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From ‘dead horse' to golden child: Why Pāmu is suddenly making millions
From ‘dead horse' to golden child: Why Pāmu is suddenly making millions

The Spinoff

time2 days ago

  • Business
  • The Spinoff

From ‘dead horse' to golden child: Why Pāmu is suddenly making millions

Once under threat of privatisation, the state's largest farmer is now forecasting record profits. But what exactly is Pāmu, and should it still be publicly owned? Threatened with privatisation at the beginning of the year, the government's largest land manager Pāmu has had a remarkable financial turnaround. Late last week, it was revealed that the entity previously known as Landcorp Holdings was expecting to report a record profit after years of criticism and struggle. What is Pāmu? Pāmu is the trading name of Landcorp Farming Limited – the government's largest landholder and farming enterprise. With around 360,000 hectares across 110 farms, it's often called 'the state farmer'. It manages about 1.3 million livestock (cows, deer, sheep and beef cattle), and employs around 600 permanent staff. Its farms aren't just about meat and milk – Pāmu is also involved in forestry, horticulture and agricultural research and development. But its roots run deep into colonial New Zealand. Pāmu evolved out of the Department of Lands and Survey, an agency responsible for surveying, leasing and farming land – much of which was confiscated or unjustly acquired from Māori. When the department was broken up in 1987, its commercial farming assets became Landcorp – a state-owned enterprise, with shares held by the minister of finance and minister for SOEs on behalf of the Crown. What does Pāmu actually do? Under its mandate as a state-owned enterprise, Pāmu has three core jobs: Run profitable farming operations Return land as part of Treaty settlements Lead innovation in sustainable farming Lately, its focus has been on research, including efforts to breed low-emissions livestock and improve dairy-beef genetics. It's part business, part science lab, part Treaty partner – which makes it uniquely placed in Aotearoa's economic and cultural landscape. What about Treaty land returns? This is where things get murky. Pāmu is supposed to help facilitate the return of state-owned land through te Tiriti o Waitangi settlements, and while much of the land it owns must be offered to iwi for sale first under the right of first refusal (RFR), in 2024, it was holding just one property (valued at $3m) for potential sale to iwi – down from two the previous year. Why is Pāmu at threat of being sold off? At the beginning of 2025, Pāmu found itself in the crosshairs of the Act Party. Act MP and dairy farmer Mark Cameron – who also chairs parliament's Primary Production Committee – said the organisation was a 'no brainer' for privatisation, arguing that its $2.2bn assets were better off in private hands. 'How is it so that the dear old taxpayers are on the hook continually flogging a dead horse and arguably Pāmu has not managed to get on the right side of the fiscal ledger?' he said in January. Even the prime minister hinted at wider state asset sales. The thinking was simple: if it's not profitable and not serving a clear public purpose, why keep it? So what happened with the turnaround? In July 2025, Pāmu announced a forecasted after-tax profit of up to $122m – an increase of around 563% from its $26m loss the year before. The secret? A few key shifts: Soaring milk prices: The average farmgate milk price jumped from $7.50 to $10 per kgms (kilogram of milk solids), boosting milk revenue by $24m, up 35%. Better lamb prices and operational efficiency: gains were made across livestock categories and in management. Trimming the fat: Pāmu Foods, its experimental consumer brand, was shut down last year. The company's leadership also changed in August 2024, with experienced director John Rae stepping in as chair and Sarah Paterson joining the board. So is it safe from privatisation? It has been pointed out that much of the land managed by Pāmu isn't actually its to sell, as it's leased from private owners or DOC, and much of the land it does own is subject to Treaty settlements, so iwi get RFR. So privatisation could be tricky, but it doesn't mean it's impossible. While the record profit may take the heat off, Pāmu's long-term future is far from certain. Its 2026 profit is forecast to fall back to between $56m and $66m, with risks from volatile commodity prices, currency shifts, geopolitics and extreme weather. And political winds can shift fast. For now, Pāmu is riding high – but whether that's enough to silence calls for privatisation, or to improve its record on Treaty land returns, remains to be seen.

Listen to The Country online: Christopher Luxon on butter prices, Pāmu, and Chris Hipkins
Listen to The Country online: Christopher Luxon on butter prices, Pāmu, and Chris Hipkins

NZ Herald

time23-07-2025

  • Business
  • NZ Herald

Listen to The Country online: Christopher Luxon on butter prices, Pāmu, and Chris Hipkins

Prime Minister Christopher Luxon spoke to Jamie Mackay today on The Country. Photo / Mark Mitchell Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech. Already a subscriber? Sign in here Access to Herald Premium articles require a Premium subscription. Subscribe now to listen. Listen to The Country online: Christopher Luxon on butter prices, Pāmu, and Chris Hipkins Prime Minister Christopher Luxon spoke to Jamie Mackay today on The Country. Photo / Mark Mitchell Today on The Country radio show, host Jamie Mackay catches up with Prime Minister Christopher Luxon to talk about butter prices, Fonterra, Pāmu, local councils and 'frickin' Chris Hipkins. On with the show: Christopher Luxon: Is Nicola Willis (and the government by default) guilty of virtue signalling and political posturing, and was Willis sent on a fool's errand to Fonterra? The government can't do anything about the price of butter and cheese (without subsidies), but what can it do to kneecap spendthrift local body councils?

Worry and speculation as long-serving manager of Molesworth Station suddenly resigns
Worry and speculation as long-serving manager of Molesworth Station suddenly resigns

RNZ News

time17-07-2025

  • General
  • RNZ News

Worry and speculation as long-serving manager of Molesworth Station suddenly resigns

Jim Ward, former manager of Molesworth station. Photo: PAMU / SUPPLIED Worry and speculation about the future use of New Zealand's largest livestock station are rising following the sudden resignation of its long-term manager. Crown-owned Molesworth station has about 500,000 acres in the high country - stretching from inland Blenheim to Hamner Springs further south. The farm manager of 24 years, Jim Ward, abruptly resigned this week and sources say he was increasingly frustrated about the lack of action to control wilding pine trees that are starting to cover parts of the station's farmland. There's also speculation parts of it could be converted into pine forests, despite it having the largest cattle herd in the country. The station is administered by the Department of Conservation for the Crown, and it leases out much of the land to Pāmu - formerly Landcorp - which employs all the stock-hands who work there. A Pāmu spokesperson said its workforce can flex to support change when required and that a transition plan is in place, including a recruitment process to replace the Farm Manager. Wilding pines on Molesworth Station. (File photo) Photo: RNZ/Sally Round Pāmu said Ward, and his wife Tracey's devoted service had been instrumental in shaping the station's presentation and success as a taonga for the country. It said Pāmu and DOC have made substantial efforts to tackle wilding confiders. "However, they continue to be a challenge to the future of farming, conservation and recreation on the reserve (Molesworth Station)." When asked by RNZ whether it was considering transitioning some of the land into forestry it supplied the following statement: "In December 2024, the government invited partnerships to plant trees on Crown land. While Molesworth was included in initial mapping as a potential site for tree planting, the Department of Conservation (DOC) has clarified that this is only indicative and subject to further evaluation. The proposal is part of a broader climate initiative to plant trees, but specific areas, species, and planting conditions are still under review." Bulls and cows at Molesworth. (File photo) Photo: Pāmu said none of its other 111 farms across the country had been included for potential pine planting. The spokesperson said its lease for the farm ends next year, or when the Molesworth management plan is completed which includes decisions about future management, and how the land will be used. DOC's Northern South Island Operations Director Martin Rodd said Ward always had the best interests of Molesworth at heart and was passionate about ensuring it was well looked after. Rodd said DOC was working through future options for the station and that farming will continue to be an important part of the reserve's future. Meanwhile farmers were shocked about the station manager's sudden resignation and were concerned it may have been caused by the lack of action taken to control wilding trees, and future plans for the land. Matt Simpson owned a station in south Canterbury and said it's a shame the high country had lost such an advocate, and it meant a lot of knowledge had 'walked out the gate'. Simpson said it would be a big mistake if areas of the station were converted into forestry. He added that it had been a challenge to try and control the wild trees on Molesworth as they self-seed quickly and spread through valleys. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

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