That compared with a $21.8m loss the previous year and revenue of $2.6b. Co-chairwoman Anna Nelson described it as ‘‘a great step in the right direction’’ which both the business and shareholders and suppliers needed to see after several challenging years.
Conversations across farms, field days and communities reflected a sector that was looking ahead again, driven by renewed optimism about the long-term prospects for the country’s grass-fed red meat, she said.
‘‘Cautious confidence’’ was being seen among farmers and there was a lot more work to be done to keep building confidence.
Silver Fern Farms wanted to see the sector buck the trend of declining livestock volumes, be able to fully respond to customer demand and position itself to thrive rather than simply survive in the years ahead.
Profitability was needed on farm to give farmers options for succession, including keeping livestock on the land rather than selling for forestry conversions, which was an ‘‘irreversible trend’’.
It was a tough industry and margins were tight and she acknowledged the leadership of chief executive Dan Boulton and his team; while farmers had enjoyed the upside of favourable market returns the company was extracting in global markets, tighter margins had required the operating company to do more with less.
The financial performance reflected a rigorous focus on cost control and cost avoidance, cash management and the deferral of some investment. That was primarily due to increased procurement tension driven by favourable market returns and lower livestock volumes.
The sector continued to face challenges across an increasingly volatile trade environment and plenty of scenario planning was going on. The team was working hard to remove as much volatility out as possible.
‘‘It’s a time when having some size, scale and maturity is really valuable,’’ she said.
Volatility and complexity was the new operating normal and, while she understood for some people that was hard, others saw opportunities and that environment as quite motivating.
Demand globally for the health attributes of grass-fed red meat was ‘‘super exciting’’ and, combined with how New Zealand farmers farmed, there was a huge chance to capitalise on and keep growing.
The learning curve in her first year as co-chair of the operating company had been ‘‘pretty steep’’ but she had loved it, particularly the time spent in the market and with customers and suppliers, Mrs Nelson said. It was a unique opportunity to understand each side of the business.
Mr Boulton said SFF was looking to finish the first quarter of 2026 on track. It had entered FY26 with confidence but remained alert to ongoing global uncertainty.
Silver Fern Farms Co-op, which jointly owns Silver Fern Farms Ltd with Bright Meat Group, recorded an after-tax net profit of $14.2m, after last year’s $10.9m loss.
