Pamu’s full-year loss is $26 million

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photo: RNZ/Nate McKinnon

State-owned agricultural company Pāmu posted a full-year loss of $26 million due to falling livestock prices, high interest rates and ongoing costs from Hurricane Gabriel.

Formerly Landcorp Farming, the company manages 112 dairy, deer and sheep farms across more than 360,000 hectares of farmland nationwide.

The loss for the 12 months to the end of June was Loss of $9 million the previous year.

Revenues fell 2.8% to $282 million – including a $4 million drop in livestock revenues from the prior year to $103 million, reflecting softer livestock prices.

Meanwhile, the company faced an additional $3 million in interest costs last year.

Despite a 3 percent increase in milk solids, milk revenue remained steady at $120 million due to lower farmgate milk prices.

It is unclear how the government will view the outcome, with State-Owned Enterprises Minister Paul Goldsmith telling RNZ earlier this year that Dissatisfied with the company’s performance.

But he said there were no plans to sell Pāmu under the alliance agreement.

A bright spot for the company was that revenue from carbon credits increased to $38 million in the year to June from $14 million in 2023, thanks to a higher number of credits allocated and higher revenue from selling them.

Pāmu chief executive Mark Leslie said despite a strong farm performance this year, like other New Zealand farmers the company had had to deal with weaker sheep and cattle prices, high interest costs and falling valuations of farms and buildings, all of which had impacted profitability.

“Looking forward, our commitment to delivering value to New Zealand remains strong,” he said.

“Our opportunity is not only an opportunity for Pāmu but for New Zealand companies as well. Pāmu has the potential to play a key role in doubling New Zealand’s exports over the next decade.”