File pic Photo: RNZ / Nate McKinnon
State-owned farming company Pāmu has recorded a full-year loss of $26 million due to falling livestock prices, high interest rates and the ongoing costs related to Cyclone Gabrielle.
The company, formerly known as Landcorp Farming, manages 112 dairy, deer and sheep farms across more than 360,000 hectares of farmland nationwide.
The loss for the 12 months to the end of June compared to a $9m loss the year before.
Revenue dropped 2.8 percent to $282m - with livestock revenue down $4m on the prior year to $103m, reflecting softer livestock pricing.
That's while it faced an extra $3m in interest costs on last year.
Despite a 3 percent increase in milk solids, milk revenue remained flat at $120m due to the lower farm gate milk price.
It's not clear how the result will sit with the government, with State-Owned Enterprises Minister Paul Goldsmith telling RNZ earlier this year it wasn't impressed with the company's performance.
But he said at that stage, there were no plans to sell Pāmu under the coalition agreements.
One shining light for the company was that earnings from carbon credits lifted from $14m in 2023 to $38m in the year to June - due to a combination of a higher volume of credits being allocated and increased gains on sale of credits.
Pāmu chief executive officer Mark Leslie said despite a stronger on-farm performance this year, like other Kiwi farmers, the business had to contend with softening sheep and cattle prices, high interest costs, and the decrease in valuation of farms and buildings, all of which affected profitability.
"As we look towards the future, our commitment to delivering value to New Zealand remains resolute," he said.
"Ours is not just an opportunity for Pāmu, but for New Zealand Inc. Pāmu has the potential to play a crucial role in doubling the value of New Zealand exports over the next decade."