pengxin new zealand farm group limitedmilknewzealand.com/wp-content/themes/nz/images/... · manage...
TRANSCRIPT
1 | P a g e
Pengxin New Zealand Farm Group
Limited
Overseas Investment Office Annual Report 2013
Report Compiled 26 August 2013 by:
Landcorp Milk New Zealand
1 | P a g e
2 | P a g e
Contents
Section1
Introduction .......................................................................................................................... 4
Annual Summary ................................................................................................................... 4
Land acquisition activities ................................................................................................. 4
Farm Performance Summary ............................................................................................. 4
Financial Performance Summary ....................................................................................... 5
Section 2
Consent Conditions Progress- Summary to date .................................................................... 6
Consent Conditions Progress- Summary to date ............................................................... 7
OIO Annual Report: Special Conditions ...................................................................... 7
Section 3
Annual Reporting Requirements ............................................................................................ 9
Consent Condition 26 ....................................................................................................... 9
26 (a) (i) Introduction of Funds for investment ....................................................................... 9
Consent Condition 4 – introduction of funds ...................................................................... 9
Summary of Expenditure to date ....................................................................................... 9
Future projects ................................................................................................................ 10
Sample of the Capital Projects......................................................................................... 11
26 (a) (ii) Establishment of On-farm Training Facility ........................................................... 19
Consent Condition 5 – on-farm Training Facility ............................................................. 19
Summary of Facility Establishment ........................................................................... 19
26 (a) (ii) Scholarship recipients .......................................................................................... 19
Consent Condition 6 – Scholarship Recipients ................................................................ 19
26 (a) (iv) Compliance with representations made in OIO application ................................. 20
Employment summary .................................................................................................... 20
PNZFGL ........................................................................................................................... 20
PNZFML .......................................................................................................................... 20
Landcorp – Management personnel ................................................................................ 20
Landcorp Farm Staff ........................................................................................................ 21
Business Plan .................................................................................................................. 22
Budgets ........................................................................................................................... 22
Management Reports ...................................................................................................... 24
Farm Pride ...................................................................................................................... 24
26 (a) (v) Compliance with Consent conditions 7-10 ............................................................ 25
Consent Condition 7 – Assisting extension of Landcorp services and products to China . 25
Consent Condition 8 – Maintain Contractual Relationship with Landcorp ........................ 25
Consent Condition 9 – Ownership in milk processing facility .......................................... 26
Consent Condition 10 – Deal with the crown regarding Special Land .............................. 26
26 (a) (vi) Public Walking Access ........................................................................................ 27
3 | P a g e
Consent condition 11 ...................................................................................................... 27
Consent condition 11 (a) - Required Access and (b) Access Routes ................................ 27
11 (a) (i) and (b) (i) – Benneydale 1 .......................................................................... 27
11 (a) (ii) and (b) (ii) – Benneydale 2 ........................................................................ 27
11 (a) (iii) and (b) (iii) – Taharua ............................................................................... 28
Consent condition 11 (c) - Walking Access Available ..................................................... 29
Consent condition 11 (d) - Consultation with DOC and WAC .......................................... 29
Consent condition 11 (e) - Easements and right of access ............................................... 29
26 (a) (vii) Wildlands Report Recommendations .................................................................. 30
Consent Conditions 12 - Summary of Wildlands Recommendations and Progress Towards
Recommendations .......................................................................................................... 30
Wildland Recommendations ........................................................................................... 32
Consent Condition 13 – Consultation with DOC .............................................................. 35
Consent Condition 14 – Formal Protection ...................................................................... 35
Consent Condition 16 – Mudfish Survey .......................................................................... 35
26 (a) (viii) Historic Heritage Protection, Consent Conditions 18-22 .................................... 36
Consent Condition 18 – Archaeological Surveys ............................................................. 36
Consent Condition 19 – Heritage Covenant of Te Ruaki Pa site ....................................... 36
Consent Condition 20 – Registration of Te Ruaki Pa site as wahi tapu .............................. 36
Consent Condition 21 – Nga Herenga Pa site .................................................................. 36
Consent Condition 22 – Access to wahi tapu ................................................................... 37
26 (a) (ix) Good Character .................................................................................................. 38
Consent Condition 2 – Good Character ........................................................................... 38
26 (a) (x) Police certificates ................................................................................................. 38
Police certificates ............................................................................................................ 38
Section 4
Appendix 1 – Business Plan ................................................................................................. 39
Section 5
Appendix 2 – Management reports ..................................................................................... 99
Section 6
Appendix 3 – Farm pride Examples .................................................................................. 174
Section 7
Appendix 4 – Media, Landcorp extension in China ............................................................ 188
Section 8
Appendix 5 – WAC Correspondence ................................................................................ 190
Section 9
Appendix 6 – Support Letters Taharua Riparian Fencing ................................................... 200
4 | P a g e
Introduction
This report relates to the land purchased by Pengxin New Zealand Farm Group after
consent being granted by the Overseas Investment Office – Notice of Decision; Case
201110035
Settlement of the property was completed on December 1 2012 and this report covers
the period between Settlement and the end of the Financial Year 30 June 2013.
Pengxin New Zealand Farm Group Limited (PNZFGL) and Landcorp Farming Limited
(Landcorp) have formed and incorporated the Joint Venture company Pengxin New
Zealand Farming Management Limited (PNZFML). PNZFML now operates the farms and
oversees the Capital Expenditure on the properties pursuant to the Farm Operations
Agreement and Property Management Agreement.
The 7 Directors of the PNZFML Board are:
Greg Gent Independent Chairman
Rick Braddock Pengxin New Zealand Farm Group
Terry Lee Pengxin New Zealand Farm Group
Yaohua Lu Pengxin New Zealand Farm Group
Bill Bayliss Landcorp Farming Limited
Chris Kelly Landcorp Farming Limited
Marise James Landcorp Farming Limited
Annual Summary
Land acquisition activities
The land as described in the Notice of Decision – Case: 201110035 was acquired by
Pengxin New Zealand Farm Group on December 1st 2012, excluding the 20% Share of
68 Hectares on the Collins Road property that was not part of the Original Sale and
Purchase agreement.
Farm Performance Summary
For the period following purchase of the property and ending June 30 2013:
The farms milked a total of 14,065 cows
Produced kilograms of Milksolids
Terminated 9 Variable-Order Sharemilking Agreements, 2 50:50 Sharemilking
Agreements and 1 Contract Milking Agreement
Had Landcorp assume it’s responsibilities under the Farm Operations
Agreement as Sharemilker, and contract Manager as at June 1 2013
5 | P a g e
Financial Performance Summary
For the period following purchase of the property and ending June 30 2013:
Revenue was recorded of $10,481,240
Expenditure was incurred of $11,497,408
This included payments to Landcorp of $ for use of Cows, Plant &
Machinery and provision of all professional services to oversee the properties,
manage financial services and project manage Capital Expenditure
A Net Operating Loss recorded of -$1,008,206
Within 6 weeks of purchasing the land, the farms were – like most of the North Island -
in the grip of the worst drought in 70 years.
This dropped Milk Production by %, and increased farm expenditure in purchase of
additional feed. This result is consistent with what happened across the North Island for
most farmers, with Landcorp recording an % reduction in Milk production on
adjacent properties.
The critical focus for Pengxin and Landcorp was to manage the Welfare of all animals on
the property, and protect the farming position for the subsequent season.
Pengxin New Zealand Farm Management Limited
Financial Accounts
for the Financial Year Ending 30 June 2013
Revenue Actual
Milk 9,276
Sundry Income 1,206
Total Revenue 10,481
Expenditure
Farm Working Expenses 5,233
Personnel 205
Repairs and Maintenance 672
Services and Supplies 292
Communications and Travel 3
Standing Charges 4,532
Financial 1
Depreciation 560
Total Expenditure 11,497
EBIT -1,016
Interest 8
Net Operating Profit/Loss -1,008
6 | P a g e
Consent Conditions Progress- Summary to date
At June 30th and to the present date PNZFGL is in compliance with all conditions of the consent.
Several conditions have now been completed, and the remainder are being completed as work-
in-progress.
It is of the highest importance for both PNZFGL and Landcorp to see the earliest practicable
completion of all obligations under the consent.
Both PNZFGL and Landcorp recognise the importance of working together on these conditions
and ensuring that where relevant, work is completed prior to the due date or the condition
remains otherwise satisfied (e.g. applicants to remain of good character.)
Landcorp is the Project Manager overseeing compliance with these obligations, and has
designated , a Business Manager, to be responsible for ensuring the work is being
carried out by relevant individuals.
PNZFGL General Manager – Agriculture Andy MacLeod and
are working closely with Landcorp to assist and enable any work that is needed to
satisfy any conditions.
Conditions that have been met Due Date Status
When the Investment may be acquired
1(a) 25 April 2013 Land Acquired
1(b) No Date specified Not Terminated or Varied
Good character
2(a) No Date specified Good character continued
2(b) No Date specified No changes
3. No Date specified No individuals in control have ceased to be of good character
Special conditions
7. No Date specified On-going, achieved
8. No Date specified On-going, achieved
8(i) No Date specified Not Terminated
8(ii No Date specified Not Varied
9. No Date specified No ownership
Walking access
11(d) 30 November 2013 Consultation begun and ongoing
11(g)(i) No Date specified No disputes
11(g) (ii No Date specified No disputes
Environmental protection and enhancement
13. 30 November 2013 Consultation begun and ongoing
17. No Date specified No disputes
Protection or enhancement of historic heritage
18. 31 May 2014 Consultation with DOC has begun
(b) No Date specified Complete
(c) 1 February 2013 Complete Decemebr 1 2012
(d) No Date specified No disputes
Reporting to the Overseas Investment Office
23. 1 January 2013 Completed
25. no fixed dated No disposals made
26. 31 August 2013 Complete 25/08/13
A full summary of Consent compliance follows on the next page Green Items are Complete
7 | P a g e
Consent Conditions Progress- Summary to date
Green Items are Complete
OIO Annual Report: Special Conditions
Full Condition Due Date Status
When the Investment may be acquired
1. The consent will lapse if:
(a) the Investment has not been acquired by the Consent Holders by 25 April 2013; or 25 April 2013 Land Acquired
(b) the “Property Management Agreement” and “Farm Operation Agreement” (together “the Agreements”)
entered into with Landcorp Farming Limited (“Landcorp”) are terminated or materially changed prior to the
Investment being acquired by the Consent Holders.
No Date specified Not Terminated or Varied
Good character
2. The individuals with control of the relevant overseas person must:
(a) continue to be of good character; and No Date specified Good character continued
(b) not become individuals of the kind referred to in ss 15 or 16 of the Immigration Act 2009 No Date specified No changes
3. If an individual with control of the relevant overseas person ceases to be of good character, or becomes an
individual of the kind referred to in ss 15 or 16 of the Immigration Act 2009, the Consent Holders must either
ensure that individual immediately ceases to be an individual with control of the relevant overseas person, or
dispose of the Investment in accordance with condition 28.
No Date specified No individuals in control have
ceased to be of good character
Special conditions
4. The Consent Holders must introduce into New Zealand NZD $16m of additional investment for
development purposes.
(a) For the avoidance of doubt, the NZD $16m excludes the cost of acquiring shares in Fonterra Co-operative
Group Limited; and the cost of any other work that is not for development purposes. 31 May 2018 $3M so far, full intention to complete
(b) If the additional investment for development purposes has not been introduced into New Zealand, or the
work arising from the additional investment for development purposes has not been completed by 31 May
2018, the Consent Holders must dispose of the Investment in accordance with condition 28.
31 May 2018 $3M so far, full intention to complete
5. The Consent Holders must establish an on-farm training facility for dairy farm workers in accordance with
clause 5(c) of the Property Management Agreement.
Draft Plans under discussion with
PNZFGL and Landcorp
(a) The Consent Holders must contribute a minimum of NZD $ m towards the capital cost of establishing
this facility. 30 June 2015 Awaiting final plans
(b) The Consent Holders must apply for any consents required to establish the facility by 31 August 2014,
and subject to those consents being available, the facility must be established by 30 June 2015. 31 August 2014
Finalising structural plans, and
location before applying
(c) The Consent Holders must dispose of the Investment in accordance with condition 28 if the on-farm
training facility has not been established by 30 June 2015, unless the Consent Holders can establish to the
Overseas Investment Office’s satisfaction that the construction of the facility was materially delayed by the
unavailability of a required consent and that it has taken and continues to take all reasonable steps to obtain
that consent.
30 June 2015 Work in progress as above
6. The Consent Holders must give two scholarships of not less than NZD $5,000 each year to students of the
on-farm training facility. The first two scholarships are to be awarded by 28 February 2016. 28 February 2016 No facility in place yet
7. The Consent Holders must use reasonable endeavours to assist Landcorp to extend Landcorp’s farm
consultancy services in China, and to market Landcorp’s food and animal products in China. No Date specified On-going, achieved
8. At least one of the Consent Holders must maintain a contractual relationship with Landcorp in materially
the same terms as contained in the Agreements. No Date specified On-going, achieved
(i) the Agreements are terminated (other than termination at the expiry of the Agreements) and not replaced
with new agreements that are materially the same as those that were terminated; or No Date specified Not Terminated
(ii) the Agreements are varied in a material way. No Date specified Not Varied
9. The Consent Holders and their associates must not acquire an ownership or control interest in a milk
processing facility in New Zealand unless a 50% or more ownership or control interest in that facility is held
by non-overseas persons. If the Consent Holders or their associates acquire an ownership or control interest
in a milk processing facility in New Zealand in breach of this condition, the Consent Holders must dispose of
the Investment in accordance with condition 28.
No Date specified No ownership
10. The Consent Holders must: No Date specified
(a) deal with the Crown in accordance with the Overseas Investment Regulations 2005 as if the Consent
Holders were the party offering the special land to the Crown; and No Date specified In contact with relevant bodies
(b) be bound by any arrangement that the previous owner entered into with the Crown in relation to the
special land and, if required by the Crown, enter into an encumbrance or other instrument with the Crown to
be so bound.
No Date specified In contact with relevant bodies
Walking access
11. The Consent Holders must provide public walking access over Benneydale 1, Benneydale 2 and Taharua
Station, in consultation with the Department of Conservation (“DOC”) and New Zealand Walking Access
Commission (“WAC”).
No Date specified Survey work in progress
(a) Required access:
(i) The Consent Holders must provide public walking access at the southern end of Benneydale 1, from
Maraeroa Road to the Pureora Forest Park. No Date specified Survey work in progress
(ii) The Consent Holders must provide public walking access at the north-eastern end of Benneydale 2,
between State Highway 30 (Scott Road) and the Waipapa Ecological Area. No Date specified Survey work in progress
(iii) The Consent Holders must provide public walking access along or adjacent to the Taharua River and to
the Te Rere Falls. The Consent Holders must also provide reasonable vehicle access for maintenance and for
those with limited mobility, if required by DOC or WAC.
No Date specified Survey work in progress
(b) Access routes:
(i) The required walking access routes in respect of conditions 11(a)(i) and (ii) are shown in the maps
attached to these conditions. Nothing in condition 11(b)(i) prevents the Consent Holders and DOC (in the
case of Benneydale 1 and Benneydale 2) agreeing an alternative means of satisfying condition 11(a)(i) and
(ii).
No Date specified Survey work in progress
(ii) The walking and vehicle access routes in respect of condition 11(a)(iii) are to be agreed between the
Consent Holders and WAC. No Date specified Survey work in progress
(c) Public walking access to Benneydale 1, Benneydale 2 and Taharua Station is to be available by 30
November 2014. 30 November 2014 Survey work in progress
8 | P a g e
(d) Consultation with DOC and WAC must commence by 30 November 2013. 30 November 2013 Consultation begun and ongoing
(e) If required by DOC or WAC, the Consent Holders must register an easement, or other suitable
instrument, to secure the access required by condition 11(a). The Consent Holders must meet the cost of
registering the instrument, including the cost of any survey required to support the instrument. The Consent
Holders must register the relevant instrument within two years of being required to do so by DOC or WAC.
No Date specified Survey work in progress
(f) The Consent Holders must meet the cost of forming and maintaining walking tracks, if reasonably
required by DOC or WAC. No Date specified Survey work in progress
(g) Dispute resolution:
(i) Any dispute, difference or claim between the Consent Holders and DOC or WAC will be referred to and
finally resolved by arbitration (unless otherwise agreed by the Consent Holders and DOC or WAC). The
tribunal will consist of a sole arbitrator appointed by agreement between the parties or if the parties cannot
agree by the President of the New Zealand Law Society. The place of arbitration will be Wellington, the
language of the arbitration will be English. The Consent Holders will share the cost of any such arbitration
equally with the other parties to the arbitration.
No Date specified No disputes
(ii) The Consent Holders must provide a copy of any award made by an arbitrator, or evidence of the
outcome of any other dispute resolution process, to the Overseas Investment Office within 14 days of the
dispute being resolved.
No Date specified No disputes
Environmental protection and enhancement
12. The Consent Holders must implement the recommendations in Wildland Consultants Limited reports
2618a-2618d (dated February and March 2011), and 2441e (dated June 2010) (together the “Wildland
Reports”) by 31 May 2017.
31 May 2017 Work in progress
13. The Consent Holders must consult with DOC before implementing the recommendations in the Wildland
Reports. Consultation with DOC must begin by 30 November 2013. 30 November 2013 Consultation begun and ongoing
14. If DOC considers that formal protection is required for any of the areas identified in the Wildland Reports,
the Consent Holders must formally protect those areas (for example with the QEII National Trust or via a land
management agreement with the relevant Council).
No Date specified Survey work in progress
15. Of the conservation management options set out on page 11 of Wildland report 2618a, the Consent
Holders must implement the option preferred by DOC. No Date specified Methodology being applied
16. The Consent Holders must undertake a survey of mudfish in the Mangemange Stream by 31 May 2015. 31 May 2015 Initiating contact with relevant
bodies
17. The dispute resolution procedure in condition 11(g) (excluding references to WAC) shall apply to any
dispute, difference or claim between the Consent Holders and DOC. No Date specified No disputes
Protection or enhancement of historic heritage
18. The Consent Holders must undertake an archaeological survey, in consultation with local Iwi, on
Benneydale 1, Benneydale 2, Taharua and Tiwhaiti, by 31 May 2014. 31 May 2014 Consultation has begun
19. The Consent Holders must register a heritage covenant, in the form appearing in appendix S of the
application for consent, in respect of the Te Ruaki pa site on computer register TNC1/383 by 31 May 2014. 31 May 2014 Investigating if already complete
20. The Consent Holders must, if requested by the New Zealand Historic Places Trust, write a letter
supporting the registration of the Te Ruaki pa site as a wahi tapu under the Historic Places Act 1993. No Date specified Investigating if already complete
21. If required by the Office of Treaty Settlements (“OTS”), the Consent Holders must transfer the Nga
Herenga pa site (approximately 1.6ha located on Benneydale 1) to the Crown for nil consideration. No Date specified No Formal request received yet
(a) The transfer must be completed within 12 months of OTS’s requirement being communicated in writing to
the Consent Holders. No Date specified Survey work in progress
(b) The Consent Holders must meet the cost of any survey required to support the transfer of the Nga
Herenga pa site to the Crown. No Date specified Complete
(c) Within three months of the Investment being acquired, the Consent Holders must retire the Nga Herenga
pa site from grazing and ensure that adequate fencing is in place to protect the site. 1 February 2013 Complete December 1 2012
(d) The dispute resolution procedure in condition 11(g) (replacing references to DOC and WAC with
references to OTS) shall apply to any dispute between the Consent Holders and OTS. No Date specified No disputes
22. The Consent Holders must allow access to wahi tapu to those with a legitimate interest in the relevant
wahi tapu. No Date specified
No access yet requested, no access
will be reasonably withheld
(a) The right of access may be exercised by foot over any reasonably convenient routes specified by the
Consent Holders. No Date specified
No access yet requested, no access
will be reasonably withheld
(b) The Consent Holders may require a person intending to exercise the right of access to give the Consent
Holders reasonable notice in writing of his or her intention to exercise that right. No Date specified
No access yet requested, no access
will be reasonably withheld
(c) The Consent Holders may limit the right of access to reasonable times and during daylight hours. No Date specified No access yet requested, no access
will be reasonably withheld
(d) The Consent Holders may require a person exercising the right of access to observe reasonable
conditions relating to the time, location, or manner of access as are reasonably required: No Date specified
No access yet requested, no access
will be reasonably withheld
(e) In consultation with local iwi, the Consent Holders must register an easement, or other suitable instrument
to make the access under conditions 22(a)-(d) permanent in respect of the Nga Herenga pa site. No Date specified Survey in progress
Reporting to the Overseas Investment Office
23. The Consent Holders must report to the Overseas Investment Office in writing within one month of
acquiring the Investment. The report must include: 1 January 2013 Completed
24. The Consent Holders must notify the Overseas Investment Office within 20 working days if:
(d) any person in which the Consent Holders, a relevant overseas person or an individual with control of a
relevant overseas person has, or had at the time of the offence or contravention, a 25% or more ownership or
control interest; commits an offence or contravenes the law (whether convicted or not) apart from any minor
offence or contravention where such offence or contravention would not be regarded by a reasonable
person as indicating that any individual with control of the relevant overseas person is not of good character.
no fixed dated No Offences committed
25. The Consent Holders must notify the Overseas Investment Office in writing within 20 working days if they
dispose of the Investment or cease to be overseas persons. no fixed dated No disposals made
26. The Consent Holders must provide an annual report in writing to the Overseas Investment Office. The
purpose of the report is to provide information with which the Overseas Investment Office can monitor
conditions of consent.
31 August 2013 Complete 25/08/13
(ii) annually thereafter until advised by the Overseas Investment Office that no further reports are required
(it is anticipated that a minimum of five annual reports will be required); and 31 August annually
9 | P a g e
Annual Reporting Requirements
Consent Condition 26
The Consent Holders must provide an annual report in writing to the Overseas
Investment Office. The purpose of the report is to provide information with which the
Overseas Investment Office can monitor conditions of consent.
26 (a) (i) Introduction of Funds for investment
Consent Condition 4 – introduction of funds
The Consent Holders must introduce into New Zealand NZD $16m of additional
investment for development purposes.
(a) For the avoidance of doubt, the NZD $16m excludes the cost of acquiring shares in
Fonterra Co-operative Group Limited; and the cost of any other work that is not for
development purposes.
(b) If the additional investment for development purposes has not been introduced into
New Zealand, or the work arising from the additional investment for development
purposes has not been completed by 31 May 2018, the Consent Holders must dispose of
the Investment in accordance with condition 28.
The initial acquisition was funded by the Head Office of Shanghai Pengxin Group
(Shanghai or Hong Kong), and trading bank loans.
In the last 6 months, the operating earnings from the farms has been insignificant; as
such all capital expenditure ($2.493M paid up to and including 30 June 2013) was
funded from the residual money of the initial acquisition.
No additional funding has yet been introduced as capital projects have started later than
anticipated with delayed settlement. However, funding from China will be required as
Capital Expenditure continues.
Summary of Expenditure to date
All work completed to date in improving the properties and funded by Pengxin is
outlined as below in Table 1. This includes pre-settlement actuals, post-settlement
actuals, and commitments awaiting invoicing at 30 June 2013 a total of $3,011,000.
The focus of the expenditure has been on four key areas:
1. Environmental Compliance
2. Staff Accommodation
3. Health and Safety & Animal Welfare Issues
4. Operational farming improvements
11 | P a g e
Sample of the Capital Projects
A sample of capital projects underway is included below in pictures.
Cirenester Effluent Storage
Previously a small pod in the ground that held 4-12 hours of effluent.
The new pond dug to provide 30 days or more of storage. This will be a fully lined
pond, allowing advantageous use of nutrients in conditions that are appropriate for
effluent application to land.
12 | P a g e
Pineview Cowshed
Earthworks for the new cowshed site at Pineview
The new effluent pond at Pineview – 30+ days and already lined.
13 | P a g e
Rawhiti Buildings
Installing a backing gate at the Rawhiti cowshed, where there wasn’t one before.
Erecting new, adequate and safe calf rearing facilities at the Rawhiti Shed.
14 | P a g e
Improving housing.
The first steps are the most important. The housing on the properties is in desperate
need of attention.
Repairing the washroom area in a house, to something that leaves you with confidence
that your hands are clean after finishing washing!
Before
After
15 | P a g e
Painting the Exteriors of houses to improve aesthetics, and improve the weather
proofing of houses.
Before
After
16 | P a g e
Relocating and repairing this dwelling that was previously uninhabited, due to being
uninhabitable: Rat infestations, leaking roof; rotten flooring, carpets and chattels and
mould-coated damp walls.
17 | P a g e
Improving Stock Water Collins Road
Thin Thirsty cows, with an inadequate and contaminated water supply.
Installation of a new water filtration system will take out large amounts of Iron and
Manganese, along with supplying an adequate volume of water at all times.
Below – stage one – volume has been addressed as that was the first and most critical
Animal Welfare issue the work on quality with the filtration system is nearly complete.
18 | P a g e
Health and Safety
A great concern has been to improve the safety of the working conditions on the
property.
The first capital projects begun post-settlement was to install gateways into paddocks,
where there previously were none. Immediately prior to settlement there were two
serious harm accidents on the farms due to the “pin lock” fence system failing and staff
members being hit with a re-coiling fence wire.
There were no gates on the farm, wires were dropped and cows and farm staff walked
over them as is demonstrating.
Fencers installing the new V-gates
19 | P a g e
26 (a) (ii) Establishment of On-farm Training Facility
Consent Condition 5 – on-farm Training Facility
The Consent Holders must establish an on-farm training facility for dairy farm
workers in accordance with clause 5(c) of the Property Management
Agreement.
(a) The Consent Holders must contribute a minimum of NZD $ m towards the
capital cost of establishing this facility.
(b) The Consent Holders must apply for any consents required to establish the
facility by 31 August 2014, and subject to those consents being available, the
facility must be established by 30 June 2015.
(c) The Consent Holders must dispose of the Investment in accordance with
condition 28 if the on-farm training facility has not been established by 30 June
2015, unless the Consent Holders can establish to the Overseas Investment
Office’s satisfaction that the construction of the facility was materially delayed
by the unavailability of a required consent and that it has taken and continues to
take all reasonable steps to obtain that consent.
Summary of Facility Establishment
Establishing a facility has been a subject of much rigorous discussion, in defining the
most appropriate location and style of facility to be created, along with rationalising the
program and qualifications of any graduates.
This is a complex issue that at this stage has not culminated in final decisions, on where
it will be built, what will be built or exactly how best it will be used.
Obviously no resource consent can be applied for until these decisions are made, but
this is due to happen in the coming months.
26 (a) (ii) Scholarship recipients
Consent Condition 6 – Scholarship Recipients
The Consent Holders must give two scholarships of not less than NZD $5,000 each year
to students of the on-farm training facility. The first two scholarships are to be awarded
by 28 February 2016.
There is currently no Facility in place, and as such no scholarships have yet been
awarded
20 | P a g e
26 (a) (iv) Compliance with representations made in OIO application
Employment summary
PNZFGL
Since acquiring the farms, PNZFGL has employed 6 people to work directly for their
own company in New Zealand.
All personnel working for Pengxin New Zealand Farm Group are employed under ‘Milk
New Zealand Management Ltd’ – another subsidiary of Milk New Zealand Holding
Limited
Terry Lee: Managing Director;
Andy Macleod: General Manager – Agriculture
Office Address: C/- Milk NZ Level 34, Vero Centre, 48 Shortland St, Auckland
PNZFML
The Board of PNZFML has created 7 new Directorships to be filled, 6 of which are taken
by New Zealand residents. Plus there is a part time Administrative Officer position that
is filled.
Landcorp – Management personnel
To oversee and manage this business Landcorp absorbed several new positions in the
Management Team:
22 | P a g e
Business Plan
The Business Plan for the farms was presented to the PNZFML board and ratified without
amendment. This document is attached in Appendix 1
The Key themes and focus of the Business Plan are included below:
At all times, farming policies and practices will be:
Safe for animals and people
Environmentally responsible and compliant
Sustainable; agriculturally and financially
Ensuring the highest possible standards of animal welfare
Promoting excellent standards of working environment, staff behaviour,
management and progression
Encompassing industry best practice
Improving farms to the top 10% in New Zealand
Budgets
The Budgets for both PNZFGL and Landcorp are included in the Business Plan, however
below is a summary for both Businesses and the combined portfolio for the three years.
The Milk Price for plan years 2014, 2015 and 2016 is $ , $ and $ respectively.
Dividend is also included at $ /kgMS for the Fonterra Supply farms and contributes
approximately in revenue to the Owner based on Dividend Paying Shares owned.
The Budgets Include all fees for PMA work, Landcorp overheads in operating the
properties and administration costs of PNZFML.
24 | P a g e
Management Reports
Management reports are provided regularly to the PNZFML Board by Landcorp. The
documents are attached in Appendix 2.
These documents include updates on:
Physical performance
Financial variances
Environmental issues if any
Capital Projects
Animal Welfare/Health & Safety
Farm Pride
Landcorp employed an independent auditor to audit the properties as soon as possible
once settlement of the properties was completed.
Farms began with a score of 100 and with every fault incurring a deduction of between 1
and 10 depending on the severity, to arrive at a final score. The scores below reflect the
state of the properties at that time. Both Landcorp and PNZFGL are very keen to see
significant improvements in these scores, when the next audit occurs in the next 18
months.
Table 3 - Farm Pride Scores
Farm Score
Ariki -102
Benneydale 1 -82
Benneydale 2 -43
Machinery 6
Cirenester -77
Collins Road -143
Ferry View -88
Forest Park 38
Glyn Park -57
K-Road -106
Lakeview -80
Pineview -114
Plateau -66
Rawhiti -106
Taharua Herringbone -93
Taharua Rotary -95
Ti Whaiti -49
Waverley -102
25 | P a g e
The Outcomes of the audit in total exceed 1,000 pages of photographs and descriptions
of Health and Safety, Animal Welfare and Farm presentation commentary for the
properties.
A selection of the images, and an example of the issues report for one property is
included in Appendix 3.
26 (a) (v) Compliance with Consent conditions 7-10
Consent Condition 7 – Assisting extension of Landcorp services and
products to China
The Consent Holders must use reasonable endeavours to assist Landcorp to extend
Landcorp’s farm consultancy services in China, and to market Landcorp’s food and
animal products in China.
The recent signing by Landcorp and Massey University of a MOU with a Shanghai
Pengxin subsidiary company, Anhui Agricultural University, Anhui Anxin Husbandry
Development Limited and the Provincial Government will see the formation of a
consultative working group to develop a new sheep enterprise in China.
Refer to Media coverage of this in Appendix 4.
Consent Condition 8 – Maintain Contractual Relationship with
Landcorp
At least one of the Consent Holders must maintain a contractual relationship with
Landcorp in materially the same terms as contained in the Agreements.
(a) The Consent Holders must dispose of the property in accordance with condition 28
if:
(i) the Agreements are terminated (other than termination at the expiry of the
Agreements) and not replaced with new agreements that are materially the same as
those that were terminated; or
(ii) the Agreements are varied in a material way.
(b) To avoid doubt:
(i) The novation of the Agreements by the Consent Holders and Landcorp is neither a
termination nor a material variation of the Agreements, provided that no change is
made to the Agreements other than changing the parties and incorporating the
“variations and clarifications” described in condition 8(b)(ii) below.
(ii) Subject to conditions 8(b)(iii)-(v), the variations and clarifications contained in
schedule 5 of the draft shareholders agreement provided to the Overseas Investment
Office on 27 November 2012 are not material variations to the Agreements.
(iii) The termination of Landcorp’s provision of financial services to the Consent
Holders will not be a material variation of the Agreements provided that the financial
services continue to be provided in New Zealand.
(iv) The termination of Landcorp’s management of any one or more of the farms is
deemed to be a material variation of the Agreements.
(v) The Consent Holders giving notice to Landcorp that they will perform the “owners
responsibilities” themselves is deemed to be a material variation of the Agreements.
26 | P a g e
The Contracts have not been varied since the last submission to the OIO and subsequent
Notice of Decision dated November 30 2012.
Consent Condition 9 – Ownership in milk processing facility
The Consent Holders and their associates must not acquire an ownership or control
interest in a milk processing facility in New Zealand unless a 50% or more ownership or
control interest in that facility is held by non-overseas persons. If the Consent Holders
or their associates acquire an ownership or control interest in a milk processing facility
in New Zealand in breach of this condition, the Consent Holders must dispose of the
Investment in accordance with condition 28.
No ownership of milk processing facility in New Zealand has been acquired or is
targeted by the applicant.
There is a ‘Supply and Purchase Agreement’ signed with Miraka for UHT milk with an
initial target market in China
Shanghai Pengxin Group has the exclusive off take right. The factory/production line is
currently under construction at Miraka’s existing processing site and production will
start around December 2013.
Consent Condition 10 – Deal with the crown regarding Special Land
The Consent Holders must:
(a) deal with the Crown in accordance with the Overseas Investment Regulations 2005
as if the Consent Holders were the party offering the special land to the Crown; and
(b) be bound by any arrangement that the previous owner entered into with the Crown in
relation to the special land and, if required by the Crown, enter into an encumbrance or
other instrument with the Crown to be so bound.
It is understood that the applicant needs to transfer the ownership of these streambeds
to the Crown.
Benneydale 1: the Waimiha Stream and the Te Kakaho Stream;
Tiwhaiti: the Mangemange Stream;
Taharua: the Taharua River
To date no work has been completed on this, however in consultation with DOC and the
Crown arrangements will be made to transfer the land as required.
27 | P a g e
26 (a) (vi) Public Walking Access
Consent condition 11
The Consent Holders must provide public walking access over Benneydale 1,
Benneydale 2 and Taharua Station, in consultation with the Department of Conservation
(“DOC”) and New Zealand Walking Access Commission (“WAC”).
With regards to Walking Access, Wildlands Recommendations and the matter of the
Nga Herenga Pa Site, all relevant parties have been contacted and met with
Management at the Benneydale properties.
Consent condition 11 (a) - Required Access and (b) Access Routes
11 (a) (i) and (b) (i) – Benneydale 1
The Consent Holders must provide public walking access at the southern end of
Benneydale 1, from Maraeroa Road to the Pureora Forest Park.
Surveyors have been engaged to survey the relevant area as the first step towards
providing officially designated Walking Access to this region as shown in yellow on the
map below.
They have also been engaged to survey the easement required for access to the Nga
Herenga pa site.
Appendix 5 includes Correspondence with WAC supporting the plans.
11 (a) (ii) and (b) (ii) – Benneydale 2
The Consent Holders must provide public walking access at the north-eastern end of
Benneydale 2, between State Highway 30 (Scott Road) and the Waipapa Ecological Area.
Surveyors have been engaged to survey the relevant area as the first step towards
providing officially designated Walking Access to this region as shown in blue on the
image below.
28 | P a g e
11 (a) (iii) and (b) (iii) – Taharua
The Consent Holders must provide public walking access along or adjacent to the
Taharua River and to the Te Rere Falls. The Consent Holders must also provide
reasonable vehicle access for maintenance and for those with limited mobility, if
required by DOC or WAC.
Preliminary meetings have been held with the local Regional council regarding Riparian Management at Taharua, and some of the Wildlands Recommendations have been implemented including fencing off the Taharua Stream. In September we are planning a meeting with the Regional Council, QEII, WAC and DOC at Taharua to begin addressing the possibilities for Walking Access at Taharua. Subsequently there will be relevant survey work carried out to formalise the access.
29 | P a g e
Consent condition 11 (c) - Walking Access Available Public walking access to Benneydale 1, Benneydale 2 and Taharua Station is to be
available by 30 November 2014.
Currently there is no final and formalised access to any of the sites, but work is in
progress to remedy this well before the deadline of November 30 2014.
Consent condition 11 (d) - Consultation with DOC and WAC
Consultation with DOC and WAC must commence by 30 November 2013.
Both DOC and WAC along with QEII and Regional Councils have been approached
regarding the two routes on the Benneydale Properties, and they are happy with the
proposed routes, and processes being employed to satisfy these conditions.
Note Appendix 8.
Both DOC and WAC along with QEII and Regional Councils have been approached
regarding the access routes at Taharua and meetings are scheduled for September to
meet at the property and discuss options.
The Taharua walking access is much more complex due to the far longer distances
involved and whether lanes, fences or bridges need construction and who would
maintain such constructions; or whether using existing farm infrastructure is a more
sensible solution, with right to travel on foot adjacent to the stream.
Consent condition 11 (e) - Easements and right of access
If required by DOC or WAC, the Consent Holders must register an easement, or other
suitable instrument, to secure the access required by condition 11(a). The Consent
Holders must meet the cost of registering the instrument, including the cost of any
survey required to support the instrument. The Consent Holders must register the
relevant instrument within two years of being required to do so by DOC or WAC.
There is no formal documentation yet created regarding rights of access.
30 | P a g e
26 (a) (vii) Wildlands Report Recommendations
Consent Conditions 12 - Summary of Wildlands Recommendations and Progress Towards Recommendations
The Consent Holders must implement the recommendations in Wildland Consultants Limited reports 2618a-2618d (dated February and March
2011), and 2441e (dated June 2010) (together the “Wildland Reports”) by 31 May 2017.
Below is a summary of progress towards each of the Wildlands recommendations. This image shows the items currently being surveyed at the
Benneydale properties to protect sensitive areas, and create the Bush Corridor for safe travel of native wildlife.
32 | P a g e
Wildland Recommendations
Plateau Farms – Reparoa
No report was prepared in respect of these farms for Milk New Zealand’s application. However, a report was prepared
by Wildland for the Natural Dairy application and Wildland recommended:
(a) The gully on the Cirenester Farm containing the area of Manuka scrub should be retired from grazing and existing
fencing maintained.
No progress has been made on this to date but meetings
with DOC are scheduled for September
(b) Wilding pines within the gully should be poisoned and left standing to minimise damage to surrounding scrub. No progress has been made on this to date but meetings
with DOC are scheduled for September
(c) Formalised protection of the gully should be implemented, e.g. with the QE II Trust, or via a land management
agreement with Environment Waikato.
No progress has been made on this to date but meetings
with DOC are scheduled for September
(d) Farm management practices should, as a minimum, comply with local/regional authority regulations relating to the
management of agricultural run-off, in order to contribute to maintaining or improving water quality in the downstream
receiving waters of the Trepatutahi Stream and Waikato River catchments.
New 60 day effluent pond recently installed, to
minimised application of effluent in high-run-off
conditions.
Prior to meeting with DOC cows are being withheld from
the areas we understand to be sensitive
Benneydale Farms
(a) Several natural areas should be considered for formal protection (e.g. with the QEII Natural Trust) for their
contributions to local biodiversity protection, and catchment and landscape values. These include:
i. the contiguous area of harakeke wetland, tawa-podocarp forest and treeland, and manuka scrub on the northern
boundary (approx. 23.3 ha in total), where fernbird and spotless crake were detected. A small amount of rough pasture
on steep slopes would be incorporated within the logical site boundaries, if existing fencelines were to be utilised.
Discussed with DOC and being surveyed
ii. the large indigenous forest block north and west of SH 30 and Waitaramoa Road. Discussed with DOC and being surveyed
iii. the mosaic of forest, treeland, and riparian scrub in the headwaters of the Mangatahae Stream. Discussed with DOC and being surveyed
(b) The grey willow infestation in the harakeke wetland should be controlled in the near future, while substantial areas
of the wetland remain willow-free. Ideally, willow control would be undertaken both on Benneydale Farms and DOC-
administered parts of the wetland.
Consulted with DOC on how to control the willow, and
received recommendation to conduct a controlled
poisoning process, which began August 15th 2013
(c) Existing indigenous vegetation should be retained, and appropriate care taken to minimise potential non-target
management effects e.g. herbicide spray drift.
Discussed with DOC and being surveyed
(d) Fencing of riparian margins should be completed through the properties. Riparian margins in the Waimiha Stream
system (which drains the Benneydale 1 farm), which has sports fishery values downstream, are the highest priority for
fencing. This includes fencing and retirement of the two farm dams in the north-western corner of the properties.
Fencing appears to be substantially complete along the Waimiha Te Kakaho Stream marginal strips, and circa. 5 km of
riparian fencing is currently being erected on Benneydale 1 waterways ( , Hillside Farms, pers. comm.),
with additional riparian fencing planned. A small gully adjacent to the milking shed road on Benneydale 2 has been
recently fenced ( , Hillside Farms, pers. comm.).
Complete
33 | P a g e
(e) Feral goats should be eradicated from the Waitaramoa Road forest. Ongoing hunting pressure may be necessary to
prevent reinvasion. Feral deer may also require some control effort from time-to-time.
Awaiting advice from DOC on infestation levels and
combined management options
(f) Possums should be controlled to low levels of abundance across the properties (this applies largely to the
Benneydale 2 property). This can be achieved at low cost with a combination of traps, bait stations, and spotlight
shooting. Note that the continuation of AHB-related possum control in the area will negate the need for any additional
work to occur.
Awaiting advice from DOC on infestation levels and
combined management options
(g) Farm management practices should, as a minimum, comply with local/regional authority regulations relating to
management of agricultural run-off, in order to contribute to the improvement of water quality in the Whanganui and
Waikato River catchments.
Waterways are now fully fenced, and all other care is
being taken to avoid unnecessary nutrient transfer to
waterways.
(h) Landowners and land managers should facilitate any future development of walking tracks or routes along
Department of Conservation-administered marginal strips through the Benneydale 1 farm.
As noted in the section regarding Walking Access, there
is survey work being completed to register an easement
along the Southern End of Benneydale 1.
Taharua Farm
(a) All existing riparian natural vegetation should be retained. Complete
(b) A recent Hawkes Bay Regional Council (HBRC) Technical Report recommended a minimum 30 m-wide riparian
buffer for the Taharua River, from its source to the Mohaka confluence (Cameron 2008, based on Parkyn 2004). Few
areas of existing riparian fencing on Taharua Farm would meet this criterion.
Discussed HBRC, and fenced areas as requested, not all
30 M wide – fenced as directed under the advisement of
HBRC Personnel
(c) Completion of riparian fencing along the Taharua River and its tributaries where they flow through intensively-
grazed pasture is a high priority.
Discussed HBRC, and fenced areas as requested, not all
30 M wide – fenced as directed under the advisement of
HBRC Personnel
(d) Any new fencing should completely exclude stock from existing areas of natural riparian vegetation, and from areas
of poorly-drained damp pasture.
Discussed HBRC, and fenced areas as requested, not all
30 M wide – fenced as directed under the advisement of
HBRC Personnel
(e) New riparian fencing along the Taharua River should create a riparian buffer at least 30 m wide, which is likely to be
the minimum required under any new HBRC rules.
Discussed HBRC, and fenced areas as requested, not all
30 M wide – fenced as directed under the advisement of
HBRC Personnel
(f) Effectiveness of riparian buffers may be improved by the planting of appropriate indigenous or exotic trees and
shrubs to accelerate regeneration and capture of subsurface nutrients.
Currently researching planting of native Manuka
species, cultivars local to Taharua
(g) Fencing or retirement of the extensively-grazed areas of hill-country pasture, scrub and forest will also be of benefit
to downstream catchments, but this is a lower priority. Options for addressing these areas are outlined below.
No progress yet
(h) Willow stands along the Taharua River should be removed. No progress yet
Indigenous Forest and Scrub and Associated Rough Hill Country Pasture in the South-Western Part of the Property
(i) Several conservation management options should be considered for these areas, as discussed below:
i. Option One: retire and formally protect (e.g. QEII covenant) the extensive hill paddocks that are currently a
mixture of rough pasture, indigenous scrub, and indigenous forest (approximately 329 ha). Little or no new fencing
would be required, but ongoing hunting pressure (sufficient to keep browsing pressure by sika deer at low levels)
would be required to allow the regeneration of palatable ground cover and understory species.
Will not be pursued
34 | P a g e
ii. Option Two: retain some extensive grazing, but retire key areas, as per Option One. The Ngararanui Stream
catchment would be the most ecologically-appropriate area to retire.
Will not be pursued
iii. Option Three: retain an extensive grazing regime on rougher hill country but complete the fencing of riparian
areas by fencing the major areas of scrub and forest situated in stream headwaters. This option would require substantial
new fencing, with indicative costs of $ -$ , depending on fenceline length and specifications.
It is our intention to execute this option. Riparian fencing
currently being investigated.
Some areas of native bush will additionally be
considered for retirement.
(j) All existing indigenous vegetation should be retained. No Vegetation removed and none will be removed
(k) Possums and feral sika deer should be controlled to low levels across the property, to allow the regeneration of
palatable plant species. It is noted that possum control is currently undertaken as part of wider Animal Health Board
(AHB) Tb vector control operations.
Sika deer management in place through controlled
culling. No action as possums as yet but will be seeking
advice from DOC.
Wider Catchment Management Issues
(l) The measures outlined above will contribute to protecting or improving catchment water quality and associated
ecological and recreational values in the receiving Taharua and Mohaka catchments.
Discussed with HBRC
(m) Farm management practices should, as a minimum, comply with local/regional authority regulations relating to the
management of agricultural run-off, in order to contribute to the improvement of water quality in the Taharua and
Mohaka Rivers.
Extensive modelling undertaken to optimise farming
operation whilst minimising Phosphate and Nitrate run-
off within standards required by HBRC
(n) Farm owners and managers should continue to participate in the Taharua Stakeholder Group. Now active members.
Scotts Ferry
(a) Complete stock exclusion fencing of the raupo-flax-willow wetland and raupo wetland, and control willows and
other major wetland weeds at these sites.
Stock have been excluded from this Wetland and over
the coming months the willows will be removed.
(b) Collectively, the raupo-flax-willow wetland, the raupo wetland, and adjacent rank pasture-duneland area present a
good opportunity to restore a small and degraded duneland-wetland complex. Lying immediately behind the settlement
of Scott’s Ferry, such a project would have local profile, and potential for community involvement. Fencing, pest plant
and animal control, and replanting of duneland areas with appropriate eco-sourced species would be key management
requirements, as would loss of the rough pasture as a winter run-off grazing area.
Plans and funds are allocated to remedial renovation of
these areas.
(c) Complete stock-exclusion fencing of the drains and streams on the property. Existing riparian vegetation could be
enhanced with appropriate, eco-sourced plant species, although this is a lower priority and may not be compatible with
the need to periodically clear the drains of water weeds.
The Avon stream and all other waterways on the Ferry
View property have now been fenced to permanently
exclude stock.
(d) Timing of mechanical clearance of aquatic vegetation in the Amon drain should avoid the main whitebait spawning
period (roughly March to May). Whitebait can spawn in ungrazed exotic vegetation such as rank pasture grass swards,
so the current riparian vegetation in the drains may be of sufficient quality.
The drains have been cleared thoroughly in the past
months, timed to avoid the spawning period
(e) Survey work to establish whether whitebait currently use the Amon drain for spawning (and what other species are
present) would help to guide future management.
Consultation is beginning with interested local
authorities and DOC to investigate this.
(f) Farm management practices should, as a minimum, comply with local/regional authority regulations relating to the
management of agricultural run-off, in order to contribute to the improvement of water quality in the Rangitikei River.
Management have fenced off riparian areas and cleared
the drains on the property to enable improved natural
waterflow after several years or in-attention to this
activity.
35 | P a g e
Tiwhaiti
(a) Control willows in the raupo wetland, to improve habitat for fernbird. Habitat values could be further improved by
fencing off a buffer around the wetland and planting it with appropriate species although, given the wetland is of
artificial origin, this is arguably of lower priority. Taranaki Regional Council has previously suggested this, but it is
noted that the current landowner does not favour this option because the wetland is used for water supply.
As at 30 June no work had been completed on removing
the willows, but Diggers are on farm August 14th 2013
carrying out this work.
(b) Willow control would be beneficial in other wetland areas where the current owners are planning fencing and re-
vegetation work.
As at 30 June no work had been completed on removing
the willows, but Diggers are on farm August 14th 2013
carrying out this work.
(c) Farm management practices should, as a minimum, comply with local/regional authority regulations relating to
managing agricultural run-off, in order to contribute to improving water quality in the lower Tangahoe River.
All care is being taken to minimise environmental impact
of this farming enterprise.
Consent Condition 13 – Consultation with DOC
If DOC considers that formal protection is required for any of the areas identified in the Wildland Reports, the Consent Holders must formally
protect those areas (for example with the QEII National Trust or via a land management agreement with the relevant Council).
Consultation with DOC has begun, along with discussion with QE II regarding multiple areas of land as recommended by the Wildland Report.
Consent Condition 14 – Formal Protection
Of the conservation management options set out on page 11 of Wildland report 2618a, the Consent Holders must implement the option preferred
by DOC.
No formal protection has yet been affected, however as mentioned earlier consultation and survey work is in progress to effect this
Consent Condition 16 – Mudfish Survey
The Consent Holders must undertake a survey of mudfish in the Mangemange Stream by 31 May 2015.
No work has been completed yet in undertaking this survey.
36 | P a g e
26 (a) (viii) Historic Heritage Protection, Consent Conditions 18-22
Consent Condition 18 – Archaeological Surveys
The Consent Holders must undertake an archaeological survey, in consultation with
local Iwi, on Benneydale 1, Benneydale 2, Taharua and Tiwhaiti, by 31 May 2014.
Discussions have been held with DOC to find the relevant people to carry out this work,
however as yet no work has been completed.
Consent Condition 19 – Heritage Covenant of Te Ruaki Pa site
The Consent Holders must register a heritage covenant, in the form appearing in
appendix S of the application for consent, in respect of the Te Ruaki pa site on computer
register TNC1/383 by 31 May 2014.
This has not yet been completed. However Landcorp is investigating if this may have
already been completed by Korda Mentha.
Consent Condition 20 – Registration of Te Ruaki Pa site as wahi tapu
The Consent Holders must, if requested by the New Zealand Historic Places Trust, write
a letter supporting the registration of the Te Ruaki pa site as a wahi tapu under the
Historic Places Act 1993.
This has not yet been completed. However Landcorp is investigating if this may have
already been completed by Korda Mentha.
Consent Condition 21 – Nga Herenga Pa site
If required by the Office of Treaty Settlements (“OTS”), the Consent Holders must
transfer the Nga Herenga pa site (approximately 1.6ha located on Benneydale 1) to the
Crown for nil consideration.
(a) The transfer must be completed within 12 months of OTS’s requirement being
communicated in writing to the Consent Holders.
(b) The Consent Holders must meet the cost of any survey required to support the
transfer of the Nga Herenga pa site to the Crown.
(c) Within three months of the Investment being acquired, the Consent Holders must
retire the Nga Herenga pa site from grazing and ensure that adequate fencing is in
place to protect the site.
(d) The dispute resolution procedure in condition 11(g) (replacing references to DOC
and WAC with references to OTS) shall apply to any dispute between the Consent
Holders and OTS.
At this point there is no formal communication from OTS requiring the land be
transferred to the Crown.
NOTE: After receipt of this report, the consent
holder advised the OIO that a request to transfer
the pa site had subsequently been made by OTS. A
copy of the relevant correspondence can be found
at the end of this document.
37 | P a g e
However Landcorp has met with OTS regarding this pa site for more detail about the
site, and has begun survey work in preparation for subdividing the land, registering an
easement for access and transferring the land to the Crown.
The Pa site was already removed from grazing, with no stock access via a 2-wire
permanent electric fence at settlement date.;
Subsequently, the fence has been monitored to ensure that it remains a permanent
barrier to stock.
Consent Condition 22 – Access to wahi tapu
The Consent Holders must allow access to wahi tapu to those with a legitimate interest
in the relevant wahi tapu.
(a) The right of access may be exercised by foot over any reasonably convenient routes
specified by the Consent Holders.
(b) The Consent Holders may require a person intending to exercise the right of access
to give the Consent Holders reasonable notice in writing of his or her intention to
exercise that right.
(c) The Consent Holders may limit the right of access to reasonable times and during
daylight hours.
(d) The Consent Holders may require a person exercising the right of access to observe
reasonable conditions relating to the time, location, or manner of access as are
reasonably required:
(i) for the safety of people; or
(ii) for operational reasons; or
(iii) for the protection of land, improvements, flora and fauna, plant and equipment, or
livestock.
(e) In consultation with local iwi, the Consent Holders must register an easement, or
other suitable instrument to make the access under conditions 22(a)-(d) permanent in
respect of the Nga Herenga pa site.
The Consent Holders must meet the cost of registration, and the cost of any survey
required to support the registration of an instrument.
The Consent Holders must register the relevant instrument by 30 November 2014. The
dispute resolution procedure in condition 11(g) (replacing references to DOC and WAC
with references to local iwi) shall apply to any dispute between the Consent Holders and
local iwi.
To date there have been no formal investigations or registrations of wahi tapu on the
properties. It is expected that subsequent to the archaeological survey the relevant
sites will be noted and formal access and right of ways can be implemented.
Presently there are no known issues with relevant persons wishing to access sites on the
property being denied access.
Informal acknowledgment of sensitive areas, and reasonable access to such will be
recognised on the land until formal registration is in place.
38 | P a g e
26 (a) (ix) Good Character
Consent Condition 2 – Good Character
The individuals with control of the relevant overseas person must:
(a) continue to be of good character; and
(b) not become individuals of the kind referred to in ss 15 or 16 of the
All relevant overseas persons (Zhaobai Jiang, Lei Jiang, Honglin Xu, Bing Wang and
Weimao Zhao) have met and maintained the requirements as set out in condition 2.
26 (a) (x) Police certificates
Police certificates
Has not been required.
174 | P a g e
Appendix 3 – Farm pride Examples
175 | P a g e
176 | P a g e
177 | P a g e
178 | P a g e
Landcorp FarmPrideTM Audit Milk NZ Ferry View - 16 January 2013
Landscape Protection and Enhancement
The whole effluent sump area needs a revamp as it is un functioning mess and safety hazard
Effluent Management
The effluent system at the cowshed needs major work as drainage and keeping the area clean is a problem
Landcorp Farming Limited - Commitment to Quality Page 73 of 81.
179 | P a g e
Race maintenance needed, it is clear to see the cows are walking on the edges of the race where it is softer and
less stony
Drains need to be sprayed, cleaned, fenced and drain cleanings disposed of
180 | P a g e
Landcorp FarmPrideTM Audit Taharua Rotary - 14 December 2012
All bale wrap to dispose of
A compliant dead cow pit is needed
On-Farm Infrastructure - Offal Pits / Dead Holes / Dead Stock Disposal
Landcorp Farming Limited - Commitment to Quality Page 42 of 65.
181 | P a g e
This culvert crossing is eroding and needs fixing
Very bad crusting on the effluent pond
182 | P a g e
Landcorp FarmPrideTM Audit Milk NZ Waverley - 14 January 2013 Rubbish in the woolshed to pick up
Facilities
All rubbish needs to go
Cut off posts sticking up in paddocks are a hazard
and to be removed
183 | P a g e
Repairs needed to the yards and the walkway made safe and non slip
Stock can not be break fed because of no power on the farm
Happy greeting committee
184 | P a g e
Milk NZ Pineview - 16 December 2012 Poor vet bail
Water tap covers on the races need fixing
Stock Handling Facilities - Stock Accessways Entry exit race maintenance is needed
Landcorp Farming Limited - Commitment to Quality Page 5 of 64.
185 | P a g e
Drainage is a serious problem at the cowshed, wash down effluent spills over and milk from tanker collection
pools and smells
These gates need pulling down as the pole is broken and it is a danger to all
The roof on the cowshed needs replacing and a spouting added
186 | P a g e
The water tank has a leak and needs fixing as large volumes are being lost each day
House maintenance is needed
Sand trap sump at the feed pad needs to be securely fenced and a cover over it, currently it is a major hazard to
animals and humans
187 | P a g e
188 | P a g e
Appendix 4 – Media, Landcorp extension in China
189 | P a g e
190 | P a g e
Appendix 5 – WAC Correspondence
From: [mailto:]
Sent: Thursday, 2 May 2013 12:28 p.m.
To:
Cc: @doc.govt.nz; @doc.govt.nz; @fishandgame.org.nz
Subject: RE: Pengxin New Zealand Farm Group Limited (PNZFGL) Satisfying OIO Conditions -
Benneydale 1 & 2
Hi
Thank you for that report. It seems that what you have agreed fully meets WAC’s
thoughts on access to PFP over the Benneydale blocks and we’re happy with
that. Easements do seem like the most sensible means of giving enduring life to the
access agreements.
I note also your comment about getting on to the consent conditions for the other farms
in the group. As I mentioned to you recently, I’m available and keen for a meeting on
Taharua Station some time this month. I will be away from 5 June-8 July, so it would be
good if we could get something rolling before then. I will also send you a note on
another issue you may be able to help with regarding Wairakei Pastoral and access to
the Waikato River. Perhaps we could discuss both when we meet.
I note your reference to PNZFGL. Is that the official name for the company now? I have
been variously using Shanghai Pengxin and Milk NZ, but have never been quite sure if
they are correct for this entity.
Kind regards
New Zealand Walking Access Commission – Te Ara Hikoi Aotearoa
Phone
Promoting access in the outdoors
www.walkingaccess.govt.nz
191 | P a g e
File Note: Pengxin New Zealand Farm Group Limited (PNZFGL)
Satisfying OIO Conditions – Benneydale 1 & 2
17 April 2013
An inspection was held at the farm on 13 April 2013.
Present:
– DOC
- QEII
- , Landcorp Farming Ltd
-
Prior to the visit discussions via email were also held with , Walk Access New
Zealand. (His email attached is in relation to these farms).
Purpose of the Visit:
To discuss the following conditions of the OIO consent (decision case 201110035) and
agree next stops solely as it relates to these two farms:
Condition No 11: Walking Access:
11. (a) (i)
Walking access from the southern end of Benneydale 1, from Maraeroa Road to the Pureora
Forest Park.
This requirement links a short length (say 300 metres) of land between riparian areas
that form part of the Te Araroa walking trail.
Providing legal access, via easement, is not onerous and will be costed for Board
approval.
Action: .
Condition 11. (f) - refers to meeting the costs of forming and maintaining walking tracks, if
reasonable, required by DOC or WAC. At this stage no other part of this track is formed so
there is no requirement at this stage to construct the short length of track on Benneydale 1.
11.(a) (ii)
The consent holders must provide public walking access at the north east end of Benneydale 2
between SH30 and Pureora Forest.
192 | P a g e
This is a short length (approximately 60 metres) between road and boundary. No
additional fencing is required. A stile and signage will be erected as required by DOC
and the cost of this will be met by (PNZFGL).
Condition 12 (et al) Environmental Protection and Enhancement:
12. PNZFGL must implement recommendations in the Wildland’s Consultants Ltd
reports.
In relation to Benneydale 1 & 2 this was interpreted on the day by discussing the
following areas for protection.
Harekeke Wetland Covenant – Northern Boundary Benneydale 2
An area of approximately 23 hectares. This has been largely fenced out already,
subject to confirming the final fencelines. Some helicopter spray control of Grey willow
infestation will be required.
Habitat Corridor Covenant – Benneydale 2.
There are existing pockets of established bush which are fenced and newly fenced
riparian creeks which virtually link the Northern and Southern Pureora forest. Some on-
going weed control and targeted planting of natives will be required but overall it was
felt this covenant would meet the desire to link the two areas of Pureora and provide a
natural corridor for species to move between the two areas. The covenant area would
be approximately 25 ha.
Mangatahae Stream Covenant – Benneydale 2.
This is an extensive mosaic of forest and riparian scrub. As with the previous two
potential covenants much of the area is already fenced. As with the other areas further
inspection is required but it would be very worthy of covenant protection. An area of
approximately 30 ha.
Waitaramoa Covenant – Benneydale 1.
An established area of both. This area is fenced with only some small amount of
remedial fencing required. Access to and exclusion of a trial flat graze-able area in the
middle of this area will offer another significant covenant of approximately 130 ha.
ACTION:
and are to revisit all areas and mark fencelines, both existing and
required. is to prepare a Board paper for DOC that QEII and
Landcorp/PNZFGL are to approve.
193 | P a g e
: To provide copies of titles or title reference numbers. In addition to these
proposed covenant areas additional areas for protection were noted. However, it was
decided that this would be part of future proposals and the four covenants were
discussed in the report would be the minimum required to meet OIO consent
conditions.
Condition 21 – Transfer of the Nga Herenga Pa Site on Benneydale 1 to the
Crown (OTS).
This is an area of approximately 1.6 ha which is fenced and has been planted in pines.
The group discussed a proposal to re-fence the area and extend a new fence from the
boundaries of the Pa site out to the main road. This area would then be surveyed and
transferred to OTS.
The group felt that the existing fence was sufficient to define the boundary of the Pa site
and that this area could be transferred with a Right of Way out to the Barryville Road.
ACTION:
is to arrange quotes for survey.
SUMMARY:
A significant visit to enable progression of the OIO consent conditions related to
Benneydale 1 and 2. It is noted that there were still further conditions to be met on these
two farms and that other farms in the group require action to meet consent conditions.
These will be followed up in the near future.
Ib
194 | P a g e
195 | P a g e
196 | P a g e
197 | P a g e
ib
198 | P a g e
199 | P a g e
From:
Sent: Friday, 12 April 2013 11:52 a.m.
To:
Cc: @doc.govt.nz
Subject: RE: CMS 842 and 843 - Taharua and Benneydale Stations
Thanks
Appreciate that and I will send you a copy of the notes from the meeting. I’ll be back up in Taupo in
May, so will try and arrange a catch up then.
Regards
l
From: [mailto: @walkingaccess.govt.nz]
Sent: Friday, 12 April 2013 11:42 a.m.
To:
Cc: @doc.govt.nz
Subject: RE: CMS 842 and 843 - Taharua and Benneydale Stations
Hi
I’ve had a closer look at the OIO public access conditions for Benneydale Station (Condition 12 in the
old version I have) and discussed them with from DOC. I can now advise that NZ
Walking Access endorses DOC’s proposals for public walking access:
from SH 30 to the SE corner of the Waipapa Ecological Area of Pureora Forest Park, and
from Maraeroa Rd via the Kakaho Stream to the park boundary west of Pureora Village.
I note also that there are existing marginal strips providing public access along the mainstem of the
Waimiha Stream and most of the Kakaho Stream where they run through the property.
On this basis I don’t think it is necessary for me to attend the meeting on 17 April but I would
appreciate it if you could let me know the outcome as far as the access issues are concerned.
However, I would like to meet with you at some stage to discuss and ideally, inspect, the Taharua
Station access issues, which are significantly more extensive. This is best left until DOC Turangi and
I have seen the final OIO conditions for this property. Please advise if you are happy with this
approach.
Kind regards
200 | P a g e
Appendix 6 – Support Letters Taharua Riparian Fencing
201 | P a g e
