Silver Fern Farms Co-operative – 2024 Annual Results

The 2024 Annual Results for Silver Fern Farms Co-operative have been released today alongside a summary of their investment in Silver Fern Farms Limited.

Silver Fern Farms Co-operative has posted a $10.9 million loss after tax. Silver Fern Farms Limited has posted a $21.8 million loss after tax, with revenue decreasing $144 million on the previous year to $2.64 billion.

Co-operative Chair Anna Nelson says 2024 represented a mixed bag for the Co-operative with farmer suppliers enjoying improved farmgate pricing in the back half of 2024 but with their investment in Silver Fern Farms Limited recording a loss.

“After a challenging two years on farm and at Silver Fern Farms Limited, it is pleasing to see a return to stronger farmgate returns and a positive outlook going forward for our farmers,” she says.

“While a loss for Silver Fern Farms is disappointing, we remain confident in the company’s market-led strategy and that the business is in good shape.

“We are pleased with the company’s efforts over 2024 to remove cost and focus on their core operating efficiency. Despite another reduction in revenue and an increase in procurement tension, the company has been able to minimise the impact on the bottom line.

“Importantly, 2025 has started positively for both the company and suppliers, with growing demand for our sustainable grass-fed red meat and co-products. The company’s market-focused strategy is delivering meaningful value across a growing share of the business.

“Emerging geopolitical and trade risks have the potential to impact our operating performance, but I have confidence the business has the capability to adapt to any changes to our global operating context and minimise any impacts on the business and on farmer returns.

"I want to thank all our farming shareholders for their ongoing supply and loyalty. Our shareholders contribute around 70 percent of Silver Fern Farm's overall livestock supply, and this adds real strength and direction to the company,” she says.

Nelson says the Co-operative Board has reviewed their own strategy and is focused on developing increased and more consistent returns for farmers.

In October 2024, the Co-operative announced it purchased a 12.5% stake in Woolscour Holdings Limited (“WoolWorks”) The investment was $18.485 million and was funded by $15.0 million cash with the balance by way of a 12-month vendor loan.

“Despite the recent difficult trading conditions, the performance and returns from Silver Fern Farms Ltd over a number of years have given the Co-operative the ability to invest in new initiatives to increase the resilience of on-farm returns,” she says.

“Better wool returns are important to the overall viability of sheep farming, and this investment in Woolworks will complement and create synergies with the Co-operative’s investment in Silver Fern Farms Ltd.

“While the investment in of itself will bring meaningful commercial returns to the Co-operative, we also know there's further potential through working with Woolworks to capture more value for high-quality wool.

“In February, Woolworks introduced a new grower direct service for South Island sheep farmers. They are also developing market opportunities around specific wool attributes and on-farm certifications such as NZFAP Plus,” she says.

Silver Fern Farms Limited Chief Executive, Dan Boulton, says 2024 represented a game of two halves, with a recovery in market pricing towards the end of the year which coincided with historically low livestock flows.

“While we started 2024 with good livestock throughput and operational efficiencies, market pricing was still subdued,” says Mr Boulton.

“The second half of the year saw a dramatic reduction in livestock flows from winter, followed by unprecedented levels of procurement tension from September onwards. This challenged our operating efficiencies and ability to capitalise on improved market returns.

“Over the last six months, farmgate beef and sheep returns have been above the five-year average and remain around 25 percent ahead of the same time last year. We have also been able to increase programme payments to farmers.

“Livestock flows have been much better since the start of the year, the company is now trading ahead of budget, and the outlook for the remainder of the year looks very positive,” he says.

Boulton says the challenging trading conditions experienced over the last few seasons have given the company a renewed focus on its fundamentals.

“While the last few years have been tough, the reality is that we still need to remain profitable during these periods. This is my priority for the business,” he says.

“We have already implemented a range of cost savings and improvements which saw us avoid a worse result last year. While these initiatives have meant a tempering of the speed that we can go after our market strategy, it has also seen us find ways to do more with less.

“Despite the tough trading period, we have still seen some of the highest paying global customers want to do more business with Silver Fern Farms due to our farmers’ leadership in sustainability within the supply chain.

“Our market-led approach is not only about telling our farmers’ story but backing it up with integrity and data. This is opening new commercial opportunities that are truly differentiating how we do business,” he says.

Boulton says the company will need to continue closely monitoring emerging geopolitical and trade risks as we step through 2025.

“There’s no doubt the global trading environment is in a heightened period of uncertainty. However, adapting to these changes is part of our DNA at Silver Fern Farms, and we will be drawing on our agility and diverse in-market presences,” he says.

“We also can’t lose sight of the positive long-term demand for sustainable grass-fed red meat and co-products. Farmers should take confidence from the fact that a world of uncertainty only increases demand for what we produce.

“There are a few waves ahead, but the company has a deep keel. We remain clear about our direction of travel and our role to support a prosperous and thriving sector,” he says.

Financial Results Summary

Silver Fern Farms Co-operative result for the 12-months to 31 December 2024:

Silver Fern Farms Limited result for the 12-months to 31 December 2024:

Notes:

Anna Nelson is the Chair of Silver Fern Farms Co-operative and will be appointed Co-Chair for Silver Fern Farms Limited following the Co-operative’s Annual Meeting on May 20.

The Co-operative Board is not declaring a dividend or patronage reward for the 2024 financial year.

Silver Fern Farms Ltd is New Zealand’s leading processor and marketer of beef, lamb, mutton, venison and associated products to more than 60 countries and regions.

The company operates 14 processing facilities throughout the country, employing more than 6,000 staff. Key markets in New Zealand, China, North America, the United Kingdom and Europe, Asia, and the Middle East are supported through a network of international offices.

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