Source: Radio New Zealand
PGG Wrightson’s Culverden Store. Supplied
Rural services company PGG Wrightson (PGW) has upgraded its earnings guidance amid continued strength in the agricultural sector.
The company expected operating earnings of about $64 million for the year ending 30 June 2026, compared to its previous forecast of above $60m, and $56.1m the previous year.
PGW said despite softening dairy prices in recent weeks, most farmers would head into the Christmas period with confidence, supported by strong returns in beef and sheep meat.
“Beef schedules are at record highs, lamb prices remain elevated, and wool pricing has also shown positive signs with improved export values,” PGW told the share market.
“This positivity is flowing through into on farm and orchard investment decisions.”
PGW said key horticulture crops were also in demand, and early signs suggested a “promising harvest in the new year”.
“The rural real estate market is buoyant, driven by strong commodity returns, record dairy land values, and robust farmer confidence,” PGW said.
The company said there were some challenges due to dry conditions in eastern regions, but there was hope that the current La Niña pattern could deliver summer rainfall.
PGW said trading for the first half of the financial year was positive and slightly above expectations.
“We are encouraged by the momentum across the sector and the confidence this brings for our customers,” it said.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
