Positive signals but challenges remain
PGG Wrightson (PGW) chief executive Stephen Guerin says that while there are positive signals within the market, there are also challenges.
In another sign of improving agribusiness sentiment, two listed companies have lifted their forecast earnings for the year.
Fruit grower and trader Seeka expects forecast full year earnings guidance at a profit before tax level of between $21 million and $25m. The forecast range compares to a loss of $21m last year.
Rural trader PGG Wrightson is forecasting earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $51m for year ending June 2025, compared to $44m last year.
The company says that while sheep farmers are facing challenging market conditions with soft returns, there are however some positive indicators suggesting the start of a turnaround, including good quality yields in the horticulture sector.
Seeka, a major player in the hort sector, attributes its improved forecast to a clear strategy, excellent fruit quality and performance, efficiencies and margins across the business. The turnaround has prompted Seeka to declare a dividend of 10c/share to be paid on January 25, 2025.
Seeka chief executive Michael Franks notes that a full year dividend is normally paid in April.
This year the full year dividend has been varied to provide a quicker restoration of dividends and provide an earlier return on investment to Seeka's shareholders, he says.
Franks says the company has achieved a good year.
Over at PGW, chair Garry Moore notes that the rural servicing market in New Zealand remains relatively challenged.
"Geopolitical tensions are contributing to cautiousness in the market and a slower than expected recovery in New Zealand's key export market. China continues to dampen commodity prices," he adds.
Sheep farmers are facing challenging market conditions with soft returns. Flock numbers are estimated to have reduced by 4.3%, down to 23.3 million. However, he notes confidence returning to the dairy sector with Fonterra and other processors forecasting a milk price of $9/kgMS for the season.
Federated Farmers says the farming sector has been unable to effectively address quad bike safety.
A highly experienced agricultural scientist with specialist knowledge of the dairy sector is the Prime Minister's new Chief Science Advisor.
The 2025 Fonterra Dairy Woman of the Year, Jo Sheridan, has paid tribute to women who apart from their farming connections are making contributions to their local schools and communities.
Limping towards the end of the season is how Richard Walker describes the situation he's facing due to prolonged drought in coastal areas of Taranaki.
Auckland Federated Farmers want a national conference debate on whether New Zealand should withdraw from the Paris Agreement on Climate Change.
DairyNZ chief executive Campbell Parker says the industry-good organisation is proud to be an ongoing industry partner of the New Zealand Dairy Industry Awards, providing judging expertise and facilitating field days.
OPINION: The good fight against "banking wokery" continues with a draft bill to scrap the red tape forcing banks and…
OPINION: Despite the volatility created by the shoot-from-the-hip trade tariff 'stratefy' being deployed by the new state tenants in the…