist its farmer members, but this probably helped preserve the supply base. PPCS looks forward to a "normal" profit of £7-8m this year. However, it is too early to be sure another drought will not distort the seasonal pattern of supply to the UK, and again squash the co-op's earnings. {{MEAT }}