Pāmu Chief Executive Mark Leslie praised Fonterra’s leadership for their strategic direction. He highlighted how Fonterra’s move to simplify its business and focus on its core strengths aligns with Pāmu’s own recent strategy. Just last week, Pāmu reported an impressive 145% increase in net operating profit, reaching $49 million, and set an ambitious target of $100 million by 2030. This parallel focus on core performance demonstrates a shared vision for driving profitability and efficiency in the agribusiness sector.

The article highlights that Pāmu’s strong financial performance is not just from the asset sale but also from increased revenue. The company’s milk revenue grew by $32 million to a total of $152 million, with a higher milk payout offsetting a slight drop in production. This financial resilience is supported by stable farmgate milk prices, which have been holding at around $10/kgMS for the past year, thanks to steady global demand even as production increases in other regions.

A key factor in Pāmu’s success is its focus on premium and organic milk. Approximately 20% of the company’s total milk supply is organic, which commands a higher price. The article notes that Fonterra recently lifted its organic price forecast to a record high of $13/kgMS for the current season. Mark Leslie pointed out that while organic farming can have a “slight impact” on production, the premium it earns provides a crucial margin for resilience and sustainability in the dairy industry.