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I N T H I S I S S U E AUGUST 2 0 1 7From the Chairperson .....................1 Directory & Important Dates ............2Administration Update ....................2 Trustee Elections ............................2

Education Grants ...........................2Academic Scholarships ...................3Farming Update .............................4

From the ChairpersonKia ora koutou

It is with pleasure we formally welcome Ian Rangitutia and Mark Sprott to the Trust Board following their recent appointments by the Maori Land Court. Their appointments continue the generational change to the Board over recent years which is critical for the stability of the Governance team going forward.

The past year has seen a welcome increase and consolidation of dairy export pricing; it would appear that the Global Dairy Commodity Market has rebalanced on the back of recent low pricing with most exporting countries reducing production; this should underpin a stabilisation of global milk pricing however, we must remain acutely aware of the risks associated with commodity markets.

The increase in milk price has given our business a corresponding increase in profitability and enabled some catch up in our maintenance programme following two years of breakeven returns.

Trustees again had their meeting on the farm in May to view operations first hand and meet with our management team. We are very fortunate to have a stable and competent team managing our farming operation.

The environmental focus on farming remains strong with regional councils now charged with the responsibility of protecting water use and quality. The requirement of new land and water management plans which are to be implemented will have considerable impact on the way we have traditionally farmed. The fencing of waterways on intensively farmed areas on the farm are now complete with work continuing on areas largely under sheep grazing.

We regularly receive thanks from some of our Education and Scholarship recipients and it is always great to hear how the Trust’s financial assistance is helping whanau achieve their goals.

It is pleasing to hear the positive response to our recently introduced Kaumatua Grant. Please remember to forward your Annual Confirmation form to us each year to ensure you receive your Grant.

Financially the Trust is in a very sound position with a significant investment diversification policy in place which gives certainty to shareholder returns going forward.

May I thank shareholders and my fellow Trustees for their support in my first year as your Chairperson, I am enjoying the role and look forward to leading you into a challenging future.

I wish shareholders the very best for the remainder of 2017 and look forward to your presence at our AGM on 11 November.

Ngā mihi Fiona Murray, Chairperson

Fiona Murray

Administration UpdateNew Database The new shareholder database is now in place. Please ensure all your contact and tax details are correct.

Kaumatua Grants Initial Application and Annual Confirmation forms are sent out with your dividends.

Please ensure you return your confirmation forms every year.

If you are 65 years and a member of a Whanau Trust please ensure you obtain an application form via the website or from the secretary.

Education Grants274 School Age Grants were paid this year totalling $58,310.00.

16 Scholarships were approved totalling $20,950.00.

Congratulations to scholarship winners - all the very best for success.

T r u s t e e sFiona Murray, Chairperson

Graeme Menzies

Hui Sprott

Kevin Were

Tikitu Tutua-Nathan

Ian Rangituia

Mark Sprott

S e c r e t a r yLeean Bedwell

Cleland Hancox

Level 3

18 London Street

PO Box 9495 Hamilton

Phone 07 838 2692

Fax 838 1667

Email leean@clelandhancox.co.nz

S o l i c i t o r sMcBreens

Hamilton

W e b s i t ewww.aotearoatrust.co.nz

D I R E C T O R Y

IMPORTANT DATES

A n n u a l G e n e r a l M e e t i n g

Saturday 11am, 11th November 2017

Aotearoa Marae

Trustee ElectionsThere will be no election process for the 2017 year.

Long standing Trustees Hui Sprott and Graeme Menzies retired by rotation and both offered themselves for re nomination. No other nominations were received from shareholders and accordingly Hui and Graeme are re-appointed.

Congratulations.

Hui Sprott Graeme Menzies

Aotearoa Trust — 2017 ScholarsBROWN Dennis TainuiQualified BuilderBuilding & Construction Industry TrainingOrganisation Apprenticeship (BCITO)

DUDLEY Jade Te AniwaPostgraduate Diploma in ScienceThe University of Auckland

GILLARD Grace Te WehingaBachelor of Youth DevelopmentWelTec

HILL Jamie Te Aroha TeresaTe Tohu Poutuarongo RangakuraTe Wananga o Raukawa Otaki

HUNAPO Toni LeeBachelor of TeachingTe Whare Wānanga o Awanuiarangi

KOPA Cherie MataBachelor of Nursing MāoriWhitireia Polytechnic Porirua

McGREGOR Aaron Aarona WhetuarikiDiploma in Business Level 6, NZIM Diploma in Management Level 6UCOL Whanganui

MATANGI Tania AriannaBachelor of Occupational TherapyOtago Polytechnic

MESSITER Jordan NgawaiataBachelor of Business AnalysisThe University of Waikato

MOORE TyroneCertificate in Mechanical EngineeringManukau Institute of Technology

PILKINGTON Sarai OterangiHeke Te Rangakura Kaiwhaka ako Bilingual Teaching DegreeTe Wanaga o Raukawa, Otaki

RAUHIHI Bryah-RoseBachelor of NursingMassey University

RAUHIHI Quinton ZTrade Cert & LBD in Roofing

ROPOAMA Jodeci Arapere KereamaDiploma in Tourism & Travel (Level 5)NZ School of Tourism

WAEA-ALLAN KellyBachelor of Teaching and Learning (Primary)University of Canterbury

WATENE BoeBachelor of ChiropraticNew Zealand College of Chiropractic

Level 318 London StreetHamilton New ZealandPO Box 9495Telephone 07 838 2692Facsimile 07 838 1667E-mail info@clelandhancox.co.nzwww.aotearoatrust.co.nz

all correspondence to

Cleland HancoxSecretaryTA

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INT A O T E A R O A T R U S T

Farming UpdateDairy Payout Rebounds Finally some good news on the dairying front with milk pricing back to profitable levels following two tough years.

This is where pricing has been over recent years

Milk Price2016/17 $6.15/kg Milk Solids (yet to be confirmed)

2015/16 $3.90/kg Milk Solids

2014/15 $4.40/kg Milk Solids

2013/14 $8.40/kg Milk Solids

2012/13 $5.84/kg Milk Solids

Fortunately beef returns have remained strong over the past couple of years, with heavy cattle selling for around $2,000.00 per head.

There is currently pressure on export pricing due to production increases in the US and the strengthening NZ dollar against the US dollar. This will inevitably see an easing in beef prices

Beef Returns Remain Strong

The significant drop in sheep numbers nationally highlights the poor profitability of the industry. Down 30% in last 10 years to 27 million.

Strong wool pricing has been on a gradual decline in recent years and now set at all time low.

Sheep meat pricing has remained firm but not encouraging; an over capacity in the processing area due to decreasing sheep numbers also complicates the future.

Sheep Returns Continue to Struggle