ML Macadamia Orchards LP, the state's largest nut grower, swung to a $25,000 loss in the first quarter due to lower production in the typically weak period.

The Hilo-based partnership had a profit of $432,000, or 9 cents per class A unit, a year ago due to higher production, slightly higher nut prices and a $330,000 settlement of legal claims against Hamakua Macadamia Nut Co. In the just-concluded quarter, the earnings per class A unit were flat.

ML Macadamia said it produced 1.6 million pounds of macadamia nuts-in-shell in the quarter compared with 2.4 million pounds in the year-earlier quarter.

The partnership said all its production this year will be sold to Mauna Loa Macadamia Nut Corp. at an average contract price of 73 cents per pound, up from an average contract price of 67 cents per pound under various contracts in 2009. During the first quarter of 2009, all production was sold to Mauna Loa at an average price of 76 cents.

ML Macadamia said the majority of its results will be determined by the third- and fourth-quarter harvest levels, but warned that lower-than-normal rainfall in the Kau region could have an adverse effect on this year's production levels.

Revenue fell 21 percent to $2.3 million last quarter from $3 million. Nut sales fell 38.9 percent to $1.2 million from $1.9 million while contract farming revenue edged up 11.7 percent to $1.2 million from $1 million.