Strategic & Financial
Strategic Planning
We don’t pretend to know what your particular challenges are, however what we do know is farming. If you are looking to sell, restructure your debt, expand your operation or develop a succession plan for your farm business contact us on a confidential basis to learn more about how Kauri’s investment models can be applied to partner with you to help you achieve your objectives.
Succession Planning
Many of New Zealand’s iconic farming properties have been split up and or auctioned off because farm owners have failed to plan for the future. Succession planning is something you know you need to think about but often put off. This is understandable as getting the right advice can be expensive and the decision about what is the best way forward is often confusing.
Beyond the financial aspects there are often emotional and family considerations to work through.
- Should we sell the farm?
- Are we able to sell a stake in the property rather than all of it?
- It’s hard to get ahead at the moment. How can we reduce our debt to improve our cashflow?
- If we keep a part ownership of the farm business how do we ensure performance for the future?
- One of our children would like to run the farm but our other children don’t.
- How do we provide a legacy and ensure that all of our children are treated fairly?
- What will we do with our time and money?
When it comes to selling their farms, owners have a lot to think through. We work alongside farm owners to help develop a way forward that provides for your family’s needs now and into the future.
We partner with leading independent professional experts including your own financial advisor who can offer you the right advice and we are able to tailor solutions for you in response to that advice that includes full or partial exit, single or multiple family member ownership structures, debt reduction and forward management plans.
We view succession planning and ownership transition as an exciting time, an opportunity for farm owners and their families to map out a new direction and provide a legacy for the future.
Private Equity
We understand that correctly managing capital structures is a critical component of farm ownership. We are able to facilitate investment in your farm business, to provide you with the financial flexibility you need to improve operational performance and invest capital back into your farm without reliance upon bank debt.
Next Steps
If you are looking to sell, restructure your debt, expand your operation or develop a succession plan for your farm business contact us on a confidential basis to learn more about how Kauri’s investment models can be applied to partner with you to help you achieve your objectives.
Farm Management
Development & Management Planning
Kauri has a long term view on farm ownership and understands the unique challenges of farm management. For every portfolio farm we purchase, Kauri establishes a detailed plan that provides a map for the long term development and management of the property.
As part of our initial investigation and on-going management we consider the following:
- Health & safety review and planning in order to eliminate on-farm incidents
- Review and forward compliance monitoring of Legislative and Regional Council requirements
- Infrastructure and technology review in order to minimise demand on labour and to provide operating efficiencies
- Land development review and forward plan including cost to benefit assessment of contouring and planting with a view to maximise land use and to improve the overall desirability of the property
- Soil fertility testing for macro and micro nutrient requirements to determine capital fertiliser and maintenance input requirements
- Assessment of drainage and pasture composition and determination of appropriate programs to ensure pasture growth potential and utilisation is not compromised
- Review and provision for an adequate and accessible water supply
- Herd assessment for fertility, genetic merit and health status and development of herd management plan
- Systems analysis including KPI’s to determine the appropriate level of supplementary feed input for the particular farm and locality
- Fit for purpose and dilapidation review of plant and machinery and forward requirements established
- Review and maintenance of on-farm staff housing
- HR review
- Establishment of detailed farm budgets
- Establishment and monitoring of Key Performance Indicators
We understand the unique challenges of farm management in a pasture based dairying system and our management team are adept at developing and maintaining top performing pasture based farms.
New Zealand farms have the ability to grow abundant supplies of high quality legume based pasture throughout the year and the ability to produce and harvest this efficiently is the basis of Kauri’s low cost dairying system.
Our management team has worked successfully to increase production and the profitability of hundreds of farms throughout New Zealand and we are able to bring this knowledge base and experience to each and every one of Kauri’s portfolio farms.
Operational Management
We will oversee and manage every aspect of the business operation on behalf of our investors and managed funds. This strategy provides an integrated top down and bottom up view of each portfolio farm investment. We continually seek to maximise revenue, enhance asset value while optimising profit.
Working alongside our farm managers and share milkers our team is able to execute the business strategy regardless of the size, location or complexity of the project. As part of our forward management of a portfolio farm we oversee a range of transactions.
These include complimentary acquisitions, divestments, conversions and land developmentIngrained within our culture is the importance of fostering long term working relationships between off and on farm staff.
We encourage frequent and open dialogue and our partnership approach is a key component of our success along with the early adoption of cutting edge farm management systems and technology.
Next Steps
If you are looking to make a direct investment into the agricultural sector and are looking for a partner with experience to provide strategic and forward management of your farm asset, contact us on a confidential basis to learn more about how we can help you achieve your objectives.