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!”
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
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!”
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!”
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!”
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”
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!”
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
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!
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