Business Rural Summer 2024

| 83 Now consolidated for a stronger voice Loganburn Dam Wall from chopper. Randall Johnston Water delivered by the Maniototo Irrigation Company (MIC) to its shareholders is helping support a strong rural economy by providing opportunities for diversification and security, which is especially crucial in times of drought. Three farmer-owned distribution company races: Maniototo Westside, Waipiata and Maniototo Eastside have now merged into one entity; Maniototo Irrigation Company (MIC). Ranfurly-based MIC General Manager Jeremy Anderson says the amalgamation of the three distribution companies with MIC not onl helps to streamline things from a management perspective, but this will also benefit shareholders. “We spent a lot of time informing our share holders what of procedures and policies were going to be,” Jeremy says. “It was about trying to find some business efficiency but also being more united as a community of irrigators and preparing for the challenges of re-consenting and access to freshwater – as well as dealing with future regulatory changes. Having three distribution companies and reporting back to three boards was creating a lot of additional work beyond its core business and so a cleaner structure was needed to set shareholders up for longer term success.” While many questions were asked in the early stages, ultimately shareholders could see the clear benefit in being one company, under the one banner. The shareholders had an event In Ranfurly to celebrate the amalgamation in September, which was well attended. At present 47 shareholders owning 55 properties are benefitting from the irrigation scheme which started as a Ministry of Works project in 1984 and purchased by the irrigation company in 1989. Most of the conversion to dairy in this part of Otago occurred 15 years ago or more and while more diverse now; a majority of MIC shareholders remain in the sheep and beef game. MIC has also brought another board member into the fold in September. Waikato-based Hayden Dillon brings considerable financial knowledge and governance expertise into the group. He is Principal with Findex and co-founder and consultant of New Zealand Rural Land Management (also MIC’s largest shareholder). The scheme is fed from the Taieri River and Loganburn Reservoir. RURAL SERVICES » Maniototo Irrigation Water travels along the Taieri River where it is diverted at the Paerau weir, then it goes through the Paerau Power Station for electricity generation before entering the races. MIC holds the consents for storing and releasing water from the Loganburn Dam. MIC shares ownership of the infrastructure which conveys the water from the Paerau weir to the Paerau power station with Manawa Energy. Manawa has two power stations on the scheme, Paerau and Patearoa. MIC now employs one full time operations manager, Brent Cunningham and one contract race operator, Robert McSkimming and a part-time Business Support Manager Renee Weir. Thankfully water in the dam is at an adequate level to deliver full allocation for the 24-25 irrigation season, with more recharge expected before summer arrives in earnest. MIC’s consent for releasing water from the Loganburn dam expires in 2034, however the Otago Regional Council is in the process of notifying a new land and water plan in line with the latest National Policy Statement for Freshwater Management. This is likely to see changes to minimum flow requirements for the Taieri River and may see a change to the rules around how irrigation water can be applied. Hazlett Contracting A family business since 1932 James & Jayne, Dean & Maddie look forward to o ering a high quality, reliable service from experienced operators to both valued & new clients throughout Maniototo and wider communities. • 3-16 Tonne Diggers • Tip Trucks • Grader • Post hole auger & driver • Tree, hedge trimmer • Farm work • Trenching & drainage • Land clearing • Tree work • Site works • Post driving • Landscaping • Supplying grit, gravel, soil, rock James Hazlett 027 274 0088 Dean Chalmers 027 805 9812 accounts@hazlettcontracting.co.nz “If the Land and Water plan forces farmers to convert all irrigation to spray this will come at a significant capital cost as all farmers will have to install K-line or centre pivots.” While any specific detail within the ORC’S new land and water plan remains to be seen, MIC is in a better position now than it ever has been to deal with regulatory changes. MIC General Manager Jeremy Anderson.

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