State farmer posts record results

The SOE says this has been achieved with better farm performance and careful cost management, delivering stronger returns for New Zealanders.

The Government will receive a dividend of $25 million during financial year 2026, with a further $15 million to be paid in early FY27.

Return on equity is 9% up from 7.3% in FY25. Net operating profit (NOP) is $113 million, up 131% from $49 million in FY25.

It points out that NOP provides a better reflection of company performance, as it excludes the impact of large and often one-off revaluations of assets, such as livestock and farms.

The company says that as a state-owned farming business, Pamu farms on behalf of the public of New Zealand, and this year’s result reflects the hard work of its farm teams, improved production, lower debt and disciplined everyday decisions across the business.

Despite global cost challenges, the result shows how practical improvements on farm, growing more feed, lifting animal performance, reducing waste, managing costs with discipline, and looking after people, animals and the environment are flowing through to stronger financial results.

Other financial and performance highlights include net profit after tax (NPAT) of $160 million, compared with $120 million in FY25 and net debt reduced by $36 million, continuing to strengthen the balance sheet.

Milk production of 15.8 million kgMS was 2.1 million kgMS increase since FY23 and 1.8 million kgMS since FY25.

Livestock production of 22 million kilograms of product including wool and velvet converted to carcass weight (2.2 million kilograms increase since FY23 and 0.1 million kilograms increase since FY25).

Pamu chief executive Mark Leslie said the result reflected a sustained lift in farm performance across the organisation.

"This is a fantastic result for Pamu, and it belongs to our people. It reflects several years of hard work across our farms and teams improving how we farm, making good decisions every day, keeping a close eye on costs, and getting more from the land and animals in our care."

While stronger commodity prices contributed to the outcome, Leslie said the result was about much more than pricing.

"Price has certainly helped, but our progress goes well beyond the market cycle. Over the past three years we've seen stronger production, improved cost control, a sharper focus on safety and wellbeing, continued progress in reducing emissions, and a stronger connection between our strategy and what happens on farm every day.

"Those are improvements we can control, and they give us confidence that Pamu is in better shape to keep delivering strong returns for future generations of New Zealanders."