Pāmu (Landcorp Farming Limited) today announced an updated forecast net operating profit (NOP) for the financial year ending 30 June 2026. The company is forecasting an uplift to between $80 million and $90 million, up from the August 2025 forecast of between $69 million and $79 million and well above its target of $61.3 million contained in its FY26-FY28 Statement of Corporate Intent.
Chief Executive Mark Leslie says the revised forecast reflects strong market conditions and operational improvements: “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% 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.
“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% in FY26 compared to 65.5% in FY25,” he said.
Strong demand for beef from the US market has driven prices around 40% higher than the original forecast and these conditions are expected to remain 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 firm 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 $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% on budget. Blueberries yield is also up on budget by 55%. The company's strategic move into horticulture aims to leverage its land to create higher-value production systems and increase the value of the land. 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 accelerate performance, even when recent weather conditions have tested us,” he concluded.
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