Photo: 123rf
Increased farmer confidence and spending has seen the country's largest rural supply store, Farmlands, back in black.
In its annual results released last week, Farmlands reported a profit after tax of $2.8 million for 2025.
It comes after the co-operative reported a loss of $9.3m last year, with revenue down $68m.
Farmlands chief executive Tanya Houghton said it was an exciting development, driven by a number of factors.
"I'm very cognisant of the fact we are coming into a period of stronger commodity prices which means that in general the rural sector has more confidence than it had in 2023 and 2024 so that obviously plays an element.
"I think more importantly it is a reflection of the result we're seeing from a really focused effort on delivering our strategy."
She said it was a sign that strategic changes made were paying off.
"Getting back to profit is a major milestone for us. Our stronger balance sheet means we can continue making smart investments in the areas that are most important to farmers and growers; while continuing to drive down their input costs and building the resilience we need to handle whatever volatility may come our way."
Houghton said having its own manufacturing sites and an integrated supply chain would enable farmers and growers to better manage running costs.
She said strategic investment had helped deliver this year's strong financial result.
Last year, Farmlands purchased animal feed company SealesWinslow from Ballance Agri-Nutrients. Since then, production volumes have increased 20 percent.
"Farmlands now has direct ownership of a national manufacturing footprint in its animal nutrition business. This gives the co-operative greater control over product specifications and quality, and ensures a steady, reliable supply for our members, many of whom are also selling their products to us to be used in our nutrition lines," Houghton said.
Energy was another area it had invested in through joint ventures Fern Energy and Farmland Flex - the largest purchaser of solar and batteries for commercial and industrial use in New Zealand.
"Our energy strategy gives farmers and growers new solutions for one of rural New Zealand's highest costs - energy. They are an exciting development, and the numbers stack up. It's all about putting the control back into the hands of our farmers and growers and putting more money back into their pockets too."
Houghton said the focus was now on building on this year's momentum and delivering a "consistent performance year after year".
Farmlands will not be paying a distribution to shareholders this year.
Key numbers:
- $2.55b in turnover
- $847.3m in revenue
- $33.5m in operating EBITDA
- $2.8m net profit after tax
- $26.1m in operating cashflow
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