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.
Rural service provider PGG Wrightson, majority owned by Chinese conglomerate Agria, will announce its annual results next week.
The NZX-listed company last month told the market its full year earnings before income, taxes, depreciation and amortisation (EBIDTA) would be towards the lower end of its guidance range of $62 million to $68m. As a result, its net profit after tax will also be on the low side -- $46m to $51m.
Chief executive Mark Dewdney says as 2017 began the firm expected the financial year to be tougher than 2016.
“Prior to autumn we were tracking ahead of our forecasts, but the weather in this final quarter of our financial year has put a dampener on our 2017 earnings expectations,” he told NZX. “April was wet for most of the country and this made crops difficult to harvest and paddocks challenging to work.”
The group business most affected is NZ Seed and Grain: lower harvest yields have reduced earnings from processing and drying facilities. Autumn demand for seed products fell short of forecasts as many farmers were hampered in their re-grassing and autumn pasture renewal.
“While we saw some lift in activity into May as the country started to dry out, falling temperatures brought the autumn planting season to its inevitable close,” he says.
But in a diverse business like PGG Wrightson, there are “some silver linings”.
Livestock in particular had a strong final quarter as strong international demand for protein and lower stock numbers combined to push livestock prices above previous expectations.
Retail traded extremely well given the challenging weather, says Dewdney.
“With spring being the key trading period for our rural supplies business they were less affected by the April rains.”
Dewdney sees confidence rising in key farming sectors, and early indications for 2018 financial year are encouraging.
“Our 2016 earnings were a record, and we are hoping FY18 will be close to that again,” says Dewdney.
Agria and PGG Wrightson chairman Alan Lai says PGW is performing well despite the challenging conditions.
“When we began the 2017 financial year we expected the low commodity prices at the time to reduce farmer spending and lead to a dip in operating EBITDA.
“What we could not foresee was the inclement weather over our final quarter, which is likely to push PGW towards the bottom of the guidance range. Despite these challenges PGW expects to post a credible result showing the strength and stability built into the business in recent years.”
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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