Pāmu (Landcorp Farming Limited) has announced an updated forecast net operating profit (NOP) for the financial year ending the 30th of June 2026.
Chief Executive Mark Leslie said the revised forecast reflected strong market conditions and operational improvements.
The company is forecasting an uplift of between NZD 80 million and NZD 90 million, up from the August 2025 forecast of between NZD 69 million and NZD 79 million, and well above its target of NZD 61.3 million in its FY26-FY28 Statement of Corporate Intent.
“As a State-Owned Enterprise, Pāmu is proud to build on its legacy with a sharper focus on commercial strength. The change to forecast NOP reflects increased milk production, currently exceeding budget by 7.5 percent season to date or 470,000 KgMS, and increased revenue due to higher forecast red meat prices on 21.9 million kg of livestock carcass weight,” said Leslie.
“Targeted pasture and livestock management initiatives are driving productivity gains. Increased milk production reflects improvements in six-week in-calf rates achieved over recent years, and doing the basics well. Performance is also being boosted with a higher proportion of dairy calves being reared over recent years, with 72.2 percent in FY26 compared to 65.5percent in FY25.”
Strong demand for beef from the US market has driven prices to around 40 percent above the original forecast, and these conditions are expected to persist for the remainder of the season.
Lamb prices are forecast to stay elevated relative to historical averages. Mutton and venison prices are less exposed to the US market, and although firms are not experiencing the same increase as beef.
The Pāmu milk price risk hedging programme will partially offset the lower Fonterra forecast milk price midpoint of NZD 9.50 per KgMS after declining results from recent Global Dairy Trade auctions.
Early horticulture performance is also strong, with the avocado harvest finished and yields up 60 percent on budget. Blueberries' yield is also up on budget by 55 percent.
The company's strategic move into horticulture aims to leverage its land to create higher-value production systems and increase its land's value. This diversification was not only a response to market volatility in the dairy and meat sectors but also an opportunity to tap into growing consumer demand.
By integrating horticultural initiatives, Pāmu aims to optimise land use and help with long-term financial sustainability.
“Smart decisions on-farm and robust global markets are supporting us in accelerating performance, even when recent weather conditions have tested us.”
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