Whenua Magazine - Issue 33

THE

BECOMING

CALL FOR NOMINATIONS

Nominations for the Committee of Management are now open (page 3 for full details)

SAVE THE DATE

AGM date 14 September 2020 (page 4 for full details)

COVER

Ron Patene (Taranaki, Te Ātiawa, Ngāpuhi)Kaimahi of PKW’s Te Kahu Farm (in background), recently extended with the acquisition of an additional 100ha of ancestral land.

NGĀ PĀNUI

As a country, as a people and as a business, we are dealing with challenging times as the Covid-19 pandemic continues to  sweep across the globe.

Back in March, as global markets closed, a domestic lockdown was enforced and the economy almost ground to a halt, we had to make vital decisions quickly on the basis of rapidly changing information. These decisions were crucial to the successful continuation of your business and the on-going well-being of our people.

As the lockdown progressed it became apparent that those decisions had been the right ones, and we have managed to come through what was a very difficult time in better shape than might have been expected.

And, surprisingly, the pandemic did deliver us some positives.

EDITORIAL

“The calibre of our people, here at PKW, our kaimahi working on the whenua and those who are part of our partnership organisations, really shone through when the difficult decisions had to be made”

The calibre of our people, here at PKW, our kaimahi working on the whenua and those who are part of our partnership organisations, really shone through when the difficult decisions had to be made.

Their commitment to the business and our shareholders has never been greater as every single team member stepped up and performed admirably. Their dedication, skill and good management has been a key factor in how we are coping as an Incorporation.

Trust plays an essential role in the relationship we have with our people and they did not disappoint. This was most apparent from your executive management team at PKW, who, despite the challenges of technology and isolation, managed to actually increase productivity while working from home.

We have very much taken this on board and are looking at potentially

introducing a more flexible way of working in the future that will benefit both the business and our kaimahi.

Although on the face of it life in Aotearoa has gone back to normal, with shops, bars and restaurants open once more with no restrictions, the Covid-19 pandemic continues to have a considerable impact on our economy.  As we are seeing offshore, there is so much uncertainty at present so we, as a business and country, must remain vigilant in the coming months and years.

Our trust and faith in our managers and staff, on our land, in our hotel, in the apple orchards, in our Lobster business and right here in the PKW whare, must remain strong so they can continue to deliver the best results they can for the business, for our shareholders and for the future.

Noho ora mai Warwick Chief Executive Officer

PARININIHI KI WAITOTARA

Postal PO Box 241

New Plymouth 4340

Physical 35 Leach Street

New Plymouth 4310

Tel +64 (6) 769 9373

Fax +64 (6) 757 4206

Email office@pkw.co.nz

www.pkw.co.nz

iSTUDIOS MULTIMEDIA

Postal PO Box 8383

New Plymouth 4340

Physical 77B Devon Street East New Plymouth 4310

Tel +64 (6) 758 1863

Email info@istudios.co.nz

www.istudios.co.nz

WHENUA MAGAZINE

Editor Warwick Tauwhare-George

Deputy Editor Polly Catlin-Maybury

Creative Direction Sheree Anaru

Photography Quentin Bedwell

Graphic Design Dave Pope, Karere Brown

CONTRIBUTORS

Polly Catlin-Maybury

Moana Ellis

Tēnā koutou katoa

CALL FOR NOMINATIONS

Nominations for the Committee of Management are now open and close on Wednesday 9 September 2020 at 5.00pm

The Committee of Management are elected by shareholders and are responsible for approving the strategic direction for the incorporation. They are also responsible for monitoring performance against the strategy.

Between now and the September closing date you may know someone who has the skills and expertise for this governance role, and they may be interested

in standing. This is an opportune time to give this some consideration and have that discussion with them.

Nominations must be in writing and signed by both the proposing shareholder and candidate.

The candidate must also include a recent digital photo (min 300dpi, 111mm x 154mm) and a personal statement of no more

than 300 words explaining why they are seeking election onto the Committee of Management, as well as their relevant skills and expertise.

PO Box 241, New Plymouth 4340 before 5.00pm on Wednesday, 9 September 2020.

Nominations may also be received by facsimile (06) 757 4206 or emailed to jking@pkw.co.nz. If after the closing date more than one

nomination is received, then Electionz, the independent returning officer will manage the election process by sending voting papers to all shareholders

with current addresses. The results will be announced at the AGM on Saturday, 14 November 2020.

Voting papers will be sent to all shareholders with a current address. Is your address current?

PARININIHI KI WAITOTARA INCORPORATION

2020 ANNUAL GENERAL MEETING - SAVE THE DATE

NOTICE IS HEREBY GIVEN THAT this year’s AGM for the Parininihi ki Waitotara Incorporation and the PKW Trust has been scheduled for Saturday, 14 November 2020.

9.00am Pōwhiri and registrations

10.00am Meeting commences

A formal notice that includes the agenda for both meetings will be published in the next issue of Whenua.

Save the date and order your copy of the annual report now.

ORDER YOUR 2020REPORTANNUAL NOW!

What’s in the Annual Report?

The report explains how the PKW Incorporation and the PKW Trust performed from 1st July 2019 to 30th June 2020. Reports from both Chairs, the CEO along with the audited statements are also included.

A reminder that shareholders who would like a hard copy of the 2020 Annual Report must now order a copy by contacting PKW.

We also discuss key strategic developments and provide information on those who received a scholarship or grant from the PKW Trust.

What makes this report exciting and uniquely Taranaki is that it includes many photos of whānau, mokopuna and events during this period.

The Annual Report is a snapshot of PKW, shareholders and the Taranaki community in a single document.

To order your copy please contact Aimee Morell, Admin Assistant for Shareholder Engagement on: 06 769 9373 or email reception@pkw.co.nz

PKW ROBUST IN THE FACE OF COVID-19 CRUNCH

The shockwave created by the Covid-19 pandemic has disrupted markets, damaged businesses and had a major impact on lives and communities across the globe.

While quick action to lock down New Zealand prevented a mass outbreak of the virus here, PKW has not been immune to the effect the pandemic has had on industry sectors such as seafood and tourism.

“Our Port Nicholson Fisheries (PNF) and Ngāmotu Hotel partnerships were significantly impacted by the pandemic, with both being closed temporarily,” says PKW’s Chief Executive Officer Warwick TauwhareGeorge. “This quick reaction to the fast-changing situation meant we mitigated our risk considerably, reducing overheads and protecting our people.”

“Government wage subsidies and our diversification strategy have also helped cushion the blow, and we have come through the last few months in a much better position than might have been expected.”

While the collapse of the Chinese seafood market and the ban on international and regional travel meant the doors were temporarily shut at PNF and the Novotel, PKW’s dairy farms performed well as an essential service and the Fonterra payout for the

2019/2020 financial year is holding up. Global milk markets are fluctuating but production remains on target and on budget.

The Incorporation’s core asset of corpus land remains central to its success with lease payments remaining unaffected.

“Our Tai Hekenga partnership is an investment which will continue to deliver for decades to come, with ground leases housing the Ministry of Education, nine schools, the Ministry of Justice and the Ministry of Internal Affairs being part of the portfolio,” says Joe Hanita, PKW’s Chief Financial Officer. “It provides stability and surety during a time when no-one can really tell what is going to happen next.” Rockit Apples also performed well during the lockdown as another essential service, with strong growth reflecting demand in the Asian markets.

“While there is no doubt that our business has faced some significant challenges these last few months, we are fortunate to be doing better than many due to solid decision-making and a clear strategic vision. Our focus on

diversification over the past four years has ensured we were able to cushion the blow of Covid-19, and we have come through the last few months in a better position than might have been expected,” says Warwick.

“That is not to say we are out of the woods, because I don’t think this virus has finished with us yet, but we are well-placed to face whatever may come.”

“Currently our fishermen are back out on the water, our hotel rooms are starting to fill, and our farmers are doing well as we look to move forward during the rest of 2020 and into 2021.”

"Our focus on diversification over the past four years has ensured we were able to cushion the blow of Covid-19, and we have come through the last few months in a better position than might have been expected."

Warwick Tauwhare-George

NEW ENVIRONMENTAL PROJECT FUND LAUNCHED

The Taiao Fund has been established as part of the commitment PKW made to the environmental wellbeing of its waterways, flora, and fauna and whenua with the introduction of its Kaitiakitanga Strategy last year.

“We want to encourage our owners and their whānau to reconnect with the whenua by providing the funding projects of this nature need to progress,” says Dion Luke, Kaitiakitanga Project Co-ordinator. “We know that people want to be actively involved in protecting taonga species by carrying out restoration work on biosystems and habitats, for example, and now community groups can plan what needs to be done and then access the Taiao Fund as a contribution of funds to the overall project.”

The fund, which will be administered and distributed by the Committee of Management, will give precedence to proposals that take place on PKW owned and managed land. Priority will be given to projects such as wāhi tapu protection, restoring taonga species habitats, biodiversity and water monitoring that complement the existing work PKW is undertaking to realise strategic environmental aspirations. There is also potential

for considering community māra and mahinga kai initiatives, along with collaboration with Taranaki Māori community groups such as weavers, carvers or rongoā exponents to access resources.

Projects that promote activities that do not take place on PKW owned and managed whenua will also be considered, but there must be a clear benefit for Taranaki whānau, marae or hapū.

“While proposals can be quite diverse in their aims and methods, we are looking for those that are consistent with our core values of Manaakitanga, Kaitiakitanga, Whakapono, Whanaungatanga and Kotahitanga,” says Mitchell Ritai, General Manager Shareholder Engagement. “They will also need to be innovative, responsive and intergenerational to be consistent with the aims of our Kaitiakitanga Strategy.”

All applications must provide a detailed account of the proposal including its location, when it will take place, when it is to be completed, an itemised budget, how project outcomes and learnings will be communicated and shared and what potential challenges the project may face.

“Each proposal will be assessed on its merit, so it is important that applicants provide comprehensive and detailed information, evidence of their collaboration with others, the benefits the project will bring, a focus on health and safety and how it will foster our core values,” explains Mitchell. “The Taiao Fund is a really exciting opportunity for our whānau to put existing ideas into action as well as formulating new ones.”

Applications must be submitted on the official form, which is available by contacting the Shareholder Engagement team at the PKW Whare. Digital versions can also be distributed via email.

“We are looking forward to seeing what innovative ideas and collaborative projects our people can come up with,” says Mitchell. “The Kaitiakitanga Strategy was developed to help meet the expectations our whānau hold on how we fulfil our role of kaitiaki for future generations.

“Empowering PKW whānau and supporting them in their aspirations aligns to PKW’s vision of He Tangata, He Whenua, He Oranga and this initiative is another example of how PKW is realising its vision.”

Supporting PKW whānau with the means to carry out environmental initiatives and projects is the inspiration behind a new annual $50,000 fund.

WAIPIPI WINDFARM PROJECT UPDATE

Construction

The arrival of the massive turbine components, particularly the 64-metre-long blades, at Port Taranaki has really raised the profile of the project.

“It is great to be part of a partnership, which is bringing a considerable amount of economic benefit to the region,” says Joe Hanita, PKW’s Chief Financial Officer. “The sight of the turbine blades making their way down State Highway 45 on the back of a truck was certainly an interesting one!”

The name of the site was chosen by local iwi Ngaa Rauru and gifted during a sod turning ceremony last November that signaled the official start of the construction phase.

Tilt Renewables, which also own and operate New Zealand’s largest wind farm, the Tararua Wind Farm in Palmerston North, has ensured the

local community is fully involved in the project with a dedicated liaison group.

“It has been great to see our people being given this chance to reconnect with their whenua, through the gifting of a name,” says Joe. “Our involvement is also a good example of how we can leverage our core asset by finding alternative environmentally-sustainable ways to use it that will bring solid returns for generations to come.”

Eight turbines will stand on the PKW section of the 980-hectare site, out of a total of 31. So far, the turbine platforms have all been completed, and ground improvement work and foundation construction are close to completion too.

Another ship loaded with 13 hubs, 10 towers and 33 blades is due to leave China in a few weeks’ time to be here for when the 130-metre-high turbines

are erected.

Once Waipipi is fully commissioned, it will generate 455 Gigawatt hours (GW-h) which will feed into the national grid via an 11km 110kV overhead transmission line. The power it provides will be enough to serve more than 65,000 homes.

“Unlocking the potential of this land has created an income revenue stream for PKW for at least the next 30 to 50 years,” says Joe. “Progressing our diversification policy in this way shows we are keeping a strategic eye on our vision of sustainable prosperity for all Taranaki Māori.

“We are looking forward to monitoring the progress being made as the construction phase heats up at Waipipi.”

of the Waipipi Windfarm is forging ahead, and, despite the disruption caused by the Covid-19 lockdown, electrification is still on track to take place on time.

SHAREHOLDERS LOG ON FOR HALF-YEARLY UPDATE

“We held a huirangi, or webinar, instead of a physical meeting and were very pleased with how it went, along with the positive feedback we received from shareholders,” said Jacqui King, Head of Corporate Services.

“Holding the meeting online also meant our whānau who live outside the rohe were able to join us. We had shareholders from the South Island, Australia and beyond logging in to connect with the Incorporation to be involved in what we do.”

Chair of the PKW Board, Hinerangi Raumati-Tu’ua, outlined some of the

Incorporation’s strategic highlights and achievements to date. These included the launch of the Kaitiakitanga Strategy, the further advancement of the Diversification Strategy including the Waipipi Windfarm and the Tai Hekenga commercial property investment, plus growing usage of Te Ara Putanga, PKW’s kaupapa reporting framework across the business.

She also spoke about the organisation’s financial position and performance, taking into account the current and future impact of the Covid-19 pandemic, with projected

figures forecasting a net profit for the 2019-20 financial year.

The Covid-19 pandemic forced the temporary closure of both the Port Nicholson Fisheries business and the Novotel Ngāmotu Hotel.

“The 2019/20 financial year closing forecast does take our best assumptions of the impact of those closures into account, making our performance relatively strong, considering what we have been through,” she said. “I am very proud of the way the PKW team has responded to the Covid-19 crisis, working through

The half-yearly shareholder review meeting took place a little differently this year due to the Covid-19 lockdown regulations.

many challenges in the best interests of our shareholders.”

Warwick Tauwhare-George, PKW Chief Executive Officer, echoed the Chair’s sentiments, thanking the PKW Group kaimahi for carrying the business through this very difficult time, and acknowledging the efforts of the management and leadership teams of both PKW and its subsidiary businesses.

He provided further insights into the process of bringing balance to the Incorporation’s investment portfolio and outlined how narrowing the strategic focus in this area will bring more clarity.

“We realise the next 12–18 months is going to be difficult due to the economic situation but by really exploring the Why, What and How of our strategic intent we will maximise our efforts in this area,” he said.

Warwick also outlined the progress being made in building the capability of PKW people, with a new Kaitiakitanga Project leader position being filled, a summer internship developing the cultural health monitoring tool, wāhi tapu research being conducted and GIS (Geographic Information System) mapping carried out.

His future focus for the business included extending Te Ara Putanga to all areas of PKW and advancing

the priorities of People, Property and Protein.

Dion Tuuta, Chair of the PKW Trust, then spoke about the growth of the scholarship portfolio from just five, funded largely by PKW a few years ago, to 22 today created by working with strategic partners.

He also paid tribute to former Chair Hinerangi Edwards for her vision and advocacy in this area.

A governance review is currently underway to ensure the Trust has the right structure to refine and improve systems, operations and reporting and accountability frameworks.

“A similar review was carried out within the PKW Farms business last year and proved to be a valuable exercise so I am looking forward to learning how we can improve what we do to deliver positive outcomes to our whānau,” Dion said.

“We are also working on how we can better encourage grant recipients to engage with PKW, iwi and whānau activities to help build the capability of Taranaki Māori into the future.”

The meeting ended with an inspiring presentation from PKW Trust scholar Aarona McGregor about how he fulfilled his educational aspirations with the support of the Trust and an insight into his current business activities and goals for the future.

“It was a very successful huirangi and something we will look at doing again,” said Jacqui. “While Covid-19 has brought us many challenges, it has also presented us with possibilities and we are embracing the benefits that these could deliver to the business and our shareholders.”

“While Covid-19 has brought us many challenges, it has also presented us with possibilities and we are embracing the benefits that these could deliver to the business and our shareholders.”

Jacqui King

For tomorrow’s energy

Venture Taranaki’s National New Energy Development Centre establishment project has resulted in the launch of the entity by Prime Minister Jacinda Ardern and Honourable Dr Megan Woods, Minister for Energy and Resources in late July 2020.

Prime Minister Jacinda Ardern said she was pleased to announce the nation’s future energy development company, Ara Ake.

Ara Ake is formed from two words that come together to represent new pathways of exploration, on a continuous journey forward. It is a call to awaken and understand that change is normal.

Based in Taranaki, Ara Ake’s area of impact is in the demonstration and commercialisation stage of the innovation lifecycle. Through its network of local and global connections and partnerships, Ara Ake will identify opportunities and technology with change-making potential and connect them with the expertise, infrastructure and capital required to become a commercial reality for tomorrow’s energy.

Minister Woods welcomed Ara Ake’s Board Directors, including; Rob Campbell, Chair; Elena Trout; Dr Will Edwards; Rick Shera; and Lovina McMurchy.

“Ara Ake’s Board of Directors are here to work with, assist and in due course, guide participants in the energy sector as our role evolves,” said Rob Campbell. “As Chair, I am committed to Ara Ake becoming an embedded and valued part of the Taranaki energy and social ecosystems, optimising the energy skills and resources of this region in the transition process.”

“Ara Ake offers a unique and valuable opportunity for Taranaki to leverage our collective knowledge and skills and take a leading role in moving New Zealand towards the low-emissions energy future we all want,” said Dr Will Edwards, Ara Ake and PKW Director (Ngāruahine, Tangahoe, Pakakohi and Ngāti Ruanui iwi of Taranaki).

“Ara Ake will engage with iwi to foster trusting and enduring partnerships, focused on shifting the energy dial to protect our environment for future generations,” he added.

Rob Campbell also announced Ara Ake’s inaugural Chief Executive, “I am very pleased to announce Cristiano Marantes as Ara Ake CE. Coming from Vector, Cristiano is a highly experienced energy sector executive with an extensive engineering background and an informed world-view on the potential of technologies and business opportunities that will likely emerge in a low-emissions energy future.”

“I’m committed to enabling a low-emissions future through strong leadership, and innovation and knowledge of new energy solutions, and I’m incredibly excited about this opportunity,” commented Cristiano.

The centre has been in the pipeline for over a decade, with Venture Taranaki undertaking the initial thinking and concepts required to feed into the regional economic development strategy, Tapuae Roa, in 2017. The focus on a low-emissions future and the co-creation of the Taranaki 2050 Roadmap then supported the business cases to achieve the much-needed government funding that enabled the vision to come to life.

“Venture Taranaki’s journey establishing an entirely new organisation like Ara Ake has by no means been straightforward,” explained Jamie Tuuta, Ngāti Mutunga and Venture Taranaki Trust Chair. “Add a lockdown into the mix, and you might assume project milestones would slip. This is not the case, with the Venture Taranaki team successfully delivering this nationally significant project on time and to budget,” he said.

Justine Gilliland, CE Venture Taranaki added, “Moving forward Ara Ake has solid foundations to build on, strong relationships forged, and a pipeline of potential projects for consideration by the Are Ake Board in due course. Venture Taranaki looks forward to continuing the foundational relationship we have with Are Ake, and to seeing our vision turn into reality.”

Together, we are not just safeguarding our future, we are shaping it. Join us, in leading change for tomorrow’s energy. To discover more about Ara Ake visit www.araake.co.nz.

PKW FARMS RESPONSE TO COVID-19

Farmers all over New Zealand kept the wheels of the industry turning throughout the Covid-19 lockdown, and PKW’s kaimahi were no different.

The pandemic came on top of a major drought, making already challenging farming conditions harder.

“The dedication and commitment our people showed towards the business and their animals was evident in their response to the pandemic,” says Shane Miles, General Manager Ahuwhenua. “I really want to acknowledge the effort that each and every person put into their mahi during this time.”

Farming was designated an essential business during the Alert Level 4 restrictions, meaning that PKW managers and their staff were on farm each day.

“Our top priority during this time was the care of our animals and keeping our staff safe when they came to work,” says Shane. “So we followed all the protocols laid down about social distancing and made sure that sanitisation of equipment and people was effective.”

While the day-to-day running of each farm was not overly affected by the lockdown, the fast-changing situation meant there was some doubt of the accessibility of support services.

“The biggest challenge we faced was dealing with the probability that there could be restrictions on some of our key support services, such as plumbers, vets, electricians and so on,” explained Shane. “We worked with these on-farm service partners to identify what our farms would need and what solutions were available and found solutions to the problem before it became an issue.”

“These preparations began before the Prime Minister’s announcement and made a huge difference in the way our farms were able to keep the wheels turning in a time when everything else ground to a halt.”

“Resilience is a very necessary quality to being a farmer, and our team just got on with the job in hand,” says Shane. “Their contribution to the business should not be underestimated as production stayed on track and on budget throughout the whole crisis.”

“Covid-19 helped people realise just how important farming is to the economic success of the country because it doesn’t stop, regardless of what is going on in the world. There was a lot of talk about the ‘new normal’ but for our kaimahi it was just business as usual.”

"Resilience is a very necessary quality to being a farmer, and our team just got on with the job in hand."

Shane Miles

BECOMING A BEST IN CLASS BUSINESS

The performance of PKW Farms has been put in the spotlight as the business pursues its strategic goal to become a Best in Class Taranaki dairy farmer. Polly Catlin-Maybury finds out how it stacks up on the dairy industry stage.

The hallmark of success for any business or individual is the relentless and determined focus on continuous improvement.

Being ‘good enough’ or resting on your laurels just doesn’t cut the mustard when it comes to being the best. Which is why PKW’s dairy farms have been put under the performance microscope to evaluate where their strengths and weaknesses lie.

“Our farms are not under-performing, far from it,” says Shane Miles, PKW’s General Manager Ahuwhenua.

“Production targets are being reached and the bottom line is where it is supposed to be. We are on budget and on track to achieve what we planned for the season.”

“But there is no room for complacency. Our strategic goals are very clear to become Best in Class in the

industry and so there is a need to pursue improvement and progress. The bar is set very high so it’s not an achievement that will just fall into our laps.”

While PKW’s farms are already part of the DairyNZ benchmarking initiative, the Board felt that a totally independent perspective would provide additional insight and comparison for the business.

Top: Silage feed used to iron out variations in pasture growth and quality.

Above and right: Dairy cows coming in for milking.

Left: Joe Hanita and Bex Kelbrick look over data on new farm extension Te Kāhu.

to achieve

“Production targets are being reached and the bottom line is where it is supposed to be. We are on budget and on track

what we planned for the season.”

Shane Miles

“We know how well each farm is doing compared to the others internally within the organisation, but without an external marker, it’s a very insular way of measuring success,” says Shane. “We wanted a comprehensive ‘big picture’ of the industry and to know where we stood in the line-up. To be the best, you have to compare yourself to the best.”

With this in mind, the PKW Board asked agribusiness consultants BakerAG to facilitate a benchmarking exercise in August 2019 that would examine the PKW’s 13 dairy units, evaluate their systems and performance and then

compare them to dairy farms across the country.

“Optimising performance is all about finding where improvements can be made and BakerAg can deliver that information to us in a way that allows us to evaluate where we stand in the rankings,” says Richard Krogh, Chair of the PKW Farms Board. “Strategically, our goal of being Best in Class is vital to being able to deliver on the expectations of the PKW Committee of Management and our shareholders.”

“As a significant Māori business it is important that we not only focus on traditional farming performance, but

also measure ourselves using Te Ara Putanga (PKW’s Outcomes Framework) to ensure we are contributing, where we can, to the Incorporation’s aspirations and outcomes. Pursuing these twin goals is a key focus for the Board,” says Richard.

BakerAg administrates a Dairy Systems Monitoring Group which takes financial and production information to create a monthly report that tracks individual farm performance.

“There are a considerable number of farms within the system, situated all over the country – including Taranaki,” says Shane. “As with anything, the

more data you have, the more accurate the final picture, so we are confident that BakerAg can tell us exactly where we are and what we need to do to improve our position.”

The results of the number crunching have shown that some of PKW’s farms are performing in the top 10% of the industry range.

“We are very proud of the results these farms have produced and it is encouraging that we are on the right track when it comes to decisionmaking and implementation,” says Shane.

The results of the data analysis show that some PKW Farms were performing very well, and indicated some areas of improvement.

“While the results didn’t surprise us, they have provided us with a much clearer picture of where the improvements for each unit are needed, which gives us the ability to focus our efforts where they will do most good,” says Shane.

“Every farm has something to work on in order to take them up into that next level of performance.”

This evaluation process will be carried out each year to enable PKW Farms to build a full understanding of what is happening within the business and the gains it has made.

“It is important to remember that what we do each day isn’t a carboncopy factory production line of the day before,” says Shane. “Farms face their own particular challenges every season so a disappointing performance this year doesn’t mean the farm is necessarily failing as a whole.”

“However, these assessments do give us the reasons why performance may have been less than expected and what can be done to improve things in the future.”

Now the annual results have been analysed, action plans for each farm are being implemented with a focus on efficiency and effectiveness.

“Driving positive change is always an exciting thing to be involved in, and our kaimahi are fully engaged in putting a new approach or system into their daily routine,” says Shane.

“Our staff want to see their farms

perform at the top of their game more than anyone else, I think, so this benchmarking exercise resonates on a very personal level for them. They welcome the insight and feedback BakerAg delivers.”

Joe Hanita, PKW’s Chief Financial Officer, said the benchmarking exercise was not only a strategic move for PKW Farms, but also fulfilled the Incorporation’s core strategic aim of being a Best in Class Corporate Investor.

“You cannot expect high performance without being prepared to invest in your businesses,” he explains. “Committing to independent analysis gives us the ability to drill down to see how each individual farm is doing, as well as being able to see how PKW Farms performs against its peers.”

“We look forward to seeing the improvement gains – both on farm and in financial performance.”

"While the results didn’t surprise us, they have provided us with a much clearer picture of where the improvements for each unit are needed, which gives us the ability to focus our efforts where they will do most good."

Shane Miles

Left: Shane Miles, General Manager Ahuwhenua reviewing the new improvements being made on Te Kāhu.

BENCHMARK DATA DRIVES KAITIAKITANGA STRATEGY

A comprehensive environmental monitoring programme has established a biodiversity baseline for rivers and streams flowing through Parininihi ki Waitotara whenua. The water monitoring data collected over the past year formed part of the first phase of the Parininihi ki Waitotara (PKW) Kaitiakitanga Strategy.

The Strategy sets out PKW responsibilities and aspirations to build an environmentally sustainable, inter-generational business that leaves healthy whenua and water for the generations to come.

Mitchell Ritai, General Manager Shareholder Engagement, says monitoring carried out on most of PKW’s 23 farms has provided information needed to assess waterway health, measure the effectiveness of environmental management efforts, and identify where further work may be needed to protect water quality, flora and fauna. A cultural health index tool has also

been developed using mātauranga Māori to complement the scientific data being used assess the waterways.

“This ground-breaking approach allows us to take a more holistic approach by assessing the mauri of the water from the perspective of both western science and mātauranga Māori,” Mitchell says. “This data allows us to understand the health of key waterways connected with PKW land management, and to measure the impact of our activities.”

Results show PKW water health ranges in general between moderate and excellent. “There are some factors like high pH that could suggest negative

impact from upstream activity, and we hope to zero in on these impacts with further monitoring.”

The ongoing programme will also identify and measure any changes in water quality. In addition, the development of a Precision Farming dashboard will help PKW to understand how much water is being used and find ways to improve water use efficiency.

Shane Miles, General Manager Ahuwhenua, said the ongoing commitment to deliver on kaitiakitanga aspirations is a key pou to the intergenerational success of PKW’s farming business.

“In terms of biodiversity, stock

exclusion from the waterways was achieved some years ago as a first step. From ground zero, we moved to developing some significant effluent management systems.

“We are currently working through the final stages of our riparian management plans and have also turned our attention to the protection and regeneration of wetland areas.”

PKW has also recently engaged with the Taranaki Regional Council as part of its Key Native Ecosystems initiative, working in partnership to identify and protect some of these key areas, with a view to helping them regenerate over time.

“We have already been able to identify some key wetlands that can be retired and protected, and thousands of natives have been planted in riparian strips and wetlands,” Shane said. “To give some idea of the scale of planting, more than 20,000 plants have been delivered to our farms in the past couple of weeks to continue our mahi in this area.”

“Dairy farms have had our priority attention historically, and we have concentrated our efforts there in conjunction with the Council. Taranakiwide, the focus has been on the lowland ring-plain pastures and waterways around the maunga.”

Most planting at PKW is carried out by the Ngaa Rauru Kiitahi planting team from Kii Tahi Nursery & Landcare. “Kii Tahi have been a key partner for many years in the work PKW has done in the riparian planting space, and we acknowledge and thank them and their kaimahi for their efforts over the years.”

“Planting is a key component of biodiversity regeneration of freshwater, and fish, stream and bird life. We are

As part of the monitoring, a fish survey was completed, with short-fin tuna and kōura caught and released, putting sustainable cultural harvesting on the table for discussion once again.

“Our shareholder surveys and kōrero with whānau about reconnecting with the land always raise cultural harvesting,” Mitchell says. “We will assess whether sustainable populations exist. If they do, we will look at ensuring safe access.

“We want to go beyond compliance. Our Kaitiakitanga Strategy encourages us to set the bar higher than what is expected of us – to do more, to be better ancestors for our mokopuna, and to work hard in the areas of biodiversity, advocacy and

"This data allows us to understand the health of key waterways connected with PKW land management, and to measure the impact of our activities."

Mitchell Ritai

Top and left: Emily Bailey taking water samples is just one aspect of the monitoring work

Top: Results show where future focus needs to be.

Right: Indicator used to measure pH level of stream water.

TE KĀHU FARM MERGE RECLAIMS ANCESTRAL LAND

A ceremony on whenua at Ohāngai, near Hāwera, has marked its return to Māori management, realising a long-held aspiration to regain this ancestral whenua.

Whānau and hau kāinga from Meremere Marae and PKW were among a small group of people who on May 29 sealed the acquisition of a 100ha farm off Ohāngai Rd, southwest of Hāwera.

In the handover ceremony – held under Covid-19 restrictions – PKW acknowledged the purchase and

amalgamation of the additional farm with the 76ha neighbouring Te Kāhu farm, which was bought by the Incorporation six years ago.

The amalgamation has created a 176ha dairy farm, which retains the name Te Kāhu. The expanded farm has good infrastructure and dairyshed, and the capacity for a 500-cow dairy unit.

Shane Miles

PKW General Manager Ahuwhenua, Shane Miles, said the purchase first and foremost fulfills a long-held aspiration to reclaim ancestral land.

“Bringing that piece of whenua back into the active land management portfolio is a milestone,” he says. “As well as regaining ancestral land, PKW is determined to optimise our operations, in order to increase opportunity and advance prosperity for our shareholders. The new farm milked around 300 cows historically, and this long-awaited amalgamation with our neighbouring Te Kāhu farm is expected to deliver good financial returns.”

The former leaseholders of the whenua, Janine and Barney Wright, are now contract milker Farming Partners with PKW on Te Kāhu.

“The Wrights have extensive knowledge and experience of this whenua, having farmed the land for a good 20 years, and we are extremely pleased that they will remain at Te Kāhu as contract milkers for PKW.” says Shane.

Two additional workers will join the Wrights on the expanded farm, , one of whom is PKW kaimahi and shareholder whanau member, Ron Patene (Taranaki, Te Ātiawa, Ngāpuhi).

PKW was pleased to have the Wrights at the acknowledgement ceremony along with Meremere Marae representatives, Shane said.

“During the Te Kāhu acquisition and amalgamation, a key consideration was the return of ancestral land to active

Māori control, including bringing on the journey our whānau who whakapapa to this land.

“It is rewarding to work toward realising that vision.”

Meremere Marae representative Te Poihi Campbell said hau kāinga appreciated PKW’s determination over the past two years to work alongside iwi, hapū and marae on land management operations and activity.

“The initial amalgamation and subsequent naming extension ceremonies were important occasions for the whanau, Te Poihi said.

During the acknowledgement ceremony, a tōtara tree was planted at a new main entrance established for the expanded farm.

“During the Te Kāhu acquisition and amalgamation, a key consideration was the return of ancestral land to active Māori control, including bringing on the journey our whānau who whakapapa to this land.”

“We were also priviledged to be supported by our Kuia (Whaea Mahuri) and the haukainga who extended the gift of their farm name ‘Te Kahu’ to the extended whenua, says Shane.

“The Wrights have extensive knowledge and experience of this whenua, having farmed the land for a good 20 years, and we are extremely pleased that they will remain at Te Kāhu as contract milkers for PKW.”

Shane Miles

Left: Te Poihi Campbell plants a Tōtara with Barney Wright at the new entrance for Te Kāhu.

Top right: PKW staff and board members get a tour of the Te Kāhu facilities.

Below: Janine and Barney Wright former leaseholders and new contract milker Farming Partners.

MORE SCIENTISTS, ENGINEERS AND CRITICAL THINKERS NEEDED

The typical Parininihi ki Waitotara (PKW) scholarship recipient is a young woman studying at Massey University for a career in the health sector and carrying a student loan of up to $49,000, according to an initiative to find out how PKW students are faring.

Results from the Student Destinations survey 2019 have been analysed to gain insight into the impact of PKW’s investment in supporting between 180 and 200 tertiary students each year. The grants and scholarship programme distributes $250,000–$300,000 to students annually with the support of co-funders Te Korowai o Ngāruahine, Te Kāhui o Taranaki, Te Kotahitanga o Te Ātiawa, Ballance AgriNutrients, Marsh Insurance, Meridian Energy, Nova Energy, Victoria University of Wellington, Farmlands, Ravensdown, and BNZ.

Mitchell Ritai, General Manager Shareholder Engagement, said the survey canvassed last year’s 180

recipients and received 67 responses. The information gleaned from these responses provides a snapshot of the current student population.

“Over time, our annual surveys will deliver a range of insights into the impact of the scholarship programme including where study has taken our recipients, what careers they are pursuing, and whether they have found employment,” Mitchell said.

“We want to understand how significant our support is for our scholars, and ultimately we would like to see that recipients have entered into a career that they have aspired to achieve.”

Scholarships range from $1500

for undergraduate studies to postgraduate awards of $7500 for up to three years.

Most respondents were females aged 20 to 25 years, had gained an Undergraduate Bachelor’s Degree or a Masters qualification, and were completing a further qualification. Eight of the 2019 respondents have completed their studies and found employment.

Respondents who had found employment, including part-time or casual roles while still studying, were mostly working in the health or education sectors.

One concerning finding was that most students are carrying debt ranging

from $0 to $49,000, with some owing more than $60,000.

“It is disheartening to see that our people need to accumulate a significant debt in order to access tertiary education with the hope of securing a financially rewarding job,” Mitchell said.

The survey shows that the most sought-after employment is in the health sector, and that most scholarship recipients are studying at Massey towards a health sector-related career.

When asked if they would consider returning to work in Taranaki if there were opportunities in their chosen field, most said they would.

In future years, a wider focus by Māori on STEM subjects (Science, Technology, Engineering and Maths) would be needed to meet industry and iwi development needs.

“Skills in these areas will support our rangatahi in the technical, commercial, financial and executive leadership careers that are likely to be in demand in the future,” says Mitchell.

“Another significant need is critical thinkers – graduates who are able to look into a kaupapa, analyse, provide considered and informed opinion, challenge the status quo where required, and contribute to governance and management.”

Strengths such as these are essential

to excellent leadership whether at board level or in management.

Mitchell adds, “These skills would support the objective to increase the number of Māori employed by PKW. The number is currently at 55% and we’d like to grow that.”

Top: Brendan Ariki Laurence (Taranaki/Te Ātiawa) PKW Alumni.

TURNING FARM SUPPLIES INTO STUDENT SCHOLARSHIPS

agricultural sector to apply and receive support,” he said. “Helping students in this way not only builds capability within the Taranaki community but in the wider food and fibre industry.”

“Developing this strategic partnership with PKW recognises our businesses are growing side-by-side and is positive for everyone involved.”

The procurement review process forms part of the roll-out of PKW’s Procurement Strategy which has a principle objective to reflect a culture and discipline of ‘value for money’ in support of long-term financial return aspirations and collective Māori economic success.

The signing of a five-year Preferred Supplier Agreement, negotiated as part of the procurement review process, included a value-added component for the provision of scholarship funds.

These funds, which are calculated annually based on the amount of spend by PKW with Farmlands, will be administered through the PKW Trust to help scholarship applicants with the financial support they need to pursue qualifications in their chosen field.

“We have awarded three scholarships, worth $2500 each, under this partnership agreement already and there will be more to come,” says Mitchell Ritai, PKW’s General Manager Shareholder Engagement. “Being able to support the educational aspirations of our whānau is a key focus of the Trust’s work and we are pleased to be partnering with Farmlands to support these aspirations.”

The three Farmlands Scholarship recipients are Brendon Walker, who is pursuing a Bachelor of Social Work, Emma Hau, Bachelor of Midwifery and

Bella O’Carroll-Nicholson, Bachelor of Architectural Studies.

“Although students pursuing study in the agricultural space are preferred as recipients of these scholarships, only 3% of inaugural applicants qualified on that basis and as they were already receiving support we opted to award [the scholarships to] students in other fields,” says Mitchell.

“Two of these candidates have shown a strong desire to return to Taranaki to support their local community and the other has demonstrated a strong connection with Taranaki whānui in the Wellington area – these students are willing to contribute back to their communities.”

Wayne May, Farmlands Head of Business Development, says the cooperative welcomes the opportunity to build on an already strong relationship with PKW and is looking forward to facilitating more scholarships over the next four years.

“Hopefully we will be able to encourage more aspiring scholars in the

Asking suppliers to include a ‘valueadd’ component to their partnership with PKW enables the realisation of the incorporation’s strategic aims while ensuring its core values remain front and centre.

“Our on-farm merchandise spend category is the biggest in the PKW Farms business so improving the value of our supplier agreements is key to meeting our budget goals each financial year,” says Joe Hanita, PKW’s Chief Financial Officer.

“Consolidation of that spend to one supplier enables us to do that while building a strong, long-term relationship that brings benefits over and above the bottom line.”

A new strategic partnership between PKW and agricultural supplier Farmlands Co-operative is helping up-and-coming Taranaki Māori talent reach their goals and aspirations.

“Being able to support the educational aspirations of our whānau is a key focus of the Trust’s work and we are pleased to be partnering with Farmlands to support these aspirations.”

Mitchell Ritai

PKW PARTNERS WITH BNZ TO SUPPORT WHĀNAU

Parininihi ki Waitotara (PKW) has announced a new strategic partnership with BNZ, which has resulted in the launch of a $2500 tertiary scholarship in banking or finance.

The PKW-BNZ Undergraduate Scholarship will be awarded annually for a student enrolled in a banking or finance-related degree programme.

Mitchell Ritai, PKW General Manager Shareholder Engagement, says a priority in recent years has been to partner with like-minded organisations with similar values who understand PKW and its whānau.

“We’re pleased to have this relationship with BNZ bank, which is looking after our everyday banking needs and partnering with us to provide increased opportunity to support our shareholders and iwi,” he says.

“Finance management and commerce are two of the most popular fields

of study for students applying for PKW scholarships. The PKW-BNZ Undergraduate Scholarship recognises the importance we place on building capability and capacity in not only farming but more widely as well, including in areas such as business management, commerce and finance.”

Marcus Mcleod, BNZ Head of Region for Taranaki/Whanganui, said BNZ was incredibly proud to tautoko PKW and assist Taranaki tangata whenua with their tohu mātauranga and future ambitions through the PKW-BNZ Undergraduate Scholarship.

“This is an exciting opportunity to help a local organisation prosper and further assert the benefits of a te ao Māori

kaupapa in Taranaki,“ he says.

“We can all grow together: Ehara taku toa i te toa takitahi, he toa takitini.”

PKW is also engaged in BNZ’s Financial Health Check programme, which has run onsite workshops for PKW staff on budgeting, managing debt, investing, KiwiSaver and home ownership. PKW Chief Financial Officer Joe Hanita said financial wellbeing is a key developmental area for PKW whānau, and a plan is being developed to roll out the service to shareholders.

For more information on BNZ’s Financial Health Checks, go to:

www.bnz.co.nz/business-banking/ financial-wellbeing

5000 OWNERS ENTITLED TO $5M IN UNCLAIMED DIVIDENDS

More than half of the unclaimed pool – $2.5m – belongs to just 400 owners, who are each entitled to between $1500 and $60,000.

PKW manages 20,000ha of land on behalf of 10,500 shareholders but only has contact details for just over half of them and bank details for only 35%, making it impossible to pass on the $4.9m they are entitled to.

PKW Shareholder Advisor Adrian Poa said this means that 5,000 owners are missing out on a connection to their whenua.

“They are missing out not only on the dividends they are entitled to but also on shareholder benefits such as education and community grants, work opportunities, attending hui, and maintaining connection with the

whenua and their whānau,” he says.

When PKW was established in 1976 there were 5396 registered owners. After 44 years, many are now unable to be contacted or are “missing”.

“They have either passed away and their descendants have not succeeded to them or don’t know that they have PKW interests or their contact details have changed,” explains Adrian.

“We need up-to-date phone numbers, addresses, email and bank details to pay out these dividends, and to keep owners informed about PKW business and activities.”

Mitchell Ritai, PKW General Manager Shareholder Engagement, says the Covid-19 crisis has demonstrated the importance of being able to contact

whānau immediately if necessary.

“To do that, we need to have upto-date contact details. Our efforts to reach out to all our owners is continuous, and every year we publish a list of unclaimed dividends on our website so that people can search their kaumātua or their parents’ names, and get the word out through their networks.”

Unclaimed dividends are held by PKW on behalf of the owners.

To update contact details or inquire about shareholdings or succession, email reception@pkw.co.nz or phone 0800 759 462. To check the missing shareholders list, please go to www.pkw.co.nz

Nearly $5 million of unclaimed dividends is being held for Parininihi ki Waitotara (PKW) owners who have not updated their contact details or do not know they are shareholders.

MISSING SHAREHOLDERS LIST (CONTINUED)

To view the complete list on our website, visit https://bit.ly/2Ovrvky

MISSING SHAREHOLDERS LIST (CONTINUED)

Trust John Rangianini Hori (Trustee), Massey Te Manihera Hori (Trustee), Maida Tuhikore McKinley (Trustee), William Wiremu Hori (Trustee), Tama Te Whare Hori (Trustee), Shirely Rhonda Hori (Trustee), Dallas James Farquhar (Trustee), *Donovan Take Hori (Trustee),

To view the complete list on our website, visit https://bit.ly/2Ovrvky

MISSING SHAREHOLDERS LIST (CONTINUED)

To view the complete list on our website, visit https://bit.ly/2Ovrvky

PKW SCHOLARSHIP GRANTS AWARDED

PKW is pleased to announce the recipients of the 2020 scholarship awards.

PKW Tertiary Grant - Partial (Continued)