77
waikato-tainui
annual report 2014
13 . b i o l o g i c a l a s s e t s
Consolidated
Parent
Notes
2014
2013
2014
2013
$'000
$'000
$'000
$'000
Livestock
Balance at beginning of year
835
1,082
-
-
Additions
144
200
-
-
Decreases due to sales
(700)
(566)
-
-
Changes in fair value
4
545
119
-
-
Balance at end of year
824
835
-
-
Trees
Balance at beginning of year
4,467
3,191
-
-
Additions
48
-
-
-
Changes in fair value
8
218
1,276
-
-
Balance at end of year
4,733
4,467
-
-
The livestock consists of mixed age sheep, cattle and cows, which are held for dairy and dry stock farming. M Gaustad from PGG
Wrightson determined the fair value of sheep, cattle and cows at 31 March 2014 and 31 March 2013. The valuation is based
on reference to market evidence of current market prices less point‑of‑sale costs. At balance date there were 2,971 sheep, 105
cattle, 282 cows and 234 calves (2013: 2,486 sheep, 471 cattle and 197 cows).
The trees are comprised of a 374 hectare Pinus Radiata (2013: 374 hectares) forest planted from 1996 to 1997, 150 hectares
Pinus Radiata (2013: 150 hectares) forest planted from 2001 to 2002 and 270 hectares of Californian Coast Redwoods (2013:
270 hectares) planted from 2005 to 2007. It is expected that the rotation age for the Pinus Radiata crop will be 26 years and
35 years for the Californian Coast Redwoods, at which time the crop will be harvested. The 374 hectares and 150 hectares of
Pinus Radiata was valued using the Crop Expectation Value method at a 7.0% post‑tax discount rate to determine fair value,
less point‑of‑sale costs. The 270 hectares of Californian Coast Redwoods was valued using the Crop Expectation Value method
at a 6.5% post‑tax discount rate to determine fair value, less point‑of‑sale costs. The non‑current biological assets are held for
investment. All non‑current biological assets were valued by P Silcock from NZ Forestry Limited at 31 March 2014 and
31 March 2013.
All valuers are independent registered valuers not related to the Trust or Group. All valuers hold recognised and relevant
professional qualifications and have recent experience in the categories of biological assets they have valued.
