Doubtful Landcorp will ever deliver acceptable return

The latest half year result to 31 December gives rise to serious doubt whether Landcorp, or Pamu Farms as it now likes to be known, will ever justify the taxpayer investment in a national farming enterprise. Published after tax profit was $21.9 million compared to $37.9 million in 2016 on revenue which was 3% lower at $106.4 million, but the EBITDAR was actually a loss of $6.0 million against a $6.9 million profit the previous year. The main difference accounting for the apparent contrast was a livestock revaluation of $39 million.

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Address to MIRINZ workshop – How and why research is important for the future

1. Themes

 

The three main themes for this workshop are:

 

1. Added value products focusing on key points of differentiation in NZ meat products with a research emphasis on credible health and nutritional benefits.
2. Value from quality – research outcomes that will enable the red meat sector to meet increasing demand for high value premium meat products in existing and new markets.

• Provenance and food assurance – research from fork to farm to ensure that exports are safe, of superior quality with defendable provenance and attractive to consumers.

Cooperatives and private companies work best in agriculture

Good company performance demands clarity of purpose which is defined and monitored by a board of directors elected or appointed by the shareholders. There are five main types of company ownership structure that are or have been represented in New Zealand’s agricultural sector and each has advantages and disadvantages.

Landcorp’s Carden optimistic despite low half year profit

The state owned farmer Landcorp last month reported a substantial drop in both revenue and profit for the six months ended 31 December last year, but CEO Steve Carden is still very positive about future prospects and the importance of Landcorp as a farming business.

$38 million funding for greenhouse gas research

The Pastoral Greenhouse Gas Research Consortium (PGgRc) has just announced that it has secured funding for a further seven years’ research into greenhouse gas (GHG) mitigation. $2.3 million per annum will be contributed by industry partners to be matched by the Ministry of Business, Innovation and Employment with the balance to come from AgResearch in its capacity as leader of the research project.

Landcorp a profitable publicly owned asset

Landcorp’s net operating profit of $27 million for 2011/12 was down on the previous year, but was still seen as a solid performance. The SOE will pay a $20 million dividend to its shareholder, the NZ Government, in spite of a softening in global commodity prices compared with 2010/11.

Shanghai Pengxin finally gets clearance to take over Crafar farms

After a drawn out campaign to buy the Crafar farms, the Supreme Court has removed Shanghai Pengxin’s last obstacle by rejecting the challenge of the Maori trusts which want to buy two farms near Benneydale in the King Country. The farms went into receivership three years ago and legal challenges have used up half of that period.

Boot camp to inspire development of New Zealand Inc

This week a high powered Boot Camp, attended by a group of key New Zealand agribusiness executives, will take place at Stanford University, California, with facilitation by Professor of Marketing Baba Shiv whose research expertise is in neuroeconomics.

Strategy overdose will be good for meat industry

The most positive aspect of the slew of recent announcements about future meat industry strategy is the willingness of diverse industry participants to invest money and time to try to resolve long standing problems. It’s also good to see the red meat sector get some positive coverage for a change.

Silver Fern Farms putting money where its mouth is

For obvious reasons, I had some questions about SFF chairman Eion Garden’s comment on SFF’s proposal for PGP funding to invest $60 million in developing new strategies ‘that will grow the industry’ (Farmers Weekly 21 June). For a start, where on earth would SFF find $60 million and how would they invest twice that amount?