Source: Radio New Zealand
Kara Tait Photography
The largest pastoral farmer in Aotearoa, Pāmu Farming, is sending $10 million in special dividends back to its owner the Crown, after the historic sale of Fonterra’s consumer brands business.
Shareholders received their capital repayment from the dairy co-operative’s Mainland Group divestment this week, including $9.5 million for Pāmu, formerly Landcorp.
The firm manages nearly 360,000 hectares across 112 farms involving the livestock, horticulture and forestry sectors nationwide.
Chief executive Mark Leslie said the board was confident to make the payment.
He said the business had been focused on improving performance, as it reached the midpoint of a five-year reset.
“Over the past three years we have been focused on lifting on-farm performance, improving productivity, and running a tighter, more disciplined business. The results we’re seeing reflect the commitment and hard work of our teams across the country. Our strong commercial performance requires high people, environmental and animal welfare outcomes, as well as responsibility for the communities in which we operate.
“As a state-owned enterprise, Pāmu manages its land and farming portfolio to deliver a financial return, return land under Te Tiriti o Waitangi settlements, and grow the future of agriculture for generations of New Zealanders.”
Good livestock prices and demand are helping Pāmu profits. Supplied
State-Owned Enterprises Minister Simeon Brown said the payment would bring Landcorp’s total dividends to the Crown to $25m for the 2025/26 financial year.
He said it demonstrated confidence in the firm’s financial position and its ability to deliver value for taxpayers.
“Every dollar returned to the Crown is available to support the government’s investment in the public services New Zealanders rely on, including schools, hospitals, roads, and frontline services like police. That is central to our plan to deliver better outcomes for Kiwis.
“I’m pleased to see the continued improvement in Landcorp’s performance, with recent half-year results pointing to a strong full-year outcome, supported by improved operations and favourable commodity prices.”
Pamu recorded a $95m profit after tax for the six months to December 31, following a $139m profit for the year to June 2025.
The $4.2 billion sale will transition well-known brands like Anchor and Mainland to French dairy giant Lactalis.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
