Farmlands
Annual Report
2025
Farmlands Annual Report 2025
CONTENTS
Farmlands Annual Report 2025
CONTENTS
As you read through this year’s Annual Report, you’ll notice something exciting: we’re not just sticking to the plan, we’re building on it, and it’s paying off.
At Farmlands, we’ve got “positive disrupter” in our DNA, it’s been a skill since the 60s – meaning we’re always looking for smarter ways to do things. This forward-looking approach underpins the strength of our co-op and our shareholders. It means we make strategic investment decisions not just for today’s returns, but to secure the long-term future of our shareholders and the next generation of farmers and growers. Everything we do, from the products and services we bring, to our strategic partnerships, comes back to one simple goal: helping you, our shareholders, get ahead and be more productive and profitable on the land.
We’re always on the lookout for new opportunities that complement what you are interested in and create new ways for the co-op to grow for everyone’s benefit.
This report is more than numbers; it’s a story of steady progress and delivering on what we said we would. It’s all about reinforcing the core values of your co-op.
As Farmlands Chair, I’m pleased to present our 2025 Annual Report. The past year has been one of disciplined execution, and I’m immensely proud of the entire Farmlands team and our Shareholders for the part you’ve individually and collectively played in this. Our return to profitability for Farmlands is a significant milestone, and it is the result of our focused efforts to stay true to our strategic plan.
This isn’t a one-off event; it’s the continuation of a sustained journey to deliver greater value, stability, and growth for all of you, our Shareholders. We still got plenty to do, but this year’s result is a great step in the right direction.
While we’ve made significant progress, we’re not naive to the external environment and the fact that the market is generally on a positive turn for the various segments our customers operate in. Like you, we had to navigating a period of real economic uncertainty, with volatile commodity prices, rising input costs, high interest rates and shifting global demands. It’s been a challenging period, but we weathered the storm by sticking to our plan, investing wisely, and prioritising the long-term health of our co-operative. We’ve paid down debt and strengthened our balance sheet to ensure we remain a reliable and stable partner for your business.
We’ve remained focused on our commitment to our core purpose: to help you be more productive and profitable on your land. We’ve done this by making strategic decisions that are not always easy but are always forward-looking. Our continued investments in Joint Ventures such as Farmlands FLEX and our nutrition business, the ongoing focus on our supply chain, are all about building a stronger, and more resilient co-op for the future.
These changes ensure we’re better equipped to respond to market shifts now and in the future and to deliver the products and services that you need with greater efficiency and reliability. We’re confident in the strategic path that we’ve set, and we are committed to having the right leadership to see it through. As you’ll see in this report. We continue to strengthen our board to ensure it has the right mix of skills and expertise to guide our co-operative.
I’d like to extend my thanks to Chris Dennison for his valuable nine-year tenure on the board. Chris retired in June this year. His insights and dedication have been instrumental in our progress. Thank you for your continued trust and support with your partnership, Farmlands will continue to be an essential and valued part of New Zealand’s rural sector for generations to come.
Ngā mihi nui
ROB HEWETT
Chair
In May 2025, Chris Dennison retired after nine years on the Board and Dr Claire Nicholson, our previously appointed shareholder director, became an elected director. We’re now running an appointment process to replace the appointed shareholder director position. This is a competitive selection process, the outcome will be announced later in the year.
The Board has a responsibility to ensure it has the appropriate mechanisms in place to attract and retain shareholder directors who have the necessary mix of skills, expertise, and experience to support Farmlands into the future. In the past, shareholder engagement in director elections has been lower than ideal, with few suitably qualified candidates interested in standing for election, and low voter engagement.
We recognise that the election model can be seen as a barrier to participation by potential candidates. Consequently, we were very pleased to see that our recent appointed director campaign attracted a significant number of experienced and highly qualified candidates who are keen to contribute to the future success of the co-operative.
The Board has signalled its desire to expand the number of shareholder director positions that can be filled via appointment while retaining the ability to hold an election if required. Shareholders will still have the right to veto any or all Board members through ratification of the outcome at the Annual General Meeting (AGM) each year. The matter is set for consideration at this year’s AGM, and a copy of the notice can be found here.
As you review the report, you will see a story of progress. This past year, we’ve continued to focus on strengthening our business and reinforcing the core values of our co-op. Our goal has been to improve our operations as your buying group and make great investments and ensure we are better equipped to support you now and for the future.
The headline is our return to profitability and our strengthened balance sheet. After a few tough and challenging years, we have successfully returned to the black. And this is just the beginning of a sustained journey of growth. This isn’t a short term win it’s a result of a strategy. We have developed a strategy that is delivering results and the measurable year on year improvement we are seeing.
Our return to profitability is not just a co-operative milestone. It’s a testament to the strategic decisions we’ve made to drive greater value over the long term for you. Every choice, from our innovative joint ventures like Farmlands FLEX and Fern to our streamlined operating processes, are anchored in our core purpose: we’re here to help you be more productive and profitable.
We are building a stronger, more resilient co-op, ensuring our success directly translates into tangible benefits for your bottom line. Our strategic partnerships are a key part of our long-term plan, and every one of them is built to help drive profitability and productivity for you. Investing in digital technology is a critical piece of our strategy. FarmlandsPRO is helping us create a more efficient and responsive supply chain. It’s an easy-to-use tool, app and web based, which accelerates our plans to offer on farm inputs at the best price, so start using it. It is quite simply, the most cost-effective channel for all of us to be using. Creating value, we can then share with you.
The transformation of our supply chain has been a defining achievement for Farmlands. At times it has been tough, but it is giving us results. We’ve re-engineered components to create a resilient and responsive spine that will support New Zealand agri for years to come. At the heart of this is what we call our CDC’s. Our centralised distribution centres, a shift from a fragmented branch by branch inventory approach to one where we can effectively manage inventory to suit your needs.
This move has delivered tangible value by reducing cost and complexity, consolidating procurement, and streamlining distribution. Our CDC strategy is powering our own brand products also such as AgStar and Top Paddock. By creating a centralised place for our direct sourced goods, which is, after all, what being a buying group is all about. The future proofing of Farmlands is making us more responsive to the evolving needs of the rural sector.
Our investment in SealesWinslow has been a major step forward, bringing together a national network of five mills has created significant efficiencies. The integration gives customers more choice and makes it easier to access the breadth of products needed straights to bagged and everything in between. By leveraging our scale in nutrition, we have seen strong volume growth and delivered a return on the investment we’ve made on your behalf.
We know that these investments are resonating with you. Given the number of net promoters in our farmer/grower segment has lifted by 11 points year on year to 52. And among those who interact with our retail and our sales team, up nine and 15 points, respectively, with an NPS of 58. As a business, we look at this direct customer feedback on a regular basis and use it to help prioritise and improve in the areas that matter most to you.
Our people are the face of our business. Their expertise is our greatest asset. Our teams are at the very heart of everything we do, and I’m proud to let you know that we have increasing staff engagement scores also, and alongside an increasing focus on the development of our teams’ technical skills. Being in this position is a testament to the dedication of our people and our commitment to building a culture where everyone can thrive.
We know that by investing in our people, we can ensure that Farmlands remains a constant, reliable partner for you and the entire rural sector. As your co-op, we are really unique in this sector. We don’t just serve a purpose, we are driven by it to support the industry, provide benefit to our farmers and growers and ensure the co-op is well resourced for the future.
This report isn’t just about the numbers, it’s a story of how we’re building a stronger, more resilient co-op for you. We are well on the way with still lots more to come.
Ngā mihi nui ki a koutou katoa
TANYA HOUGHTON
Chief Executive Officer
All of our customer, people and community initiatives are detailed throughout our annual report.
After more than 60 years on the job, our commitment to New Zealand farmers and growers is unchanging. Our efforts to lower prices are paying off, better operations and inventory management have improved our financial position, and we continue to make smart investments and look for great growth opportunities.
To enable improved profitability and productivity for NZ farmers and growers
To be the go-to for everyone connected to our land
Be You
Minds Open
See it Through
We’ve done the groundwork and now we’re moving to growth. Now in year two of our five-year strategy, we are delivering improved productivity and profitability for our farmers and growers. The co-op, and the rural supplies and services network we’ve built are delivering results, with Farmlands’ growth outperforming the market – and we are set to continue.
You need us to be a strong co-operative focused on driving down input costs across the market – and we’re crystal clear on our role in this. Our strategy is delivering stronger service, competitive pricing, and greater availability to help farmers and growers be more productive and profitable.
Our return to profitability is an important milestone. It signals that the co-operative is stronger, with a resilient balance sheet enabling us to seize opportunities as the cycle turns upward and give us strength to withstand future volatility.
Creating more savings through greater operational efficiency is an important part of our roadmap to success. By strengthening our business and using our scale – as you reward us with greater market share – we can do even more.
At Farmlands, strategy isn’t just a word – it’s the action that sits behind it that matters. That’s why we created Farmlands FLEX, a 50/50 joint venture built to take on one of rural New Zealand’s toughest costs: energy. Farmlands FLEX puts control back where it belongs: in rural hands.
Farmlands FLEX is our strategic response to the increasing pressures of rising energy costs and the growing need for on-farm resilience. Just as we did with Fern, we are now focused on a key input that has long felt out of control: energy.
The benefits of this partnership align with our strategic goals, positioning Farmlands as a leader in innovative and sustainable solutions that benefit our co-op and our communities.
When Farmlands FLEX launched at Fieldays® 2025, the response was electric. Farmers, iwi and shareholders had been waiting for something built for them. FLEX isn’t off-the-shelf. It’s built for 5am milking sheds, frost fans in the dark, and pumps that can’t wait for the grid to catch up. Tough. Smart. Relentless. Just like the people who use it.
The panels and batteries? That’s just the kit. The real power is in the platform. Farmlands FLEX, showing where energy goes, shifting loads automatically, storing when it’s cheap, selling when it’s high, and keeping the lights on if the grid drops out. It turns energy from a cost into a lever: saving money, earning revenue and building resilience.
As we continue to grow and evolve, Farmlands FLEX represents our core belief: that by working together we can adapt to any challenge. It’s an investment in a future where you have greater control over your operations, enhancing both your profitability and your resilience.
To learn more about how Farmlands FLEX can power your future, we encourage you to talk to your local Farmlands field sales team member or fill out the form and one of the team will be in touch.
Fern revenue has remained strong. Fern’s bulk delivery volumes have continued to grow, delivering $3.3 million in Farmlands’ share of profit and $2.9 million in dividends. These results are a testament to how our joint venture, Fern Energy, continues to deliver.
Our joint venture with Fern means that Farmlands and Fern can continue to show up together in the field. This alignment as part of our broader energy portfolio ensures our Farmlands field sales team can talk about Fern’s bulk fuel offer and identify opportunities to improve value and reduce farm costs. Fern also partnered with Farmlands to launch the Westland and Oceania Milk Processor partnership and offered improved value on farm for this milk processor group, growing on Farmlands’ and Fern’s initiatives over the last year with OFI, Miraka and Synlait.
FLEX and Fern have joined forces on a newly-formed Farmlands Energy portfolio. Although diesel and electricity may seem like an unlikely mix, the way these two companies can work together to improve sustainability on farm is quite unique. Fern and FLEX are working closely as they build out their plan for 2026.
Our return to profitability is an important milestone. It signals that we are stronger, with a more resilient balance sheet, enabling us to seize opportunities as they arise.
An opportunity that’s already making a difference is our investment in SealesWinslow. We are proud to now be New Zealand’s largest co-operative in animal nutrition manufacturing with a nationwide manufacturing base that directly supports our customers.
By establishing co-operative ownership of a national manufacturing base, we achieve vertical integration and gain greater control over the entire supply chain. This move secures a steady, reliable product supply, allowing us to manage operating costs better and pass on savings. More importantly, these assets remain owned by New Zealand farmers.
Customers benefit from a substantially larger network of experts, starting with our nationwide Nutrition Sales Team whom farmers can contact directly or through a dedicated Technical Field Salesperson. Direct access to our team ensures farmers receive personalised, expert, and timely technical assistance.
By scaling up manufacturing and aligning our systems and teams, we’ve improved efficiencies and input sourcing and lifted production capacity. In the past year alone, we’ve seen 20% growth in volume.
This is a multi-year effort, and there’s still plenty of work to do as we continue to build out this part of our business. We are building an end-to-end nutrition solution that combines:
To achieve the full nutrition offer, Farmlands has best-in-class partnership with global and local partners to ensure a full animal nutrition offer.
We’re using our network to stay agile and responsive to customer needs, especially during peak demand. This approach ensures farmers can access critical products when they need them most and plan with confidence.
The SealesWinslow brand is central to this strategy. It stands for quality, innovation, and value across the nutrition supply chain. Ongoing investment in our mills is lifting operational performance to best-in-class standards, meeting rising demand and supporting New Zealand’s arable farmers through increased grain purchasing.
Our continued investment in nutrition reflects a practical, forward-looking mindset—helping farmers adapt to shifting markets and environmental challenges.
The transformation of our supply chain has been a significant and future-defining achievement for Farmlands and it has not been without its challenges.
Far from a simple logistics upgrade, we’re re-engineering the operational backbone of our business, creating a resilient and agile “spine” that will support farmers and growers for years to come. We are not just gaining efficiency today; we are building resilience so we can adapt to the evolving needs of our farmers and growers tomorrow and well into the future.
We have invested in best-in-class planning software and developed our planning process to capture feedback from the industry, and our retail and field sales teams to ensure inventory is in the right location at the right time.
We are re-engineering our supply chain network, establishing strong distribution capabilities and capacity in Waikato and Canterbury.
These facilities support our manufacturing nutrition stock flow, centralisation of our domestic rural supplies network and the flow of direct-sourced product from overseas.
For physical logistics, we strategically outsource a portion of our warehousing and transport to a diverse network of trusted national and local partners. This approach allows us to leverage specialised expertise in each region and scale to meet seasonal demands.
We carefully select and actively manage the performance of all our third-party logistics (3PL) partners to ensure we maintain the highest standards of efficiency and reliability for our shareholders.
While the cost of products and supply chain efficiency are critical to our ability to pass on value, the security of supply for essential farm inputs is increasingly paramount. We know that getting the right product is non-negotiable, and we’ve designed our new supply chain to ensure this with maximum efficiency and reliability, while keeping costs low.
Our transformation into a lower-cost, high-performing operator is underpinned by a re-engineering of our supply chain. At the heart of this is the Centralised Distribution Centre (CDC) model – a strategic shift that is already delivering tangible value for our shareholders.
This year, we’ve moved decisively from a fragmented, supplier-led logistics model to one where Farmlands owns and manages more of its supply chain. Through the CDC model, we’ve consolidated procurement, streamlined distribution, and taken control of transport and international shipping.
We’ve changed how we get products to our customers. Previously, suppliers handled the journey from their warehouse to one of our local branches, and then to farms. Now, Farmlands is taking the lead.
This strategic shift allows us to optimise freight, reduce costs and improve product availability for our farmers and growers. It’s a clear example of how strategic investment in infrastructure is translating into shareholder value.
This same strategy is powering our own-brand products. A prime example is our liquid fertiliser, AgStar UAN. By bringing pods of this liquid urea into our CDCs, we have a centralised landing spot for direct-sourced products. This allows us to assess demand and then efficiently distribute the product, either directly to a farm or to a store. This streamlined process minimises transport costs, which directly reduces the final cost of this key product for our customers.
The CDC model is just the beginning. We’re building a supply chain designed to serve the farm, not just the store. This re-engineering is about future-proofing Farmlands – making us more resilient, responsive and ready to meet the evolving needs of New Zealand’s rural sector.
The metrics from the past year tell a story of momentum and progress:
Our merchandising strategy has reconnected with the very roots of our co-operative, seeing us act as a buying group for our shareholders. This approach is both a nod to our heritage and a deliberate move to deliver greater value, lower costs and stronger margins for our members.
Our procurement strategy extends from buying directly from shareholders to working with local supplies and offshore manufacturers to drive profitable results for our shareholders. This doesn’t change our commitment to backing local business. By working with selected national and international partners across core product lines, we can secure supply, operate on lower margins and ensure the right products are in the right place – and our customers benefit directly from every dollar saved.
With direct sourcing now part of our strategy, we’ve taken control of our supply chain, bypassing traditional channels to deliver high-quality, fit-for-purpose products at competitive prices.
The success of this strategy is evident in the positive reception of our exclusive brands, which are maturing and now integrated into our wider business planning. The year saw the continued growth of our exclusive brands Top Paddock and AgStar and the expansion of our existing brand Back Road. These brands are the result of strategic sourcing, rigorous quality control and a deep understanding of what our shareholders need.
For Farmlands shareholders, the biggest benefit is clear. As one farmer shared at the June NZ National Fieldays, the significant price difference on our exclusive products is a critical advantage, making it a viable way to compete with international direct to consumer options. This is why we have focused on improving our range and product availability, allowing us to meet customer needs better.
This commitment is perfectly embodied by our Top Paddock brand. When it comes to the core products farmers and growers need every day, we understand they want quality at a great price. With Top Paddock, we are delivering exactly that. We’ve introduced products essential to on-farm operations – like sturdy buckets, wire strainers and durable pigtails and gates, designed to perform reliably, day in and day out.
By leveraging collective buying strength, we can provide best-in-market pricing on these key products, ensuring customers have what they need to succeed without the unnecessary cost. This is just the start of this range; we will continue to grow with the right products that make sense for our customers.
Our merchandising strategy is tightly aligned with Farmlands’ broader goals. Going beyond mere product selection, it’s a driver of:
Shareholder Value
Profitability
Operational Efficiency
By working closely with our supply chain team, we’re using our warehouse network more effectively, improving inventory management and enhancing supply chain resilience. This ensures that products move faster, cost less and arrive when and where they’re needed.
As we move into FY26, our focus is on strategic alignment, range expansion and continued global sourcing where needed. We’re investing in governance, compliance and product lifecycle management to ensure our sourcing remains robust, ethical and responsive to market needs.
In a rural sector facing cost pressures, supply chain disruptions and commodity volatility, we remain agile, proactive and informed by industry trends. Our merchandising strategy is not just about today – it’s about building a resilient, future-ready co-op that continues to deliver for our shareholders.
While we are a national co-op, our strength is built on the deep, local connections we have with our shareholders. This year, we’ve demonstrated our commitment to that relationship by making strategic investments in the very heart of our retail network, starting with two key regions: Hawke’s Bay and Taranaki. Our new sites in Hastings and New Plymouth are a testament to our strategy in action, showing up with tangible, on-the-ground improvements.
The new Hawke’s Bay store represents how we’re continuing to build on our rich 63-year history in the area, investing in the region and cementing our place as a true partner. As a co-op, we don’t just see growth from a number’s perspective – we want to see growth in community and the services provided.
The new Hastings site is our newest regional hub, a dedicated spot providing an improved selection of stock, in larger quantities, in one convenient location. This makes it easier to get what’s needed, when it’s needed, allowing for less time shopping and more time doing. By relocating next to our Horticulture Hub, it’s now a one-stop-shop for our Hawke’s Bay farmers and growers, combining essential retail supplies and animal needs in a single location. With our new drive-thru facility, customers can seamlessly pick up bagged nutrition or seed without even leaving their vehicle. This service is a key contributor to growing our nutrition offering.
The New Plymouth and Hastings sites are also designed to support our digital platform, FarmlandsPRO. We have a dedicated FarmlandsPRO area allowing you to pre-order our full range online and collect at a time that suits you.
We know that the future of farming is a blend of physical and digital, so these new locations are built to help better connect with us online and in-store.
These investments in Hastings and New Plymouth show that we are delivering on our promise. We are strategically investing in infrastructure that provides greater support, more expertise and a more seamless experience for our customers. We’re continuing to grow our legacy in rural, acknowledging the communities that have backed us for decades. This is how we ensure that our co-op continues to serve the wider rural communities, for generations to come.
This year, everything we have done has been underscored by fierce commitment to putting you, our customers and shareholders at the heart of what and why we do things, and it has delivered real results.
We believe that a positive customer experience is not just good for business; it is the business. By listening to feedback and building it into our strategy, we have seen a direct correlation between improved customer satisfaction and the performance of the co-operative. This is about re-establishing an emotional connection with our farmers and growers – a connection that strengthens our brand and drives long-term shareholder value.
A key measure of our progress is our Net Promoter Score (NPS), which has climbed to 52 this year, up 11 points from FY24. This significant year-on-year gain is driven by improvements in customer service, product availability and pricing. Our farmer and grower segment showed the biggest improvement, with a 13-point increase. We are particularly proud of the gains in our Dairy and Sheep and Beef sectors, where we saw NPS increases of 23 and eight points respectively.
This improvement reflects the positive experiences of our customers and the feedback we use to help shape our future. Customer feedback has consistently highlighted better pricing, better product availability and great service from our friendly and knowledgeable teams.
As one shareholder said, “They have the products I want at great prices”. Another noted “Great service and product availability”.
The benefits of our training programmes are also clear. In Q4, farmer and grower perceptions of our team’s knowledge and expertise rose by eight points. We know that having the right advice is critical to our customers, and strengthening this capability has been a key focus.
We are committed to this customer-centric approach, and it’s a journey that never ends. Every time we ask for feedback, whether through our ‘Over the Fence’ customer panel, through our ‘Have Your Say’ surveys, a conversation with a field team member, or on our digital platforms, it’s so we can learn and better understand our customers’ evolving needs. Customer voice and our expertise come together to shape what we do next, ensuring we are delivering what you need, when you need it.
It’s how we stay true to the needs of the community and keep the co-op aligned with the realities on the ground. When we listen to each other, we all grow stronger.
The evolution of our digital tools is guided by a simple principle: to make things simpler and more effective. Our FarmlandsPRO platform is a prime example. We have designed it with three clear areas of focus, which we established late in FY25 with further enhancements to be delivered:
This integrated approach is helping to amplify productivity and profitability and is why the platform is critical to our future.
We are seeing a steady increase in the use of our self-service tools, providing our customers with more convenience and control.
This year, the Farmlands Card has continued its journey of putting more value back in your pocket. We continue to be strong with $1.4 billion in total Card sales with our partners, nearly $46.7 million in customer on statement rebates, and over 6.1 million Card transactions. It’s no surprise that we continue to see strong engagement with the Card as a key tool for your business.
We know that for shareholders, a good deal is about more than just price – it’s about convenience and access. That’s why we’ve focused on diversifying our fuel offering to provide both Z and Mobil weekly diesel savings. This has unlocked more locations to access savings on essential farm inputs.
We’re also committed to providing convenience by building our online presence. We know online is just as important as physical stores, and this year we’ve continued to grow our partnerships in the digital space. This is aimed at ensuring cardholders can access savings, no matter how or where they choose to shop.
Our strategic relationships are always important, and we are continuing to look for opportunities to build these. By working closely with our key partners, we can offer a comprehensive set of solutions that meet businesses’ needs, from fuel to farming supplies, all while bringing easy, consolidated monthly billing. This commitment was reinforced this year through the renewal of our strategic partnership with FMG. We are always looking at new ways to ensure the Card provides a safe and secure experience while delivering the best offers and rebates from our partners.
Our ongoing partnership with The New Zealand Rural Leadership Trust (Rural Leaders) focuses on building strong leadership in the food and fibre sector, equipping individuals with the skills, networks, and confidence to tackle major industry changes. We are proud to also be growing a group of Farmlanders who have successfully completed the Kellogg Programme.
Sam Connor, our Business Development Team Lead, brilliantly illustrates the programme’s impact, having completed the course and is now applying his learnings to deliver value directly to our shareholders.
For Sam, the Kellogg Programme was a career-defining moment, providing him with a “1:1 to 1:many” shift in his approach. Having spent years in a sales role working closely with individual farmers, Kellogg gave him the tools to scale his impact, allowing him to now lead a team and roll out a significant new joint venture. It also broadened his perspective, helping him redefine his career and articulate his purpose of adding value back to the food and fibre sector.
Beyond the formal content, one of the programme’s most significant takeaways for Sam was the network of like-minded people. “The programme brings together an amazing network of people who are there for the good of the food and fibre sector,” he shared. This growth mindset and the connections made are invaluable, reinforcing the collaborative spirit that is at the core of our industry.
We’ve been the Foundation Sponsor of the Century Farm and Station awards for coming up 20 years this year, celebrating multi-generational farming families who’ve shaped New Zealand’s agricultural heritage.
In addition, we continue to support community organisations and events through our store-level sponsorship programme, ensuring we are connected to the communities we serve.
We attend major events across rural New Zealand, engaging directly with farmers and growers at key events such as NZ National Fieldays, Northland, Central Districts and South Island Agricultural Field Days. Our spaces offer a place to relax, chat over coffee, and provide valuable opportunities to share knowledge, strengthen relationships, and help our shareholders get more from their co-operative.
Following the success of our 2024 ‘Farmlands Village’, we expanded the experience at Fieldays® 2025, showcasing FarmlandsPRO and the Farmlands Card app. The launch of Farmlands FLEX drew an outstanding response, reinforcing the strength of our partnerships and innovation.
The 2025 Calf Experts roadshow once again drew hundreds of farmers eager to learn from our team on everything from colostrum to nutrition and health. Through SealesWinslow, we continued our partnership with the Dairy Women’s Network, hosting Calf Rearing Expos that delivered practical workshops and seminars focused on optimising calf health, growth, and profitability.
Our sponsorships throughout the year – from Rural Leaders to regional grower and industry awards – reflect our ongoing commitment to supporting the people, innovation, and excellence that drive New Zealand’s primary sector. Our community sponsorships support regional and store teams, backing local initiatives, events, clubs, and organisations.
Eighty percent of our team live and work in rural or regional communities. Our goal is to attract, retain and grow great people who are passionate about improving the profitability and productivity of New Zealand farmers and growers. Farmlanders support each other to be their best for everyone connected to our land every single day through our shared values – Be You, Minds Open and See it Through.
We don’t always get it right, but our values enable us to work hard to listen, learn, grow and do better for our customers every time we meet in store, on farm, through FarmlandsPRO – wherever our farmers and growers need us. To support the future of New Zealand Agri we’ve placed a greater focus on technical training and skills development, resulting in more informed team members who can help on-farm and in-store. Over 80% of our employees participated in Agri upskilling including Soil sciences, Grasses, Maize, Maize Silage.
We’ve continued to see strong improvement in engagement and inclusivity across our teams, with a 10% increase in women in leadership roles and an increase in ethnic diversity. Overall engagement levels have risen significantly, with a mean score of 3.99 (up 0.22 points) achieving a 79% Employee Engagement Index. These gains reflect our ongoing focus on creating an environment that supports our people through flexibility, including initiatives like annually updating our Parental Leave, paid Rā Whānau leave, and a broader commitment to team wellbeing and continuous enhancement of team members’ experience at Farmlands.
This year, we continued to expand on our technical training pathways.
Our Cultivate programme, in its second year, provides a foundational, national framework for our newer Technical Field Sales team members (TFSs). This programme, designed to help them develop skills in sales and relationship building and sector knowledge, is a cornerstone of our commitment to consistency and excellence in the field. Cultivate offers a path to:
We’re proud to celebrate two years of our Horticulture Internship programme. Over this time, interns have gained hands-on experience both in the field and in our stores, with a strong focus on serving shareholders, placing them at the core of the programme.
Our commitment to expertise extends to our retail network. We have built a network of over 220 highly driven Product Champions across our stores. These individuals are extremely knowledgeable about our key farm inputs and products to assist in providing solutions to our customers.
Our Product Champions are now leading the way in key areas such as Water, Nutrition and Fencing, providing specialised advice and support.
For the water and fencing elements, we’ve partnered with our category teams and suppliers to bring in experts for in-field training and seminars, ensuring our teams are always on top of the latest products and techniques.
We are committed to building our people, and in doing so, we are building a stronger, more knowledgeable Farmlands for everyone.
The health, safety and wellbeing of our team, customers and suppliers remains our top priority and is woven into everything we do and how we work.
We launched a comprehensive safety reporting system, known as EcoPortal, to build a culture of proactive safety leadership, enabling safety to be a shared responsibility across our co-op. Our team can report incidents and have access to safety support anytime, anywhere, even offline, ensuring safety remains a top priority even for remote or field-based workers, enabling us to make informed decisions and proactively manage and mitigate potential risks and share our collective knowledge. We have seen an over 300% increase in safety conversations and events, underscoring the work being done to build a deeper safety culture of understanding and a more proactive reporting culture. This engagement shows that our team is not just reacting, they are actively participating in keeping themselves and their colleagues safe.
At Farmlands, sustainability is a priority, and we take our environmental, social and governance responsibilities seriously.
Click below to find out more about our progress towards being a sustainable business.
This has been a pivotal year for the co-op, and the results clearly demonstrate our strategy is paying off.
Revenue and gross profit increased to $847.3 million and $185.4 million, up from $740.3 million and $158.9 million respectively last year, driven by growth in our core rural supplies business and a full year of trading from our nutrition manufacturing investment (SealesWinslow). This growth reflects disciplined execution and strong investment performance.
Although operating costs increased, much of this relates to the strategic acquisition of SealesWinslow. Despite persistent inflationary pressures, we improved operating efficiency, achieving a 0.9% improvement in our expense/revenue ratio. We remained prudent by reducing discretionary spending while continuing to invest in our people.
Higher interest costs reflect the funding of the SealesWinslow acquisition late in 2024 and elevated rates early in the year. With recent rate reductions and ongoing debt repayment, we are now benefiting from lower finance costs.
Our 2024 numbers have been restated to reflect a total bargain purchase of $10.9 million on SealesWinslow acquired land and buildings, an additional $5.0 million uplift from the $5.9 million reflected in last year’s result, improving our pre-tax loss last year to a pre-tax profit of $3.0 million.
Operating EBITDA grew by 64% to $33.5 million, reinforcing that the co-operative is becoming more profitable, efficient and resilient. We have achieved a pre-tax profit of $2.1 million; this is a $10.0 million improvement from the $7.9 million operating loss (i.e. excluding the bargain purchase impact) recorded last year.
Financial strength is also reflected in our cash flow, with a second consecutive year of strong operational inflows – $26.1 million, up $4.1 million year-on-year. This allowed us to repay $3.7 million in term debt and reduce use of our working capital facility by $7.7 million, strengthening our balance sheet. We also strategically built inventory at year-end to secure favourable pricing for customers ahead of the new season.
The sale of our Hastings site freed up capital for reinvestment in higher-returning assets, including the Winton Feed Mill and the development of a new Hastings site featuring a full-service offering with our first Horticulture Hub and retail store, further strengthening our regional presence.
The SealesWinslow acquisition continues to prove its value, confirming the strategic importance of the acquisition and we will continue to invest in nutrition and feed as a key growth platform.
Our joint ventures continue to perform well. Fern Energy, in which we hold a 50% share, remains the largest supplier of bulk fuel to rural New Zealand, contributing $541 million in revenue and $3.3 million in profit. Combined, our co-operative ecosystem now exceeds $3 billion in total turnover, demonstrating the scale and reach of our operations across the rural economy.
Supporting our shareholders remains at the heart of everything we do. We continue to deliver tangible value through strategic sourcing, securing better pricing on essential products and ensuring real savings for our farmers and growers. While prior-year rebates were elevated due to divestment of non-core stock, our focus now is on sustainable value, delivering the right products, at the right price, for our shareholders.
As we look forward, you will continue to see that our strategy is not just working, it’s strengthening us for the long haul, and we are confident in our plans. Our top priority has been and always will be you, our shareholders. Everything we’ve done this year, from embedding SealesWinslow to developing our people, has been about helping you to have a great year.
It’s about driving your productivity and profitability. We are confident in the work we’re doing and the strength of our strategy. We have a clear roadmap for FarmlandsPRO that will continue to build it as a best-in-class tool for you to use to access inputs at the lowest possible cost.
A key part of our strategy is our growth in direct sourcing. This means that we’re working to bring you the products you need at a quality you can trust directly from the source, ensuring the right price for you. It’s about leveraging the collective buying power of New Zealand farmers and growers to create value for you. Looking ahead, you’ll see the Farmlands brand truly connecting with your communities and deepening our partnerships.
We have been with you for over 60 years and just like you, we’re here for the long term.