Silver Fern Farms remains in the red despite late market recovery, Fonterra adds experiences chair to lead Consumer business spin-off, and surfboard giveaway caps successful Surfing for Farmers season.

 

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Silver Fern Farms remains in the red despite late market recovery

Silver Fern Farms has posted a $21.8 million after-tax loss for 2024, a slight improvement from the $24.4 million loss recorded in 2023, as late-season price recoveries weren't enough to offset procurement challenges. Revenue for New Zealand's largest meat processor dropped by $144 million to $2.64 billion, though EBITDA improved to $32.7 million from $16.4 million the previous year.

The Silver Fern Farms Co-operative, which jointly owns the operating company with Chinese-owned Bright Meat, reported a $10.9 million loss compared to $10.7 million in 2023. During the year, the co-op acquired a 12.5% stake in Napier-based WoolWorks valued at $18.4 million, funded primarily through $15 million in cash.

Co-op chair Anna Nelson, who will become co-chair of the operating company in May, described 2024 as a mixed year for farmer suppliers. While farmgate prices improved significantly in the second half, allowing stronger returns to farmers, the investment in Silver Fern Farms Limited still recorded a loss. Despite this disappointing result, Nelson expressed confidence in the company's market-led strategy.

Chief executive Dan Boulton characterised 2024 as a game of two halves. The year began with good livestock throughput and operational efficiencies, but subdued market pricing. The second half saw dramatically reduced livestock flows followed by unprecedented procurement competition from September, challenging the company's ability to capitalise on improving market returns.

Farmgate beef and sheep returns have been running above the five-year average in recent months, approximately 25% ahead of the same period last year. Boulton reports that livestock flows have improved significantly since the start of 2025, with the company now trading ahead of budget and positive outlook for the remainder of the year.

 

Fonterra adds experiences chair to lead Consumer business spin-off

Fonterra Co-operative Group has appointed Elizabeth Coutts ONZM as Chair-elect of Mainland Group, the proposed entity that will house Fonterra's global Consumer business following divestment. Coutts brings over two decades of governance experience and currently chairs EBOS Group, Oceania Healthcare, and 2degrees Group Limited.

Fonterra Chair Peter McBride says Coutts' extensive governance experience with both private and public companies makes her an ideal leader should the co-op proceed with a public listing for Mainland Group. Her appointment follows the earlier selection of René Dedoncker as CEO-elect and Paul Victor as CFO-elect of the new entity.

The dairy giant continues to explore both trade sale and IPO options for its global Consumer and associated businesses. Recent activities include assessing non-binding offers from potential purchasers and conducting meetings with prospective investors as part of the IPO process.

McBride emphasises the divestment strategy is focused on creating the best value for farmers and New Zealand in both the short and long term. The co-op is thoroughly testing which option will deliver maximum returns to farmer shareholders while providing an ownership structure that supports future growth of its Consumer brands.

Any divestment decision will require approval from Fonterra's farmer shareholders, who will vote on the chosen option. The co-op continues to target a significant capital return to both farmer shareholders and unit holders following the completion of the divestment.

 

Special agriculture zones could replace broad-brush land policy

Federated Farmers is backing the Government's decision to consult on changes to the highly productive lands policy, recognising current rules are creating practical problems for farmers. The policy's intent to protect elite soils was supported by the farming organisation, but concerns were always held about the broad-brush Land Use Capability approach.

Federated Farmers elite soils spokesperson David Birkett says they're hearing frequent complaints from farmers in remote areas like the West Coast and Taranaki who face significant restrictions. These farmers often just want to build a house for family members but find themselves entangled in bureaucratic processes because their land falls under the highly productive classification.

The current system is particularly problematic in extensive farming situations where the highly productive land protection requirements don't align with practical farming realities. Many affected properties are in remote locations where urban development pressure simply doesn't exist.

The Government is now exploring more targeted approaches, including the possibility of mapping special agriculture zones. This targeted method could potentially replace the current Land Use Capability system altogether, addressing the main concerns raised by the farming community.

Federated Farmers will actively participate in the consultation process and plans to contribute additional ideas on how to improve the policy to better serve both agricultural protection goals and farmers' practical needs.

 

Rural voices heard as Pharmac reopens HRT funding consultation

Rural Women New Zealand is welcoming Pharmac's decision to reconsider its approach to funding hormone replacement therapy patches used for menopause treatment. The health funding agency has announced a new consultation on a proposal to fund both Estradot and Estradiol TDP Mylan patches from December 1st.

This represents a significant shift from Pharmac's previous announcement that Estradiol TDP Mylan would become the only funded brand available from December next year. That decision sparked widespread concern among women nationwide, particularly in rural communities, leading to a petition calling for government intervention.

Pharmac manager of pharmaceuticals Adrienne Martin acknowledges they clearly heard feedback that a single brand approach wasn't working for all women. The agency is now encouraging all patch users, healthcare providers, and interested parties to participate in the public consultation process, which closes on April 22nd.

Supply challenges with the popular Estradot brand continue due to increasing global demand, with Martin noting they've secured as much stock as possible from suppliers. The alternative Mylan brand supplier has provided assurances it can meet demand, which underpins the two-brand approach. Pharmac also funds other treatments like oestradiol gel as potential alternatives.

Rural Women New Zealand president Sandra Matthews says the reconsideration is a victory for women's health access. Limiting funding to one patch option removed freedom for women to make appropriate choices for their bodies during what can be a challenging life transition. Matthews is particularly encouraged by Pharmac's improved consultation approach and hopes this continues for future funding decisions affecting women's health.

 

Surfboard giveaway caps successful Surfing for Farmers season

The 2024/25 Surfing for Farmers season has concluded with thirty participants receiving new surfboards in a competition sponsored by Rabobank. The boards were awarded to at least one farmer at each of the programme's 25 locations nationwide.

Launched in Gisborne in 2018, the initiative encourages farmers to take time in the surf to manage stress and improve mental wellbeing. More than 1000 farmers participated in weekly sessions this summer, with each event featuring surf instruction followed by a social barbecue.

Rabobank New Zealand Country Banking general manager Bruce Weir says winners were selected based on their contribution to the programme, whether through consistent attendance or helping others participate.

The bank has supported Surfing for Farmers since its inception, with staff actively involved at locations throughout New Zealand, reinforcing their commitment to rural mental health initiatives.

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