AgResearch  has reported a net loss of more than $8m for the past year.

The Crown Research Institute returned a before tax surplus of $2m, but that dipped below even when new depreciation rules were factored in.

AgResearch Chairman Sam Robinson says the deficit is due also to the slower than expected start to the Government’s primary growth partnership funding programme.

“We took about a $10m hit in the one-off depreciation changes that were put in the Budget – the National Budget – in 2010. Almost any business that has got assets that are tied up which do depreciate have been caught up in that tax change. So we’re looking through that, it hasn’t got cash implications, it’s an accounting charge, the net after tax on a cash basis was $2m.”

Mr Robinson says the focus for the coming year will be reversing the trend.

“We’re focused very much on maintaining a viable financial business and the $2m tax paid is just not adequate if you look at the funds that are invested by the Crown.

"We accept that, we’ve got a higher target for this year and we’re determined that we’re going to meet that target. This year’s result still will not be satisfactory but at least we’re on a pathway to recovery.”

Forestry research institute Scion suffered the same fate. It’s pre-tax profit of $3m became a $1m deficit after the depreciation tax adjustment.