Kia ora, I’m pleased to present our 2024 Annual Report. Make no bones about it, 2024 has been a tough year for everyone – you, our Farmlands shareholders, and us as your rural supplies co-op. We’ve seen the conditions you face reflected directly back into the Farmlands business. Many other agriculturally-aligned businesses both in New Zealand and globally are experiencing similar issues post-COVID.

In times of choppy waters, having a clear plan is crucial. What worked in the past may not be right for the future. Farmlands has spent the past 24 months developing and refining the plan and our team, to ensure the business remains relevant. 

We’ve made significant progress with many big-ticket items started or completed over the past year. Examples include the purchase of SealesWinslow, the bedding-in of Fern Energy – our 50:50 energy partnership with Southfuels and the biggest provider of fuel in rural NZ – the launch of FarmlandsPRO, and the launch of our Southland regional hub. This year, we also opened our regional horticulture hub in Hawke’s Bay. We’re being proactive, ensuring we are ready to meet your needs.

Our efforts focus on offering excellent products and services at attractive prices. We understand the cost squeeze in New Zealand agriculture. While there are positive signs in dairy payouts and beef pricing, horticulture post-Cyclone Gabrielle remains challenged in Hawke’s Bay, and sheep meat pricing is subdued.

Markets are dynamic. Overseas consumers are also feeling the cost squeeze, opting for cheaper products like Brazilian beef and Australian lamb in China, and domestically-grown fruit in Europe. However, there is a distinct group of recession-proof consumers globally who value sustainability, biodiversity, CO2e minimisation, water quality, animal welfare, and community well-being. This is an opportunity for New Zealand to carve out a niche among these consumers.

Interest rates are finally relaxing, and cost increases have plateaued. Hopefully, the storm of the past 36 months is abating.

The Farmlands leadership team and Board are committed to key success factors. Dawn Sangster and Gray Baldwin were re-elected to the Board for their final term. In 2025, Chris Dennison will retire, and we’ll need a new Director, so consider standing. We welcomed Jenna Smith as our Board observer, a non-paid 18-month appointment to expose future board members to governance issues at scale. Jenna is completing a Nuffield scholarship, and farms in the Waikato.

There have been many changes in Farmlands over the last 12 months and I know you will be seeing the benefits. Change is never easy; it is necessary for growth and relevance. With your trust and support, Farmlands will continue to enhance your profitability and productivity.

While our methods and products may evolve, our goal of being “the go-to for everyone connected to our land” has remained constant for 65 years. At Farmlands, we intend to continue being just that.

Ngā mihi nui, Rob Hewett