2021 Annual Report
Morikaunui Incorporation
CONTENTS
Page Agenda
1
Minutes of last AGM
2
Chairman’s Report
4
Financial Report - Index
8
Supplementary Schedules
23
Extract from The Whanganui Trust report
25
Education Award Recipients
28
Morikaunui Incorporation Notice of Annual General Meeting Notice is hereby given that the Annual General Meeting of the Morikaunui Incorporation will be held via Video/Teleconferencing on Thursday 2nd December 2021 commencing at 10:00 am. [For details, please visit the website https://agm2021.morikau.com.]
AGENDA 1.
Mihimihi (Turama Hawira)
2.
Karakia (Turama Hawira)
3.
Apologies (provided prior to the meeting) – “Accept apologies”
4.
Minutes of the 2020 AGM: “That the Minutes as circulated are a true and correct record.”
5.
Matters arising
6.
Chairman’s Report: “That the Chairman’s report be received.”
7.
Financial Report (Glenn Brown): ”That the Financial report be received.”
8.
Appointment of Auditor: There having been no other nomination for the position of auditor
9.
Appointment of Share Valuer: Doyle & Associates Ltd have offered themselves for election.
and in the absence of a notice in writing advising that they do not wish to be re-appointed, Spooner, Hood & Redpath Ltd are automatically re-appointed pursuant to s277 (2) of the Act.
“That pursuant to s278 of the Act, Doyle & Associates Ltd be appointed as Share Valuer.”
10.
Dividend “That the payment of a dividend of $4.00 per share from Reserves accumulated prior to 30 June 2004 as recommended by the Committee of Management be approved pursuant to s259 (1c) of the Act.”
11.
Charitable purposes payments “That pursuant to s259(1d) of the Act it is hereby authorised that a payment being the greater of $12,500 or 5% of reported profit be made to The Whanganui Trust to assist with the delivery of its charitable activities and sums totalling no more than $13,000 be made on account of Education Scholarships.”
12.
Committee of Management: Jimmy Edmonds and Turama Hawira retire by rotation and both offer themselves for re-election. Siani Walker has been nominated for the committee. An election is therefore required. Biographical notes are included in the meeting documents.
13.
The Whanganui Trust The Trust Deed requires that the Trustees report to the Morikau meeting.
1. 2. 3. Harvey Bell Secretary
Chairman’s Report Financial Report Resolution: “That Te Aroha McDonnell be reappointed as a trustee.”
1
Morikaunui Incorporation (“Morikau”) Minutes from the Morikau Annual General Meeting held via Zoom on 25th November 2020. [The meeting was due to start at 10:00am but there were some technical issues that resulted in a 45 minute delay to it starting.] The Mihimihi and Karakia were delivered by Turama Hawira. Apologies Paul Hekenui, Sarah Romaka David Steedman/Harvey Bell Minutes of the 2019 AGM Resolved: “That the Minutes as circulated are a true and correct record.” Kataraina Millin/Jimmy Edmonds Matters Arising There were no matters arising. Chairman’s Report The chairman apologised for the technical issues that delayed the start of the Webinar. Key points from the report • With the inaugural Morikau AGM held in 1956, this is the 65th meeting, the first held by video conferencing • If is therefore fitting that we report another milestone - a record profit of nearly $700,000. • This equates to around $300 per effective hectare (ie the land we can actually farm versus native bush, scrub etc) with gross farm income of nearly $1,350 per effective hectare. • This is further evidence that our major investment in subdivision, re-grassed and water reticulation is paying dividends • The focus of these improvements is to increase daily weight gains thereby reducing the time our trading animals reside on the station. • Besides being more profitable, this reduces our GHG emissions per kg of production. • With the global pandemic raging around the globe, the immediate outlook for beef and lamb is uncertain but not gloomy at this stage • Unfortunately, wool is an all time disaster, the proceeds from which struggle to cover the shearing costs • We will continue working towards being well placed to take advantage of any market opportunities that present themselves for our core products. Resolved: “That the Chairman’s report be received.” Hari Benevides/Kataraina Millin Financial Report Glenn Brown from Doyle & Associates presented the financial report. The highlight was the record profit of $699k. All other aspects of the incorporation’s finances are in a very strong position. Resolved: ”That the Financial report be received.” Hari Benevides/David Steedman Appointment of Auditor There having been no other nomination for the position of auditor and in the absence of a notice in writing advising that they do not wish to be re-appointed, Spooner, Hood & Redpath Ltd are automatically re-appointed pursuant to s277 (2) of the Act.
2
Morikaunui Incorporation (“Morikau”) Appointment of Share Valuer Doyle & Associates Ltd have offered themselves for election. Resolved: “That pursuant to s278 of the Act, Doyle & Associates Ltd be appointed as Share Valuer.” Harvey Bell/Bobby Gray Dividend Resolved: “That the payment of a dividend of $4.00 per share from Reserves accumulated prior to 30 June 2004 as recommended by the Committee of Management be approved pursuant to s259 (1c) of the Act.” David Steedman/Hari Benevides Charitable purposes payments “That pursuant to s259(1d) of the Act it is hereby authorised that a payment being the greater of $12,500 or 5% of reported profit be made to The Whanganui Trust to assist with the delivery of its charitable activities and sums totalling no more than $13,000 be made on account of Education Scholarships.” Note: Hari Benevides and Harvey Bell retired by rotation from the Committee and offered themselves for re-election. There being no other nominations, they are declared duly elected.
The Whanganui Trust Chairman’s Report The chairman spoke about the impact of COVID19 on young people and the elderly, with many in the former category having their education plan disrupted. The major focus of the trust continues to be education with many achieving excellent results across a wide range of studies. Resolved: “That the chairman’s report be received,” Financial Report: Glenn Brown provided a short overview of finances. The surplus for the year was $63k with accumulated funds at $933k. A total of $1.57m has been lent back to Morikau. Resolved: “That the financial report be received.” Te Aroha McDonnell/David Steedman Morikau meeting appointed Trustee Resolved: “That Te Aroha McDonnell be reappointed as a trustee.” Harvey Bell/Kataraina Millin The meeting concluded at 11:40 with a Karakia from Bobby Gray. END
3
Chairman’s Report
Kia whakatōmuri te haere whakamua. I walk backwards into the future with my eyes fixed on my past. This whakatauki from a Maori perspective talks of cyclical time being sinuously entwined; the past, the present and the future. It informs us of where we were, where we are and where we want to be. An important part of the decision making process. Tena Koutou Nga Rangatira Last year was our 65th AGM and we thought that the circumstances requiring us to hold a virtual meeting were unique. Unfortunately, that has turned out not to be the case and we are unable to hold a physical meeting again this year. At Alert Level 2 the maximum number of people gathering inside is 100 and everyone needs to be one metre apart, with masks. On a positive note, the money saved has been added to the dividend recommendation of $ 4 per share.
COVID 19 Impact Farms are deemed essential services for the purposes of operating under the various Alert levels but it has still added significantly to the complexity of running a station such as Morikau. Our Health & Safety Manager has developed a protocol to be implemented in the event that any Station employee or visitor contacts Covid-19. In spite of the various Alert Levels, the office has been able to function using technology with people working from home when required. There has been very little disruption which is pleasing. Of course, Level 3 or above means that there can be no office visits and Level 2 means visit are by appointment only. The Committee of Management has adopted the policy that we will not meet a tinana with unvaxed people, any interaction will be conducted by zoom. We view it an important part of “Protecting our Whakapapa.”
He Putea (Financial) With the global turmoil caused by COVID-19, it was difficult to be confident about the markets for our lamb and beef products this time last year. However, these markets have remained resilient. This has contributed to us reporting yet another record profit of around $200,000 more than last year, to just under $900,000.
He Titiro Whakamura (The Year in Review) Farming is constantly exposed to the risks of adverse climate and falling markets for produce. There is nothing we can do about the weather but under Hamish Thompson’s management, Morikau stock attracts a premium and this is reflected in the strong sales this season. Beef prices have risen a little lately as well which is a welcome development. However, the star performers are sheep meats, both lamb and mutton, both at record per kilogram prices.
4
Chairman’s Report Wool has been a poor performer in recent years however over the last few months there has been some encouraging upward movements in wool prices, albeit from a very low base. Costs are rising at unprecedented rates of all the major input items such as fertiliser, fencing and building materials. Fertiliser price rises have been brought about by a 400% increase in shipping costs. Wood products are impacted by a global shortage, with supply issues as well as cost increases.
He Anga Whakamuri (The Year Ahead) The continued investment into the infrastructure, (new fencing, yards, laneways, fresh water reticulation, cropping, new grasses), is critical as we continue to increase productivity and profit. It is with this “past” that we are now “here” and the next phase of infrastructure investment will see us start the “future” replacing old fences, further subdivision, more water, and better pasture development on Mokonui.
The Whanganui Trust In the absence of a meeting, there is no distribution of our full trust Annual Report. The full audited report can be downloaded from the website and a summary is included in the Morikau Report along with a list of education award recipients. Our main funding activity remains focused on education with some very impressive results by recipients. They are all to be congratulated for their endeavours.
He Haerenga (Station Visit) Once again this has been cancelled due to Covid 19 and the need to keep he tangata safe.
He Tangata (The people) The Committee of Management and The Whanganui Trust, Trustee Te Aroha McDonnell, on accepting the responsibility placed in us as kaitiaki of our Taonga remain committed to doing the very best. Nga mihi Hamish and Katrina (who is our H&S officer). To our staff and their dedication to Hamish’s guidance, hard work and aroha for Morikau, nga mihi. In the past Hamish has hired the locals for casual work, eg, crutching, shearing and docking. It is disheartening that the number wanting work has dropped off considerably. Our accountancy firm Doyle and Associates do the administration work, Glenn Brown is our accountant and Rehara Tamehana our Kaiwhakahaere, nga mihi. On behalf of the Committee of Management and Te Aroha, I wish you all good health and wellbeing for the days and year ahead. Nga mihinui. Kia tau aku pitopito korero ki konei tena koutou tena tatou katoa.
Hari Benevides (Ms)
5
Matariki moon over Mokonui
7
8
Morikaunui Incorporation
SUPPLEMENTARY SCHEDULES
FOR THE YEAR ENDED 30 JUNE 2021 2021 Livestock Summary Sheep Opening Stock
Nos 16,468
Natural Increase
19,028
Purchases Sales
Cattle
137%
669
Opening Stock
Nos 2,153
Natural Increase
892
Purchases
37
Sales
Lambs
Per Head $ 113 (14,727) $ 1,664,969
Ewes
$
132
(2,584) $
341,644
2yr Heifers $
Rams
$
248
(186) $
46,169
M A Cows
Per Head $ 929
88%
(165) $
153,356
1,291
(80) $
103,304
1 yr Heifers $
1,113
(182) $
202,588
1yr Bulls
$
1,468
(274) $
402,142
2 yr Bulls
$
1,644
(7) $
11,507
1yr Steers
$
1,027
(23) $
23,626
2yr Steers
$
1,641
(168) $
275,749
(17,497) $ 2,052,782
(899) $ 1,172,272
18,668
2,183
Deaths & Missing
(1,397)
Closing Stock
17,271
4%
Deaths & Missing
(105)
Closing Stock
2,078
DOYLE & ASSOCIATES THE ACCOUNTANTS LTD
23
3%
Morikaunui Incorporation
SUPPLEMENTARY SCHEDULES
FOR THE YEAR ENDED 30 JUNE 2021
Governance, Shareholder meetings & Admin details
2021
Accounting Fee - Accounts, Consultancy & Shareholder Support Audit Fee Consultancy (HR) Governance * Governance Admin & Support Office Expenses Shareholder AGM Costs/Meetings Travel Reimbursement (Committee)
2020
2019
72,674 15,300 20,426 45,226 51,282 32,763 19,214 14,465
75,155 80,300 10,300 13,462 7,525 9,042 52,264 63,062 50,965 50,598 40,349 33,070 40,787 41,821 17,344 22,438 $271,350 $294,689 $313,793
*includes Committee fees Committee fees and travel for 2020/21
Hari Benevides Bob Gray Jim Edmonds K Millin Turama Hawira William Konui Harvey Bell Farm Performance Analysis
2021
Net Sale Proceeds
117
Fees $
Travel $
14,355 3,960 5,610 4,950 3,960 3,300 $36,135
7,248 1,204 1,995 929 234 787 2,069 $14,465
2019
2018
2020
Sheep Per Head (Avge)
$
Cattle Per Head (Avge)
$ 1,304
$ 1,389
$ 1,258
$ 1,204
$ 1,462
Wool Per Kilo (Avge)
$
$
$
$
2.13
$ 2.50
2,590
2,376
2,376
$1,329 $ 1,149
$ 1,052
$ 1,026
1.06
$
132 1.49
$
118 2.12
$
106
2017 $
90
Effective Farm Surplus Effective Area Ha
2,447
2,447
Gross Farm Revenue Per Ha
$ 1,311
Farm Operating Expenses Per Ha
$
837
$823 $
787
$
808
$ 757
Net Farm Surplus (after depreciation) per Ha
$
360
$224 $
242
$
125
$ 150
Gross Farm Revenue Per Stock Unit
$
124
$117 $
121
$
108
$ 100
Doyle & Associated The Accountants Limited
24
Extract from The Whanganui Trust Annual Report (the full report is available at www.whanganuitrust.com)
Statement of Service Performance The Whanganui Trust For the year ended 30 June 2021 NOTES
2020
2019
Donations, fundraising and other similar revenue
1
12,500
12,500
Interest, dividends and other investment revenue
2
Revenue
Total Revenue
73,897
89,608
86,397
102,108
Expenses Costs related to providing goods or service
3
19,623
23,753
Grants and donations made
4
44,367
39,792
Other expenses
3
4,139
4,082
68,129
67,627
18,267
34,481
Total Expenses
Surplus/(Deficit) for the Year
25
26
27
The Whanganui Trust Education Awards for 2021
Dr Rangi Metekingi Post-graduate Scholarship Adam Hamish Clark - MA in Architecture at Victoria University of Wellington*
Education Grants (Cont'd) Joann Judaline Byles - Te-Whare Wānanga O Awanuiārangi
Hoe Marumaru Under-graduate Scholarship (R/o = Rollover) Benjamin Ratana (R/o) - MBChB in Medical & Surgery at Otago University
Jordan Collins - Fore - Massey University Joann Judaline Byles - Te-Whare Wānanga O Awanuiārangi
Jordan Collins - Fore - Massey University Kalissiana Edmonds - UCOL Whanganui Katarina Morgan - Waikato University Natalia Healy - Forde - BA Science in Psychology at Lana Miles - Auckland UniTech Auckland University Lara Rena Maniapoto - Wintec Hamilton Roimata Blackburn (R/o) - BA in Medical Imaging Lorraine Tyson - Victoria University* Technology at UCOL Whanganui Lynda Lauren Holster - Massey University Hera Scott Under-graduate Scholarship Melissa Hawira - Te-Wānanga o Raukawa Amelia Peni - BASc in Animal Welfare at Massey Michelle Balsley - UCOL Whanganui University Mikaere Teki - Otago University Caitlin Huria - BSc in Anatomy at Otago University Moata Ngaamo Rupuha-Green - UCOL Whanganui Francesca H Maslin (R/o) - BA in Māori at Te-Wananga Mollie Tuohy - Canterbury University o Raukawa Natayla Peni - Otago University Vaieshalee B Renata (R/o) - BA in Nursing at UCOL Noah Heemi Blackburn - Otago University Whanganui Olympia Pearl Fazakerley - Massey University The Whanganui Trust Scholarships Poipoia Poa - Victoria University* Puna Maniapoto - Love - Auckland University Trade Tawera Puohotaua - Certificate in Electrician at Skills NZ Raukurawaihoea Naani Watai - Massey University Agri-business/Land-based Reanna Hogg - Wintec Hamilton Kayla Waudby - BA Environmental Planning in Te Ara Renee Lauese - Te Wānanga o Aotearoa Taiao at Waikato University Education Grants Ruby Pearce - Wintec Hamilton Ally Ataria - Massey University Sarah Teki - Clark - Massey University April Hyland - Otago University Seona Healey-Forde - Waikato University Arama Tuka - UCOL Whanganui Sonny Vercoe - Auckland University Arihia Hartley - UCOL Whanganui Sophie Maree Tuohy - Victoria University* Ashleigh Hobbs - Massey University Suraya Goss` - Massey University Atama Waitai - Ngatuere - UCOL Whanganui Tamahauiti Potaka - Auckland University Brittany Taylor - Otago University Tamahina Sheridan - Te-Wānanga o Raukawa Caleb Collins-Fore - Massey University Tamsyn Harawira - NZ School of Tourism Christine McMaster - Te-Wānanga o Raukawa Trixie Lee Baker - Te Wānanga o Aotearoa Cindy Rameka - Te Wānanga o Aotearoa Year 13 Grants Coralee Aroha Graham - Waikato University Rico-Shaan Ahleong - Hato Pāora College Davina Cooper - Massey University Jaxon Goss - Manukura Palmerston North Dayna Stevenson - Otago University Seth Ngatai - Feilding High School Fiona Nicoll - Otago University Maia Tiaki Bidois - Western Heights High School Fiona Te Haara - UCOL Whanganui Merepaea Baker-Smith - Taihape Area School Haukapuanui Vercoe - Auckland University Hope Tioro - Victoria University* Imogen McNeill - Otago University Isiah Selwyn - NZ School of Tourism Jack Potaka - Auckland University *VUW students have their award matched by VUW Hinemaia Uruamo-Taiaki - BA Design Innovation in Animation & Visual Effects at Victoria University*
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2020/21 Committee of Management members: Chairman: Hari Benevides (Ms) Retirement date*: 2023 hari@morikau.com Turama Hawira 2021 Jimmy Edmonds 2021 William Konui 2022 Kataraina Millin 2022 Robert (Bobby) Gray 2022 Harvey Bell 2023 * Members retiring by rotation are automatically nominated for re-election unless they give notice in writing to the contrary no later than 4:00pm on the last business day of September (ie 30/09/2021, 30/09/2022 and 29/10/2023) in the year that they are due to retire. That is also the date & time by which any nominations must have been received.
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PO Box 641, 32 Taupo Quay Whanganui Kaiwhakahaere: Rehara Tamehana Tel: 06 348 7218 rehara@morikau.nz Morikau.com