SCL, SEK, PGW: 3 NZX agriculture stocks to explore in June 2022

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SCL, SEK, PGW: 3 NZX agriculture stocks to explore in June 2022

Agriculture stock
Image source: Fotokostic, Shutterstock.com

Highlights

  • The NZ government to work on pricing greenhouse gas emissions from agriculture
  • Scales Corporation to conduct its Annual Meeting today
  • PGG Wrightson raises its FY22 guidance

As per the latest reports, the New Zealand Government has welcomed a report from the primary sector on tackling emissions across the country.

The report has suggested a preferred system to price greenhouse gas emissions from agriculture. In other words, it has recommended a farm-level levy system from 2025 with different prices for short- and long-lived gases and help farmers and growers in lowering their emissions.

It is pointed out that around $380 million has been committed by the Kiwi government in Budget 2022 over a period of four years to expedite efforts to reduce agricultural emissions.

Further, the Government is also working on developing specialised climate-focused extension services and is extending its support for Maori agribusinesses.

With this overview, let us walk through the latest updates from the three NZX-listed agriculture stocks.

NZ agriculture stocks- SCL, SEK, PGW

Source: © Artiso | Megapixl.com

Scales Corporation Limited (NZX:SCL)

First on the list is Scales Corporation Limited, which is involved in diversified agribusiness and has a market cap of around NZ$635 million. Today, the Company will conduct its Annual Meeting of shareholders in Christchurch. The meeting can also be attended virtually.

Do Read: SCL, PGW, SEK: Consumer stocks to watch as supermarket duopoly to end soon

SCL intends to carry out resolutions relating to the re-election of three directors and authorising the Board to fix the auditor’s remuneration for coming year, among others.

On 8 June, at the time of writing, SCL was down 0.89% at NZ$4.450.

Seeka Limited (NZX:SEK)

Next comes Seeka Limited, which is engaged in orchard lease and management services and has a market cap of over NZ$207 million.

Last month, the Company provided an update relating to the mid-season kiwifruit harvest, stating that the SunGold harvest across Kiwiland is completed, while the Hayward harvest is estimated to be 38% completed.

Further, it will share its earnings guidance once the Hayward harvest and packing are completed, and has also mentioned that the 2022 season was quite challenging with reduced crop volumes marked by a tight labour market aggravated by COVID-19 pandemic disruptions.

On 8 June, at the time of writing, SEL was trading flat at NZ$4.950.

Also Read: PGW, LIC, SEK: 3 agri stocks to watch as farm inflation hits 10%

PGG Wrightson Limited (NZX:PGW)

Topping off the list is PGG Wrightson Limited, which is an agricultural supply business, having around NZ$342 million as its market cap.

Must Read: PGW, MHJ, OCA: 3 NZX small-cap stocks grabbing Kiwis’ attention

Last month, the Company announced raising its FY22 operating EBITDA guidance to about NZ$66 million from the earlier given amount of NZ$62 million, backed by strong demand during Q3 and impressive performances by most of its business units.

On 8 June, at the time of writing, PGW was down 0.66% at NZ$4.500.

Bottom Line

New Zealand authorities are focused on reducing emissions across all sectors of the economy.

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