Drought and the national oversupply of eggs continues to have a negative impact on Farm Pride Foods' revenue, with shares in the egg producer dropping to a three-year low after a bleak trading update.

Farm Pride told the market after Tuesday's close it expects factors placing significant pressure on trading conditions - namely dry weather and oversupply - not to let up any time soon.

The company said it expects its half-year earnings before interest, tax, depreciation and amortisation to be about $500,000 to $600,000 - down about 85 per cent from the $4.58 million reported for the corresponding period last year.

The company had already seen its net profit plunge 94 percent to $503,000 in the 2018 financial year, while total revenue dropped 11.9 percent to $86.12 million in the same period.

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