REL coffers boosted

ALAN WOOD
Last updated 05:00 04/09/2014

Relevant offers

Dairy

Fonterra's milk collection back three per cent Chris Lewis elected as new national dairy chairman for Federated Farmers Farming family goes from wheat to dairy after 142 years on a Southland farm Farmers warned to bring in professionals when harvesting woodlots Southland council and dairy partnership a contender for national award Self-interest to the fore in Southland Water and Land Plan hearings Federated Farmers say latest dairy price dip no cause for alarm Variety is the spice of life on Miraka Farm Flipp family's new traceable organic milk launched by Kapiti Farming's blame merchants should get off the soapbox and work with farmers

Farm-owning group Rural Equities says its annual operating profit has improved to $5 million from $2.11m in the previous year helped by record milk production on some of its dairy farms.

Rural Equities owns a diversified farm portfolio that includes 25 properties throughout New Zealand and has total assets of more than $220 million.

The group's total comprehensive income or bottom-line result for the June year was $24.02m, more than double the previous year's result of $10.92m. That included gains on farm revaluations.

The company's six dairy farms achieved record milk production of 1.67 million kilograms of milksolids.

The dairy farms include two Canterbury properties, Milford and Rocklea, which supply to Synlait Milk. The group has four farms in Southland, Taranaki and near Palmerston North that supply Fonterra.

Production gains were also achieved on the three Waikato sheep and beef properties directly managed by the group. The production, combined with stronger beef, lamb, and wool prices, helped towards the increased earnings. Sheep and beef prices were about 10 per cent stronger than what they were 12 months ago, Rural Equities executive chairman David Cushing said.

A June 30 revaluation of Rural Equities' properties and other assets saw an asset increase of $19.93m for the year, up from an increase of $7.19m in the previous year.

The group's rural property portfolio increased in value by 12.9 per cent.

The Canterbury property portfolio achieved a 17 per cent revaluation, and North Island pastoral properties recorded the largest revaluation growth for some time, Cushing said.

During the year REL also acquired a 12.7 per cent stake in Australian agricultural company Tandou Limited.

Ad Feedback

- The Press

Special offers

Featured Promotions

Sponsored Content