In April, the operating company posted a $24.4 million full-year loss after tax and a $497 million drop in revenue for the year ending December 31, which it attributed to a year of challenging market conditions that had affected the whole supply chain. That result compared to the previous year’s $189.3 million profit and $3.3 billion revenue.
Speaking at the annual meeting of Silver Fern Farms Co-operative — which jointly owns Silver Fern Farms Ltd with Shanghai Maling Aquarius — in Dunedin last week, Mr Boulton said the company was in strong financial health, supported by previous years’ returns. There was confidence there would be no requirements for core debt or to raise capital.
Mr Boulton, who replaced Simon Limmer as chief executive earlier this year, said he had no plans to deviate from the company’s clear strategy. His contribution would be ensuring Silver Fern Farms could build on the current strategic momentum in light of market headwinds and constrained capital environment.
There would be a greater relentless focus on outcomes that could generate true incremental value, both financial and non-financial, for Silver Fern Farms and its farmers, and there would also be a greater focus on commercial rigour and discipline both across its strategic and operational execution.
The company needed to ensure it was creating a viable future for its pasture-based farmers and he was "acutely aware" of the need to address a shortfall in farmgate returns at this point.
Like all businesses, Silver Fern Farms had to remove cost from its business and it had to make some "difficult but necessary calls", including a 50% reduction this year in much-needed investment in new technology and systems.
