Team effort behind new ryegrass cultivar to future-proof pastoral farming
It takes a team approach to produce a new cultivar of ryegrass, match-fit to meet the future challenges of pastoral farming.
Strength in beef cattle, horticulture and real estate helped offset PGG Wrightson's (PGW) tough year for the parts of the business exposed to dairy.
PGW says it made after-tax profit of $39.6 million in the year ending June 30, 21% up on the previous year.
The company lifted earnings growth for a third consecutive year, to $70.2 million from $69.6m in the previous year.
Chief executive Mark Dewdney says the company is showing the benefit of having diverse exposure in agriculture.
“While New Zealand dairy and our South American business have traded through a challenging period, other areas such as the horticulture sector in New Zealand are doing very well.
“The parts of our business most exposed to dairy, such as water, have had a tough year. However, a buoyant market for beef cattle helped livestock offset the reduced market for dairy cattle and provided a strong finish to the year.”
Fruitfed Supplies, the company’s supplier to the horticulture and viticulture sectors, and its Agritrade wholesaling business, helped retail increase earnings year-on-year, he says. Real estate had good year with growing sales in the lifestyle and horticultural markets.
“Our seed and grain business benefited from the continued shift towards proprietary seed with better technical performance,” he says.
“This trend, and improved performance by our Australian seed business in 2016, resulted in a strong result for our seed and grain group.
“South America was hit hard by a combination of low commodity prices, high rainfall and flooding in Uruguay in April. Despite these headwinds, our South American activities contributed positively to the group result.”
Improving value for customers helped boost market share, and product mix improvements and internal cost efficiency also led to profit gains, he says.
PGW chairman Alan Lai says the board is pleased the performance of the company “has led to an outstanding financial result given market conditions”.
“The progress PGW has made since 2013 is worthy of praise. In three years PGW has grown operating earnings before interest, taxes, depreciation and amortization by around 50%.
“Our balance sheet remains strong and the investments we’ve made over the year will prove crucial.”
Newly elected Federated Farmers meat and wool group chair Richard Dawkins says he will continue the great work done his predecessor Toby Williams.
Hosted by ginger dynamo Te Radar, the Fieldays Innovation Award Winners Event put the spotlight on the agricultural industry's most promising ideas.
According to DairyNZ's latest Econ Tracker update, there has been a rise in the forecast breakeven milk price for the 2025/26 season.
Despite the rain and a liberal coating of mud, engines roared, and the 50th Fieldays Tractor Pull Competition drew crowds of spectators across the four days of the annual event.
Nationwide rural wellbeing programme, Farmstrong recently celebrated its tenth birthday at Fieldays with an event attended by ambassador Sam Whitelock, Farmers Mutual Group (FMG), Farmstrong partners, and government Ministers.
Six industry organisations, including DairyNZ and the Dairy Companies Association (DCANZ) have signed an agreement with the Ministry for Primary Industries (MPI) to prepare the country for a potential foot and mouth outbreak.
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