te#rua#o#te#moko · te rua o te moko ltd ourjourney “he urunga whenua, mau tonu!” pre2007...

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Te Rua o Te Moko 2014 Ahuwhenua Trophy Winners “He Urunga Whenua, mau tonu! Affirm yourself to the maintenance of the land!”

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Page 1: Te#Rua#o#Te#Moko · Te Rua o Te Moko LTD OurJourney “He Urunga Whenua, Mau Tonu!” Pre2007 Blocks#are#individually# leased#for#apassive# return## October2008# Based#on#feasibility#

Te  Rua  o  Te  Moko  

2014  Ahuwhenua  Trophy  Winners  “He  Urunga  Whenua,  mau  tonu!  Affirm  yourself  to  the  maintenance  of  the  land!”    

Page 2: Te#Rua#o#Te#Moko · Te Rua o Te Moko LTD OurJourney “He Urunga Whenua, Mau Tonu!” Pre2007 Blocks#are#individually# leased#for#apassive# return## October2008# Based#on#feasibility#

Te Rua o Te Moko LTD “He Urunga Whenua, Mau Tonu!” Agenda  

“He  Urunga  Whenua,  mau  tonu!  Affirm  yourself  to  the  maintenance  of  the  land!”  

1.   Discuss  about  Te  Rua  o  te  Moko  Ltd  (TROTM):  Physical,  Journey,  Structure  

2.   Goals  and  strategy  

3.   What  has  been  achieved,  successes  and  learnings  

4.   What  does  the  future  hold  for  TROTM  

Page 3: Te#Rua#o#Te#Moko · Te Rua o Te Moko LTD OurJourney “He Urunga Whenua, Mau Tonu!” Pre2007 Blocks#are#individually# leased#for#apassive# return## October2008# Based#on#feasibility#

Te Rua o Te Moko LTD “He Urunga Whenua, Mau Tonu!” Te  Rua  o  Te  Moko  LTD  

DescripMon   Comment  

Te  Rua  o  Te  Moko  1A2  (TTP)   30.5057ha  (249  owners)  

Te  Rua  o  Te  Moko  1B  (TTP)   27.3315ha  (216  owners)  

Te  Rua  o  Te  Moko  2A2  (TTP)   36.0929ha  (89  owners)  

Te  Rua  o  Te  Moko  2B  (Private)   46.5388ha  (731  owners)  

Office  of  Treaty  SeHlements  Block  (Lease  property)   49.3211ha  (under  negoOaOon)  

Total  Area   189ha    (170ha  effecMve  –  1285  owners)  

ProducOons  System   System  2  

Peak  Cows  Milked   500  Kiwi  Cross  Spring  Herd  

Milk  ProducOon   172,228kgMS    (average  of  last  3  seasons)  

Structure   50/50  Share  Milking  

1B  

1A2  2A2  

2B  

OTS  

“He  Urunga  Whenua,  mau  tonu!  Affirm  yourself  to  the  maintenance  of  the  land!”  

Page 4: Te#Rua#o#Te#Moko · Te Rua o Te Moko LTD OurJourney “He Urunga Whenua, Mau Tonu!” Pre2007 Blocks#are#individually# leased#for#apassive# return## October2008# Based#on#feasibility#

Te Rua o Te Moko LTD “He Urunga Whenua, Mau Tonu!” Our  Journey  

Pre  2007  Blocks  are  individually  leased  for  a  passive  

return    

October  2008  Based  on  feasibility  

results  owners  formally  support  creaOon  of  the  JV  business  by  way  of  

resoluOon  

31  May  2010  1st  season  ends  

budgeted  producOon  achieved  and  owners  

equity  increased  by  71%.  

2007  Discussions  between  trusts  begin  in  earnest  

with  regards  to  a  collaboraOve  business  

opportunity  

February  2008  Trusts  meet  &  resolve  to  progress  with  formal  

feasibility  study  

Late  2008  –  2009  Work  begins  to  formalise  the  business  structure  and  financing  is  secured  from  MT  to  launch  a  50/50  operaOon  

01  June  2009  Ceremony  and  karakia  

held  on  farm  to  launch  the  inaugural  season  under  acOve  management  

2011/2012  Season  Herd  acquisiOon  commences    

Feb  2013  Land  Based  Training  opens  

in  the  farm  faciliOes,  achieving  a  major  

milestone  to  start  training  on  farm  

“He  Urunga  Whenua,  mau  tonu!  Affirm  yourself  to  the  maintenance  of  the  land!”  

Page 5: Te#Rua#o#Te#Moko · Te Rua o Te Moko LTD OurJourney “He Urunga Whenua, Mau Tonu!” Pre2007 Blocks#are#individually# leased#for#apassive# return## October2008# Based#on#feasibility#

Te Rua o Te Moko LTD “He Urunga Whenua, Mau Tonu!” Te  Rua  o  Te  Moko  –  Structure    

TROTM  LTD  •  3  Directors  appointed  •  Governs  day  to  day  

management  -­‐  Dividends  •  Reports  to  JV  partners  annually  •  Enters  into  all  contracts  as  

nominee  for  the  JV  

1A2  24.02%  

288  Shares  

1B  19.87%  

238  Shares  

2A2  24.77%  

297  Shares  

2B  31.33%  

376  Shares  

Shares  1200  

Land  &  Buildings  

Fonterra  Shares  (to  producOon  level)  

TTP  -­‐  Finance  (Secured  over  land)  

OTS  Block  Fonterra  Shares  

(Lease  property  /  Loan  of  61k  shares)  

ANZ  -­‐  Finance  (Secured  over  herd  and  

shares  owned)  

Herd  (under  stock  

accumulaOon  policy)  SHARE  MILKER  (50/50)  

GOVERNANCE  DECISION  SUPPORT  

•  TTP  Business  Performance  (Business  Plan/Monitoring)  •  Farm  Consultant  (OperaOonal  Monitoring  &  CerOficaOon)  

Ahu  Whenua  Trusts  (“JV  ParMes”)  –  Unincorporated  Joint  Venture  Structure  

Profi

t    

Share  milking  Contract  

“He  Urunga  Whenua,  mau  tonu!  Affirm  yourself  to  the  maintenance  of  the  land!”  

Page 6: Te#Rua#o#Te#Moko · Te Rua o Te Moko LTD OurJourney “He Urunga Whenua, Mau Tonu!” Pre2007 Blocks#are#individually# leased#for#apassive# return## October2008# Based#on#feasibility#

Te Rua 0 Te Moko LTD “He Urunga Whenua, Mau Tonu!”

“He  Urunga  Whenua,  mau  tonu!  Affirm  yourself  to  the  maintenance  of  the  land!”  

The  Dream…  

§  “Reconnect  with  our  whenua  and  ourselves”  

§  “Rebuild  our  cultural  &  economic  bases”  

§  “Work  and  training  opportuni;es  for  our  whanāu”  

Page 7: Te#Rua#o#Te#Moko · Te Rua o Te Moko LTD OurJourney “He Urunga Whenua, Mau Tonu!” Pre2007 Blocks#are#individually# leased#for#apassive# return## October2008# Based#on#feasibility#

TE  RUA  O  TE  MOKO  -­‐  UNIFYING  DIRECTION  “HE  URUNGA  WHENUA,  MAU  TONU!  AFFIRM  YOURSELF  TO  THE  MAINTENANCE  OF  THE  LAND!”  

    Passion  

To  develop  the  skills    to  have  our  own  running  our  farms  

successfully  

Best  in    the  World  

Invest  wisely  in  our  business  to  develop  an  exemplar  model  of  

agribusiness  excellence  

The    Engine  Room  

Long  term  generaOon  of  top  quarOle  business  

free  cash  flow  

Vision  Full  uOlisaOon  of  

our  lands  to    return  economic  

profitability  and  opportunity  to  our  

people    

The  three  elements  that  combine  to  enable    achievement  of  our  vision:    §  Passion::  what  gets  people  out    

 of  bed  in  the  morning?  

§  Best  in  the  world:  what  is  it      that  we  need  to  be  best  in      the  world  at?  

§  The  Engine  Room:  what  is      the  single  economic  measure      for  business  success?  

 

Te Rua o Te Moko LTD “He Urunga Whenua, Mau Tonu!”

Page 8: Te#Rua#o#Te#Moko · Te Rua o Te Moko LTD OurJourney “He Urunga Whenua, Mau Tonu!” Pre2007 Blocks#are#individually# leased#for#apassive# return## October2008# Based#on#feasibility#

Te Rua 0 Te Moko LTD “He Urunga Whenua, Mau Tonu!”

“He  Urunga  Whenua,  mau  tonu!  Affirm  yourself  to  the  maintenance  of  the  land!”  

How  has  this  been  achieved  

§  Core  group  of  passionate  and  commijed  owners  and  trustees    

§  People  and  passion  driving  our  success  

§  RelaMonships:  Maori  Trustee,  Te  Tumu  Paeroa,    Parininihi  Ki  

Waitotara  IncorporaMon,  Land  Based  Training  

§  Detailed  feasibility  which  pointed  to  potenMal  success  

§  Recognise  need  for  skill  set  in  appropriate  areas  

§  Knowing  how  to  measure  success  

§  Taking  the  leap  of  faith  

Page 9: Te#Rua#o#Te#Moko · Te Rua o Te Moko LTD OurJourney “He Urunga Whenua, Mau Tonu!” Pre2007 Blocks#are#individually# leased#for#apassive# return## October2008# Based#on#feasibility#

Te Rua 0 Te Moko LTD “He Urunga Whenua, Mau Tonu!”

“He  Urunga  Whenua,  mau  tonu!  Affirm  yourself  to  the  maintenance  of  the  land!”  

Successes  

§  Cash  generaMon  (cash  is  king)  

§  Benchmark  performance  in  excess  of  industry  averages  

§  Farm  school  training    

§  Growth  in  asset  base  ($0  to  $1.5m)  in  5  years  

The  Learnings  

§  Inspire  and  educate  owners:  business  =  opportuniMes,  challenges  and  risk  

§  Allocate  resources;  bring  owners  on  board  at  all  levels  from  the  beginning,  Need  acMve  and  

commijed  owners  

§  Be  prepared  for  dissent,  be  resilient!  Celebrate  and  create  some  fun  along  the  way!    

Page 10: Te#Rua#o#Te#Moko · Te Rua o Te Moko LTD OurJourney “He Urunga Whenua, Mau Tonu!” Pre2007 Blocks#are#individually# leased#for#apassive# return## October2008# Based#on#feasibility#

Te Rua 0 Te Moko LTD “He Urunga Whenua, Mau Tonu!”

“He  Urunga  Whenua,  mau  tonu!  Affirm  yourself  to  the  maintenance  of  the  land!”  

The  Future  

§  KaiMakitanga  

§  Mana  motuhake  -­‐  whānau  in  governance,  

management  and  farming  roles  

§  Return  of  the  OTS  block  via  Ngā  Ruahine  

Treaty  Sejlement  

§  Own  all  stock  and  farming  equipment  

§  Move  to  total  control  at  a  point  in  the  future  

§  Upgrade  the  dairy  shed  and  other  faciliOes  

§  Bring  other  whānau  lands  into  the  venture  

§  Support  other  whānau