Jamie Mackay: The Country host on Pāmu Farms' economic turnaround

Pāmu, formerly Landcorp, recently reported a net profit after tax of $120 million for the year ended June 2025, which will see it return a $15 million dividend.

It's a significant turnaround compared to last year, when the company posted a loss of $26 million.

The Country's Jamie Mackay explained further.

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Episode Transcript

Speaker 1 (00:02):
The Rural Report on hither do to see Alan? Drive here?

Speaker 2 (00:05):
I've had the misfortune to watch another TV one hatch
job on Erica Stanford's education curriculum changes. Got you the
Actually we were watching it too, got you the details.
I'll run you through it. Shortly. Seventeen pass six, Jamie
McKay hosted the Countries with me. Hello, Jamie, gooda Heather.
So how good is that big Lang Corp turnaround?

Speaker 1 (00:22):
Oh? It's pretty good actually, And I'll give a bit
of credit to Mark Leslie. I've been one of their
critics in the past few years. I think he's moved
on from his predecessor, and I think they were a
bit guilty of being a wee bit woken going down
non traditional farming paths. He's got them back to their knitting.
Fifteen million dollar dividend to the crown, that's okay. But

(00:45):
you know this is I guess it's an organization with
I think about one point six billion dollars worth of property.
The return on equity is interestingly seven point three percent,
but the return on asset value total asset values less
than one percent. But look, they can't sell it. They
can't sell it wholes Bowldest because it would collapse the

(01:07):
landmarket and they wouldn't there wouldn't be buyers for it anyhow.
So I'm displeased to see Land Corp getting back to
it's knitting and getting good results. Now a lot of
you have to temper that, Heather, as Mark did when
he was chatting to you. You know, a good portion
of this is due to the upturn in commodity prices,
so they've had a big upswing, especially in their dairy

(01:28):
and their red meat. And I don't think he mentioned this,
but I was chatting to him on my show earlier
today and that what they're forecasting for the financial year
twenty six next year is even going to be better,
and that is off the back of obviously increase commodity
prices from their financial year twenty five and like the
rest of us who are in farming, probably considerably less

(01:50):
in terms of their interest payments. So you know, they're
heading in the right direction. Pat on the back for
that one. They're still not out of the woods yet, though, Heather,
because there's the issue of what they do with Molesworth,
New Zealand's biggest farm. It's owned by Doc Landcourt Palm
who's only the least sea there. I think that lease
is only confirmed up until twenty twenty six. There's a

(02:13):
lot of concern down at Molesworth and Marlborough there about
wilding pines or even the prospect of planting some of
that wonderful farm, and it is a very expensive farm
and pine trees for carbon farming. We had the sudden
resignation of the long standing manager, Jim Ward in July,
so you know, a bit to come out on the wash.

Speaker 2 (02:32):
Yet why did that manager actually quit? Was it really
the pines?

Speaker 1 (02:38):
Look, I don't know, to be perfectly honest, he's been
gagged we but I asked Mark about today on my
show and he sort of said, oh, no, well, we
change our managers quite regularly. Look, Jim Ward had been
there a long long time. From all accounts, he was
a popular manager, successful manager. They had a great beef
operation I think something like six thousand beef cattle there.

(02:59):
I know that he was not happy with the way
the wild and pines were being managed. That may not
even be a land corp issue. That's probably a dock issue.
And I just apparently Mark said to me today on
the show Mark Leslie that Doc is going to make
an announcement about what's going to happen to Molesworth station.
They haven't necessarily had the best track record on the

(03:20):
past Heather of taking over productive farmland, so I just
hope it doesn't go to rack and ruin and Gorse
and broom. Yeah.

Speaker 2 (03:27):
Hey, thank you very much, Jamie. As always Jamie McKay,
Host of the Country.

Speaker 1 (03:31):
For more from Heather Duplessy Allen Drive, listen live to
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