August 27, 2025 • 7 mins
The chief executive of NZ’s biggest farmer says, “Pāmu is entering a new chapter, guided by fresh leadership and a back-to-basics focus on core farming. Our record result is a strong signal that the performance reset is delivering tangible value for New Zealand, enabling us to declare a $15 million dividend”. But what about Molesworth Station?
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Today's big news story, New Zealand's biggest farmer has come
up with a record result. Palmu, the artist formerly known
as Landcrp a record result. Look at this. A net
operating profit up one hundred and forty five percent, net
profit after tax up five hundred and sixty one percent,
a seven point three percent return on equity income three
(00:22):
hundred and forty eight million up twenty three percent. Livestock
revenue one hundred and forty million, thirty six million more
than the year before in milk revenue. Similar story. Mark
Leslie is the chief executive of Palmu, or was winstant
making you guys call yourself land Corp these days? Mark,
congratulations on the result.
Speaker 2 (00:44):
By the way, thanks Jamie Pamu Landcorp all fine with me. No,
It has been good to get that result out there
and it recognizes all the hardware our farm teams do
every day out there. But also really started to see
the fruits of the lay around getting the new team
in pace and getting really back to those basics around
focusing on core farming principles.
Speaker 1 (01:05):
You've faced a lot of heat for heading down the
wrong track farming wise. I guess this has this silenced
the critics.
Speaker 2 (01:14):
I think this should go a long way to start that, Jimmy,
Jamie in terms of I think for me positively, as
you talked about the livestock revenue up to thirty six million, yes, strong,
strong pricing has supported that, as all agriculture is seeing.
But equally we've had a twenty per cent uplift in
farm production, So a good combination of driving that farm
performance as well as the uplift and pricing. And I
(01:38):
think positively looking to the year we're now in signing
another improved performance sort of currently talking about a knock
of sixty nine to nine million dollars. So really positive
to be able to set that journey in motion and
see the results coming through and seeing some really positive
outlook for the next two years.
Speaker 1 (01:56):
So Mark Leslie, Chief executive of palmu Landcorp. I'm still
confused on that one. What's turned the ship around?
Speaker 2 (02:03):
Yeah, and I think a lot of things, Jamie. In
my time now he had gone three years, we've brought
in fresh leadership and really focused back on the basics
of core farming and improving efficiency to that. So that's
been the real focus of the last few years. As
you and your listeners will know. Farming systems don't change overnight.
We've made a number of changes in our dairy operations,
(02:25):
in our livestock operations, and that is what we're now
starting to see come true in terms of the productivity
improvements that are driving this year's this year's performance. But equally,
as we saw in the results of the year, have
just done.
Speaker 1 (02:37):
You were accused of being too woke and getting off track.
Have you sorted all that out?
Speaker 2 (02:43):
I think we're well on track in terms of the
core farming principles absolutely, And if you look at some
of the numbers in there about landing percentages around getting
gary cow six week in cars right, which we're now
seeing the benefit of that in the season we're now in,
we're sitting seventeen percent up on production for the year.
So note we are well onto a focus on productivity.
Speaker 1 (03:04):
Well, to give credit to Land Corp landing percentage one
hundred and thirty five percent above the industry average of
one hundred and twenty nine percent. It would be remiss
of me, Mark Leslie not to talk to you about
Molesworth Wilding Pines and my old school rugby mate Jim Ward.
What went on there? Or is that still the subject
of a court case.
Speaker 2 (03:27):
No. I think if you look for our broader Palmu
network of farms, we have changes at farm manager level
right across the network. And I think if you look
at Molesworth and that specific example, we've had a long
period of time of a lot of uncertainty on that
property in terms of extension of leases. The lease has
been extended out to June twenty twenty six. Again, that uncertainty,
(03:50):
the uncertainty of how the farm was going to be
farmed from a from a what livestock, how many livestock
you could carry. That just uncertainty has created uncertainly in
the minds of those of all being involved. So it's
an unfortunate circumstances that's occurred.
Speaker 1 (04:05):
Let's just look at the wilding pines at Molesworth. It's
a real issue. Reports suggest that was one of the
reasons why Jim Ward left. But I'll put that to
one side, and I not want to talk to you
about planting pine trees on Molesworth Station. It's our biggest
farm in the country. You're not going to hand over
the ownership to dock and let them plant the whole
(04:26):
lot of trees are you.
Speaker 2 (04:29):
Now, I think to be clear on milesword. From our perspective,
we are the lease the of it. It is Department
of Conservation who are the owner of it. They, as
I understand, will be making the announcement soon around the
future terms and conditions of how that will be operated. So,
as you said right up front, widing pines are on
(04:50):
an ursue there and the wilding corn offer control program
has had a heavy focus in that area. That's the
teams on the ground have supported as part of that. Equally, unfortunately,
there was probably some confusion created about the potential planting
forestry in there, But that's that's not a decision that
sits in my hands.
Speaker 1 (05:07):
Most of Molesworth would be too high for plantation, forestry
or carbon farming, would it.
Speaker 2 (05:13):
Yeah, I think there'd be a lot of it. There
would be challenging to plant forestry in absolutely, And I
think that's so that's not our decision to make well,
not my decision to make well.
Speaker 1 (05:23):
Doc haven't exactly got the greatest track record when it
comes to keeping land free of gorse and broom.
Speaker 2 (05:30):
Yeah, I think that's It's not something I'm going to
comment on, Jamie. It's it's not my decision to make
going to I'm going to go back to where I started.
Our focus is on is managing the farms and running
the farms that I have control over and making sure
we do that as well as we can every day.
Speaker 1 (05:43):
So seven point three percent return on equity, what sort
of dividend are you paying the government on that?
Speaker 2 (05:49):
So we'll pay a dividend of fifteen million dollars this
year to the crown. So that's a big step up.
If you look back over the last ten years we've
played thirty two million dollars in total, and then we've
got two proposed dividen payments in the next two years
as well. So no, a really positive step up in
terms of returning return back to our owner.
Speaker 1 (06:08):
Mind you, fifteen million isn't a huge dividend when I
look at the asset base of Land Corp PARMU, Yeah.
Speaker 2 (06:15):
I think, and remembering dividend as part of it that
you made the point earlier on about the seven point
three percent return on equity part of that then get
has been reinvested as we look at integrating production forestry
into our farms, as we look at it where horticulture
integrates and supporting our continued drive to actually improve the performance,
so hen to some areas will continue to look to
(06:37):
improve so we can deliver the ongoing stayle profit that
we've done this year we'll be looking to do in
the year.
Speaker 1 (06:43):
Well, I know I've been a bit tough on you
in the past, but to credit where credits due, this
is a good result and it looks like the financial
year twenty six is even going to be better. Good
luck keeping a Land Corp on the straight and narrow.
Speaker 2 (06:56):
Thanks Sam, you always appreciate it, and i'd always also
acknowledge the teams that are out on the ground. They
copy the same criticism, but they are doing the hard
monkey every day, so it's nice to be to acknowledge
them in terms of the results as well
Today's big news story, New Zealand's biggest farmer has come
up with a record result. Palmu, the artist formerly known
as Landcrp a record result. Look at this. A net
operating profit up one hundred and forty five percent, net
profit after tax up five hundred and sixty one percent,
a seven point three percent return on equity income three
(00:22):
hundred and forty eight million up twenty three percent. Livestock
revenue one hundred and forty million, thirty six million more
than the year before in milk revenue. Similar story. Mark
Leslie is the chief executive of Palmu, or was winstant
making you guys call yourself land Corp these days? Mark,
congratulations on the result.
Speaker 2 (00:44):
By the way, thanks Jamie Pamu Landcorp all fine with me. No,
It has been good to get that result out there
and it recognizes all the hardware our farm teams do
every day out there. But also really started to see
the fruits of the lay around getting the new team
in pace and getting really back to those basics around
focusing on core farming principles.
Speaker 1 (01:05):
You've faced a lot of heat for heading down the
wrong track farming wise. I guess this has this silenced
the critics.
Speaker 2 (01:14):
I think this should go a long way to start that, Jimmy,
Jamie in terms of I think for me positively, as
you talked about the livestock revenue up to thirty six million, yes, strong,
strong pricing has supported that, as all agriculture is seeing.
But equally we've had a twenty per cent uplift in
farm production, So a good combination of driving that farm
performance as well as the uplift and pricing. And I
(01:38):
think positively looking to the year we're now in signing
another improved performance sort of currently talking about a knock
of sixty nine to nine million dollars. So really positive
to be able to set that journey in motion and
see the results coming through and seeing some really positive
outlook for the next two years.
Speaker 1 (01:56):
So Mark Leslie, Chief executive of palmu Landcorp. I'm still
confused on that one. What's turned the ship around?
Speaker 2 (02:03):
Yeah, and I think a lot of things, Jamie. In
my time now he had gone three years, we've brought
in fresh leadership and really focused back on the basics
of core farming and improving efficiency to that. So that's
been the real focus of the last few years. As
you and your listeners will know. Farming systems don't change overnight.
We've made a number of changes in our dairy operations,
(02:25):
in our livestock operations, and that is what we're now
starting to see come true in terms of the productivity
improvements that are driving this year's this year's performance. But equally,
as we saw in the results of the year, have
just done.
Speaker 1 (02:37):
You were accused of being too woke and getting off track.
Have you sorted all that out?
Speaker 2 (02:43):
I think we're well on track in terms of the
core farming principles absolutely, And if you look at some
of the numbers in there about landing percentages around getting
gary cow six week in cars right, which we're now
seeing the benefit of that in the season we're now in,
we're sitting seventeen percent up on production for the year.
So note we are well onto a focus on productivity.
Speaker 1 (03:04):
Well, to give credit to Land Corp landing percentage one
hundred and thirty five percent above the industry average of
one hundred and twenty nine percent. It would be remiss
of me, Mark Leslie not to talk to you about
Molesworth Wilding Pines and my old school rugby mate Jim Ward.
What went on there? Or is that still the subject
of a court case.
Speaker 2 (03:27):
No. I think if you look for our broader Palmu
network of farms, we have changes at farm manager level
right across the network. And I think if you look
at Molesworth and that specific example, we've had a long
period of time of a lot of uncertainty on that
property in terms of extension of leases. The lease has
been extended out to June twenty twenty six. Again, that uncertainty,
(03:50):
the uncertainty of how the farm was going to be
farmed from a from a what livestock, how many livestock
you could carry. That just uncertainty has created uncertainly in
the minds of those of all being involved. So it's
an unfortunate circumstances that's occurred.
Speaker 1 (04:05):
Let's just look at the wilding pines at Molesworth. It's
a real issue. Reports suggest that was one of the
reasons why Jim Ward left. But I'll put that to
one side, and I not want to talk to you
about planting pine trees on Molesworth Station. It's our biggest
farm in the country. You're not going to hand over
the ownership to dock and let them plant the whole
(04:26):
lot of trees are you.
Speaker 2 (04:29):
Now, I think to be clear on milesword. From our perspective,
we are the lease the of it. It is Department
of Conservation who are the owner of it. They, as
I understand, will be making the announcement soon around the
future terms and conditions of how that will be operated. So,
as you said right up front, widing pines are on
(04:50):
an ursue there and the wilding corn offer control program
has had a heavy focus in that area. That's the
teams on the ground have supported as part of that. Equally, unfortunately,
there was probably some confusion created about the potential planting
forestry in there, But that's that's not a decision that
sits in my hands.
Speaker 1 (05:07):
Most of Molesworth would be too high for plantation, forestry
or carbon farming, would it.
Speaker 2 (05:13):
Yeah, I think there'd be a lot of it. There
would be challenging to plant forestry in absolutely, And I
think that's so that's not our decision to make well,
not my decision to make well.
Speaker 1 (05:23):
Doc haven't exactly got the greatest track record when it
comes to keeping land free of gorse and broom.
Speaker 2 (05:30):
Yeah, I think that's It's not something I'm going to
comment on, Jamie. It's it's not my decision to make
going to I'm going to go back to where I started.
Our focus is on is managing the farms and running
the farms that I have control over and making sure
we do that as well as we can every day.
Speaker 1 (05:43):
So seven point three percent return on equity, what sort
of dividend are you paying the government on that?
Speaker 2 (05:49):
So we'll pay a dividend of fifteen million dollars this
year to the crown. So that's a big step up.
If you look back over the last ten years we've
played thirty two million dollars in total, and then we've
got two proposed dividen payments in the next two years
as well. So no, a really positive step up in
terms of returning return back to our owner.
Speaker 1 (06:08):
Mind you, fifteen million isn't a huge dividend when I
look at the asset base of Land Corp PARMU, Yeah.
Speaker 2 (06:15):
I think, and remembering dividend as part of it that
you made the point earlier on about the seven point
three percent return on equity part of that then get
has been reinvested as we look at integrating production forestry
into our farms, as we look at it where horticulture
integrates and supporting our continued drive to actually improve the performance,
so hen to some areas will continue to look to
(06:37):
improve so we can deliver the ongoing stayle profit that
we've done this year we'll be looking to do in
the year.
Speaker 1 (06:43):
Well, I know I've been a bit tough on you
in the past, but to credit where credits due, this
is a good result and it looks like the financial
year twenty six is even going to be better. Good
luck keeping a Land Corp on the straight and narrow.
Speaker 2 (06:56):
Thanks Sam, you always appreciate it, and i'd always also
acknowledge the teams that are out on the ground. They
copy the same criticism, but they are doing the hard
monkey every day, so it's nice to be to acknowledge
them in terms of the results as well
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