Pāmu reports half-year net profit of $62 million

Pāmu chief executive Mark Leslie said it was good to share some positive results. Photo / Kara Tait Photography

By Gianina Schwanecke of RNZ

After a run of losses, state-owned enterprise Pāmu has had a turnaround, reporting a half-year net profit of $62 million.

Pāmu - formerly Landcorp - the country’s largest pastoral farmer managing about 360,000ha across 112 farms, puts the earnings down to improved market conditions and better operating performance.

It reported a $26m loss in 2024, which it attributed to falling livestock prices, high interest rates, and the ongoing costs from Cyclone Gabrielle, as well as a $9m loss in 2023.

Chief executive Mark Leslie said it was good to be able to present some positive results which includes a forecast uplift in its full-year net operating profit.

“Pāmu has forecast an uplift in full-year net operating profit of between $43m and $51m.

“This compares to our forecast in November 2024 of between $25m and $40m.

“As a business, Pāmu has had a reset to drive performance, and we are starting to see the fruits of this labour.

“Our continued focus on performance, alongside reducing overhead costs, a gain in livestock volume and valuations, and stronger-than-expected market prices for dairy, beef, and lamb, contributed to this positive result.”

The results are for the half-year to December 2024.

Pāmu saw a 2% increase in kilograms of milk solids produced, with a 3% increase in the six-week in-calf rate and a 10% increase in kg of carcass weight produced.

The number of dairy beef calves being reared had also increased, from 49% in 2023 to 56% in 2024 and 63% in 2025.

Leslie expected this would help set them up for the next year as well.

He said the improved outlook had allowed Pāmu to invest in other parts of its portfolio - such as forestry and horticulture - as well as the industry, through initiatives such as an apprenticeship scheme which started this year.

“We have focused on investments that support Government aspirations and support the broader New Zealand primary sector, such as our feed conversion and methane testing facility at St Kilda in Taupō; scalable integrated dairy beef farm systems to increase efficiency and profitability for New Zealand farmers; and developing talent and pathways into farm ownership.”

The profit comes not long after calls from the Act Party to sell off parts of the state-owned enterprise’s farms - claiming it is taking taxpayers for a ride by losing money.

This follows Prime Minister Christopher Luxon hinting that National will campaign on asset sales in next year’s general election, saying a win in 2026 would be the mandate he needed to push ahead with the move.

Act’s agriculture spokesman Mark Cameron told RNZ that selling Pāmu was a “no brainer”.

“I think it’s high time that everyday New Zealanders have a say on the $2.2 billion of assets locked up in Pāmu Farms that might be better run by private citizens.”

Asked about this, Leslie said it was ultimately a decision for the owner and it was about controlling what he could control.

He added there were complexities about a possible sale such as the number of lease-blocks, connections to future Treaty settlements, and the cost of some of the properties.

“Our ultimate goal is to increase total shareholder return through a cash dividend and equity growth while playing a role in lifting the overall performance of New Zealand agribusiness as a significant contributor to the national economy.”

- RNZ