Mark Leslie, chief executive of Pāmu Farming that's expected to flip back to profit in FY25. Photo: SUPPLIED/PĀMU FARMING (Kara Tait)
Pāmu is forecasting a record profit for the last financial year, as high prices for dairy and red meat help offset adverse weather events this year like drought and floods.
The state-owned farming enterprise, formerly Landcorp Farming, forecasted an after-tax profit of between $119 and $122 million in the year ended June 2025.
Pāmu, the country's largest pastoral farmer, managed about 360,000 hectares from Northland down to Southland across 112 dairy, sheep and deer farms as well as in horticulture and forestry.
The forecasts marked a significant turn-around from last year's balance sheet when it posted a loss after tax of $26m.
Chief executive Mark Leslie said the improved financial result was driven by the record milk price and strong livestock values.
"On the operational side, we are laser-focused on core farming activities and operational excellence initiatives," he said.
"Productivity gains through targeted pasture and livestock management have been key to the turnaround in performance.
"Market-driven conditions-such as high international demand supporting milk, beef, and lamb prices-have contributed to revenue outcomes, offsetting weather-related challenges such as drought in the Central North Island."
File photo. Photo: RNZ / Samuel Rillstone
Strong export demand for New Zealand beef had pushed up beef farmgate prices to above the five-year average, particularly from key market the United States, and lower domestic production.
Similarly, lamb prices had continued to rise, driven by continued strong demand in key markets and the reduced lamb slaughter volumes nationwide.
The announcement of forecast results on Thursday followed earlier reports of criticism around commercial performance and calls for the government to sell the state-owned enterprise.
Pāmu was expecting a net operating profit for the 2026 financial year of between $56m and $66m.
It said the wide range of the next forecast recognised the risks presented by material adverse weather events, volatility in commodity prices, currency and other markets and geopolitical tensions.
The company's full-year audited results will be posted in the last week of August.
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