Kua tō te rā kua pō te ao
Mātau e tangi nei
mō rātau kua kotahi atu ki a nunui mā Kawea te aroha o te iwi hei raukura mōu Haere, haere e oki
Tākirihia ko te ata ki Pare-te-tai-tonga, Āmiomio te hau e pae nei
He ōhākī ki te ao ē, E rere nei te aroha, ki te Awa nui
Hei pōwhiri atu ki ngā iwi kua ū mai nei.
Nau mai, haere mai ki tō tātau hui-ā-tau.
Toitū te Whenua, Toitū te Tangata, Toitū te Mana
Our purpose, our legacy is to look after the whenua, so the whenua can look after us.
Āti Hau Group aspires to further the work of our tūpuna. The whenua is our link to our tūpuna, mokopuna and future generations.
Ātihau-Whanganui Incorporation (Ātihau) is registered under the Te Ture Whenua Māori Act 1993 and is incorporated in Aotearoa, New Zealand. This annual report includes Ātihau and its subsidiaries Te Āti Hau Trust and the ĀtihauWhanganui Incorporation Forestry Trust combined (Āti Hau Group). We represent over 9000 shareholders and whānau in the Whanganui and Ruapehu rohe. We are in the business of farming, beekeeping, forestry and diversified investments; the proceeds from these operations assist in matters of collective importance to our uri to achieve our social, environmental, and cultural aspirations.
As we look to the future it is important to reflect on the legacy left by our tūpuna, to appreciate that times were different and the sacrifices they made, and to remind ourselves of the responsibilities we have inherited. 1880 &
is resumed.
Taitoko Te Rangihiwinui (Major Kemp) uses his authority to pursue means of increasing Māori control of their land.
Whanganui Māori vest 115,000 acres into the Aotea District Māori Land Council.
Mete-Kingi as chairman.
ĀtihauWhanganui Incorporation formed, owners take over full administration.
16,800 hectares resumed.
Establishment of Papahau Forest Partnership. The way compensation is calculated is challenged in the courts.
38,500 ha
Total area resumed 1960-present
Redress negotiations undertaken with the Crown, settling for $29.8m in 2008, 48% of the full cost of the vested land regime.
Establishment of Te Hou Farms Limited Partnership. 2014
$5.4 M
Provided for charitable purposes
$15.6 M
Dividends declared (since 1970)
Appointment of first Chief Executive Officer / Pou Ārahi.
Te Āti Hau Trust established.
Diversification into beekeeping.
Awhi brand launched. Awhiwhenua whare opens.
Signing of a long term honey supply agreement with Manukora.
50th anniversary and book launch.
ĀtihauWhanganui Incorporation Forestry Trust formed. 2022
Piki mai rā ki te hui ā-tau mō te Koporeihana ō ĀtihauWhanganui. Ka mihi kau atu ki ngā tini mate i haere atu rā ki te wāhi ngaro, ki pae maumahara. Hau mai nei te ao hurihuri e tū nei. Hoki mai te nui o Āti Tū, te rahi o Ātihau ki te mōrehu whenua i tuku iho mai nā ngā whakapapa tūpuna ki te mōrehu tāngata. Tēnā kautau, tēnā tātau katoa.
This report for the 2023/2024 financial year marks the end of another year of challenge, not just for the Āti Hau Group but for our whānau whānui. Throughout this period of economic downturn, we have remained focused on our responsibility to past and future generations.
Our story is one of looking after the land so that it can look after us. As descendants, our duty of tiakitanga is to resume, care for and retain the farms and whenua left to us by our old people to support the wellbeing of uri. The Committee of Management’s task in these difficult times has been to make good decisions that ensure we remain viable as a farming organisation.
What has this meant? With marketplace prices down, inflation high and interest rates up, we have had to take a step back to reassess the economic situation affecting all businesses and industry in Aotearoa and globally. We have had to drive stringent cost savings wherever possible, with our management teams looking in every corner to find efficiencies.
Our teams have invested exceptional effort into producing more at higher quality, but returns have been much lower than expected. These returns are being channelled into paying off higher interest rates and, operationally, doing what counts most.
Moving forward, we will need to attend to mitigating debt levels in order to safeguard our hard-won resilience.
In recent years, we set a strong aspirational strategy but the pace at which that strategy can be implemented depends on what we can afford to do. We have not been able to do as much as in past years, and certainly not as much as we want to. In short, we have had to tighten the belt.
This reality has impacted our diversification plans in particular. Much of the work to investigate diversified earnings – such as tourism, housing and green energy – has been put on hold as our teams focus on looking after the priorities: addressing
debt, ensuring the land is not at risk of being depreciated, attending to the fundamentals of good stewardship of our assets and resources.
In effect, we are taking a slightly longer view on our aspirations for te taiao and farm development, pausing some activity that is not essential in the short-term but that will be prioritised as soon as possible.
Recovery may take longer than initially expected – perhaps another two or three years. Given the decisions we’ve made in 2023/2024 and will have to make in 2024/2025, we know we will need forward protections in place to allow for full reinvestment in any delayed programme.
Our diversification into carbon trading is holding us in good
stead but the buffer this has provided is subject to marketplace fluctuations. Ahead lie some important decisions on longer-growth forestry rather than just pine trees for timber. The year ahead will include independent reviews of two of our early diversification strategies: our partnership with Te Hou Farms and apiary. These investment reviews will evaluate how these two activities can contribute into the future.
This year the Āti Hau Group has returned a net loss after tax of $5.7 million (2023: $6.7 million net loss after tax). The Group has contributed to a shareholder net equity position of $277.5 million, down $15.5 million from $293.0 million last year. An operating loss of $1.3 million was also reported this year (2023: $1.9 million operating loss).
The Board has recommended a $0.28 per share dividend distribution and a $250,000 distribution to Te Āti Hau Trust.
"Mark Brown retired from his role at Ohorea Station after 47 years of dedicated service - a remarkable commitment..."
In December 2023, we farewelled Che Wilson after 15 years of service to the Committee of Management from 2009 to 2023, two of those –from 2022 to 2023 – as chair of the Audit and Risk Committee.
Following the 2023 hui ā-tau, Sarah Rae was appointed Chair of Te Ohu Tātari (Audit and Risk Committee), and Shar Amner as Chair of Te Ohu Mana Whenua.
Staff and Board
In closing, I want to sincerely thank our outstanding staff and Board members. Their efforts, collaboration and commitment have not gone unnoticed.
Of note has been the increased engagement and joint effort between the executive
leadership team and the Board as a consequence of the need for strong oversight over every activity. The year ahead will require the same tenacity.
At the end of the financial year, we farewelled one of our senior leaders, Culture and Legacy General Manager Whetu Moataane, delivering him to a new role for his Ngāi Tahu whānau in Ōtautahi.
We also acknowledged one of our longest-serving employees, Mark Brown, at a farewell celebration, at the end of June. Mark retired from his role at Ohorea Station after 47 years of dedicated service – a remarkable commitment indeed in this day and age.
7.5%
267,430 100,453 kg reduction from 2022 baseline for sustainability linked loan up 28,895 kgMS from 2023 up 40,425 kg from 2023
10,890
3,798
94,236 metres
1
The Āti Hau Group has again looked at material issues that are a risk or opportunity, and that could impact our business performance over the medium or long term. These risks and opportunities continue to inform our strategic priorities, and this report is structured around those priorities.
The impact of climate change on local weather patterns is forecast to lead to an all-year-round increase in temperature, heavier rainfall events (causing erosion) and longer summer dry periods (reducing stock access to water).
Climate action, or a lack of it, is likely to become a barrier to international trade in the future. New Zealand’s current requirement to reduce farm emissions – once technology becomes available to support this – increases the likelihood of this requirement being imposed on us in the future.
We anticipate a slight recovery in pricing across beef, milk and lamb over the 2024/2025 year with beef and milk recovering
faster than lamb. Beef prices are being supported by greater demand from US markets, while lamb sales are impacted by the Chinese market where demand has been slower to pick up and the market is exposed to increased supply from Australia.
Looking to the future, product prices are likely to remain below historic peaks due to an increase in world supply (both from other export nations and those countries who desire increased food security and therefore produce more domestically), an increase in protectionist policies internationally (including restrictions that are climate driven) and greater competition from substitutes (i.e. cheaper products or those that have a lower carbon intensity). We will need to adapt to this new normal, with lower cost structures and greater innovation.
Honey prices are likely to remain depressed due to the historic production exceeding demand across New Zealand, resulting in the significant buildup in national honey inventory.
Hive numbers in New Zealand continue to decline, reducing national honey production and inventory levels. This will eventually lead to an improvement in price, but it is difficult to predict when this will occur given an unknown volume of national honey levels.
Carbon credits have increased the possible returns from forestry (both rotational timber and permanent stands). However, the NZ emissions trading scheme (ETS) remains volatile and is subject to legislative change. Currently, central Government has promised to bring more certainty into the market but that has yet to be seen, with a large credit stockpile creating supply pressure. A possible reduction in Government ETS Auction Volumes may reverse this.
Interest rates are likely to remain elevated over the medium term, putting pressure on cashflows and requiring a reduction in our borrowings to achieve growth and distribution objectives.
Applying high standards of care toward the whenua and kararehe (animals) and improving our farming systems and practices will have the biggest positive impact on our future production. This means lifting ahuwhenua performance – both farming and apiary – and considering ways to generate additional value within those businesses.
A warming climate brings both productive benefits, including increased winter pasture growth and more time to build up hives prior to placements, while key risks include new pests and diseases, or the same pests and diseases in greater numbers having survived a milder winter.
While the Āti Hau Group has diversified across the primary sector on the whenua, these operations generally provide capital growth but lower cash returns than other asset classes, and profitability is subject to favourable climatic conditions. In addition, increased operating costs continue to make farming economically challenging. This
means that optimal land uses need to be regularly explored in the future.
As our shareholder numbers continue to increase, so too does the challenge of connecting our shareholders to the whenua. Providing a meaningful, dependable and sustainable level of distribution to our shareholders, as well
as value through non-dividend channels, will require higher cash returns and adequate levels of reinvestment from a broader range of assets. It is necessary to consider a longterm investment strategy that is intergenerational, driven by our values and māturanga Māori.
Te Kaupapa |
Toitū te Whenua, Toitū te Tangata, Toitū te Mana
Our purpose, our legacy is to look after the whenua, so the whenua can look after us.
Our values are principles that will guide our waka as we work to achieve our purpose.
Mōrehu whenua, Mōrehu tāngata
Caring for our place, caring for people.
Ohotu ki uta.
Ohotu ki tai
Connecting to create strong relationships, understanding the impact we have on others.
Kia Āti Hau te kōkiri
Living and applying the Āti Hau lens to what we do, how we do it and knowing why it contributes to our legacy.
Working together we can achieve the collective aspirations of Āti Hau.
We aspire to further the work of our tūpuna, to add to their legacy. We will do this by focusing on the following three strategic goals.
Toitū te Whenua Toitū te Tangata Toitū te Mana
Ko te pae tawhiti, whāia kia tata, ko te pae tata, whakamaua kia tina.
Draw the distant horizons closer and utilise well those resources already at your disposal.
We will utilise the resources available to us to improve our intergenerational wellbeing and prosperity. We will do this by:
• protecting and reclaiming our whenua.
• making wise use of our resources to generate wealth.
• producing high quality products and services.
• applying high standards of care toward the whenua and kararehe.
Huriwhenua: Te mōrehu whenua, te mōrehu tāngata.
The remnants of the land must care for the survivors of our race.
We will ensure that the remnants of our land care for our uri and empower and uplift our people, whānau and communities. We will do this by:
• connecting our people with our whenua.
• uplifting the aspirations of uri of Whanganui-nui-tonu.
• ensuring our kaimahi are treated as whānau, and are fully engaged, safe and thriving.
Toitū te kupu, toitū te mana, toitū te whenua e.
The permanence of our culture is reliant on the permanence of our authority and land.
We will uphold the permanence of our authority, whenua and culture. We will do this by:
• embracing tikanga, tūpuna knowledge and te reo o Whanganui.
• enhancing the mana of our uri, customers and key stakeholders.
• collaborating with those who share our values.
• building strong partnerships to strengthen our contribution to local and national economic development.
We will achieve our strategic objectives by focusing on seven priorities.
1. Whakaora i te taiao.
2. Grow ahuwhenua performance.
3. Diversify toward income assets.
4. Enable connection.
5. Data-driven outcomes.
6. Thrive through partnerships and collaboration.
7. Embrace our culture.
Whakamahi Rautaki
Our Strategy In Action
Looking to the future, our strategy has seven priority areas which are all interrelated and all important to the Āti Hau Group achieving our purpose
Toitū te Whenua, Toitū te Tangata, Toitū te Mana.
This section of the Annual Report dives deep into each of our seven priorities and highlights the value the Āti Hau Group places on te taiao, our people, and how our tikanga and the way we work can help us farm better and make better decisions for our future.
Each priority includes performance measures which are shown as highs and lows to explain what has positively or adversely impacted the Āti Hau Group results this year.
Toitū te Whenua
1. Whakaora i te taiao
2. Grow ahuwhenua performance
3. Diversify toward income assets
Toitū te Tangata
4. Enable connection
5. Data-driven outcomes
Toitū te Mana
6. Thrive through partnerships and collaboration
7. Embrace our culture
The health and wellbeing of te taiao is thriving, measured and reported on.
Our commitment to protecting, restoring and caring for our natural assets underpins everything we do.
Careful and responsible management of our natural resources is critical to the success of our business and the health and welfare of our animals and people.
Sustainable practices and climate change action will nurture our whenua and awa, strengthen biodiversity, and support resilience, production and performance.
Looking after the wellbeing of those under our care – some 90,000 sheep, 13,000 cattle, 3600 beehives and 72 kaimahi – is fundamental to how we operate.
A key task has been to rationalise and revise the taiao plan to fit the reality of the business given today’s economic climate, legislative environment and organisational priorities.
A monitoring framework was developed and implemented as part of that process. The framework aims to provide evidence-based data to identify and understand status, risks, opportunities and issues. We will use these insights to guide our actions, apply best and innovative practice and achieve the outcomes we expect.
The framework brings together the multiple parts of our te taiao responsibilities and we plan to address these in a staged approach. As an example, we started water monitoring this financial year. The year ahead will focus on integrated farm planning and laying the groundwork for climate adaptation initiatives.
We successfully completed the audit for year two of our BNZ sustainability linked loan providing incentives for reducing green house gas emissions and by completing additional waterway protection and biodiversity enhancement beyond compliance and regulatory requirements.
HIGHS
7.95% reduction in Green House Gas emissions from 2022 baseline for sustainability linked loan
1,800 metres of deer fencing excluding stock and pests Papahaua wetland
2,000 natives planted alongside a tributary of the Mākōtuku at Tohunga Station
10,890 metres of waterway fencing completed
Key highlights (cont)
Two thousand native plants were planted on a tributary of the Mākōtuku at Tohunga Station in an initiative partly funded by Horizons Regional Council.
Horizons Regional Council also supported infill planting of mānuka at Tohunga in a retired area of bush. As part of that project, funding for 15 predator traps was received, resulting in steady progress since summer toward reducing the number of stoats and rats in this area.
Again, with the support of the regional council, approximately 10,890 metres of waterway were retired at Te Pā, Tawanui, Ohorea, Papahaua and Te Paenga. Horizons typically fund 40% of the cost of environmental fencing material and labour for work to keep stock from the waterway.
Excluding stock from streams together with predicted climate change impacts means more work on alternative water sources for stock will be required, especially on some of the steeper stations where the number of water troughs is limited.
Ngā Tāngata Tiaki o Whanganui supported 1800 metres of deer fencing to exclude stock and feral deer from a wetland at Papahaua on the Rākei block.
Ngā Tāngata Tiaki o Whanganui also supported 2000 metres of riparian retirement at Waipuna.
Water monitoring has included assessing chemical values and the health of the habitat – for example, the presence of bugs that feed species like kōura and tuna.
The work has included eDNA water testing. This approach to biological monitoring scans and analyses an environment quickly to discover the full range of species living in a waterway and detect any changes. We are continuing to populate a list of aquatic life present in the eDNAtested locations. The programme will continue in the years ahead.
Support for Native Species
Surveys conducted with a consultant ornithologist found several likely breeding pairs of kiwi in Papahaua Forest. The challenge ahead is to provide for these kiwi in future activity in this commercial pine forest.
Surveys on wetlands at Tohunga also found kiwi as well as a number of threatened wetland birds and bats. These finds adjacent to Tongariro National Park underscore the significance of our trapping programme at Tohunga.
Future planning will focus on doing more to support these endangered native populations. In the meantime, we have secured funding from Horizons for the year ahead to start trapping predators in the Tohunga wetland vicinity.
In consents compliance, our farms have adhered to winter grazing practices and will target further improvements in the year ahead. Many of the applicable environmental rules and regulations for agriculture and the environment have been repealed through resource management reform changes. This leaves considerable uncertainty about future direction from central government.
Outlook
Ātihau will continue to advance the taiao plan and framework, working as best it can under the universal economic constraints that limit the pace at which strategy can be implemented. While we are unable to do as much as we would like to, our priority is to maintain trapping, planting and water monitoring and continue to support the native plants that we have already planted.
"... our priority is to maintain trapping, planting and water monitoring and continue to support the native plants that we have already planted."
KEY
for FY2024/25
Complete emissions audit.
Reduce greenhouse gas emissions by a further 2% to 4% overall from the baseline.
Plant 2,500 native plants at Te Pā, Tawanui and Waipuna.
Ongoing freshwater monitoring.
Strengthen links to hapū and whānau who are at place and already monitoring and looking after waterways.
Further surveys of threatened species.
Lift farm and apiary performance.
Better productivity will drive greater prosperity for our people and support excellence in all we do.
Good systems and infrastructure established over a number of years have come to fruition in a number of production records for Ātihau. The key has been getting the right people in the right places.
Milk production for the season was 267,430 kilograms of milk solids (kgMS) – a new record for the dairy farm. A record lambing percentage of 134% was achieved, 94,236 lambs were born, some 4151 ahead of last year. In addition, the highest number of calves for the past eight years were produced. The total of 3798 calves was 191 calves ahead of budget. These results are a testament to the efforts of the teams on the breeding farms, where the focus has been on improving reproductive performance.
Driving this has been two good growing seasons, efficient pasture management and the combined efforts of all the farming teams. Dairy production has been boosted by the team’s stock and dairying knowledge, leading to improvements in the quality of the herd.
It has been a tough year financially with a 25% decrease in sheep and lamb prices, and with inflationary costs putting pressure on everything the farms use and buy. We have had to work hard to find shortterm savings. Again, our people have collaborated to find efficiency savings, including using our own teams for crutching and rearing extra calves despite the extra work required. Some planned development has been started but other projects have been put on hold.
Although stock performed well, achieving a number of performance goals, returns have been low because of poor prices. Lamb and beef sales were also behind on last year because good farm conditions allowed more animals to be wintered, allowing additional weight to be added. A total of 8500 winter lambs have been carried through the end of financial year along with 400 extra head of trading cattle. Wool production was 416,826 kg. This was 72,000 kg behind last year due to a change in shearing policy on farms to 8 month shearing and later shearing of trade lambs.
An independent farm review is underway on all farms to fine-tune farm systems. These reviews will support us to lift farm performance, this includes the increase in revenue required to improve farm profitability whilst we remain focused on maintaining costs during the current period of low product prices.
267,430 kgMS of milk production, a new record for the dairy farm
134% lambing percentage, a record
94,236 lambs born, 4151 ahead of last year
3,798 beef calves born, the highest in eight years
HIGHS LOW
25% decrease in sheep and lamb prices
$100 avg per head lamb price (2023: $130)
$1,868 avg per head steer price (2023: $1,934)
Key highlights (cont)
Excellent beekeeping has driven a record production of 44kg a hive, outperforming all our third-party beekeepers. The apiary team has focused on producing more honey from healthier hives at less cost.
This year we brought queen rearing in house to provide a more reliable source of healthy queens to support hive strength lifting performance.
We also introduced a new organic treatment to reduce the impact of varroa mite and improve hive strength heading into 2024/25. We will continue to target the placement of stronger hives on the flow to lift overall per hive production.
The apiary team is two years into a three-year programme of funded research into three areas: how we manage mānuka resource, mātauranga Māori in beekeeping, and creating a honey landscape model.
The first strand of the Sustainable Farming Fund research has focused on the long-term management of mānuka along Matahiwi Track and at Papahaua. Ātihau has thousands of hectares of mānuka but as a pioneer plant (a forerunner for native bush), it has a life span of 15 to 25 years. The research aims to establish a renewable supply of mānuka to support honey production.
The second strand aims to capture and transfer Indigenous knowledge and practices affecting honey production to help beekeepers gain better understanding of how bees interact with te taiao and whenua.
The honey landscape model is being built on Papahaua by mapping species that can support beekeeping and identifying any gaps for future planting. We are essentially investigating ways to make better use of the whenua. For example, we are changing riparian and wetland planting programmes to include trees and plants such as kāmahi, rewarewa and puahou, which are more beneficial for bees. This aims to improve biodiversity and bee health, and provide more natural feed for bees foraging, decreasing the need for costly supplementary feed.
Our relationship with mānuka honey brand Manukora has been key to carrying the apiary business through tough times in the bee industry. A guaranteed buyer for a large part of our honey is a game-changer and, in turn, Manukora relies on Ātihau as a major supplier of mid- to highgrade honey. For more information on this key partnership, see page 44.
There are some signs of improvement in the honey market following a drop in the number of New Zealand beehives from nearly a million to about 500,000. The resulting drop in honey production will, over time, soak up the honey sitting in storage. Ātihau is now in a stronger position having only 143 tonnes of mature honey in store – about one and a half year’s production.
Outlook
Whilst we celebrate progress that has been made over the last twelve
months to improve ahuwhenua productivity and quality, further work is required over the next twelve months to lift our financial returns. This will involve selling more honey, developing additional revenue streams and maintaining our cost structures in line with the ahuwhenua independent reviews.
44 kg record production of honey per hive (or 100,453kg from 2,278 Ātihau hives placed on the mānuka flow)
110,559 kg of honey sold 24,128 kg more than last year
143,829 kg of honey inventory, a 9% reduction in stock levels
LOWS
20% below book value for honey sales
The Sustainable Farming Fund research project aims to capture Indigenous knowledge and practices affecting honey production to help our beekeepers better understand how bees interact with te taiao and our whenua.
KEY
for FY2024/25
Complete independent farm reviews.
Continue improving reproduction rates on breeding farms.
Establish new markets for honey.
Diversify honey revenues by producing other types that can be sold faster than highgrade mānuka honey.
Continue improving beekeeping and productivity.
Develop additional revenue streams.
Independent review of apiary investment.
TAWANUI
2,360 ha 1,750 effective ha 3 staff
5,210 ha 1,000 effective ha 2 staff
/ (LOSS) PER HA ($286) 2024 ($106) 2023
PAPAHAUA
6,280 ha 1,450 effective ha 4
2024 ($224) 2023
3,500 ha
2,380 effective ha 5 staff
/ (LOSS) PER HA
2024 $79 2023
*PROFIT / (LOSS) PER HA
Farm operating profit / (loss) before finance costs, operating revaluations and tax, per effective hectare
OHOTU & TOHUNGA 2,690 ha 2,440 effective ha 4 staff PROFIT / (LOSS) PER HA
$915 2024 $799 2023
1,516 steers finished 276 heifers finished
25,836 lambs finished 22 ha
HĀPUAWHENUA
415 ha 395 effective ha 5 staff PROFIT / (LOSS) PER HA
$467 2024 $529 2023
728 cows OHOREA
PĀ
/ (LOSS) PER HA
2024 $354 2023 956 cows 458 steers finished 16,100 ewes 308 external hives
8,572 lambs finished 1,233 ha
ha
effective ha 6 staff
/ (LOSS) PER HA $126 2024 $259 2023
1,085 cows 722 Ātihau hives
15,549 ewes 1,162 ha
Investment into income-generating assets and divestment from mature long-term growth assets, enabling larger and more consistent distributions.
Diversifying our investment portfolio means we are reducing risk. At the same time, we can use our resources to attend to environmental, social and governance goals.
Our whenua is used primarily for agriculture but returns can be variable. Optimising how we use our whenua and investing in a range of dependable cash-generating assets will drive better economic outcomes and build intergenerational resilience for Ātihau and our nearly 10,000 shareholders.
Ātihau has a recent history of diversification within the farming sector to increase cash returns, grow cash-generating assets and lift profit. We have invested in Te Hou Farms Limited Partnership and diversified production through beehives and mānuka, forestry and carbon farming.
We have also investigated farming alternatives, including product processing, tourism, property development and energy generation.
An important workstream this year has been the Papahau Forest Partnership joint venture. Gaining access to trees across the Mangawhero River will be costly because the existing bridge on the Matahiwi track cannot carry trucks filled with logs. Without a solution, potential harvest costs could increase by several million dollars.
An alternative crossing has been costed by civil engineers at between $1.2 million and $2 million. Discussions are underway with NZ Transport Agency Waka Kotahi, Ruapehu District Council and our joint venture partner Rangitikei LP, and expressions of interest are being sought for the design and build of a new bridge. We expect to agree on a solution by the end of the calendar year.
Rangitikei LP has completed initial harvest planning and suggests a two-year lead-in time to full harvest.
HIGHS
97 ha of forestry planted, 47 ha replanted at Ohorea and 50 ha new forestry at Waipuna
49,000 carbon units sold with a gain on sale of $1 million
Key highlights (cont)
Our forestry activity is expanding. Ātihau has identified more than 1400 hectares of land suited to forests. Of this, 200 hectares will be planted at Waipuna by the end of winter in 2024.
At Ohorea, 47 hectares of forestry has been replanted and 50 hectares of new forestry has been established at Waipuna. The remaining 1280 hectares of new forestry will be established over the next three years, subject to board approval and resource consents.
Carbon sales have been made “little and often” to minimise the impact of fluctuations in Emissions Trading Scheme (ETS) pricing. A total of 44,000 carbon units were sold, bringing to an end the fixed price opportunity created through the establishment of a forestry trust last year.
A new dairy shed and milking block at Te Hou Farms is allowing for faster milking and lifting production per cow. Te Hou Farms also adopted a recommendation in an independent review to optimise the dairy unit and boost productivity by the addition of winter milking.
Ātihau received Te Puni Kōkiri funding to develop a detailed business case and pitch deck for diversifying into tourism, including a hunting experience and a walking track across Ohotu. However, the initiatives have been put on hold for the time being while the Incorporation focuses on core business.
Potential investment in building housing in Ohakune is also on hold
following the release of Ruapehu District Council’s long-term plan to 2034. The Ātihau block being considered is not zoned for housing. A spatial review (i.e. zoning changes) was not included in the council’s proposed 10-year plan and Ātihau is not prepared to consider other planning provisions for the block at this time because of cost.
Interest payments on the Ruapehu Alpine Lifts Limited (RAL) bond have been delayed following RAL being placed into liquidation in June 2023. Turoa skifield has been sold but there is no buyer yet for Whakapapa, and receivers continue to operate parts of the business. The interest is likely to be paid retrospectively as part of a sales and purchase agreement.
The right tree in the right place for the right purpose – a mantra that sums up our approach to diversifying Ātihau earnings through forestry and carbon.
We set diversification as a longterm strategy to diversify earnings and bring stable returns for more than 9600 shareholders. With shareholder numbers growing by 2 percent each year and forecast to reach 12,000 within 10 years, the aim is to lift cash returns in order to provide bigger and more consistent dividends and to support the education and wellbeing of our shareholder whānau.
To fund diversification, the need to establish a funding reserve was identified. That fund is being created by two high-value investments: trees for timber and carbon credits.
Ātihau has worked steadily on expanding planting programmes for both production forestry and sequestering carbon to sell as carbon credits.
Ātihau chief executive Andrew Beijeman says the first step was to develop a carbon model.
“The aim was to identify the carbon opportunities available in mānuka and exotic forestry over the next 20 years, and how much we could expect to sell each year.”
“Although the model was mainly based on existing forestry in the ETS, we overlaid opportunities for additional planting.”
NZ Forest Managers Limited is working to support the planning of new forests.
“It’s about understanding what trees should be planted in new forestry and where. That work isn’t completed yet, but we’re very close.”
More than 1400 hectares of land on Papahaua, Waipuna and Ohorea has been tagged as suited to either rotational or permanent carbon forests.
Preparation for planting requires a significant lead-in time. It includes developing pest control plans and bush margin spraying.
Beijeman says a close watch has been required to control pests at Waipuna and other areas earmarked for planting where large numbers of deer are present.
Newly planted trees at Waipuna suffered significant pest damage, mainly in smaller areas next to another farm. Tree survival will be reviewed over winter, and replanting may be needed. Other foresters are experiencing similar challenges from pest invasion into plantings on boundaries, Beijeman says.
Electric fencing has been installed at Waipuna to keep deer out of the forestry block, but further control measures may be needed across the forestry to ensure plantings are successful.
"It’s about understanding what trees should be planted in new forestry and where. That work isn’t completed yet, but we’re very close."
for FY2024/25
Ongoing pest control across new forestry.
Ongoing sale of carbon credits and monitoring of auction settings.
Confirm 5-year planting strategy for remaining 1,200ha of new forestry.
Update carbon model.
Review Te Hou Farms Investment.
Further progress of the Mangawhero River bridge (2025) to enable harvest of Papahaua Forest.
Support the aspirations of hapū, marae and uri of Whanganui-nui-tonu and strengthen the connection between our people and our whenua.
Knowing who we are, where we’re from and our connections to our whenua creates and builds strong relationships.
Having access to the whenua and the resources it provides allows us to practise traditional activities. It gives us a sense of belonging and can enhance the way we work together to uplift and achieve our collective aspirations to deliver the greatest intergenerational impact we can.
We have exceeded our shareholder events target in the past year by completing five successful events: a cultural aspirations hui in October, a farm tour in November, our annual general meeting in December 2023, whānau engagement at Pākaitore in February 2024 and a shareholder hunt on four different farms in May 2024.
We also re-ignited our ‘Kei whea koe?’ campaign in January 2024, on the search again for shareholder whānau who have unclaimed dividends. We ended the financial year having paid out $198,774 in unclaimed dividends.
Shareholder events
We’ve had a busy year with our shareholder and uri engagement events and connections, setting and exceeding our target of four events.
In October 2023 we held a cultural aspirations hui at Te Ao Hou Marae, Whanganui, connecting with shareholders to talk about cultural events and activities they’d like to see.
In November 2023, about 100 of our shareholder whānau travelled from Raetihi and Whanganui to tour Te Pā Station and Te Oreore Slip. Our thanks to Tuhiariki Marae for hosting us.
HIGHS
5 shareholder events up 2 from 2023
$198,774 of unclaimed dividends paid to shareholders
179 missing shareholders located along with 12 whānau trusts
$1.38m dividends declared and grant distributions, up $26k from 2023
LOW
5,745 missing shareholders (or 58.6%)
Key highlights (cont)
We’re regular attendees at Pākaitore Day and had great interaction and engagement with shareholders and whānau in February 2024, providing an opportunity to kōrero about grants and scholarships, unclaimed dividends and sales of our 50th anniversary celebration books.
A successful shareholder hunt was held at Te Paenga, Waipuna, Ohorea and Te Pā farms in May 2024.
‘Kei whea koe?’
With $3.19 million in unclaimed dividends at the end of our last financial year, we decided to reignite our ‘Kei whea koe’ campaign in January 2024.
Our12-month target is to pay $300,000 in unclaimed dividends. So far, we’ve met 68.5 percent of this target by paying $198,774. Along the way, we’ve found 179
shareholders and 12 whānau trusts on our unclaimed dividends list.
There has been a great response to our Facebook campaign, where we regularly post names of whānau and trusts with unclaimed dividends.
Ātihau's shareholder engagement liaison Atiria Menehira-McLeod has also been doing online research on search engine Google and family history and heritage websites, as well as visiting the Māori Land Court to research court orders to try to find connections.
We publish a list of whānau with unclaimed dividends on our website www.atihau.com and encourage people to take a look to see if they or whānau members are listed there. We’re always happy to help and whānau can call or email the office.
for FY2024/25
Hapū engagement delivered through two road shows.
Continue our ‘Kei whea koe?’ campaign.
Create more connections with other like-minded groups and organisations.
"Our 12-month target is to pay $300,000 in unclaimed dividends. So far, we've met 68.5 percent of this target by paying $198,774."
Access to better information for decision-making and connection with shareholders, partners, customers, kaimahi and alumni.
Using the right technology to drive reporting, analysis and engagement will lift business performance and improve prosperity. We will respond more easily to challenges such as managing shareholder information, unlocking insights from data, improving processes and systems, and ensuring mapping is userfriendly and reliable.
Supporting stakeholders to access the information they need means our people will connect more easily with Ātihau. They will be able to understand, participate in and benefit from activities and opportunities across the Āti Hau Group.
A key focus this year was building a data warehouse for all digital information. Ātihau worked with technology developers Cucumber Limited to construct the warehouse, which can store, analyse, interpret, cross-reference and generate reports.
Development has initially prioritised building two business intelligence dashboards: a financial dashboard for all levels of the organisation and one to support the apiary team.
The financial dashboard aims to make financial reporting and information more accessible across the organisation. The apiary dashboard aims to support decisions on where to place hives by analysing historical hive quality and seasonal harvest data, including which hive placements have generated more earnings.
In time, a business intelligence dashboard will be built to connect farming data to the digital warehouse.
Early work has focused on uploading financial and apiary data to the digital warehouse and learning how to use the new technology to generate useful reporting.
When fully developed, the data facility will house and report on information about activities across the business, ranging from debt and profit to quality of streams.
17.7% employee turnover, down from 26.6% in 2023
45% staff who are uri, up 2% from 2023
LOW
66% staff engagement score, down 3% from 2023
3 lost time injuries, consistent with last year
Key highlights (cont)
The intention is to connect not only managers, kaimahi and governors but also shareholders with comprehensive information about the business.
Ātihau General Manager Corporate and Finance Debbie Hyland says the development of decision support tools will expand as budgets allow. This year’s priorities were focused on the areas where we could get the biggest return, allowing us to prioritise hive placements and reduce helicopter costs through informed decision-making.
“As we build more rooms in the warehouse, there will be more ability to combine data to create comprehensive reporting and share information.”
“We’re not there yet. Building the rooms costs money, producing reports costs money. In the current economic climate, we are moving cautiously with development across the board.”
A review was completed of the previous year’s goals for performance and strategy introduction. Annual business plans were developed and targets were set for the year ahead.
A major effort over the year has been upgrading staff housing to meet Healthy Homes Standards. A good start has been made this year, with new insulation installed across all staff housing that needed it. However, more work needs to be done.
It is pleasing to report low staff turnover compared to previous years.
As the Awhiwhenua apprenticeship programme began to wind down, there were no first-year cadets this year. The scheme will continue in the year ahead to allow second- and third-year cadets to complete their training.
Our heatlh and safety goal is to achieve zero harm. During the year we reported three lost time injuries, consistent with last year. We continue to work together to understand risks and harm, impact and to refine our health and safety plans over time.
The year has seen an increased focus on health and safety nearmiss reporting, with more near-miss incidents reported than at the end of the previous year.
Hyland says that by encouraging more reporting on near-miss incidents, we can help managers identify and address any health and safety concerns, which in turn can reduce near-miss and accident rates.
"A
major effort over the year has been upgrading staff housing to meet Healthy Homes Standards."
KEY
for FY2024/25
Scope performancemonitoring business intelligence dashboard for other parts of the business.
Continue upgrading staff housing to Healthy Homes Standards.
Develop a ‘People Plan’.
Thrive through partnerships and collaboration
Partnerships are organised, deliberate and formalised.
Working with the right partners will generate the best value possible from every resource we invest.
Strong, long-term relationships will help us to achieve our aspirations.
We partner and collaborate with organisations who share similar charitable and commercial goals and values.
Our expertise and assets combined with those of our valued partners will help us stay resilient even when times are tough.
Commercial partnerships
An important commercial partnership was sealed with mānuka honey brand Manukora, securing a long-term honey supply agreement that was developed over several years. The partnership is mutually beneficial and will support increased efficiency on both sides.
Signed in September last year, we are already seeing the advantages of this significant agreement. The deal with Manukora Limited links pricing through the value chain and gives Ātihau an idea of how much we will sell before we produce the honey.
For example, we knew in September 2023 how much honey we would sell in this financial year, and in addition had an indication of the cash sales from April 2024 to March 2025.
This allows our beekeeping business to plan and harvest appropriately, and line up other buyers for any surplus inventory.
When previous beekeeper partner Oha Honey left beekeeping, we were able to establish new agreements with beekeepers Mānuka Health New Zealand Limited and Smoking Joe NZ Limited, thanks to developing good relationships with these partners over the last few years. They now have their hives on Ātihau blocks.
1 partnership agreement for long-term honey supply 2 new procurement agreements via the Awhina Group 47 recommendations from independent review of governance, operations and charitable arm
$66k from co-funding agreements for Te Āti Hau Trust grant recipients
STRATEGIC PRIORTY 6 - Thrive through partnerships and collaboration
Key highlights (cont)
In procurement, combining our buying power with other Māori agribusinesses to leverage favourable pricing makes good sense. Our contracts were retendered and renegotiated across four major categories: cropping and agrichemicals, animal health, general farm merchandise, capital water and fencing materials. Working with Awhina Group, procurement savings of about $50,000 per annum were achieved across animal health costs, for example.
A new fertiliser procurement deal through Awhina Group will also benefit Ātihau significantly as well as our Māori agribusiness partners. The deal entails paying a subscription fee but that cost is more than outweighed by the power of buying collectively. For example, we buy 3000 tonnes of fertiliser but the price we pay is based on 10,000 tonnes sold to the collective.
An independent organisational review was completed with the support of EY Tahi to understand how Ātihau-Whanganui Incorporation and Te Āti Hau Trust can more efficiently implement the strategy of the Group.
The review resulted in 47 recommendations on how to ensure the right people, structures and processes are in place to efficiently implement our strategic intentions. They focus on achieving greater value, generating efficiencies while maintaining our level of service. Some recommendations will be implemented swiftly and others will take more time.
During the year the Ati Hau Group participated in the ‘Ngā pou o te kawa ora’ project being undertaken by the External Reporting Board.
Our strategic alliance with mānuka honey brand Manukora has been key in carrying the apiary through tough times in the bee industry.
Ngā pou o te kawa ora refers to the pillars that embody the principles of life. It is a significant project which has established He Tauira, a voluntary, non-financial reporting framework from an Aotearoa New Zealand perspective.
By implementing He Tauira, we aim to capture our broader impact and value beyond monetary aspects, with the ultimate goal of uplifting the well-being of future generations of uri.
"A new fertiliser procurement deal through Awhina Group will also benefit Ātihau significantly as well as our Māori agribusiness partners."
KEY
for FY2024/25
Formalise a strategic partnership with one of our red meat customers.
Formalise a strategic partnership with another honey partner.
Embrace our culture
Uri and kaimahi are comfortable practising tikanga, tūpuna knowledge and te reo o Whanganui.
Our tikanga, tūpuna knowledge and te reo o Whanganui has been eroded by colonisation. Losing access to the land meant some uri became disconnected from tikanga, whenua and tūpuna.
By revitalising our tikanga, tūpuna knowledge and te reo o Whanganui, we will help restore uri wellbeing, provide a source of pride and a sense of belonging.
Implementation of the Ātihau Culture Plan began in December 2023 after a development process that included meeting with shareholders and kaimahi.
We’ve also moved into the second year of the Wāhi Tapu/Wāhi Tūpuna mātauranga project, with $260,000 funding assistance from Te Aka Whai Ora across two years. This project is helping us understand where our culturally significant sites are, so we can protect them and provide opportunities for uri to reconnect to them and the whenua.
Culture Plan
Guided by three pou – Toitū te Whenua, Toitū te Tangata, Toitū te Mana – the main thrust of the plan is to help staff develop their understanding and use of mātauranga Māori, through te reo Māori, te mita o Whanganui and learning about Whanganui history.
Ātihau Cultural Advisor Goldie Akapita, who developed the plan, is supporting staff to engage in cultural practices and normalise basic te reo Māori in the workplace. Encouraging correct pronunciation of farm names, land blocks and staff names is the basis of the reo Māori programme.
HIGHS
$260,000 grants revenue providing funding assistance for Wāhi Tapu/Wāhi Tūpuna mātauranga projects across two years
33 te reo Māori and tikanga classes
3 cultural and historical inductions since development in current year
Key highlights (cont)
The finance team attends weekly te reo Māori and tikanga classes. In previous years, farms and apiary staff attended classes, but with the challenges of seasonal and weather impacts on staff time, Akapita now uses other platforms such as the staff Facebook page.
Focusing on the name of a farm, Akapita includes simple visuals in her Facebook posts, a written phonetic explanation of how to pronounce the name, along with some interesting historical farm facts.
Another aspect of the plan is to implement cultural inductions for new staff members. This includes the history of Ātihau and its organisational values. To cater for existing staff members, this induction has also been delivered to farm teams.
She’s noticed positive behavioural change and an increased awareness of the importance of pronouncing farm names correctly.
“We still have a long way to go as we deal with years of mispronunciation, but staff are genuinely trying and it’s been great seeing their willingness to know more about the lands they farm. This is where the Wāhi Tapu/Wāhi Tūpuna project is valuable, as it unlocks tūpuna wisdom through a series of interviews with uri,” she said.
Another highlight during the year was the relocation of the restored pou Uenukumanawawiri back to Tawanui Station in May.
The pou was originally carved by Jimmy Tahuparae and restored under his supervision at Te Ao Hou Marae.
The first year of this project has been spent researching and mapping land for sites of significance, working with whānau, hapū and staff.
We’ve had hui at Ohotu/Te Pā, Ohorea, Koriniti and Paraweka Marae, and interviews with kaumātua have been completed.
Going forward, the intention is to finish further interviews, analyse the data and kōrero we have, look at how we can build on our research, and provide better access and/or protection of these sites.
Developing historical kōrero
We are compiling staff handbooks from a range of existing publications, as well as gathering new information, with the expectation that we create and build our own pātaka kōrero.
Uenukumanawawiri
The pou was originally carved by Jimmy Tahuparae and restored under his supervision at Te Ao Hou Marae.
KEY PRIORITIES for FY2024/25
Continue implementing the culture plan including building te reo Māori capability, with a focus on pronunciation.
Formalise policy, standards and protocols for access to wāhi tapu/ wāhi tupuna sites.
Develop historical kōrero for each farm and land block, using data from the Wāhi Tapu/Wāhi Tūpuna project.
This year the Āti Hau Group has returned a net loss after tax of $5.7 million (2023: $6.7 million loss). The Group has contributed to a shareholder net equity position of $277.5 million, down $15.5 million from $293 million last year. An operating loss of $1.3 million was also reported this year (2023: $1.9 million loss).
The Board has recommended a dividend distribution of $0.28 per share dividend and a $250,000 distribution to Te Āti Hau Trust.
This year revenue was $20.9 million compared to $21.9m million in 2023, a decrease of $1 million.
Livestock revenue of $12.7 million was $2.9 million lower than last year. Although stock performed well, returns have been low because of poor prices. Lamb and beef sales were also behind last year because good farm conditions allowed more animals to be wintered, allowing additional weight to be added. We delivered record milk production to achieve sales of $2 million consistent with last year’s returns because of lower Fonterra milk prices this year.
Apiary revenue of $3.5 million was consistent with last year. We achieved record production and record sales with only 143 tonnes of mature honey remaining in store (or one and a half years’ production).
Honey was sold at 20% below last year’s book value resulting in a $1 million loss; this reflects the tough times being experienced in the bee keeping industry.
We recognised a gain from the sale of emission trading units of $1.0 million (2023: $1.6 million loss on sale). Carbon credits valued at $3 million were sold during the year to fund capital improvements on the whenua as well as borrowings repayment and distributions.
We delivered our work programme through operating expenditure of $22.2 million compared to $23.8 million in 2023, a savings of $1.6 million.
Despite ongoing inflationary pressures there have been continuous efforts to find efficiencies in a range of categories. Farm, apiary and forestry expenses of $10.1 million were $1.3 million lower than the prior year. We didn’t harvest any logs during the year resulting in $0.5 million positive variance on last year. We also saved $1 million in shearing and cropping expenditure.
Employee expenses of $6.7 million were $0.4 million higher due to inflation. Repairs and maintenance, governance and shareholder expenses, donations and distributions, and other expenses of $5.3 million were $0.8 million lower than last year.
Finance costs increased by $0.4 million to $2.5 million due to higher
interest rates, however, our average cost of funds remained slightly below 6%.
We recognised operating losses of $1.7 million (2023: $3.2 million revaluation losses) mainly due to changes in the value of livestock and hives. Lower commodity pricing has been a key challenge this year, affecting both revenue and asset values.
Property, plant and equipment decreased $17.6 million from $277.1 million to $259.5 million this year mainly due to an independent impairment review of the fair value of our rural land and buildings.
The rural property market in the 2023/24 season has essentially followed the commodity prices which have been quite varied and have fluctuated strongly. The main influences have been the demand (for some, the lack of) for product, and cost structures staying stubbornly high (mainly interest rates, inputs, compliance). This has led to a more subdued real estate market.
We delivered our capital works programme with additions of $1.7 million. This spend was lower than we had planned for farm development, environmental works, staff housing and vehicle replacements.
Despite lower and fluctuating commodity prices for farming, apiary and forestry, there has been continuous efforts to deliver efficiencies across the Āti Hau Group. We remain steadfast in the efforts required to return to a profitable position given the challenging economic circumstances.
Biological assets including sheep, cattle, hive and forestry assets were valued independently at $31.6 million compared to $32.7 million last year. In addition, we are carrying less inventory of $6.4 million (2023: $8.3 million) most of which relates to mature honey following a year of record sales.
Our investments in associates and joint ventures are valued at $10.7 million (2023: $11.4 million) comprising our investment in Te Hou Farms Limited Partnership (dairy) $8.6 million (2023: $9.9 million) and our investment in the Papahau Forest Partnership $2.1 million (2023: $1.5 million). During the year Te Hou Farms incurred losses from trading and other comprehensive income.
New Zealand Emission Trading Scheme units of 304,793 (2023: 208,303 units) were valued at $15.4 million (2023: $8.7 million), this figure includes an allocation of units received after the balance date valued of $7.7 million and
a revaluation gain of $1.8 million due to improved pricing compared to last year. In addition, we have disclosed a contingent asset of $4.9 million which represents the market value of units relating to our emissions return for the 2023/2024 year which has yet to be submitted to central Government.
Our Capital
Shareholder funds (equity)
Total shareholder funds (equity) is $277.5 million compared to $293 million in the previous year. The change in net asset values can be attributed primarily to the devaluation of our land and buildings offset by increases in the value of intangible assets as noted above.
We have a term debt facility of $37.8 million, of which $34.3 million was drawn down as at 30 June
Details of revenue and expenses by business activity are summarised on page 55 of the annual report.
2024 (2023: $34.6 million). We have a seasonal and overdraft facility of $7.5 million of which $5.5 million (2023: $3.3 million) was drawn down.
Assets pledged as security for our borrowings include land, buildings and livestock. The value of our inventories, biological and carbon assets exceeds total debt by $12.6 million which means our whenua is protected.
An income tax expense of $0.2 million from current and deferred tax has been recognised (2023: $0.5 million income tax loss). We anticipate paying provisional tax next year, having utilised our available tax losses from previous years.
For the Year Ended 30 June 2024
This year we recorded an operating loss of $1.3 million loss (2023: $1.9 million loss) before finance costs, operating revaluations and tax. All figures below are $'000.
Total $20,903 (2023: $21,914)
Farm 15,603 (2023: 18,745)
Apiary Beekeeping 2,522 (2023: 2,794)
Apiary Royalties 1,040 (2023: 899)
Forestry - (2023: 818)
Carbon Gain (Loss) on Sale 1,054 (2023: (1,654))
Corporate 684 (2023: 312)
Total $22,155 (2023: $23,806)
Farm 14,009 (2023: 14,964)
Apiary Beekeeping 3,329 (2023: 3,500)
Apiary Royalties 646 (2023: 539) Forestry 342 (2023: 955)
Corporate 3,829 (2023: 3,848)
Mangaer Culture & Legacy (departed June 2024)
On behalf of Te Āti Hau Trust, I am pleased to present the annual report for the 2023/2024 financial year.
It’s been a busy year for the Trust, applying funding to advance education, cultural, health and wellbeing aspirations for whānau who whakapapa to Ātihau whenua.
Taking particular care with budgeting and forecasting – and as a result of building up reserves –we’ve been able to deliver on grant expections for shareholder whānau, even though we didn’t receive a financial contribution from Ātihau this year.
More than $361,059 was distributed through 556 grants – a decrease of $75,657 from the previous year.
Kaumātua Grants
The number of applications and grants paid has increased, with 194 grants totalling $151,739 approved. This compares with 157 grants totalling $124,874 in the previous year.
Given our ageing population, this remains an important area for the Trust. We expect application numbers to increase over time and we’re thinking about more strategic partnerships with like-minded organisations to help meet the needs of our kaumātua.
Most of the grant allocations are in the three focus areas of hearing (funding hearing aids), eyes (glasses) and teeth (dental work). We’ve seen an increase in other medical requests as well, such as general practitioner costs. We do our best to help in any way we can and it’s good knowing we are able to support the wellbeing and comfort of our kaumātua.
We love investing in the future of our people. We received 192 education applications this year, 27 more than last year, distributing a total of $117,150 in grants and scholarships.
The Trust awarded $101,700 in 140 separate grants to those attending tertiary education, studying subjects in diverse fields such as health, science, te ao Māori, engineering and design, business, agriculture, education, arts and law. A further $10,750 was awarded to support 43 secondary school students. We continue to support shareholder whānau in trades training, approving $4,700 for nine trades grants.
We’re acutely aware that without the relationships we have with our co-funders, we wouldn’t be able to meet as many grant requests.
Through our partnership with the Māori Education Trust we have additional tripartite agreements with Te Herenga Waka (Victoria University), Te Kunenga ki Pūrehuroa (Massey University) and Te Wānanga Aronui o Tāmaki Makau Rau (AUT). These co-funding agreements have brought in valuable additional funding of $66,000 to Te Āti Hau
Trust grant recipients. It’s in the best interests of our shareholders that we continue to explore these sorts of arrangements, to ensure our funding is more diverse and sustainable.
This year we bid farewell to Independent Trustee Claire Cilliers, and Trustees Che Wilson and Dr Brendon Te Tiwha Puketapu. I’d like to thank and acknowledge Claire, Che and Brendon for their time and expertise shared around the Trust table.
Keria Ponga returns to us as a trustee and Kemp Dryden has also been appointed trustee from the Incorporation governance table.
Associate Trustee Tukariri Dryden’s term has been extended until the end of the year. We’ve also been lucky to have the expertise of Incorporation Associate Directors Charles Chadwick and Jason Ashford.
It’s always great to have uri who are passionate about how we can support the needs of our whānau, making significant contributions to the mahi and our Trust.
In the past year we’ve reviewed our strategic plan to make sure we’re covering the work necessary to enable our shareholders and their whānau to pursue their aspirations and goals.
For the next 12 months, rather than implementing new projects or programmes, we want to make sure we have robust processes supporting our business-as-
usual activities. This will give us confidence that we’re meeting not only the directives of Ātihau and expectations of whānau, but also ourselves as a Trust.
I would like to thank my fellow Trustees for their energy and commitment over the year, enabling our people to reach their potential, so that they can help strengthen our Ātihau communities.
I also wish to thank ĀtihauWhanganui Incorporation – the foundation of everything we do at the Trust – for its continued support, guidance and leadership.
And to our shareholder whānau, whose drive and achievements are a deep source of pride for us all, tēnā rawa atu kautau.
Ngā mihi nui
Dr Rāwiri Tinirau Te Āti Hau Trust Chair
“Our people have the goods. It’s about getting our marae recognised for their significant contributions to civil defence efforts and adequately resourced."
Knowing they have iwi support has made a huge difference to brothers Haukapuanui and Sonny Vercoe, both studying for their Doctor of Philosophy (PhD) in Civil Engineering at the University of Auckland | Waipapa Taumata Rau.
Haukapuanui (26) and Sonny (24) have been recipients of Te Āti Hau Trust grants for six years. In 2022, they each graduated with a Bachelor of Engineering (Honours), before returning to the faculty as PhD students.
Just beginning the third year of their doctorates – about half-way through their PhD studies – they were this year each awarded a Te Āti Hau Trust Education Scholarship.
Over the years, this support has helped in many ways – from covering living costs such as rent, kai and petrol, to enabling them to remain kanohi kitea and continue contributing to various kaupapa at home, including hautapu, poukai and wānanga.
“Getting this tautoko, knowing iwi are backing us all the way, makes all the difference,” Haukapuanui said.
“Being able to go to kaupapa at different marae helps to ensure that we can uphold our Māoritanga while navigating the Western spheres of research and academia.”
The brothers grew up in Rotorua and whakapapa to Ngāti Hinearo at Parikino, Te Arawa, Ngāti Tūwharetoa, Ngāti Pāhauwera, Ngāti Kahungunu, Ngāti Raukawa and Ngāi Tahu.
Their familiarity and connections to marae are evident in their PhD research.
Haukapuanui is looking at the natural hazard resilience of marae, with a key focus on the infrastructure networks that service them, also considering the added pressures introduced by climate change.
Time and again, he said, Māori have demonstrated effective emergency management, response and relief in spite of limited resources.
“Our people have the goods. It’s about getting our marae recognised for their significant contributions to civil defence efforts and adequately resourced. Our marae serve whānau, hapū and iwi, as well as the wider community in times of need,” he said.
Sonny’s research investigates the detailed seismic assessment (DSA) of wharenui.
“Existing guidelines class a lot of our wharenui as potentially earthquake-prone and often warrant further appraisal, which could be a prohibitive expense for our marae,” Sonny said.
Wharenui have withstood seismic events for centuries, so he wants to ensure that if wharenui are seismically assessed, they are assessed appropriately. His research involves classifying the structural systems of wharenui across the country and defining how the DSA procedure is currently applied by engineers to wharenui.
As a result, wharenui-specific DSA procedures and guidelines can be created for accuracy, time-efficiency, and cost-effectiveness. Ultimately, the research findings intend to streamline the seismic assessment process for engineers and alleviate cost for marae.
Proud raukura of Te Kōhanga Reo ki Ōhau in Ōkere Falls and Te Kura Kaupapa Māori o Te Koutu in Rotorua, the brothers are enthusiastic about encouraging rangatahi to consider tertiary education.
They try to keep an eye on the young ones coming up, and have visited their former kura almost every year, talking to students about different university pathways and rangahau options. Just last year, a batch of five kura students enrolled at Auckland University.
The pair are looking forward to completing their doctoral studies.
“I feel like iwi have been waiting long enough. I’m keen to get to the finish line,” Sonny said.
They talk about future lecturing, academia or consulting roles that could mix with iwi, acknowledging they still have a lot going on in their existing studies.
One thing they’re sure about, though, is their strong desire to continue working with, and for, our marae.
Summary of Grant Distribution For the year ended 30 June 2024
Total Grant Distribution
$361,059 (2023: $437,127)
556
TOTAL GRANTS (2023: 452)
Education Grants
$117,150 (2023: $103,600)
192
TOTAL GRANTS (2023: 165)
General Grants
$243,909 (2023: $333,527)
364
TOTAL GRANTS (2023: 287)
$2,738 4 Grants
$868 2 Grants
$3,779 9 Grants
$29,251 38 Grants
$8,198 12 Grants
WHANGANUI-MANAWATŪ
$228,818 357 Grants
40 Grants
12 Grants
$16,839 24 Grants GISBORNE $1,350 4 Grants
HAWKE'S BAY
$6,665 11 Grants WELLINGTON $21,661 34 Grants
3 Grants
$3,050 6 Grants
Te Wānanga o Aotearoa
Te Wānanga o Raukawa
Massey University
Victoria University of Wellington
Auckland University of Technology
University of Waikato
University of Auckland
University of Otago
UCOL - Te Pūkenga
Lincoln University
Open Polytechnic - Te Pūkenga
Southern Institute Technology
The Career Academy University of Canterbury
For the year ended 30 June 2024 SPECIAL SCHOLARSHIPS
Ātihau Scholarships awarded by the Ātihau Committee of Management during the year ended 30 June 2024. Recommended by Te Āti Hau Trust.
Robin Murphy-Peehi
Hope Tioro
Master of Health Psychology
per year for two years
Huia Wiari
Jasmine Fraser
Maia Wauby
Bachelor of Business Studies 2,000 per year for two years
Bachelor of Management Studies 2,000 per year for two years
Bachelor of Climate Change
ĀTI HAU TRUST SCHOLARSHIPS
per year for two years
Education Grants List
For the year ended 30 June 2024
For the year ended 30 June 2024
Kora (2023)
Pounamu Kora (2024) Bachelor of Arts
Te Maia Kora (2023)
Te Maia Kora (2024)
Mako-Kairimu
Maruera (2023)
Joan-Waetford Menehira (2023)
Ponga
Rangimarie Rangi (2023)
Ranginui
of Business (Accounting)
in Te Pinakitanga ki te Reo Kairangi
of Arts (Te Reo Māori & Cultural Anthropology)
of
Toi Whakarākai
POSTGRADUATE
For the year ended 30 June 2024
Recipient Qualification
Tara Ngatai-Broughton
SECONDARY - YEAR 10 ($250) TOTAL: $
Recipient Education Provider
Rhythm Baker Te Kura o Ngāpuke
Maia Barratt Whanganui High School
Jack Butters Whanganui High School
Tiare-Tiana Filipo-Osborne Te Kura ā Iwi o Kokohuia
Anahera Harris-Haami St Matthew's Collegiate School for Girls'
Anaru Heke Kaiawha Tauranga Boys' College
Merenia Houltham (2023) Manukura
Nikora Herewini Cullinane Collage
Katarah Love Cullinane Collage
Tatiana Makea Nelson College for Girls' Raukura Maru Patea Te Kura ā Iwi o Kokohuia
Recipient Education Provider
Mia-Angela McDonnell Cullinane Collage
Sophia Millin Wellington Girls' College
Paora Peeti Te Aute College
Atticus Ranginui Cullinane Collage
Savanna Reihana (2023) Northland College
Riana Rennie Gisborne Girls' High School
Pinenga Rolls Sacred Heart College, Napier
Levi Taiwhati Flaxmere College
Shem Taputoro-Perkins Te Kura ā Iwi o Kokohuia
Chloe-Marie Townsend Te Āho o te Kura Pounamu
Atawhai (Lemon) Turei Logan Park High School
Rehina Walker Rangitīkei College
SECONDARY - YEAR 11 ($250) (CONTINUED) TOTAL: $ 5,000
Recipient Education Provider
Tangaroa Aki-Mcleod Tai Wānanga
Steelie Albert-Hammond Ruapehu College
Annah Frazerhurst Hastings Girls' High School
Jaeda Hagley-Tutauha Feilding High School
Witerina Hough St Catherine's School
Merenia Houltham (2024) MANUKURA
Maia Iversen Mahurangi College
Tukaha Love TKKM O Tupoho
Naiara Marshall Flaxmere College
Nehemiah Matoe-Kapi Palmerston North Boys' High School
Recipient Education Provider
Maikara-Jordan McDonnell Cullinane Collage
Dayton Muru-Albert Ruapehu College
Violet Ranginui-Mansell Whanganui High School
Veronica Rapana Spotswood College
Norton Reihana Northland College
Savanna Reihana (2024) Kerikeri High School
Braxton Tiraha-Siou Wellington College
Caid Tiraha-Siou Wellington College
John - Charles (Morehu) Hamilton Boys' High School
Waitai-Haenga
Te Kohu (Max) Walsh Sacred Heart College, Auckland
SPORT, ART & TRAVEL TOTAL:
Brider-McDonnell
For the year ended 30 June 2024
Recipient Event
Aumangea Hales-Tamaiparea Te Kura ā Iwi o Kokohuia - Kapa Haka
Flossie Ranginui Te Kura ā Iwi o Kokohuia - Kapa Haka
Inglis Tinirau-Williams Te Kura ā Iwi o Kokohuia - Kapa Haka
Kaiya Polly Matthews Te Kura ā Iwi o Kokohuia - Kapa Haka
Kauri Poutini Te Kura ā Iwi o Kokohuia - Kapa Haka
Kaysha Goff Te Kura ā Iwi o Kokohuia - Kapa Haka
Kitaana Wirihana-Nahona Te Kura ā Iwi o Kokohuia - Kapa Haka
Leila-Jane Poutini Te Kura ā Iwi o Kokohuia - Kapa Haka
Nevaar Whanarere-Mathews Te Kura ā Iwi o Kokohuia - Kapa Haka
Raukura Butler Te Kura ā Iwi o Kokohuia - Kapa Haka
Rongomai Maru-Patea Te Kura ā Iwi o Kokohuia - Kapa Haka
Tamahakaio Maru-Patea Te Kura ā Iwi o Kokohuia - Kapa Haka
Terēhia Poutini Te Kura ā Iwi o Kokohuia - Kapa Haka
Whitiora Hales-Tamaiparea Te Kura ā Iwi o Kokohuia - Kapa Haka
Alia-Rose Lind Te Kura ā Iwi o Kokohuia - Kapa Haka
Atarau Lind Te Kura ā Iwi o Kokohuia - Kapa Haka
Jahvan Martin-Whareaorere Te Kura ā Iwi o Kokohuia - Kapa Haka
Jaye-Leigh Tasker
Te Kura ā Iwi o Kokohuia - Kapa Haka
LJ Mcleod-Taito Te Kura ā Iwi o Kokohuia - Kapa Haka
Koha o te Aroha Curry
Izaeya Pahiko Love
Tu Kaha Jahmayne Bennett Love
Te Turi Tamakehu-Keremeneta
Charlie Peina
Taukirangi Kaea Karena-Patea
Terehia Poutini
LJ Mcleod-Taito
Tiare Filipo-Osborne
Puhoro Kawana-Rowe
Te Vai-Tiare Kawana-Rowe
Jahna Dingle
Ruiha Stirling
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
Kairangi Stirling National Secondary Schools Kapa Haka Competition
Breeze Bell-Falwasser
Mereana Janine Pokiha
Teanga Bell-Falwasser
Sarah Ellison-Rogan
Jaye-Leigh Tasker
Taingakore McLean-Wanoa
Henare Joseph Wallace
Reremoana Tamakehu Wallace
Lazario Pakinga-Manhire
Potaka Brooks-Thompson
Kaiya Matthews
Liana Edwards
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
National Secondary Schools Kapa Haka Competition
Tira Hoe Waka
Recipient
Adelaide Taurerewa
Alice O'Shea
Alistair Goff
Andre Mason
Angela Tioro-Teki
Annasophia Calman
Annie Poari
April Taiaroa-Mudgway
Barbara Hicks
Barry Williams
Bayette Prince
Bernice Schuster
Bessie Williams
Billy Reihana
Brenda Toner
Carol Rameka
Recipient
Carolin Borck
Carolyn Young
Catherine Hawira
Cecelia Fromont
Charles Ratana
Charlotte Frederick
Charmaine Puru
Christine Herewini
Clark Kauika-Stevens
Colleen Chase
Cyril Mako
Dale Edwards
Dalrine Firmin
David Hiroti
Denise Twigg
Dennis Arahanga
Recipient
Dorothy Rapana
Earle Barrie
Edith Murdoch
Eileen Pearson
Elaine Farr
Elizabeth Houltham
Elizabeth Savage
Ellen Haami
Elsie Turia
Florance Farquhar
Frances Huwyler
Francis Pauro
Gabriel Haitana
Gerald Taputoro
Gloryanna Tiraha
Graham Metekingi
Recipient
Gregory Matthews
Guy Timu
Harold Taurerewa
Harry Dansey
Hazel Burling-Claridge
Heeni Ranginui
Helen Chase
Hera Peina
Hilda Neil
Hohipera Mcleod
Huia Kirk
Huki Bishop
Ian Te Huia
Isabel Paewai
James Allen
Jean Pou
Recipient
Jeana Brown
Jenny Whitfield
Jenny Tamakehu
Joan Clarke
Joan Ross
Joanne Potaka-Riini
Jocelyn Nikora
Johanne Patel
John Hansen
Jonina Thomson
Joseanna Goodhall
Joyce Kani
Judith Treanor
Juliana Hook
Juliana Menehira
June Hall
Kahu Edwards
Karen Matthews
Karen Matena
Karney Herewini
Kataraina Millin
Kathleen Nikara
Katrina Winterburn
Kevin Waho
Kim LeGros
Korea Matthews
Korina Waitai
Kurahania Tahu
Kurai Toura
La-Maene Van Miert
For the year ended 30 June 2024
Recipient
Lance Teki
Lee Ngatoa
Leighton Takarangi
Lilian Wardlaw
Linda Henare
Luana Akapita
Lynda Maynard
Makareta Casey
Malcome Kiddie
Mana-Huna Kidd
Maraea Wynyard
Maree Myers
Margaret Menehira
Margaret Iraia
Margaret Waitai
Maria Waretini
Maria McCaskill
Marie Hawira
Marion Peeti
Materina Duncan
Mathew Mataki
Matene Kumeroa
May Allen
Mere Norman
Mereana Hemopo
Mereana Parkinson
Michael Tyson
Michael Wardlaw
Moana Pointon
Morehu Nikora
Recipient
Mangapāpapa Marae
Wharauroa Marae
Recipient Te Pōti Marae
Marangai Marae
Recipient
Myles Healey
Ngaire Kauika-Stevens
Ngapani Te Hore
Novena McGuckkin
Olive Hawira
Pani McArdle
Pani Zaitsev
Pania Te Rangi
Patrice Robinson
Patricia Ashford
Patrick Tioro
Paul Timu
Paul Te Ua
Pearl Haami
Perak Nikora
Phillip Reweti
Piki McFadyen
Piki Waretini
Puawai Thompson
Raewyn Haapu
Rangirea Williams
Raymond Hina
Rexina Dryden
Robert Ranginui
Robert Te Huia
Rongonui Thompson
Rose Barrow
Russell Packer
Ruta Broughton
Ruth Hammond
Recipient Otoko Marae
Mōrero Marae
Recipient
Ruti Winiata
Sandi Ranginui
Sharmaine Te Amo
Sharon Simons
Sheryl Barker
Shona Mako
Stanley Herewini
Stephanie Osborne
Steven Abraham
Stewart Thompson
Tanya Tamihana
Tari Ruscoe
Te Aroha Hakaraia
Te Atawhai Te Rangi
Te Hape Osborne
Te Huiakama Borell
Te Rangianganoa Hawira
Thomas Treanor
Tommy William Ross
Tracey Armitage
Tuilyn Allen
Valma Wallace
Vanessa Thompson
Victoria Condon
Vivienne Parker
Waikaramihi Robinson
Wayne Ormsby
Whaita Mclean
Yvonne Timu
Hau Group
Financial Statements For the year ended 30 June 2024
For the year ended 30 June 2024
This section summarises what Ātihau earned (revenue), what Ātihau spent (expenditure), any movements in the value of Ātihau assets or investments (gains or losses) and the resulting profit or loss for the financial year. Further details can be found in the Notes to the Financial Statements.
For and on behalf of the Committee of Management of Ātihau-Whanganui Incorporation, these financial statements are authorised for issue on 4 October 2024.
DR BRENDON TE TIWHA PUKETAPU Chair
4 October 2024
SARAH
RAE
Chair of Te Ohu Tātari 4 October 2024
For the year ended 30 June 2024
This section details what Ātihau own (assets), what Ātihau owes (liabilities) and the owners share of Ātihau (shareholders' funds) at the end of the financial year. Further details can be found in the Notes to the Financial Statements.
For the year ended 30 June 2024
This section details the movement in Ātihau shareholders' funds (equity) over the financial year, such as any profit and loss, or dividends attributed or paid to shareholders. Further details can be found in the Notes to the Financial Statements.
For the year ended 30 June 2024
This section details Ātihau's cash, what cash came in (receipts) and out (payments). It is separated into cash from doing its day to day business (operating activities), cash relating to capital expenditure ie. buying / selling assets and investments (investing activities) and cash relating to borrowings and funding (financing activities). Further details can be found in the Notes to the Financial Statements.
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements provide information required by legislation and accounting standards to explain a particular feature of the financial statements. The notes are a part of the financial statements and will also provide explanations and additional disclosure to assist readers' understanding and interpretation of the annual report and the financial statements.
This section sets out the legislation and accounting standards that apply to Ātihau, and significant items that relate to the financial statements as a whole.
Ātihau-Whanganui Incorporation (Ātihau) is registered under the Te Ture Whenua Māori Act 1993 and is incorporated in New Zealand. These financial statements are for Ātihau and its subsidiaries (Ātihau Group). Refer to note E24 for further disclosure.
Ātihau is a for-profit entity for the purposes of complying with NZ GAAP. Ātihau qualifies for NZ IFRS (RDR) as it is not a large for-profit entity. Ātihau is eligible for and has elected to report in accordance with Tier 2 For Profit accounting standards and has applied disclosure concessions.
The financial statements have been prepared under the historical cost basis except for land & buildings, biological assets and some financial instruments that are measured at revalued amounts or fair values at the end of each reporting period, as explained in the accounting policies. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.
The information is presented in New Zealand Dollars and all values are rounded to the nearest dollar.
The financial statements have been prepared using the material accounting policies and measurement basis that are in effect at year end as summarised below. These were used throughout all periods presented in the financial statements.
Accounting policies which materially affect the measurement of the consolidated financial statements are disclosed as follows and under the notes to which they relate. Comparative balances have been restated to reflect current presentation.
Expenses
Expenses are recognised on a functional basis in the period in which they are incurred. Operating lease payments are recognised as an expense on a straight-line basis over the lease term.
Goods and Services Taxation (GST)
All amounts are stated exclusive of goods and services tax except for accounts payable and receivable which are inclusive of GST.
There have been no changes in accounting policies during the financial year.
The preparation of these financial statements requires the Committee of Management and Management to exercise its judgement in the process of applying Ātihau's accounting policies that effect the reported amounts in the financial statements. Judgements and estimates are based on external advice, historical experience and other factors that they believe is relevant to the circumstances. Actual results may differ from those estimates.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant are listed throughout the notes to the financial statements.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 30 June 2024
This section focuses on the results and performance of Ātihau. On the following pages you will find notes explaining Ātihau's results for the year which details our revenue, our expenses and our distributions.
Gain/(Loss) from sale of emissions trading units (note C15)
Livestock Revenue - Ātihau sells livestock to third-party buyers. The livestock revenue is recognised at the point in time that control is assumed by the buyer, being the date that the animal is killed. The amount of revenue recognised is based on the industry market price provided by the buyer.
Apiary Revenue - Ātihau sells honey product to third-party buyers. Honey sale revenue is recognised when control of the goods has passed to the customer, being the point in time that the goods are delivered to the customer. The amount of revenue recognised is based on an agreed price list adjusted to account for current market conditions.
Honey harvested is initially valued at fair value less future costs of sale. Fair value is assessed using market comparison (where values are based on the latest market prices) for the type of honey and its UMF factor. At the year end, the carrying value of honey stock on hand is revalued to net realisable value (NRV) to reflect honey attribution changes and estimated future achievable sales values.
Milk Revenue - Ātihau sells milk to a third-party buyer. The milk revenue is recognised at the point in time that control is assumed by the buyer, being the date of collection. Payment is paid on a per kg milksolids basis based upon the forecast milk price payable. Approximately 85% is received upon collection and the balance is deferred, spread over the months up to September following year end.
Wool Revenue - Ātihau sells wool to third-party buyers. The wool revenue is recognised at the point in time that control is assumed by the buyer, being the date the wool is collected, or the date the wool is sold at auction. The amount of revenue recognised is based on industry-accepted market price provided by the buyer.
Rental Revenue - Rental income is recognised on a straight line basis over the term of the lease.
ETS Revenue - The policy for recognition of revenue for emissions trading units is described in the Intangible Assets note (note C15).
Other Revenue - Dividends received are recognised on receipt, net of non-refundable tax credits. All other revenue is recognised at the point a service has been delivered or commitment made by a customer attached to grants are met.
For the year ended 30 June 2024
For the year ended 30 June 2024
An annual grant from Ātihau to Te Āti Hau Trust was not paid in 2024 (2023: $487,000) due to the Trust having accummuldated reserves. Generally the grant is paid based on 35% of the total distributions, to support the Trust objectives to advance the educational, cultural and social aspirations of our shareholders and uri. This grant has been eliminated in these financial statements - see note E24 Group Entities. The details of donations, grants and scholarships distributions are summarised below - see page 56 of the annual report for further details on Te Āti Hau Trust.
For the year ended 30 June 2024
Ātihau aspires to target a distribution over time of 50 cents per share. When setting the dividend the Committee of Management consider the following:
- The requirements of Te Ture Whenua Maori Act 1993 and other applicable legislation
- The level of distributable profit and cash available for distribution
- Any relevant banking covenants and policy compliance
- The signficance of dividends to Ātihau shareholders as a link to Ātihau and their ancestral whenua.
Recognition and measurement
3,194,615
Dividends are declared on or before the end of the financial year. Amounts undistributed at balance date are unclaimed dividends.
TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2024
This section details the assets and investments Ātihau hold a kaitiaki (stewards) and how they generate revenue.
Recognition and measurement
Inventories are stated at the lower of cost and net realisable value. Stock feed on hand is stated at fair value at point of harvest, less costs to realise. Agricultural produce inventory from biological assets is valued at fair value, by reference to market prices for bulk honey and wool, less estimated point of sale costs.
Bulk honey is valued at estimated net realisable value (NRV) to reflect honey attribution changes and estimated future achievable sales values. Writedown of carrying value to NRV is offset against apiary revenue. Honey is MGO quality tested and an estimate of market price valued using forecast farmgate prices listed by a significant customer at year end discounted to account for slow moving stock. Packaged honey is valued at the bulk honey value plus cost of raw materials used.
For the year ended 30 June 2024
Livestock consists of mixed age sheep and cows which are held for dairy and dry stock farming. The units on hand were counted and independently verified by PGG Wrightson (PGG) prior to years end. A fair value valuation of the sheep and cattle was undertaken by S Luoni (employed by PGG) .The valuation is based on reference to market evidence of current prices less point of sale costs. PGG is an independent registered valuer not related to Ātihau. The valuers hold recognised and relevant professional qualifications and have recent experience in the category of biological asset they have valued.
Bees on hand consist of queen and worker bees. Hive valuations were verified independently by Colliers in June 2024 (2023: W Steel, director of an apiary company). Values were based on the size of the hive and included both biomass (bees) and hiveware components. The biomass component is calculated by deducting the hiveware component from hive value.
Forestry (non-joint venture) was valued at market value in accordance with NZ IAS 41 and New Zealand Institute of Forestry standards by Forest360, an independent registered forestry valuer. The valuers hold recognised and relevant professional qualifications with experience in the industry.
Recognition and measurement
Biological assets include livestock, bees and forests and are valued using market values by industry experts. Livestock market values reflect livestock of similar age, breed and genetic merit. Changes in the value of livestock are recognised in the Statement of Comprehensive Income. Value changes that form part of Ātihau livestock management policies including animal growth and changes in livestock numbers are recognised as revenue in the Statement of Comprehensive Income. Changes in value due to general livestock price movements are beyond Ātihau's control and are recognised in the Statement of Comprehensive Income as gain/loss due to price changes on livestock. Bees are measured at fair value less point of sale costs.
Non current biological assets relates to forestry not held through the Papahau Forest Partnership joint venture and are located across Ohorea, Waipuna, Te Paenga and Tawanui blocks. These trees are revalued to fair value value by a registered forestry valuer.
For the year ended 30 June 2024
Ātihau has interests in associates and joint ventures which are all resident in New Zealand. They are accounted for using the equity method of accounting. Papahau Forest Partnership is a separately structured vehicle whose accounts are unaudited. The primary activity is forest plantation. The Ātihau share of this forest investment is valued at market value by Forest360. Realisation of this investment will require reconstruction of a bridge which will be co-funded by Waka Kotahi, NZ Transport Agency and the joint venture. Te Hou Farms Limited Partnership is in the business of beef and dairy farming, with forestry interests and is audited.
Recognition and measurement
Associates are those entities over which Ātihau is able to exert significant influence but which are not subsidiaries. A joint venture is an arrangement that Ātihau controls jointly with one or more other investors over which Ātihau has rights to a share of the arrangement's net assets rather than direct rights to underlying assets and obligations for underlying liabilities.
Under the equity method, investments in associates and joint ventures are carried in the Statement of Financial Position at cost plus post-acquisition changes in the share of net assets of the associate and joint ventures. The carrying amount is increased or decreased to recognise Ātihau's share of the net surplus and other comprehensive income of the associate and joint venture, adjusted where necessary to ensure consistency with Ātihau's accounting policies.
For the year ended 30 June 2024
In June 2023 a liquidator was appointed for Ruapehu Alpine Lifts Limited (RAL), issuer of the RAL Gondola Bond. Pure Turoa purchased the Turoa side and has had a 10-year concession application approved. Submissions for the sale of the Whakapapa (northern) side closed in May 2024. Bonds relating to the gondola will transfer to any new owner of the Whakapapa ski field therefore the Committee of Management has not impaired the RAL bonds $500,000 (2023: $500,000).
At 30 June 2024 Ātihau had a shares commitment (committed capital) to purchase 28,083 (2023: 34,594) Alliance Group Ltd shares to fulfil shareholding requirements. This amount will be deducted from future livestock sales to Alliance Group.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 30 June 2024
For the year ended 30 June 2024
Land, buildings and improvements were revalued to market value on a general freehold basis by registered valuers Morgans Property Advisors (Morgans) as at 30 June 2023 and impaired for adverse market conditions as at 30 June 2024. Any sale could be affected by the requirements of sale imposed by the Te Ture Whenua Māori Act 1993. Morgans estimate that such effect could be 5-15% discount on specific property totalling $36 million (2023: $40.3 million).
Property, Plant & Equipment
Items of property, plant and equipment, except for land, are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of property, plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.
Land is revalued to fair value every five years by registered valuers in accordance with NZ IAS 16. Revaluation movements are reflected through Other Comprehensive Income and cumulative revaluations reflected in the PPE Revaluation Reserve. Annually a review for material impairment is performed.
Depreciation
The depreciable amount of all fixed assets, including buildings and capitalised lease assets but excluding freehold and leasehold land, is depreciated on a straight-line or diminishing value basis over the asset's useful life. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. Land is not depreciated.
Depreciation rates applied to significant classes of assets are:
Gains and losses on disposal are determined by comparing proceeds with carrying amount and are included in the Statement of Comprehensive Income.
Development expenditure
Development costs are where expenditure is carried out on Ātihau's farming property over and above normal maintenance. Development costs are capitalised and depreciated over future periods in relation to expected future benefit.
Grants
Grants relating to PPE assets are deducted in arriving at the initial carrying amount of the asset.
For the year ended 30 June 2024
Ātihau is allocated carbon credits (NZUs) through the Emissions Trading Scheme for forestry plantations. Ātihau owns 304,793 NZUs (2023: 208,303) with a total market value of $15,392,046 (2023: $8,690,401).
(loss) from sale of emission trading units
(Losses) (note B5)
At 30 June 2024 Ātihau had a contingent liability relating to the Carbon Account Record of $39,358,337 (2023: $32,820,781) which represents the market value of the total number of units which are required to be surrendered if the land is withdrawn from the NZ ETS. The Committee of Management have no plans to change land use at this time which would trigger such a liability. The amount includes Papahau Forest Partnership ETUs. The forest on affected land is therefore insured against forest fire.
At 30 June 2024 Ātihau had a contingent asset of $4,888,855 (2023: $0) which represents the market value of 96,809 units related to the provisional emissions return for the 2023-2024 calendar years which has yet to be submitted and approved by the Ministry of Primary Industries (MPI).
Recognition and measurement
Intangible assets (Emission Trading Units) - Emission trading units have been purchased and earned (ie internally generated) off growing forestry and are considered to have indefinite useful life (as long as the market regulatory framework is not changed significantly).
Post-1989 Forest Land - Ātihau chose to enter the ETS for post -1989 forest land and earn NZUs as forests grow and carbon is stored in the forest from a 2008 baseline. NZUs are required to be returned to the Crown if the carbon stored in the specified area reduces. NZUs are initially recognised at cost and revalued to market value at reporting date through comprehensive income and reserves. If the obligation to return units arises the obligation is recognised on the Balance Sheet.
Revenue recognition - when sold gains or losses on the carrying value relating to the trading of NZUs are reflected in Net Surplus and the carrying value is transferred from revaluation reserve to retained earnings.
Provisions - a provision is recognised when there is an obligation which can be reliably measured at balance date and it is probably that Ātihau will be required to settle the obligation. The expense relating to any provision is presented in the Statement of Comprehensive Income net of any reimbursement, measured at the best estimate.
For the year ended 30 June 2024
This section explains how Ātihau manages its capital structure (items that make up Shareholders' Funds) and borrowings.
Ātihau considers its capital as comprising all of the components of shareholders' funds (equity).
These shares have no par value and share equally in dividends paid.
Recognition and measurement
Capital reserves
Capital reserves represent realised capital profits predominantly arising from crown grants.
PPE Revaluation reserve
The property plant and equipment revaluation reserve arises mainly on the revaluation of land and buildings. When revalued property plant or equipment is sold, the proportion of the revaluation reserve that relates to the asset is transferred to capital reserves.
Retained earnings
Retained earnings comprise Ātihau's accumulated net profits less dividends paid.
ETU reserve
The emissions trading units reserve represents revaluations of emission trading units. When revalued ETUs are sold or surrendered, the proportion of the reserve that relate to those units are transferred to retained earnings.
Cash flow hedge reserve
The cumulative gain or loss on cashflow hedges. When the underlying derivative has been ended it will be recognised in profit or loss
Share reserve
The available for sale share reserve represents unrealised revaluations of share investments.
For the year ended 30 June 2024
Ātihau has borrowings with BNZ which are secured by a registered first mortgage over the original land title (approx. 41,000 hectares) and over livestock owned by Ātihau. Ātihau's total debt facility with BNZ is $45.3 million of which $39.6 million (2023: $38.2m) is drawn down at year end.
Recognition and measurement
Borrowings are recognised intially at fair value of the drawn facility amount and subsequently stated at amortised
using the effective interest method. All borrowing costs are recognised as an expense in the period they are incurred.
For the year ended 30 June 2024
This section outlines various other notes required by accounting standards and additional disclosure to assist readers' understanding of these items in the financial statements.
Financial Instruments
Ātihau holds the below financial instruments as part of its normal operations. These are contracted future economic benefits (assets) and economic outflows (liabilities) that Ātihau hold with other parties.
For the year ended 30 June 2024
Ātihau uses cash flow hedges to manage risk with variable interest rates.
Interest rate swaps
A portion of Ātihau’s borrowing facilities are based on floating rates, exposing Ātihau to movements in interest rates. Interest rate swaps are entered into to manage interest rate risk on floating rate borrowings. $15.0 million of interest rate swaps have been transacted with $10.0 million of these starting at future dates. The $15.0 million of swaps cover 38% (2023: 10%) of drawn borrowings.
Non-current assets
Recognition and measurement
Fair value movement is recognised in other comprehensive income. Gains (losses) are transferred to profit or loss when the underlying contract ends.
For the year ended 30 June 2024
Current tax is the tax payable on Ātihau's taxable income for the year and any adjustments to previous years.
Reconciliation between tax expense and accounting profit Net surplus (deficit) before income
- Adjustments to
Recognition and measurement
Tax expense reflects the impact of current and deferred tax and is recognised in profit or loss, unless it relates to an item in other comprehensive income or directly to equity.
For the year ended 30 June 2024
The movement in Ātihau's deferred income tax assets (liabilities) is summarised as follows:
(liability)
Recognition and measurement
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities and the amounts used for income tax purposes.
Māori authority credits can be attached to taxable dividends paid to members. Attaching credits means payments to members are not taxed twice and shareholders can claim Māori authority credits against their own income tax liability. Ātihau currently pays dividends from tax-free reserves made up of pre 2004/05 retained earnings and realised capital gains, and therefore current distributions are non-taxable. Dividends paid from pre-2004 retained earnings have no Māori authority credits attached.
For the year ended 30 June 2024
Ātihau has a related party relationship with the key management personnel and its joint venture partners. Key management personnel are the governance members of the Ātihau Group and the executive management team. Transactions are carried out on terms and conditions no more or less favourable than those which it is reasonable to expect Ātihau would have adopted if dealing at arm’s length.
Transactions with governance members or related entities:
Ngā Waihua o Paerangi hireage (R Tinirau, S Rae and W Moataane are trustees)
Naia Ltd for facilitation (C Wilson is a director and shareholder)
Te Puni Kōkiri - Funding (K Ponga, P Winterburn are employees) (17,575)Nga Tangata Tiaki O Whanganui (R Tinirau is a trustee) -
The following Committee of Management members have shares in the Ātihau Group registered in their names as at year end. This excludes shares registered in trust names of which the Committee of Management member might be a beneficiary.
The following are transactions with associates and joint ventures:
Transactions with associates and joint ventures
Te Hou Farms Limited Partnership - Ātihau received distributions - (129,000) Papahau Forest Partnership - Ātihau contributed to expenses
Total transactions with associates & joint ventures 9,857 (125,025)
For the year ended 30 June 2024
The consolidated financial statements include the Parent Ātihau-Whanganui Incorporation and the entities it controls. Balances and transactions between entities within Ātihau are eliminated and accounting policies are applied consistently within the Group.
On 13 August 2024, 152,442 NZ units valued at $7,698,321 were allocated to Ātihau for all forest areas which were registered within the NZ Emissions Trading Scheme as at 30 June 2024 for the period 2018 to 2022 – a total of 7,743.9 hectares across 505 Carbon Accounting Areas (CAAs) which required adjustment to and disclosure in the financial statements (2023: Nil) (note C15).
For the year ended 30 June 2024
Meeting attendances and remuneration
There were 13 Committee of Management meetings and one general meeting held during the year. In addition there were sub-committee meetings, and meetings of Te Āti Hau Trust and Ātihau Whanganui Incorporation Forestry Trust. Commiteee of Management and Trustee attendances and remuneration were as follows:
To the Shareholders of Ātihau - Whanganui Incorporation
Opinion
We have audited the financial statements of Ātihau - Whanganui Incorporation (the Group) on pages 78 to 103, which comprise the statement of financial position as at 30 June 2024, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Group as at 30 June 2024, and its financial performance and its cash flows for the year then ended in accordance with New Zealand equivalents to International Financial Reporting Standards Reduced Disclosure Regime (NZ IFRS RDR).
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other than in our capacity as auditor we have no relationship with, or interests in, the Incorporation or any of its subsidiaries
The Committee of Management obtained an independent valuation of the land and improvements as disclosed in Note 20 to the consolidated financial statements. The land and improvements were revalued to market value on a General Freehold basis as at 30 June 2023 and impaired for adverse market conditions as at 30 June 2024. The Incorporation has adopted the general freehold basis for the recording of the carrying value of the land and improvements in the consolidated financial statements. Any sale could be affected by the requirements of sale imposed by the Te Ture Whenua Māori Act 1993. Morgans estimate that such effect could be 5-15% discount on specific property totalling $36m. The difference between the carrying value of the land and improvements and the discount can only be determined once a sale takes place. We have not modified our opinion in respect to this matter.
The Committee of Management are responsible on behalf of the Group for the other information. The other information comprises the Annual Reports on pages 1 to 77 and 107 but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If based, on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
The Committee of Management are responsible on behalf of the Group for the preparation and fair presentation of the financial statements in accordance with NZ IFRS RDR, and for such internal control as the Board determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board are responsible on behalf of the Group for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board either intend to liquidate the Committee of Management or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A detailed description of the auditors’ responsibilities including those related to assessment of risk of material misstatement, evaluation of appropriateness of going concern assumptions and determining key audit matters are available on the external reporting board website: http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/auditreport-7/
The Share Register and Index of Shareholders required by Section 263 of the Te Ture Whenua Maori Act 1993, has been compiled and correctly kept by the Incorporation.
This report is made solely to the Shareholders, as required by section 277 of the Te Ture Whenua Maori Act. Our audit has been undertaken so that we might state to the Incorporation’s shareholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Incorporation Shareholders, as a body, for our audit work, for this report, or for the opinions we have formed.
Cameron Town Silks Audit Chartered Accountants Ltd Whanganui, New Zealand
Date: 4 October 2024
Accounts Receivable: Money owed to Ātihau from customers at year end, also known as Trade Debtors
Accounts Payable: Money owed by Ātihau to suppliers of goods or services at year end, also known as Trade Creditors
Accrued Income: Income earned by Ātihau where cash has yet to be received
Accrued Expenses: Expenses incurred by Ātihau where cash has yet to be paid
Asset: Anything owned by Ātihau to use in generating income
Balance Date: Term used to describe the end of Ātihau’s financial year - 30th June
Brassica: The plant family which includes turnips, swedes, rape, kale, cauliflower, cabbages, etc.
Capital Stock: The breeding stock on Ātihau farms that produce revenue or trading stock to generate income
Carbon Credits on Hand: Number of NZ units (NZU) owned at balance date under the NZ Emissions Trading Scheme valued at market value. An NZU = 1 tonne of carbon dioxide equivalent of emissions or removals.
Carrying Capacity: Number of livestock a property can graze annually without importation of feed or the deterioration of the property
Change in Livestock Numbers: Difference in livestock numbers at end of year compared to the beginning of the year at market values
Cull: To remove animals from a breeding population generally because of physical or performance deficiencies
Current Asset: An asset of Ātihau that is expected to be converted into cash within the next year
Current Liability: A liability of Ātihau which is generally due to be settled within 12 months of balance date
Depreciation: The apportionment of cost of an asset over the useful life of the asset. An accounting method used to reflect the aging and use of an asset
Direct Farm Expenses: Expenses incurred by Ātihau’s farming operations in generating farm income
Drought: A long period of time during which there is very little or no rain
Dry Matter: The plant material left after all water has been removed – using DM% comparisons can be made between different feeds such as pasture, swedes, grains, hay, etc.
Employee Entitlements: Holiday pay and other leave entitlements owing to employees at balance date
Equity: A measure of the shareholders’ total interest in Ātihau – the amount by which the value of assets exceed the value of liabilities
Feedlot: A third party location where Ātihau’s cattle are fed a high protein diet over the winter months
Fertility (of soil): Status of soil in terms of the amount of plant-available nutrients it can supply
Finishing (livestock): The process of growing animals to a point they are considered ready for slaughter
Fixed Asset: Assets held for use by Ātihau rather than for sale or conversion into cash
Genetics (livestock): Branch of biology concerned with trait inheritance from parents to offspring – important to use the right animals (male or female) to establish and continue Ātihau’s breeding programme
Greenfeed: Annual crops, usually cereals, grasses or brassicas, grown for animal feed
Gross Revenue: What is earned by Ātihau from selling goods and services
Hectare (ha): A standard metric measurement of land, 1 ha = 10,000m2 = 2.471 acres
Heifer: Term used to describe a young female cattle beast
Hogget: A young sheep between a lamb and a 2 tooth, from approx. 10 to 16 months of age
Interest: What Ātihau needs to pay for the money it borrows from the bank
Liability: General term for what Ātihau owes
Meat Processing: Process of taking live animals, humanely slaughtering them and then breaking down into saleable beef or sheep meat
Milk Solids (MS): The valued solid components in milk – at present, milk-fat and protein, expressed as kg MS
Net Farm Income: Income earned from farm activities less the direct costs of these activities
Net Operating Surplus / (Deficit): Difference between revenue and the costs incurred to earn this revenue.
Prime (livestock): Term used to describe animals that are ready for slaughter
Provision for Dividend: Allowance for a Dividend distribution to Ātihau shareholders
Revaluation of Shares: Difference in the market value of shares that Ātihau holds in other companies at this balance date compared to the previous year.
Revaluation of Livestock: The livestock price movement being the livestock value at year end versus opening values less the amount attributed to change in livestock numbers
Soil Moisture Deficit: Deficit between the actual amount of water in a soil versus its water holding capacity
Statement of Cash-flow: Shows the cash movements for the year in Operating, Investing and Financing categories
Statement of Financial Performance: Shows how well Ātihau has performed in its trading activities.
Statement of Movements in Equity: Reports the change in Ātihau’s ownership interest in the year
Statement of Financial Position: "A snapshot" in time that reflects where the money has come from (Equity + Liabilities) and how the money has been used (Assets)
Stock on hand: Inventory of goods held for resale or for Ātihau’s use, including livestock
Stock Units: Livestock in NZ are commonly given a “stock unit” (su) value or measure. The basic unit (1 su) is one breeding ewe that weighs 55kgs; bears 1 lamb; and consumes approx. 550 kilograms of dry matter each year. A beef breeding cow is commonly given a value of 6 su. Stock units have a number of uses e.g. to determine how much feed is required; the stocking rate of a farm, etc.
Store (livestock): A term used to describe animals destined for “finishing” that are sold off country, which does not have the potential to finish them, to specialist “finishing” operations on easier more productive country
Supplements: Additional animal feed often in the form of conserved hay, silage fodder crops (greenfeeds and brassica crops) or concentrates such as grains or meals
Term Liabilities: A liability of Ātihau which is generally due to be settled more than 12 months after balance date
Weaner: A young animal that has been weaned from its mother’s milk, capable of living completely on pasture
Yield (carcass): Proportion of usable (saleable) meat from a carcass expressed as a percentage of total carcass weight
Yield (fibre): Proportion of usable fibre present in a quantity of greasy wool expressed as a percentage
