SFF $43.6m profit

Silver Fern Farms finished the year to August with a net profit of $43.6m, which included a $37m settlement from PGG Wrightson.

Chair Eion Garden said:

Shareholders should be pleased the company comes out of the past year in a vastly stronger financial position than recent years. “This is no mean achievement given the current economic environment which has had severe impacts on many businesses and sectors.”

It hasn’t been an easy year for meat companies and the new season isn’t expected to be any better. However, SFF is getting rewards for the work it’s put in to its marketing plan.

It secured the right to sell branded chilled lamb in French supermarkets and Stuff reports the company will be selling branded lamb in New Zealand supermarkets next month.

It is a departure for each of the local chains, Progressive and Foodstuffs, who cut and package red meat under their own brands.

From November 16, Silver Fern’s small leg roasts, loin fillets, boneless rumps and lamb stir-fry will be on the shelves. This will be premium product, reliably lean and tasty, and will be priced accordingly.

 For all the fame of our lamb, it isn’t easy to find good quality cuts in local supermarkets.

This is very good news for home cooks and should improve the image of lamb in New Zealand.

3 Responses to SFF $43.6m profit

  1. Adolf Fiinkensein says:

    Where can I go to buy and try some Dorper cross lamb?


  2. homepaddock says:

    Adolf,start with the breed website: http://www.nzsheep.co.nz/dorper/index.htm

    Once there find a breeder and ask him/her.


  3. Ed Snack says:

    Rewards ? Really, a turnover of, what, well over a billion and a profit on operations of 6 million !!?! I hate to think what a disappointing result would look like.

    The run down of debt is from lower stocks from moving across to chilled. Then again, in some ways they are to be complemented for managing to make a profit on operations at all, the last few months have been nasty for everyone, the lamb schedule has simply not reflected returns as all the companies have competed for the little stock there is. As I’ve said before, one drawback of chilled is that it is a year round business demanding continuous supply, and that means the North Island through winter. Puts a lot of pressure on, especially when there’d been a drought in part of the catchment.

    I have to say that marketing into supermarkets has its potential downside, supermarkets are fickle and drive hard bargains.

    Typically, local markets simply won’t pay an export equivalent price, perhaps that is changing. It is a small market, but to be encouraged. They’re not the only group working through that possibility either.


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