Beef and lamb prices outpace dairy in export growth, former Westland boss takes Synlait’s top job, and shareholder revolt erupts at Bremworth over financial decline.
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Beef and lamb prices outpace dairy in export growth
Farmers are seeing benefits from rising international meat prices, with beef and lamb values helping drive the country's terms of trade up by 3.1 percent in the December quarter. The latest Stats NZ figures show meat export prices jumped 6.8 percent, outpacing dairy and strengthening New Zealand's international trading position.
Export prices across all sectors rose 3.2 percent while import prices remained nearly flat with just a 0.1 percent increase. This improvement in the terms of trade represents increased purchasing power for New Zealand goods on world markets and signals strengthening economic conditions for the rural sector.
Lamb prices surged 7 percent in the December quarter while beef and veal prices climbed 6.1 percent. International account spokesperson Viki Ward reports that meat prices have been on an upward trajectory since March 2024, with lamb now 15 percent higher and beef 17 percent above March levels.
Dairy products, New Zealand's largest export commodity, also performed well with a 3.5 percent price increase. Milk powder matched the overall dairy trend with a 3.5 percent rise, while butter prices increased 3 percent. These gains in key agricultural exports were partially offset by falling petroleum import prices, which dropped 9.5 percent during the quarter.
Former Westland boss takes Synlait’s top job
Dairy processor Synlait Milk has ended its leadership search with the appointment of industry veteran Richard Wyeth to the chief executive role. The former Westland Milk Products boss will step into the position after demonstrating impressive turnaround skills in his previous role.
Wyeth will take over from Tim Carter, who has been acting in the CEO role since Grant Watson's sudden departure in late October. Carter will return to his permanent position as CEO of Dairyworks, which is owned by Synlait and which he has led since 2018. At Synlait, Wyeth will reunite with his former chief financial officer from Westland, Andy Liu, who joined the company last year.
The appointment concludes a global search conducted by recruitment agency Korn Ferry, as announced by Synlait chair George Adams at December's annual meeting. Wyeth was widely speculated to get the job following his abrupt exit from Westland in late January, where he had completed a major turnaround. Under his leadership, Westland transformed from a $45.1 million loss in his first year to a $62.5 million profit in 2023, following acquisition by Chinese dairy giant Yili Group in 2019 for $588 million.
Adams describes Wyeth as a seasoned, tested and highly regarded chief executive in New Zealand's dairy industry with a track record of positive transformation. Before his time at Westland, Wyeth led Taupō-based Miraka. Wyeth believes Synlait's fundamentals are strong and looks forward to working with farmers and staff to build on the turnaround already underway when he begins on May 19.
Synlait expects to report half-year EBITDA between $58 million and $63 million later this month, with Carter focusing on growing secured milk supply, improving plant reliability, and driving volume growth.
(Via BusinessDesk:https://businessdesk.co.nz/article/primary-sector/richard-wyeth-appointed-synlait-milk-ceo)
Pāmu boosts profit outlook after successful half-year
Pāmu Farms of New Zealand has delivered an impressive $62 million net profit after tax for the six months ending December 2024, prompting the state-owned enterprise to significantly increase its full-year forecast.
Chief Executive Mark Leslie attributes the strong performance to reduced overhead costs, gains in livestock volumes and valuations, plus stronger-than-expected market prices across dairy, beef, and lamb sectors. The business reset implemented by Pāmu management is now delivering tangible results across farm operations nationwide.
The state farming company has raised its full-year net operating profit forecast to between $43 million and $51 million, substantially higher than the November 2024 projection of $25-40 million. Leslie emphasizes that net operating profit better reflects core business performance by excluding factors like fair value adjustments.
Farm productivity improvements are evident across operations with forecasts showing a 2% increase in milk solids production, 3% improvement in six-week in-calf rates to 71%, and a substantial 10% increase in carcass weight production compared to last year. The company has also boosted its dairy beef calf rearing from 49% in 2023 to a projected 63% this year.
Shareholder revolt erupts at Bremworth over financial decline
Carpet maker Bremworth faces a major leadership challenge as investors launch a bid to oust the entire board following years of financial decline. Silver Fern Farms chair Rob Hewett is spearheading the push and positions himself to take control of a new board.
Hewett says the numbers tell the clear story of failure, with company revenue plummeting from $148.1 million in 2018 to just $80.3 million in 2024. The decision to abandon synthetic carpets for wool-only products hasn't delivered the promised sales growth, while operating costs remain stubbornly high. About a third of shareholders have already backed the call for a special meeting.
Bremworth continues to struggle in the aftermath of Cyclone Gabrielle, which destroyed its Napier factory in 2023. The company has only recently settled its final insurance claim and begun rebuilding the facility, meanwhile relying on makeshift arrangements with plants in Whanganui and Auckland plus third-party suppliers. Last week's half-year results showed a slight revenue increase but deteriorating cash position and increased losses of $8.1 million.
The current board under George Adams has expressed surprise at the revolt, claiming they received no prior engagement before the weekend letter calling for a special meeting. Adams says the dissidents represent only 11.5 percent of shares, and company founder Grant Beil along with other major investors continue supporting current leadership. The board has initiated an ownership review seeking potential buyers, with Adams pointing to expected cost savings of $5 million in the coming year and plans to boost Australian sales.
Hewett maintains that significant shareholders have lost confidence in the current leadership team. If the dissident group succeeds, he says a structured transition could begin immediately to reverse Bremworth's declining fortunes.
Ministers announce major boost for salmon farming
The Coalition Government is ramping up support for the aquaculture industry with a major funding boost aimed at unlocking new export opportunities and regional jobs. Oceans and Fisheries Minister Shane Jones and Minister for Agriculture, and Trade and Investment Todd McClay have announced significant backing for salmon farming expected to generate an additional $500 million in exports by 2035.
A $29.3 million "Future Salmon Farming Programme" will receive $11.72 million in government co-funding over five years from the Sustainable Food and Fibre Futures fund. The initiative, led by New Zealand King Salmon, will focus on expanding production into deep water locations while maintaining environmental standards.
McClay says the investment will prove the viability of open ocean farming for King Salmon, potentially making New Zealand a leading global supplier of this high-value product. The programme aims to drive innovation that allows fish farmers to maximize productivity and profitability while securing better returns for their product, ultimately creating higher-paying jobs in regional areas.
Jones highlights this as part of the government's broader commitment to growing the aquaculture sector, following earlier investments in mussel spat availability, marine farm consent extensions, and the inclusion of seven aquaculture projects in the Fast-Track Bill. Two new open ocean salmon farms in that bill could increase farmed salmon capacity by 40,000 tonnes annually, on top of the expected 10,000 tonnes from New Zealand King Salmon's pilot open ocean farm.
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