Pāmu full-year results for the year ended 30 June 2024

Pāmu has reported a Net Operating Profit (NOP) of $20 million for the year ended 30 June 2024 compared to $33 million in the prior year. 

Pāmu Chief Executive Officer Mark Leslie said: “As we look towards the future, our commitment to delivering value to New Zealand remains resolute. Ours is not just an opportunity for Pāmu, but for New Zealand Inc. Pāmu has the potential to play a crucial role in doubling the value of New Zealand exports over the next decade.

“Pāmu is focused first on commercial sustainability. Despite a stronger on-farm performance this year, like other Kiwi farmers, we have had to contend with softening sheep and cattle prices, high interest costs, and the decrease in valuation of farms and buildings, all of which impact profitability.”

Pāmu productivity is up on last year in the below key areas:

• Dairy six-week in-calf rate up 3% from 65% in FY2023 to 68% in FY2024
• Total milk production up 3.6% 13.7 m kg MS in FY2023 to 14.2 m kg MS in FY2024 
• Lambing percentage up 1.5%, 131% in FY2023 to 132.4% in FY2024 
• Total kg product (red meat) up 4% 17.2m kg in FY2023 to 17.9m kg in FY2024 
• Operating expenses were down 2% from $232 million in FY2023 to $227 million in FY2024 despite inflation 

Last year’s results were boosted by a $20 million gain on milk futures, whereas this year, there was a $1 million loss. This was a significant contributing factor to Pāmu recording a net loss after tax of $26 million compared with a loss of $9 million in the prior year.

During the year Pāmu reviewed the value of its farm portfolio, and this resulted in a reduction of $141 million in property values, of which $4 million was recorded within the net loss after tax (FY2023 nil). 

The fair value loss of $9 million on livestock value (2023 $22 million loss) largely reflected a continued fall in values for sheep and the fair value of forestry assets which declined by $6 million. Net finance expenses were $26 million ($3 million up on 2023) reflecting higher interest costs this year. 

Over the year Pāmu acquired a controlling interest in FarmIQ Limited, raising its equity ownership from 56% to 69%. FarmIQ’s results are now consolidated with Pāmu results. 

“Farmers and growers can benefit hugely from digital technologies and from data availability for better decision-making on-farm, regulatory compliance with the likes of greenhouse gas reporting, and providing information consumers are seeking on the food they consume. Our strategic investment in FarmIQ is about enhancing our principal objective of operating a successful and profitable business.

Performance objectives are carefully balanced with our purpose. In line with our purpose over the past year, Pāmu has: 

• Enriched our land reaching over 10,000 hectares of important native habitat protected in perpetuity with QEII covenants. 
• Enriched our people with best practice programmes and systems to ensure safe behaviour is embedded in everything we do, demonstrated by removing the last company quadbikes from our farms. 
• Enriched the future of food and fibre for Aotearoa with a Sustainable Progress Initiative in partnership with ASB that includes the new Pāmu Apprenticeship Scheme to grow a new generation of farmers, a Methane Reduction Through Genetics programme, and a discounted subscription rate for FarmIQ and FARMAX for Kiwi farmers for a limited period.  

“Our ownership model, scale, and capability put us in the unique position of being able to address some of the big issues facing the primary sector such as the viability of dairy-beef and methane reduction, which we continue to progress through genetics and new measuring facilities,” Mr Leslie said.

Future forecast

“As contained in our Statement of Corporate Intent Net Operating Profit in FY2025 is forecast to decline by $12 million to $8 million in FY2025.  For the FY2023-2026 period, this would deliver a cumulative Net Operating Profit of $106 million vs. the business plan goal of $100 million,” Mr Leslie concluded. 

Ends 

*Net Operating Profit is the principal measure of performance for Pāmu Landcorp Farming Limited. 

Further details of Landcorp Farming Limited's full-year results can be found on the Treasury’s website.

Media contact: Kara Tait 021 240 7827

Pāmu Open Farm Days announced, media welcome - As part of our commitment to the wider New Zealand agricultural community, Pāmu is opening its farm gates and sharing what we do with industry, farmers and other stakeholders. Media are welcome to attend.