Te Tīmatanga - Introduction from the Chair

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.

Financial Performance

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.

Governance members

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.

Ahakoa te aha e pai tonu ana te ora o te Koporeihana. Ka riro mā tātou ngā whenua taketake e tiaki tonu ai. Kia ū ki te kaupapa nā ō tātou tūpuna i tuku iho - toitū te kupu, toitū te mana, toitū te whenua.

Dr. Brendon Te Tiwha Puketapu Chair