Ngai Tahu ready for dairy move

13-06-2011 | Annette Scott

A plan to invest in dairy has taken off for big South Island iwi Ngai Tahu that has identified 35,000ha of forestry areas for agricultural development.

New pastures would be a bold initiative but also very exciting, Ngai Tahu Property Ltd chief executive Tony Sewell told The New Zealand Farmers Weekly.

"It (development) will be slow and steady but very efficient, and I am very happy with progress to date," he said.

The board of Te Runanga o Ngai Tahu earlier this year approved the trial of three dairy farms with cows expected to be in paddocks this time next year. The first of the forestry to be developed is 7000ha of Eyrewell in North Canterbury of which 1000ha is already fattening lambs.

The iwi's property arm put forward the dairying proposal as the best economic use for much of its land portfolio but that won't necessarily lead to all future development being dairying. While dairying had been tagged as the primary operation there could be other initiatives that could add economic value, Sewell said.

"We are a massive land holder in Canterbury and economically the highest and best use for this land is to convert it to some form of agricultural use. At this point in time in economic terms dairying far outweighs any other agricultural use but that doesn't mean long term things won't change."

Ngai Tahu believes it has the opportunity to lead the way in farming change.

"If we can farm in an environmentally sustainable way, then we can use that example for other farms when they go through the resource consent process. It's about setting high standards. It's not just about having expectation from other farmers but about creating the example and using that as leverage."

When it came to dairying and to water management Ngai Tahu would take leadership positions to show that there was a successful way to do it.

"We are the biggest land owner in the area so we have got the biggest opportunity to do something. We are a natural leader and already people and local and regional councils are coming to us wanting to know where we stand. And we have decided that we are standing here as a leader. It is a philosophical shift."

Ngai Tahu is hopeful that being sustainable may see them earn a premium for their milk.

"People might think Ngai Tahu guys are doing better and might come and chat with us. We will run field days out there and start influencing them."

The three trial farms are well under way with Ngai Tahu working with scientists from Lincoln University to map the best commercial dairy model for iwi.

The iwi was developing interesting systems for management of properties and expected to come out with some good sustainable models, Sewell said.

"We have looked at every commercial dairy model. There are aspects of them all that we will use. But we want to leave behind the bits that aren't quite right. We're going to start off by looking at reasonably traditional models but just get some science into them. We have a reasonable amount of capital to invest into the thinking and the right practice."

Down the track if the three model dairy units take off Ngai Tahu will look at ongoing development that could involve up to 70 new dairy shed constructions over the next 10 years.

"The theory is looking good. We will see how we move from here."

With 7000ha to develop initially at Eyrewell, the second project will be the Balmoral forestry block where 9000ha is tagged for farming. While it is early stages for Balmoral the current challenge is securing water.

"Every day we are up there researching and analysing to work out the best path. It's quite challenging."

Water has been secured for the Eyrewell block with Ngai Tahu holding consents for water take from the Waimakariri River and also having secured shares in Waimakariri Irrigation Ltd.

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