Johannesburg - Farmers in Mpumalanga could lose more than 32 000ha of land a result of unresolved land claims, according to listed agricultural products producer Crookes Brothers.

The claims were cited in the company's annual report for the year to March as one of the main risks it faced.

Managing director Dudley Crookes said it was unclear how much the claims would cost the company and other agricultural companies in the area as they had still not been finalised by the government.

He was, however, not anxious about the claims as there were constant discussions with the land claims commission in Mpumalanga.

"It is not a contentious issue but everyone is waiting to see how it is going to pan out," Crookes said.

The annual report also named the escalation of theft of assets, prolonged adverse weather and uncontrollable outbreaks of disease as risks.

Crookes said that in just three months R160 000 worth of irrigation equipment had been stolen from the company's Mpumalanga operations.

The company had spent R500 000 on security in the year but this had not been enough to protect the 3 000ha Mpumalanga farm.

Weather posed a bigger risk to the company as farmers had no control over this.

Crookes said that in the recent drought 60 percent of the crops had died.

The company's Mpumalanga and Swaziland operations were most affected by the drought because crops could not be irrigated.

These factors did not, however, affect the company's profit for the year to March to a great extent.

"In view of the drought conditions that prevailed in KwaZulu-Natal, Swaziland and Mpumalanga, these results are especially pleasing, particularly as water restrictions were imposed for a large part of the year," Crookes said in the annual report.

The company's headline earnings a share for the year rose slightly to R1.514 compared with R1.515 last year.

The company paid an interim dividend of 50c a share in January and a final dividend of 56c was paid last week.

Crookes Brothers shares were unchanged on Friday at R18.50. The food producers and processors sector fell 0.31 percent.