PGG Wrightson has downgraded its earnings guidance for the current financial year from $50 million to $43m.
Trading conditions have deteriorated in the primary sector with restrained spending because of drought, weak sheepmeat demand, higher interest rates and input costs.
PGW chair Garry Moore said a slight increase in farmer confidence comes off a low base and sentiment in the agriculture sector remains subdued.
While the harvest season has been broadly positive, there is a time lag in the conversion cycle before farmers and growers see the financial benefits from their harvest production.
“Consequently, we are seeing some clients defer spend where they can and hold off on discretionary items,” Moore said.
Earlier this month PGW announced a shift in focus from boardroom shenanigans to customer service and support.
“Times are difficult for farmers and our trading figures reflect that, but there are some green shoots like kiwifruit and apples,” he said.
“On-farm financial figures are some of the worst for several decades and the drought conditions in many areas are weighing heavily on farming families.
“That is where our focus has to be – in helping our customers wherever we can.”
