History

Landcorp Farming Ltd (Landcorp) is a State-Owned Enterprise and the largest farming business in New Zealand. The Company has a statutory requirement to be as profitable and efficient as comparable businesses not owned by the Crown; and each year, it sets performance objectives which include a variety of commercial, environmental and social targets.

The mid-1980s was a period of major economic reform in New Zealand. Among the many changes that took place at that time, was the creation of nine State-Owned Enterprises (SOEs) to manage the Government's trading activities. These activities had previously been spread among a number of Government departments which also had social responsibilities; and there was concern within Government about the sometimes conflicting objectives that departmental staff were being expected to meet.

The creation of SOEs was aimed at bringing a more direct business focus to the commercial activities of the Government. The new organisations were established as public companies with clear commercial mandates and private boards of directors, but with their shareholding retained by the Government.

Landcorp was incorporated in 1987 to take over the commercial farming and property activities of the former Department of Lands and Survey.

In 1994, Landcorp sold its property subsidiaries and reverted to a farming business with a small subsidiary company charged with selling remaining Crown leases and licences and some freehold and surplus railway land.

Subsequent developments saw an expansion and diversification of the farming business into areas related to agriculture. These included meat marketing, an expanded genetics operation, greater emphasis on animal and plant science, further development of the Company's breeding schemes and a variety of joint ventures with other rural investors and with the scientific community.

The Present Organisation

Today, Landcorp is a rural conglomerate with farming and related activities spread throughout New Zealand and with an administrative centre in Wellington. It has a staff of 599 people with most of these being farm-based. It has assets totalling $1.7 billion.

The parent company, Landcorp Farming Ltd, has four subsidiaries -

• Landcorp Developments Ltd which has been developing former forestry land (privately owned) in the central North Island for pastoral farming;

• Landcorp Pastoral Ltd which is leasing that land for farming purposes;

• Landcorp Estates Ltd which develops and sells land (normally with joint venture partners) which is suitable for a higher value use than farming; and

• Landcorp Holdings Ltd, which holds Landcorp property protected from sale under an agreement with the Crown. This land is managed for the Government until it is required for public policy purposes.

Leadership Role

Landcorp plays a leading role within the industry, contributing to Government and other forums on matters affecting farming and rural communities. It has invested heavily in science, technology and in training and education for both its own staff and the agricultural industry. Its breeding schemes produce top ranking animals which are in keen demand by other farmers; and it provides consultancy services and systems to businesses and investors operating in the rural sector.