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INTRODUCTION Kingi Smiler Chairman Management Committee

INTRODUCTION Kingi Smiler Chairman Management Committee. Programme for Today. Introduction – Kingi Smiler Peter Little BOP Participation Peter MacGregor Value from Participation – Previous entrants Provision of Industry Expertise – Judges and Industry

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INTRODUCTION Kingi Smiler Chairman Management Committee

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  1. INTRODUCTION Kingi Smiler Chairman Management Committee

  2. Programme for Today • Introduction – Kingi Smiler Peter Little • BOP Participation Peter MacGregor • Value from Participation – Previous entrants • Provision of Industry Expertise – Judges and Industry • Entering the Competition – Bob Cottrell • Making the Finals – Kingi Smiler • Young Maori Trainee/Cadet – Peter MacGregor • Concluding Remarks – Kingi Smiler

  3. HISTORY Peter Little

  4. Competition promoted by Sir Apirana Ngata • Trophy presented by HIS EXCELLENCY the Governor-General, LORD BLEDISLOE, December 1932 • For competition amongst Māori farmers and settlers on Native Land Development Schemes • First competition in 1933 was limited to farmers in the Waiariki Māori Land District.First competition was won by William Swinton of Raukokore • Second and succeeding competitions open to farmers in any Māori land district.

  5. In 1954, a second duplicate Trophy was donated to allow the competition to be split into a Dairy Section, and a Sheep and Cattle Section. • The 1954 Sheep and Beef competition was won by Paul Rahuruhi of Horohoro. • There are many and varied stories about winners, the Trophies themselves, the costs of participating, the benefits of participating, the exhibition of excellence, the pride and joy of being a winner, and in recent years, the pride and joy of being a shareholder in a winning Trust or Incorporation.

  6. A number of farmers have been successful more than once: • Mrs Steven, Okaihau / Rangiahua 1954 and 1959/60 • Ted Tamati, Bell Block, Taranaki 1964/65 and 1970/71 • Charlie Bailey, Waitara 1969/70 and 1976 • Jack Karatau, Whangaehu 1967/68 and 1977 • Jack Steedman, Tauranga 1958/59, 1963/64, and 1967/68 • Rei Apatu, Hawke’s Bay 1968/69, 1972/73 and 1979 • Waipapa 9 Trust, Dairy 2010, Sheep & Beef 2011.

  7. A number of farmers have been successful more than once: • Mrs Steven, Okaihau / Rangiahua 1954 and 1959/60 • Ted Tamati, Bell Block, Taranaki 1964/65 and 1970/71 • Charlie Bailey, Waitara 1969/70 and 1976 • Jack Karatau, Whangaehu 1967/68 and 1977 • Jack Steedman, Tauranga 1958/59, 1963/64, and 1967/68 • Rei Apatu, Hawke’s Bay 1968/69, 1972/73 and 1979 • Waipapa 9 Trust, Dairy 2010, Sheep & Beef 2011.

  8. Changes to the competition have evolved over the years - effectively in recess from the early 1980’s • Today the Ahuwhenua Trophy is considered to be the premier competition in the NZ Agribusiness sector. • A very large Thank You needs to be acknowledged to Gina Rudland and Wayne Walden , members of the (then) NZ Meat Board, who pushed to re-establish the competition in its current form, with the significant support from sponsors • The modern era therefore starts with the Kapenga M Trust winning the 2003 Sheep and Beef competition, and I’m sure you all know the story from that point on • We should also acknowledge the huge contribution of many people who have voluntarily given so much time and advice to keep the competition alive

  9. Goals of the AwardKingi Smiler • To recognise excellence in Māori farming • To encourage participation and ensure its sustainability • To use the award to showcase achievements in the Māori farming sector, in particular successful farming approaches to governance, financing, management and the recognition of nga tikanga Māori • To utilise the award to highlight excellence in the Māori farming sector to all New Zealanders • To acknowledge the contribution the Māori farming sector currently makes to the New Zealand economy and highlight areas for future growth.

  10. Growth of Maori EnterpriseKingi Smiler • The asset base of enterprises in the 2010 Mäori economy totals at least $36.9bn. • An increase of $20.4bn from the 2006 estimate of $16.5bn • Approx 1/3rd of this is better data • After allowing for this the increase is still 29% or 5% pa • $10.6bn of assets of Mäori Trusts, Incorporations, Organisations, Boards, PSGEs, MIOs and Iwi/Rünanga holding companies • From the production side of the economy the value added by Mäori enterprises in 2010 totalled $10.3bn.

  11. REGIONAL WINNERS Peter MacGregor

  12. Ahuwhenua Trophy WinnersMataatua Rohe Dairy Winners: • 1933 William Swinton of Raukokore, Opotiki; • 1938 Whareparoa Rewharewha of Torere and • John Black of Ruatoki Equal First; • 1940 Mrs Tatai Hall of Te Teko * • 1941 Fred Amoamo of Opotiki • 1948 Tikirau Callaghan of Raukokore, Opotiki • 1956 Rehu Cairns of Welcome Bay Tauranga • 1975 Claude Edwards of Opotiki and • 1978 Maurice Charles Anderson of Whakatane Sheep & Beef Winners: • 1958 Jack Steedman of Welcome Bay Tauranga • 1963 Jack Steedman of Welcome Bay Tauranga • 1967 Jack Steedman of Welcome Bay Tauranga *First Wahine Maori Winner

  13. Ahuwhenua Trophy WinnersTe Arawa Rohe Dairy Winners: • 1939 Johnny Edwards of Rotorua • 1943 Tihema Kingi of Rotorua • 1945 Joe Wharekura of Rotorua • 1955 Foley Eru of Horohoro • 1972 John Edwards of Horohoro • 1979 Raumoa Amoamo of Reporoa Sheep & Beef Winners: • 1954 Patu Rahuruhi of Horohoro • 1956 Robert Tu Kingi of Rotoiti • 1957 Henry Davis of Rotorua • 1991 Parekarangi Trust of Rotorua + • 2003 Kapenga M Trust of Rotorua ~ + First Trust to Win ~ Second Trust to Win

  14. VALUE GAINED FROM ENTERING THE COMPETITION

  15. PRIZES Finalists • $15,000 (minimum) to each of three Finalists of which $5,000 is cash and remainder comprises sponsor products and services • A commemorative medal The Winner • $40,000 (minimum) to each of three Finalists of which $15,000 is cash and remainder comprises sponsor products and services • A replica of the Trophy and a commemorative medal

  16. BENEFITS - AN ENTRANTS VIEWPOINT Dean Nikora, Mangatewai Winner 2008 Dairy Award

  17. Good feedback on both the strengths and weaknesses of our business from both the first and second round of judges • We used this to assist us in better focussing on moving our business at the next level • We have grown as people as a result of entering

  18. Questions from other farmers and trustees at the field day also made us think about some of the practices we had taken for granted • Attendance at the other two finalists field days gave us additional insights into options around running our own business • We have received great value from people we have met as a result of being in the competition

  19. We had great support throughout the process • Winning the Award along with the better profiling of our business within the wider agribusiness community has provided us with unforeseen opportunities • It also gave a big boost to our staff

  20. We have had visits and calls from other Maori farmers/trustees keen to learn more about our business • A pleasure to share with them and perhaps contribute to the development of their farming business • In turn we have come to feel that we are part of an unique network of progressive and like-minded people involved in dairy farming

  21. BENEFITS - AN ENTRANTS VIEWPOINT Dawson Haa, Waipapa 9 Trust Winner 2010 Dairy Award and 2011 Sheep and Beef Award

  22. BENEFITS - AN ENTRANTS VIEWPOINT Dana Blackburn, Atihau Whanganui Incorporation Winner 2007 Sheep and Beef Award

  23. Back in 2003 when the competition was re-instated we entered a number of our properties in the sheep and beef competition. We did this for two reasons: • To support the organisers in their initiative to re-establish this historic event • To allow us to have an independent view of our individual farm businesses • We entered again in 2007, this time just our Pah Hill Station property

  24. Good feedback on both the strengths and weaknesses of our business from both the first and second round of judges • We used to assist us in better identifying future business goals and how to go about putting in place an approach to implement the goals • This was strengthened by the BNZ Financial analysis which also included some comparative average data for other properties

  25. Questions at the field day held on Pah Hill also made us think about some of the practices we had taken for granted • Attendance at the field days of the other two finalists gave us additional insights • Winning the Award along with the better profiling of our business within the wider agribusiness community has enhanced our business relationships

  26. Winning the Award also gave a big boost to shareholder interest and support for us in managing their investment • Also a boost to our staff not just those working on Pah Hill but all of those working for Atihau Whanganui Incorporation

  27. PROVISION OF INDUSTRY EXPERTISE

  28. JUDGING Doug Leeder Chief Judge Dairy Award

  29. JUDGING Dana Blackburn Chief Judge Sheep and Beef Award

  30. First Round Judging • The first round judging is designed to select 3 finalists • For sheep and beef this has been traditionally undertaken on a regional basis – North, South and East • The team this year comprised very experienced professionals: • Garry Pevreal BNZ • Gary Walton B+LNZB • Peter MacGregor, AgITO • David Stevens, AgResearch

  31. Approach to Finals Judging The approach to judging the final of the sheep and beef competition is the same as that advised by Doug Leeder

  32. Finals Judging Team Bank of New Zealand Sam Johnson Northern Region Manager – Agri-business AgResearch Dr Tanira Kingi Scientist Beef + Lamb New Zealand Malcolm McConochie Chairman B+LNZ Farmers Council Independent Dana Blackburn, Former winner and Chair Atihau Whanganui Incorporation Supported by Abe Seymour, AgITO

  33. JUDGING Understanding the Judging Criteria Doug Leeder

  34. Points Allocation For details of the criteria refer to page 5 of the Registration Form in your Handout Packs

  35. USING FARM RECORDS AND BENCHMARKING Sharon MorrellDairyNZ Regional Leader BOP

  36. The Measuring Instinct • “That was a good feed!” • “What a lousy movie!” • “Our team is much stronger that the opposition...” Part of the management process: Plan, Do, Review

  37. Why Record and Benchmark? • Assess Progress • Compare to Targets • Compare to Previous Years • Compare to Others • Resource Management • Identify Opportunities! Plan, Do, Review

  38. What Records and Benchmarks? • Fundamentals on Back of an Envelope • Own Spreadsheets • Herd Records • InCalf • InfoVet • Red Sky • Dairy Base

  39. Key Performance Indicators • FINANCIAL • Operating profit/ha • FWE/ha • Operating Return on Dairy Assets • Return on Equity • Growth in Equity • Discretionary Cash (NB: this KPI is not benchmarked) • PHYSICAL • kg milksolids/kg liveweight • Pasture and crop eaten • Total supplements used – tDM/cow

  40. Benchmarking Questions • How am I doing? • Is this on track to meet my goals and objectives? • How well could I be doing? • What can I do differently to improve my performance? Plan, Do, Review

  41. What Does It Take • Discipline • Record or use workbook/programmes regularly • Completion • “Finish it off!” • Analysis • Make it useful • Daily Rain Guagevs Seasonal Patterns Plan, Do, Review

  42. Bigger Picture Link results back to your: • farming philosophies • goals and objectives • values and guiding principles • stage of business growth and development Plan, Do, Review

  43. OPPORTUNITIES FOR BENCHMARKING TO IMPROVE PROFITABILITY Richard Wakelin Beef + Lamb NZ General Manager, Farm

  44. Outline • Sheep & Beef Farm Survey • Benchmarking tools

  45. Farm Types Studied

  46. Lambing % farm control Wool production per sheep farm control Carcase weights [& growth rates] farm control Loss rates farm control Fertiliser per ha or per sufarm control Price levels, meat, wool low control Farm expenditure per ha, sufarm control Gross Margins sum of above, farm control Rate of Return land asset, external Debt : Equity important if high debt Targeted improvements

  47. The Key Features of Top Farms are: High Lambing %’s High Calving %’s High Slaughter Weights High Wool Production per Sheep Low loss rates All equal economic efficiency Benchmarking performance

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