Difference between prices not necessarily profit

19/03/2014

A Canterbury farm bought for $5 million 14 years ago sold for $65 million last week.

Ealing Pastures was purchased in 2000 by a farm partnership made up of former South Canterbury Finance boss Alan Hubbard, Perth-based investment company Pullington and New Zealand-based couple Andrew and Rachel Morris. . .

          Today’s sale is a whopping 1300 percent profit. The farm had an estimated value of $60 million. . .

The difference between the purchase price and the price the property sold for is $60 million but that is very unlikely to be all profit.

The property was a Landcorp finishing farm might when it was bought and millions of dollars would have been spent in the conversion to dairying and other improvements.

It is probable the sale realised a considerable profit but it would not have been the $60 million difference between the purchase and selling prices.


Rural round-up

15/03/2014

Ealing Pastures sells for $64.49m – Annette Scott:

Mid Canterbury dairy property Ealing Pastures sold at auction today for almost $65 million.

The hammer went down on the property to a winning bid of $64.49m, made by Christchurch-based lawyer Mark Dineen, of Goodman Tavendale Reid Law.

It was not revealed at the auction who Dineen was operating for, but it is understood the family owns farming property in Mid Canterbury.

The under-bidder was Geoffrey Holman, of Pullington, a Western Australia-based investment vehicle owned by Holman and his wife Frances. . .

Speech to Beef + Lamb New Zealand AGM: Nathan Guy:

Thank you for the opportunity to address you all today.

The last few years have been some of the more challenging in New Zealand’s history. In the space of five short years we have endured the worst financial crisis since the Great Depression, the worst drought in 70 years, and of course the devastating series of earthquakes in the Canterbury region.

But we have largely weathered this storm, and while there will no doubt be further hurdles along the way, the future is looking bright for New Zealand.

This year, GDP growth is tracking at 3.5%; exports for the primary sector are $5 billion ahead of forecasts; and the Government is on track to reach a surplus next year.

I believe the leadership of Prime Minister John Key and Finance Minister Bill English has helped to steady the ship, and bring the economy on a path to recovery.

But it is the people sitting here in this room that have pushed New Zealand along the path of recovery – farmers from all over New Zealand. Whether it be sheep, beef, dairy, horticulture, or any other primary industries, it is thanks to farmers doing their job, and doing it well, that New Zealand’s future is looking bright. I want to personally acknowledge this contribution you all make to the New Zealand economy.

You don’t get thanked enough for doing the hard yards and producing our fine meat products that are showcased and consumed around the world.

Today I’d like to do three things. Firstly I’d like to briefly outline some of the things this government is doing to help farmers to continue to thrive. Secondly, I’d like to talk about my vision for the red meat sector. And finally I’d like to address the on-going discussions around the structure of the industry. . .

Food, cheap glorious food – Jacqueline Rowarth:

Forget the hype, food is as cheap as it ever was

Food is likely to increase in price this year. Not as much as salaries, fuel or electricity; probably not as much as housing. But a bit. This is the prediction by the US Department of Economics. The increase is due to the ongoing effects of the 2012 drought and the increased demand from Asia.

Each time prices rise there are complaints from society and farmers take the flack.

Statistics New Zealand released ‘New Zealand in Profile 2014’ last month and the news was full of ‘beer is more expensive but milk is cheaper’. Social media then filled with comments along the lines of ‘nonsense, it is more expensive than ever’… thereby resorting to perception rather than the facts. . . .

AsureQuality Announces New CEO:

AsureQuality is pleased to announce the appointment of John McKay as its new Chief Executive Officer (CEO), commencing 3 June 2014.

John is an experienced international business leader who comes with proven experience in the food and dairy sectors and has a strong customer partnership approach.

He is currently CEO of Hansells Food Group where he runs a diverse and complex business including four manufacturing sites, and sales and distribution companies in New Zealand, Australia and the United Kingdom. . . .

Changes to Dairy Cattle Code of Welfare Proposed:

The National Animal Welfare Advisory Committee (NAWAC) is seeking public consultation on proposed changes to the Animal Welfare (Dairy Cattle) Code of Welfare 2010.

NAWAC is proposing that blunt force trauma may not be used for the routine killing of unwanted dairy calves on the farm.

“We understand that people are concerned about farmers using blunt force trauma to kill young calves on the farm,” says Dr Karen Phillips, Deputy- Chair of NAWAC.

“The risks of incorrect use, coupled with the fact that there are alternatives that can be better for animal welfare, meant that it was time to consider changing the rules on this. . .

Aim of rural Fiji training to create genuine items for tourists:

A project to train rural women in Fiji to make jewellery from ‘Mother of Pearl’ shells aims to not only help women earn a living, but also create more genuine Fiji made items for tourists.

The study of the pearl industry by the University of the South Pacific, with James Cook and Adelaide Universities, found that while pearls were making a lot of money, their shells were not being utilised.

It also found that most of what’s being sold to tourists in Fiji is imported from Asia, but is falsely being sold as made in Fiji. . . .

 


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