Agriculture boom drives 'fantastic' result for NZ's largest farmer, Pāmu
Strong farm performance aided by high commodity prices have lifted the balance sheet for state-owned Pāmu Farming.
New Zealand's largest farmer, Pāmu, has reported a significant financial improvement in its latest results. The state-owned farming enterprise, formerly known as Landcorp, recorded an after-tax profit of $160 million in the 2025/2026 financial year, a third increase from the previous year's $120 million. This comes after years of financial losses due to falling livestock prices and the aftermath of Cyclone Gabrielle.
Pāmu, which manages 112 farms across New Zealand, has seen strong performance across various sectors, including dairy, beef, sheep, deer, forestry, and horticulture. The company's milk production rose by 1.8 million kilograms of milk solids to 15.8 million kg, while its livestock production increased to 22 million kg of products like wool and velvet.
Stronger commodity prices, particularly in milk, have played a key role in this performance. Pāmu has also expanded its beef-on-dairy supply, rearing 72 percent of all dairy calves born, up from 65.5 percent the previous year. The company has implemented farm environment plans across all its farms, aiming to guide investments and secure pricing premiums.
However, Pāmu's CEO, Mark Leslie, cautions that agriculture remains a volatile business, with commodity prices, input costs, climate events, and global uncertainty potentially impacting future results. Despite this, Pāmu is well-positioned to pursue commercial partnership opportunities and invest in operational excellence.
The company's net debt has reduced by $36 million, providing greater flexibility for future investments. Pāmu is expected to deliver its strongest operating result on record, with net operating profit at $113 million, up 131 percent from $49 million in FY25. This trend is forecasted to continue, with net operating profit projected to increase to between $77-87 million for FY27.
State Owned Enterprises Minister Simeon Brown praised Pāmu's turnaround, noting the improved profitability, lower debt, stronger productivity, and increased returns to shareholders. The minister believes these factors indicate significant positive change for the business. Pāmu's dividends of $25 million will be paid during FY26, with an additional $15 million expected in early FY27.
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