Pāmu’s record FY26 result supports its Crown farming role
Pāmu, formally Landcorp Farming Ltd, said its net operating profit reached a record level in FY26. The measure excludes changes in land and livestock valuations, which can fluctuate, and rose by $64m from the previous year. Return on equity increased by 9%, while debt fell by $36m.
The company reported gains across its dairy and livestock businesses. Over three years, revenue grew by $158m, including a $91m increase in the latest financial year. Milk output increased by 2.1m kg of milksolids, and livestock production rose by 2.2m kg. Dairy production costs were 4% lower year on year, while livestock operating expenses declined steadily.
Mark Leslie, Pāmu’s chief executive, attributed the performance to changes in farm operations and in the organisation of the business. Separate dairy and beef activities have been brought together in regional clusters. The company now raises 72% of its calves internally instead of buying external weaners.
Of the calves raised internally, 22% are kept as replacement dairy heifers and 50% are developed as beef-on-dairy calves. Pāmu said it intends to increase the volume of crossbred beef production. The approach forms part of a wider effort to integrate its pastoral dairy and livestock portfolios.
The company has also reduced activities outside its main farming operations following a government letter of expectations calling for a tighter core focus. Pāmu is winding down Pāmu Foods, while an integrated organic farming unit has been established with Fonterra. It has partnered with Livestock Improvement Corporation on commercial genetics and secured an equity investment from China’s Sharejoy Group in Spring Sheep, in which Pāmu holds a majority stake. The investment is intended to support Spring Sheep’s senior-nutrition business.
Pāmu plans to end its lease of Molesworth Station and transfer related responsibilities to Ngāi Tahu Farming. The company said the change was expected to have minimal effect on core profitability. For FY27, it projected a normalised net operating profit of between $77m and $87m. Its stated market considerations included possible El Niño conditions, geopolitical tensions and sensitivity to export prices in North America and Asia.
