Dec 15, 2017  -  More young people in 2018 in Canterbury will have the chance to set up and run their own ventures, learning first-hand from local business mentors and developing critical skills for future employment and study.  Ara Institute of Canterbury is the new regional partner for The Lion Foundation Young Enterprise Scheme (YES) and is enthusiastic about becoming more actively involved after previously hosting YES events.

“We are thrilled to work with Ara Institute of Canterbury to continue supporting local entrepreneurs. We know Ara will be able to offer value and support to the schools we work with to further impact youth entrepreneurship in the region,” Head of YES Dr Colin Kennedy said. The Lion Foundation YES is an experiential year-long programme where senior secondary students set up and run a business while still in school with real products and services, real profit and loss.

Ara will utilise its network of relationships with Canterbury schools and local businesses to support and grow the scheme. Some 500 students will be engaged in the scheme in 2018, participating in the journey of coming up with an innovative idea and developing it further into a successful business.

Head of the Department of Business at Ara, Michaela Blacklock, said that the two organisations share similar values and Ara was delighted to become a YES regional partner.

“Working with the students, teachers, mentors and sponsors involved in Young Enterprise in 2018, we can support and challenge our young people to develop their potential. They could go on to become Canterbury’s future entrepreneurs and business leaders – and that’s exciting,” she said. “The practical nature of YES aligns directly with the Ara focus on applied learning, where students learn by doing from day one. We apply this principle to all of our business programmes ensuring that our students get the best possible learning experience by applying theory as they learn it.” Blacklock says Canterbury is a leader in understanding the social, economic and environmental impacts of business activity.

“Christchurch hosted the Social Enterprise World Forum this year, and we have many successful social enterprises here to inspire YES participants. You only have to look at Anteater and My Green Dinner Table, both created by former Ara students, to see what is possible.”“Young people are playing a pivotal role in transforming and growing the local economy, and in creating a better world.”

CORE Education has provided the umbrella for YES in Canterbury in recent years with the number of students taking part regionally growing year on year. Ara looks forward to building on this from 2018 and is grateful for the work CORE have put into the programme to this point.

| An ARA release  ||  December 15, 2017   |||

Dec 14, 2017  -  Rubicon's proposal to sell a 45 percent stake in local Clearwood manufacturing business falls within the independent adviser's valuation range.  The forestry biotech's shareholders will vote on the transaction at a special meeting in Christchurch on Jan. 12 on whether to approve the sale of its interest in Tenon Clearwood Ltd Partnership for US$14.2 million, which is the cost of its investment in the company in April, plus its share of the reduction in the company's net debt since then. That is estimated to be worth a combined US$15.3 million. The buyers include affiliates of Rubicon's two biggest shareholders, Knott Partners and Libra Fund LP.

Rubicon's independent directors have recommended investors take the deal, with Steve Kasnet saying the deal fell within Grant Samuel's independent valuation range of the stake, the exit would provide funds to make two looming payments on its ArborGen business, and simplify the company's structure providing the opportunity to cut costs.

"We believe that these three factors – the removal of any overhang in the stock price relating to uncertainty as to the funding source of the deferred ArborGen acquisition and subordinated debt payments, simplifying Rubicon to be a pure-play on the ArborGen business, and the achievement of cost savings, will all be beneficial to building positive momentum in the RBC share price," Kasnet said in a letter to shareholders. "The sale will then make Rubicon a ‘pure-play’ for investors on the ArborGen business upside, and with Rubicon’s financials moving forward then only being ArborGen-based, investors will have greater transparency of ArborGen’s financial results."

Grant Samuel valued Clearwood at between US$51.3 million and US$61.5 million, with Rubicon's stake worth between US$13.6 million and US$18.2 million.

"In Grant Samuel’s opinion, based on the analysis of the merits outlined above, the terms of the proposed transaction are fair and reasonable to the shareholders of Rubicon not associated with Knott and Libra," the report said.

If the deal doesn't go ahead, Grant Samuel anticipates Clearwood will need more capital to reduce its level of debt.

Grant Samuel has valued the business twice in the past 12 months in relation to the sale of former NZX-listed Tenon's business sales. The most recent of those was earlier this year, ending an 18-month process run by an investment bank.

Kasnet said because the offer was the same price as the earlier transaction, the independent directors chose not to run another sales process as there was no benefit to shareholders.

Rubicon shares were unchanged at 19.5 cents, and have dropped 11 percent so far this year.

Source: Sharechat  ||  December 14, 2017   |||

Dec 14, 2017  - The New Zealand Productivity Commission today released its draft report - Measuring and improving state sector productivity.  “The state sector spends more than $40 billion every year on public services. Measuring productivity is essential for knowing if the money is being well spent.” Says Chair of the Productivity Commission, Mr. Murray Sherwin.

“Constantly improving productivity across an economy is the essential source of improved incomes and wellbeing. While most businesses have a pretty good idea of their productivity performance, the public sector is much less likely to focus on its productivity. In part, that is because it can be harder in the public sector to measure what is being produced.”

“The Commission has worked with government agencies to develop a number of case studies. These illustrate the methodological issues encountered when measuring the productivity of public services. We found that much of the data required to measure productivity already exists. It can be dispersed and not readily accessible but those matters can and should be fixed.”

The draft report is available online and seeks stakeholder views on lifting state sector productivity.

“Measuring productivity is not an end in itself. Rather it’s a starting point for discussing better ways of doing things. Stimulating innovation in the state sector is key to improving productivity. There are many examples of local innovation but they don’t tend to spread very far or fast. This needs to change if we want a more efficient and effective state sector.”

The inquiry terms of reference asked the Commission to provide guidance on how to measure productivity in “core” public services (health, education, justice, social support) and provide advice on developing the systems, culture and capability to measure and improve state sector productivity.

Submissions on the draft report are due 1 March 2018.

| A Productivity Commission release  ||  December 14, 2017   |||

Dec 14,  2017  -  Alliance Group is exceeding its target for achieving gains from its business strategy and forging ahead with plans to further lift the co-operative’s performance, farmer shareholders were told at the co-operative’s Annual Meeting in Te Anau today. Murray Taggart, chair of Alliance Group, said the co-operative’s ongoing programme of strategy projects captured $48.8 million in value this year.“The value captured from our strategy projects is a major factor driving our ability to offer competitive farm gate pricing and invest in the company.“Alliance’s improved profitability means we will be distributing $11.4 million in pool payments to our farmers’ bank accounts this week“Once again, this demonstrates the fundamental benefit of a co-operative, where every dollar we make is either reinvested for the future or returned to farmers.”The company experienced a more positive trading environment during 2017, said Mr Taggart.“Although market volatility and weather events remain a constant threat, the level of supply and demand for our farmers’ produce look set to underpin strong pricing, particularly for sheepmeat and venison.“However, we are acutely aware of the impact the drier conditions are having on our farmers’ businesses and we’ve responded by bringing on additional processing capacity across our plant network.”Alliance Group Chief Executive David Surveyor said the co-operative is moving steadily in the right direction, but the company would not be resting on its laurels. “We have successfully navigated the first phase of transforming the business and we are now focused on stage two to ensure this transformation is sustainable.“We recognise there is a lot of hard work ahead of us to lift the performance of the co-operative to the level our shareholders expect. The good news is there are a number of exciting and innovative initiatives in the pipeline.”The key priorities next year would be growing the value add part of the business and capturing more value from the co-operative’s global markets, said Mr Surveyor.Alliance Group has already invested in developing a food service business in the UK and purchased the Goldkiwi Asia business in Singapore, now known as Alliance Asia.“Strengthening Alliance’s in-market presence is vital if we are to capture greater value and these investments are only the first steps down this path.”Alliance is also exploring opportunities to capture more revenue from co-products.“Our $800,000 investment in a new blood processing facility at our Mataura plant is just the start. We have a number of other exciting value capture projects underway.”The pool distribution payments will be paid into farmer shareholder’s accounts on Friday 15 December. The distribution will be as follows: Lambs: $1.80/headSheep: $1.00/headCattle: $10.00/headDeer: $7.50/headCalves: $1.00/head Directors Dawn Sangster and Russell Drummond were re-appointed to the Board unopposed in October.

| An alliance Group release  ||  December 14, 2017   |||

Dec 14, 2017  -  The European Union (EU) and Japan have concluded negotiations on a free trade deal to create the world’s largest open economic area, signalling their rejection of the protectionist stance of US president Donald Trump.

The two parties, who agreed in principle the outlines of the deal in July, said negotiators had now finished a legal text that would open up trade for economies generating about 30% of global GDP.

In a joint statement, Japanese prime minister Shinzo Abe and European Commission president Jean-Claude Juncker said the deal had “considerable economic value” and “strategic importance”.

“With the finalisation of the negotiations, the path is now clear to complete the internal procedures leading to the signature, ratification and full implementation of the agreement,” they said.

They added that the deal demonstrated their commitment to “keeping the world economy working on the basis of free open and fair markets with clear and transparent rules”.

The deal, the Economic Partnership Agreement, combining the 28-nation bloc and world’s third largest economy, will remove EU tariffs of 10% on Japanese cars and the 3% rate typically applied to parts.

For the EU, it will scrap Japanese duties of 30% on EU cheese and 15% on wines, as well as allowing it to increase its beef and pork exports and gain access to large public tenders in Japan.

Cecilia Malmstrom, EU trade chief, said amid widening protectionist movements the deal demonstrates to the world the flag of free trade would keep waving.

“This is biggest trade agreement we have ever negotiated for the EU. It sends a powerful message in defence of open trade based on global rules,” she said.

In the past five months negotiators worked on stabilising tariffs in services, regulatory cooperation and the means to protect food and drink categories, including only naming sparkling wines from a specific Italian region prosecco.

However, Malmstrom said that discussions are set to continue on the contentious issue of investor protection.

Japan has been reluctant to adopt the investment court system the EU has devised in answer to criticism of traditional dispute settlement arrangements intended to protect investors.

Campaigners argue the system, known as ISDS, hands companies the power to undermine social and economic rules. Brussels responded by devising an alternative system of investment courts but has so far not convinced Tokyo to back it.

Malmstrom said negotiations would continue separately on this issue outside the scope of the main deal, helping smooth the path towards ratification.

“This needs further discussion at the beginning of next year but the rest of the agreement is there,” she said.

The absence of investor protection from the deal means that the EU can ratify the agreement through the European Parliament and Council of Brussels, rather than through lengthy national ratification procedures.

She added that the EU is also hoping to seal free trade agreements with Mexico and the Mercosur bloc of Argentina, Brazil, Paraguay and Uruguay.

“The fact that we managed to finalise this today when we and Japan go to Buenos Aires, sends a powerful signal that we can make good trade agreements that are win-win,” she said.

| A Supply Management release  ||  December 13, 2017   |||

Dec 13, 2017  -  Minister for Agriculture, Biosecurity, Food Safety and Rural Communities Damien O’Connor announced today that the Ministry for Primary Industries (MPI) will reorganise its functions to create a stronger focus on core responsibilities.  Mr O’Connor says government will set up four portfolio-based entities, Fisheries New Zealand, Forestry New Zealand, Biosecurity New Zealand and New Zealand Food Safety.

“Our priority is to achieve greater clarity and unity of purpose for these areas. We are seeking enhanced visibility of government policy and regulatory activities and clearer lines of accountability and engagement for stakeholders.

“We are now looking to the Director General of MPI to work with his team to achieve this, while ensuring prudent and efficient use of taxpayer and industry funds.

“MPI will continue to meet the expectations of our international trading partners as the competent authority.’’

MPI will build up its forestry presence in Rotorua, Mr O’Connor says.

“Rotorua’s location puts it at the heart of our forestry sector and makes it the most appropriate site for a dedicated forestry presence to support the Government’s ambition in this important sector.

“It’s likely further change in the forest space will occur after policy and operational work to deliver the Government’s ambitious goals in this area.”

Reorganisation of MPI’s functions will occur in the early part of 2018 and will be in place by April.

“I would like to thank MPI staff for their commitment and hard work in the primary sector and assure them that there will be no reduction in staff numbers as a result of these changes. This change is about increasing focus and ensuring greater visibility of fisheries, forestry, biosecurity and food safety,” Mr O’Connor says.

The estimated cost to implement the changes is $6.8 million to establish the four portfolio-based business units. Additional ongoing operating costs are estimated at $2.3m per annum.

Mr O’Connor says reprioritised money from the Primary Growth Partnership Fund will pay for the changes so there will be no additional cost to taxpayers.

“This is a prudent and cost-effective change that can be managed with existing monies.’’

| A Beehive release  ||  December 13, 2017   |||

DEc 13, 2017  -  Forestry Minister Shane Jones has today welcomed the separation of portfolios within the Ministry of Primary Industries, saying it marks a new era for forestry in New Zealand.  The Ministry for Primary Industries (MPI) will reorganise its functions to create a stronger focus on core responsibilities.

Four new, separately branded portfolio-based branches will be established within MPI – Fisheries New Zealand, Forestry New Zealand, Biosecurity New Zealand and New Zealand Food Safety.

Mr Jones says the refocusing of the ministry’s functions will put greater emphasis on forestry, in line with the Government’s dedication to the sector.

“This Government has made a commitment to focus on regional economic development and the planting of 1 billion trees to support and grow a sustainable forestry sector,” Mr Jones says.

“The planting programme will also increase employment opportunities in the regions and help meet our climate change targets,” Mr Jones says.

“New Zealand Forestry will have leading role in meeting our 1 billion tree commitment, as well as in training people, finding land for afforestation and working closely with the sector.

“We have a highly motivated forestry sector in New Zealand and I’m looking forward to seeing what we can achieve in partnership over the coming years,” Mr Jones says.

| A Beehive release  ||  December 13, 2017   |||

Dec 13, 2017  -  Pumpkin prices increased 176 percent in the year to November 2017, to reach $5.78 a kilo, the highest price since the food price series began in December 1993, Stats NZ said today. Pumpkin and kumara are typically more expensive in November, but both hit record levels after larger-than-usual increases this year.

“Poor growing conditions due to the wet weather early this year had a huge impact on the supply of pumpkin and kumara,” consumer prices manager Matthew Haigh said. “Pumpkin prices have reflected lower supply, with dramatic price increases in the last three months, while kumara prices increased more steadily through the year.”

Kumara prices increased 83 percent in the year to November 2017, to reach a record of $8.99 a kilo. Kumara was $4.92 a kilo in November 2016. Potatoes, also a big contributor to the 6.3 percent increase in vegetable prices, increased 19 percent in the past year.

Higher vegetable prices, along with a 2.3 percent increase for ready-to-eat food (primarily biscuits, cakes, and hot drinks) and a 6.8 percent increase for fruit, pushed food prices up 2.3 percent in the year to November 2017.

Tomatoes and strawberries cheaper in November

Fruit and vegetable prices fell 2.6 percent in November, the main contributor in an overall 0.4 percent fall in food prices. However, after seasonal adjustment, fruit and vegetable prices rose 1.2 percent.

With summer approaching, tomatoes and strawberries had big price falls (down 44 percent and 22 percent, respectively), making them the largest contributors to the overall fall in food prices this month.

The average price for tomatoes was $4.32 a kilo in November, down from $7.68 in October 2017.

“Although tomato prices dropped considerably this month, they’re still at a much higher level than in November 2016 after seeing an annual increase of 27 percent,” Mr Haigh said.

Butter reached another record high, rising 1.3 percent in November. The average price of the cheapest available 500g block of butter was $5.74 in November 2017, up from $5.67 in October 2017 and $3.88 in November 2016.

| A STATSNZ release  ||  December 13, 2017   |||

Dec 13, 2017  -  The export price of butter reached a new high in the September 2017 quarter, to be up 8.8 percent from the June 2017 quarter, Stats NZ said today.  Export butter prices increased 75 percent in the year ended September 2017, and these gains were closely tracked in domestic butter prices in New Zealand shops.

Whole milk powder prices were down 2.0 percent and cheese fell 1.7 percent in the September 2017 quarter. Dairy product export prices as a whole increased 38 percent in the September 2017 year, despite dipping 0.9 percent in the September 2017 quarter.

The recent increase in butter export prices was influenced by high global demand and a drop in European milk supply.

"Lower international supply was caused partly by lower farm-gate milk prices in Europe, which led to reduced herd sizes. At the same time we’ve seen a consumer swing towards butter and away from products like margarine,” prices senior manager Jason Attewell said.

“Globally, consumers often place a premium on New Zealand butter. That demand has pushed the export price to new heights.

In the September 2017 quarter, the price of a 500g block of butter (as measured by the consumers price index) was up 9.7 percent from the June 2017 quarter.

“Kiwi food shoppers have felt the impact of record world butter prices. The average price of the cheapest available block of butter in supermarkets reached a record $5.55 in September, up 60 percent from September 2016,” Mr Attewell said. “Prices have continued to climb into November, hitting $5.74 a block.”

“In recent years, export and domestic price changes for butter have tracked very closely, which reflects the fact that New Zealand consumers are ‘price takers’ on the international market despite New Zealand being a major butter producer.”

Other indicators, such as the fortnightly Global Dairy Trade (GDT) auction price for butter, also increased during the September 2017 quarter– the auction price reached a five-year high of US$6,026 a metric tonne on 19 September 2017.

However, since September GDT prices have fallen. The auction price on 5 December 2017 was down 24 percent to US$4,575 a metric tonne. Typically, there has been a lag of 4–6 months between GDT price movements and the prices New Zealand consumers see on supermarket shelves.

Local and international production have both increased and milk supply in Europe has begun to expand.

“Fears of the butter shortage, or #BeurreGate, continuing through to Christmas have abated,” Mr Attewell said.

“However, with the dry start to our summer it’s unclear how the price of butter will change in the near future.”

A STATISTICSNZ release  ||  December 13, 2017   |||

SANTA MONICA, Calif., Dec. 12, 2017 /PRNewswire/ -- AirMap has joined forces with Airways New Zealand to deploy an unmanned traffic management system that enables safe and compliant drone flights for a three-month trial in the Canterbury and Queenstown regions of New Zealand.

Drone flights in New Zealand are growing exponentially. Over the past three years, weekly recorded drone flights in the country's controlled airspace have increased 20-fold. As drones take off in increasing numbers, unmanned traffic management (UTM) technology will allow them to integrate safely with New Zealand's national airspace system.

The Airways-AirMap trial brings digital authorization capabilities first deployed in the U.S. for the LAANC program to New Zealand. Using AirMap's free iOS and Android apps, drone operators can request digital airspace and public land owner approvals required by New Zealand's Civil Aviation Authority. Digital authorization is available from the Christchurch, Queenstown, and Wanaka airports and on public lands in the Christchurch City, Selwyn, and Queenstown Lakes District Councils, including parks and reserves. Commercial and recreational drone operators are invited to take part in the trial, which is currently underway and will significantly simplify and streamline the authorization process.

Airspace managers participating in the trial are using the AirMap airspace management dashboard to provide digital flight authorizations and share real-time updates about the location of events, community gatherings, emergencies, and other areas to avoid. This information is delivered immediately to the AirMap app to enable safer flights and more comprehensive situational awareness.

Airways New Zealand is the key enabler of the region's aviation system and a leading provider of air traffic management services worldwide, serving more than 65 countries and managing more than 1 million air traffic movements each year. "The trial is an important step in investigating how Airways could develop a nationwide UTM system that safely integrates UAVs into New Zealand's wider air traffic control network," said Airways Chief Executive Graeme Sumner. "There is potential for New Zealand to become a test-bed for the UAV industry through the implementation of a system that supports growth and development in a safe manner."

"We're very excited to help New Zealand's drone pilots more easily and safely access the airspace," said Ben Marcus, AirMap CEO. "With the world watching, Airways and AirMap are demonstrating how UTM technologies can safely open the skies to high-scale drone operations, today."

About AirMapAirMap is the world's leading airspace management platform for drones. Millions of drones, hundreds of drone manufacturers and developers, and hundreds of airspace managers and stakeholders rely on AirMap's airspace intelligence and services to fly safely and communicate with others in low-altitude airspace. For more information please visit www.airmap.com and follow @AirMapIO on Twitter.

About Airways New ZealandAirways New Zealand is a world-leading provider of air traffic management services and a key enabler of the region's aviation system, optimising air traffic flows across the entire aviation network. We are responsible for one of the largest Flight Information Regions in the world of 30 million square kilometres, and we manage more than 1 million air traffic movements per year. Airways operates in New Zealand as a State-Owned Enterprise (SOE). We also provide air traffic control and engineering training, and have delivered air traffic management, Flightyield revenue management solutions, navigation services and consultancy in more than 65 countries. For more information please visit www.airways.co.nz.

| December 13, 2017   |||