Land Return a Cause for Celebration

The return of whenua to Taranaki Māori has seen a Parininihi ki Waitotara (PKW) dairy farm almost double in size, promising a rise in production levels next year and increased profitability moving forward.

The organisation took the opportunity to purchase 75 hectares of land next to Farm 2, a 330-cow 100-hectare dairy operation in Ohāngai, South Taranaki, when it became available under the ‘first right of refusal’ process.

“It is always a cause for celebration when we can bring ancestral land back under our management and it is even more satisfying that we are going to be able to easily integrate it into an exisiting operation,” says Shane Miles, PKW General Manager

Ahuwhenua. “It makes so much sense from an investment perspective if we can use exisiting infrastructure to bring this block of whenua into maximum production output, and drive increased profitability.”

PKW existing Farm 2 (blue) and new acquisition of land (orange).

Planning to integrate the two properties has been underway for quite some time.

“At some point in time, we knew the adjoining whenua to our existing operation was going to become available for potential acquisition, and we took account of that in our forward planning for Farm 2,” says Shane. “When the old shed reached the end of its life, we invested in a 60-bail rotary system that would deal with up to 800 cows. That investment has proved to be a success as we will now be able to increase the herd at Farm 2 and fully utilise the shed.”

Although the shed, along with other farm buildings, sustained considerable damage during ex - Cyclone Gita in February, repair work was completed in good time for the take-over date of June 1.

Because the newly purchased land lies directly on the boundary of the exisiting property, integrating it into the PKW system will be fairly straightforward.

“It’s not quite as simple as just taking down a couple of fences and installing a few gates,” laughs Shane. “But it will be fairly easy to bring the two farms together into one seamless operation that will enable us to drive efficiencies, improve production rates and generate increased profits. The main infrastructure is already there, which means we can hit the ground running and see revenue streams improve straight away. This is not a greenfield investment where we have to start from scratch.”

Some investment will be required to join up the network of raceways and integrate the reticulated water system, along with the installation of gates and realignment of fences.

The intention is to add around 200 cows to the exisiting herd, which will have a positive impact on milk production levels overall, leading to increased revenue.

The purchase of the former leashold land has been welcomed by the existing contractor, who is eager for the chance to grow his own business in partnership with PKW.

“Providing opportunities for our people to grow and prosper is one of our core values,” says Shane. “It is a source of pride for us to have enabled a valued member of our team to take another step forward in his aspirations for the future.”

“I am looking forward to seeing what the future holds for Farm 2 and am confident that our progression planning will come to fruition in short order.”