Photo: Kara Tait Photography
State owned farming company Pāmu has posted a smaller half-year profit due to lower commodity prices and on-going costs from adverse weather events.
For the six months to December the company, also known as Landcorp, made a net operating profit of $3 million - that compares to $15m in the comparable half-year.
Chief executive Mark Leslie said challenges posed by a sharp reversal in global dairy prices, plummeting lamb prices, and adverse weather events impacted profitability.
"Sustained damage from last summer's cyclones continues to impact our bottom line as we reinstate infrastructure and work to re-grass lost pasture, repair or replace damaged fences, clear slips, and maintain farm tracks."
But due to rising dairy prices, Pāmu has improved its full-year profit forecast to between $9m and $19m compared to its original forecast of between $1m and $10m.
"The change to forecast is largely a result of the positive uplift in the global dairy trade index and gains from our wider forestry business.
"It assumes that there will be no further deterioration in the exchange rate and that livestock prices hold through the season."
Leslie said Pāmu continues to have a big emphasis on innovation, sustainability, and being a safe, responsible employer.
He said the big milestone of removing 440 quadbikes off Pāmu farms was completed in December.
"This was achieved in the same month as media reports of several fatalities involving quads, highlighting the risk of using these vehicles for farm tasks and corroborating our decision to exit them from the business.
"While not without some costs, removing quads from a peak of 440 nationwide is a major milestone in our health and safety journey."
