Te Arawa Lakes Trust posts positive results for latest financial year

Te Arawa Lakes Trust chairman Sir Toby Curtis. Photo/Supplied

It has been a positive financial year for the Te Arawa Lakes Trust.

The trust has finished the 2016-2017 financial year (ended June 30) with a significant 28 per cent increase in income from the previous year, up to $2.5 million.

Trust chairman Sir Toby Curtis said the increase was due to an increase in kiwifruit and milk sales, which rose 116 per cent and 65 per cent respectively, despite some challenges with heavy rain during the year.

Curtis said overall the trust's value had increased from $32.9m to $33.4m, and its focus on diversifying its investment portfolio had yielded positive results, with a strong increase in global shares.

"Our second Sungold Kiwifruit crop in Maketu was harvested in April 2017, producing a total of 40,454 trays.

"This equates to an average of 13,207 trays per hectare – 10.05 per cent above the average second year crop for G3/Sungold."

Curtis said the dairy farm results continued to be dependent on the price of milk solids.

However, the 2017 financial year saw an improvement in milk price from $3.90 in 2016, to $6.12/kg milk solids for the 2017 season.

"This year has been one of the wettest on record and the first half of this season was particularly challenging on the farm," he said.

"However, good management saw production recover through the remainder of the season, reaching the second highest level over the last 10 years for the combined Arawa and Okurei dairy farming operations, with production averaging 1118kg milk solids per hectare."

The trust has seen a decrease in commercial and residential rental revenues (14 per cent and 10 per cent respectively) driven by changes to accounting classifications. Overall rental revenue was steady for the period.

Curtis said the focus on a diversified investment strategy was already proving its worth, minimising Te Arawa Lakes Trust's exposure to adverse external market conditions.

He said the trust's strong financial results ensured it was able to deliver on its mandate to achieve environmental, cultural, social and economic benefits for Te Arawa.

"The past 12 months have been a time of significant change and huge progress for Te Arawa Lakes Trust, providing an ideal opportunity to refocus on our key priorities and confirm we are heading in the right direction."

He said this renewed focus had already gained significant traction with a number of different organisations, resulting in new and potential contracts and the development of renewed relationships with hapu.

"We now have a clear strategy and implementation plan for the action needed on our lakes with hapu and iwi, as well as alongside key partners such as Bay of Plenty Regional Council, Rotorua Lakes Council and others."

Curtis said a key environmental focus included the restoration of the mauri of the Te Arawa lakes, re-engaging with hapu and iwi to take ownership of projects, and ensuring the cultural framework Te Tuapapa o nga Wai o Te Arawa was embedded across all work done by the trust and its wider partners.

He said operational changes in the past 12 months had been a positive progress and will ensure it had the specialist expertise to effectively manage and deliver activities that preserve and promote the sustainable use of its property and financial assets.

The trust currently has a total of 20,198 registered tribal members, 17,866 of whom are 18 and over.