Ātihau Whanganui Incorporation increases its dividend

The incorporation farms 34,800ha, mainly in the Ruapehu District. Photo / Gareth Gardner

The region's largest farming entity has an increased operating surplus despite a year disrupted by Covid-19 and a long autumn drought.

The Ātihau Whanganui Incorporation had its annual general meeting at Whanganui's racecourse on December 10. Its shareholders had a chance to vote on an increased dividend of 80 cents a share.

The incorporation farms 34,800ha in the Whanganui and Ruapehu districts, and has more than 9000 shareholders. Total revenue in the last financial year was $27.2 million, with a $7.4 million surplus.

Chairwoman Mavis Mullins said it has had an operating surplus for the past five years and its equity is also growing.

For the most recent years, dividends have been at 50 and 60 cents a share. But Covid-19 has been a stark reminder that the incorporation is for the people, its shareholders and community.

"It's about how we now ensure that while we are making a profit, and our shareholders are able to have some benefits from that," Mullins said.

Shareholders voted to make the dividend 80 cents, but they didn't have total free rein.

"The reality is that dividend payment comes through from a formula that ensures that we stay within some financial boundaries."

Mavis Mullins chairs the Ātihau Whanganui Incorporation. Photo / Quentin Bedwell iStudios Multimedia

Shareholders also voted on two places on the incorporation's board. Rāwiri Tinirau and Che Wilson were set to retire by rotation, but wanted to stay on. Jenny Tamakehu, Hayden Potaka, Sarah Bell, Steph Osborne and Murray Haitana all wanted to replace them.

"It's a very good line-up this year," Mullins said.

The shareholders voted to keep Wilson and Tinirau on the board.

Covid-19 has had other impacts in this "crazy and amazing" year. Some markets have dried up and some prices have dropped, and the incorporation reacted by going to its suppliers to ask about changes in their markets.

"We did that very early on in the piece, and it was really helpful. Also, it's just good to support each other."

The diversification the incorporation has done over the last seven years allowed it to ride out the ups and downs.

Ten years ago 90 per cent of incorporation product was red meat, Mullins said.

Now it gets income from milk, forestry, carbon and honey. It produced 130,820kg of honey in the year to June 30. Last year's long dry summer was great for bees and mānuka flowering, CEO Andrew Beijeman said.

It wasn't so great for stock. But sheep and cattle are "growing like crazy" now, after big downpours of spring rain.

"Last year showed how our diversification strategy is working," Beijeman said.

The incorporation's aim is for people and nature to flourish together and Mullins welcomed the Government's increased focus on the environment.

"We will do everything we can to ensure our footprint is measurable and we are compliant."

The incorporation will plant nearly 300ha in mānuka and native trees during the next three years, under the One Billion Trees initiative. It will also fence and plant another 10km of waterways. Ruapehu iwi Ngāti Rangi monitors its water quality.

The Government's freshwater reforms have made further intensification at the Te Hou Farms it works with Ngā Wairiki-Ngāti Apa challenging. It is trialling growing blueberries undercover instead.

Last year's widespread drought made getting animals killed at freezing works difficult, and slowed killing rates, Beijeman said. Staff were able to keep working during the Covid-19 lockdown, but working together was more difficult.

"The team really pulled together. They showed their grit."

The AGM featured the graduation of six people from the incorporation's Awhiwhenua farm training school.

Covid-19 put a dampener on celebrations of the incorporation's 50-year anniversary, but they will continue in 2021.

Due to Covid-19 concerns, kaumātua could access $100 toward transport to get to the AGM.

"We have to be very careful of our kaumātua, and not put them at risk," Mullins said.

Those who came were grateful for the ability to meet face to face this year, and the incorporation wanted their guidance.

Its charitable Te Āti Hau Trust distributed $284,741 in the past financial year, chairman Shar Amner said. The bulk of that was to further education at all levels.

There was also nearly $60,000 spent to keep kaumātua comfortable and healthy - for things like dental work, hearing aids, prescription glasses and housing improvement.