The Royal Agricultural Society of New Zealand Inc.

Annual Report & Statement of Financial Performance

For the year ending March 31, 2002

THE ANNUAL GENERAL MEETING of the
Royal Agricultural Society of New Zealand
will be at Rydges Hotel, QUEENSTOWN
on Friday June 28, 2002 at 11.00 a.m.

Business

• Receive District Council reports

• Election of executive members: Messrs Mitchell and Lemon retire by rotation

• Receive recommendations from the UBS Council and Horse Stewards Council

• Consideration of the annual report, audited statement of financial performance

• Appointment of auditors

• Notices of Motion and consideration of Remits

• Special or general business.

As I write my final annual report for the Royal Agricultural Society, I can spend a little time reflecting on what has undoubtedly been the best and most financially rewarding time for Agriculture in the last 50 years. This has, of course, been brought about by many different aspects - some of which we in New Zealand can control and some we cannot. Those we cannot control we must pay special attention to: currency, world economic performance, September 11, the unsettled Middle East, consumer taste etc. Due to our size we cannot change these to any great extent, but we can influence them and take reasonable steps to protect ourselves from their impact by hedging, insuring and so on.

For the things we can control - quality, taste, border control, animal health, industry performance, farmer or industry education, research and development, animal performance, crop performance, government decision making etc. - we must continue to promote and lead. This is one of the major tasks of the Royal Agricultural Society and one that I think we are doing quite successfully as a group. We can influence through our Shows - especially public opinion, politicians, animal welfare, education of our children, (the Royal Easter Show is an example of this with their Animal World, attended by up to 15,000 children a year who have probably never seen an animal in the flesh other than the neighbours' dog) and performance of our animals. We can influence through our events, the Freemasons Rural Achievers Award, the FMG Rural Excellence Award, the National Bank Ewe Hogget Competition, which all identify people of exceptional ability, often with leadership skills that will influence the future of New Zealand agriculture. Our breed societies, through their progressive adoption of new methods, technologies and species will also influence significantly, the future of farming in New Zealand.

During the past four years we have spent much time changing our organisation to allow it to serve its affiliates more effectively. We have rewritten our Constitution, rewritten the horse section rules, redesigned some of our events including the Royal Show (the details of which will become apparent in the lead up to the Royal New Zealand Show in Palmerston North), moved our office to a small rural town in Canterbury and dropped the option of having a major sponsor as it could have affected our ability to operate effectively at times. None of this happens without much work in the background and there are people who must be thanked at this point; Kevin Cholmondeley-Smith and John Grigg for their work on the horse rules; Mick Lester for his work on the Constitution and Mike Vernon, Lawrie Bryant and Ken McKenzie for their encouragement and tactical work in the background. I think we now have a responsive, competent organisation with the ability to act as required by our members.

During the year we have seen Canterbury A&P Association run a wonderfully successful Royal New Zealand Show in beautiful weather with big crowds. Stratford A&P Association ran an excellent 'Royal Event' in their Royal Dairy Cattle and Pig Show - one that has given Stratford new resolve and great financial strength while also doubling their best ever gate and filling the grounds with trade and very large dairy and pig entries. This is proving to be a very successful initiative and we look forward to Ashburton's effort this year with their 'Royal Grain, Seed and Sheep' feature, being held in conjunction with their 125th anniversary show. The Royal Easter Show was again first class but was adversely affected by weather, which typified many of our shows throughout the 2001/2002 show season.

A feature of this year's activities was the World Sheep and Wool Congress held in Christchurch during November. This was a wonderful event with outstanding speakers run under the Chairmanship of William Mitchell with major input from the RAS and one that raised the sheep worlds awareness of New Zealand and our beautiful country. The success of this event should give organisations like ours the confidence to sponsor these events whenever the opportunity arises as trees have always grown from small seeds! Congratulations to William and his team and to George Fletcher who is now the President of the World Sheep and Wool Congress; quite an achievement for our sheep industry and I wish him good luck in this role.

As one travels a lot in this job in New Zealand, you see things that you marvel at and you also see things that concern you. We must guard our wonderfully scenic, clean, fresh environment with everything we have - it is as important to us as an army is to Israel! As agriculture progresses and becomes fashionable again (as it inevitably will - we may even see Massey University allow the word 'agriculture' to appear on one or two of its degrees as it comes to the realization that agriculture rules the world) more and more pressure will be put on our environment, water use, effluent disposal, wet land protection and visual appearance of farmland. These will become huge issues in the future if they are not addressed correctly now. The water issue will be the single biggest factor influencing our potential in the next 20 years. Sustainability has been a catch cry of The Greens for years - it is also the key to agricultural success in the future and must be addressed quickly and competently now.

In the position as President during the past four years, Sue and I have been fortunate to have travelled throughout New Zealand meeting many wonderful people and seeing wonderful Shows, wonderful competitions and marvellous places.

None of these events would have occurred if it were not for the hundreds of people who give so much of their time for others to enjoy themselves, educate their children, display their goods and make their livings by selling product whether it be horses or toffee apples. I hope you all get as much pleasure out of your efforts for others as I have in my time in this organisation and remember never to undervalue your efforts, as they are significant.

People are the key to this country's success, just as they are to the Royal Agricultural Society and we must also look after our people or fail. Isn't it nice to see our population increasing at last because many of our own are coming home again after years in exile as successive governments forgot the importance of stability and growth? (And perhaps this return home is also as a result of the events of September 11 that may have longer reaching consequences of which we may be grateful as time progresses.)

The technology of today allows us to be in Europe in 20 seconds which enables people to run businesses from New Zealand which could never have happened in the past encouraging more foreigners to invest and live here. While it hasn't yet enabled us to move our product to Europe that quickly - although I suspect as time progresses we will see this timeframe narrow significantly - the value of the product will also influence the time to market. New Zealand's agricultural future is undoubtedly in producing product for the high value end of the chain because of our comparative isolation from the marketplace.

The Royal Agricultural Society has over the years been blessed with marvellous support from sponsors and I make mention of a few of those people who have moved on to new challenges and who have given us such good support in the past. These include Chris Keeping and George Pottinger of The National Bank; Neil McKechnie and Michael Millar of FMG. (While these people are no longer there, both of these companies have continued their support of the RAS and will be mentioned later in this report.) The best results with sponsorships are always obtained with strong cooperation and good people interaction and I make special mention of these people as they certainly made the operation of the respective sponsorships a pleasure for all involved.

Finally, I must thank my Executive for their tolerance and support over the past four years and for all the work they do for our organisation. To their wives and Sue, a special thank you, as without their support at home and during our events our jobs would be so much more difficult. Chris Mason is a wonderful Executive Officer and I thank her and Bob for their work and support during the past four years. Thanks also to the District Chairmen and Secretaries who carry out work on behalf of the Society in their respective areas.

Canterbury A&P Association hosted the 71st Royal New Zealand Show on behalf of the Central District of the Society in November 2001. After a difficult financial period for Canterbury A&P Association and a change of organising personnel, the new Event Management Team - Tenth Dot Management - combined with the experience of the various committees under the leadership of Richard Lemon, produced an extremely good Royal NZ Show. The changes made to the Show, including a return to the three-day format, has established a firm base from which this Association can build for the future. The Royal Agricultural Society thanks Canterbury A&P Association President, Rob Reid, Chairman of Committees, Richard Lemon and Event Manager, Rae Finlay and all those involved in ensuring the 2001 Royal New Zealand Show continued the tradition of inspiring 'excellence' and also for presenting a national 'shop front' to agriculture for both local and international visitors.


ANNUAL CONFERENCE 2001

Northern District Council hosted the 2001 annual conference in Auckland from 28 June to 29 June. A special acknowledgement is made to Malcolm McKerrow for the work he undertook to ensure this event went smoothly, and to Auckland A&P Association for their hospitality and hosting of the Annual Dinner. The conference was the first held under the Society's new constitution and ran smoothly. There is some minor fine-tuning to be made to the Constitution to complete the transition, but on the whole it is operating as anticipated. With the opportunity for all of Society's affiliate organisations to more fully participate in the running of this organisation, it is hoped that we will see an increase in representation at future conferences. One of the key challenges for Districts and the Society when holding such an event is to keep the conference relevant for those attending and ensuring costs for all concerned are kept as low as possible. However, I would encourage ALL Members to endeavour to make this one opportunity each year that they do not miss. It is one of the few chances we get to make personal contact with others in the same industry to share ideas, discuss mutual problems and look at future opportunities. Members who do not strive to have representation at this event each year are not only missing a great networking opportunity, but also risk not catching up with the latest ideas and decisions, nor are they utilising their own 'voice' within the organisation.

A&P ASSOCIATIONS

Despite some very wet and unseasonal weather in most parts of the country during the 2001/2002 show season, the majority of our A&P Associations again staged very successful events. With the A&P movement acting as a barometer of the health of the rural community, each A&P Show reflects the land use in its area and the character of its people.
The challenge for all of those involved is to ensure this 'local flavour' continues to keep up with the new ideas and activities of the make-up of our rural communities, which are continually changing. Once again a special acknowledgement is given to all the volunteers who give their time and energy to ensuring their Show is something to be proud of, and something that others want to be involved with. Without you, there would be no Show.

EQUESTRIAN SECTION

The 2001/2002 show season saw the Society's new Equestrian Competitors and Judges Rule Book and Guidelines come into action. Despite one or two small teething problems - such as the unavailability of the required/approved safety helmet - the level of acceptance of the rules has been encouraging and it is hoped that, as these rules are bedded down, they will lead to the smoother running of this section of our organisation. We once again saw positive drug tests occurring at our Shows and it is disappointing to note that some competitors ruin the good name of the sport by conducting such practise. The drug-testing regime is now well tried and a special acknowledgement is made to National Forbidden Substances Co-ordinator, Anzac Paratene for his meticulous attention to detail that is enabling us to identify and successfully penalise those few competitors who are disobeying the rules. Thank you also to the Stewards who implement the testing procedures in sometimes very trying circumstances.

COMPETITIONS

Each year there are a number of competitions conducted under the auspices of the Royal Agricultural Society. Along with the Royal New Zealand Show, these competitions continue to help the Society achieve its objective - to recognise, reward and promote excellence in agri-business. In addition, these competitions promote awareness of the A&P movement as a whole and provide opportunities for our affiliated members to become involved in events outside of the annual show. These competitions also generate a significant amount of media coverage and exposure, which, in addition to promoting the competition, highlight the Society and its affiliates, wherever possible. I thank those affiliates who participate in these events each year and encourage more to do so. Thanks also to the numerous convenors, judges and volunteers who help to make each of our competitions a success.

SPONSORSHIP

We are fortunate to receive sponsorship for each of our competitions and without this assistance we would not be able to continue to work towards our goals.

These long-term sponsors require special recognition:

We are also pleased to be able to acknowledge two new sponsors who have joined our quest for the recognition of excellence and we welcome them to our organisation:

The Society also has a number of other sponsors who assist us in many ways, and we also thank them for their support.

During the year, the Society's major sponsorship with The National Bank concluded. The Executive has worked hard over the past few years to ensure the Society is in a position to support itself without this sponsorship and the resulting financial performance as contained in this Annual Report is evidence that the Society is well on its way to self-sufficiency in this area. We thank The National Bank for their past support which has allowed us to come to this position.

UNITED BREED SOCIETY

During the year, Chairman of the United Breed Society Council, William Mitchell, represented our affiliated Breed Societies at various national meetings. William is supported in this role by the Chairmen of the Breed Committees - George Fletcher, John Grigg, John Robins and Maurice Pedley. Our thanks to them for continuing to keep the needs of the stock breeding industry at the forefront where necessary.


OBITUARIES

We extend our sympathy to the families of those Society members who have passed on during the 2001-2002 year.


PATRONAGE OF THE SOCIETY

During the year, Dame Silvia Cartwright graciously consented to becoming the Society's patron, and we extend a very warm welcome to Dame Silvia and look forward to her association with us over the coming years. A special thank you to Sir Michael Hardie Boys, for his support of our organisation and we wish him well for his future endeavours.

In conclusion, I would like to thank all of those A&P Associations who have extended both invitations and hospitality to myself and Sue during my extended term as President. We have been welcomed warmly wherever we have been and have seen many Shows that we would perhaps not have had the opportunity to visit. I wish to thank Mike Vernon for his role as Treasurer for the Society over the last six years and wish him well in his new endeavours. I also take this opportunity to pass on my best wishes to our incoming President.

Ian McKelvie
President


ANNUAL ACCOUNTS AND STATEMENT OF FINANCIAL PERFORMANCE

The Financial Statements for the year ended 31st March 2002 show a net surplus of $7,233, a very pleasing result considering the loss of the Society's major sponsor, The National Bank. Overall the Society has operated within budget and together with the co-operation of our competition sponsors, has effectively held expenditure whilst increasing income - a tribute to our Executive Officer's diligence and expertise.

The loss of our major sponsor has been offset by the increased income generated by the introduction of the Equestrian Levy. While this did not meet the projected target of $25,000, the income generated has made a substantial contribution to costs associated with this section of our organisation. Unfortunately the income does not allow us to remove all of the compliance costs related to the equestrian section of our shows - such as the drug testing levy - as was originally hoped. However, the Executive has removed the host horse society levy for the upcoming year and plans to review the other compliance costs during the year.

Increased product sales assisted with cost-recovery of the increased expenditure in printing, stationery and photocopying and on the whole, sponsorship increased across all of our competitions. Administrative expenditure for the year also reduced due to Constitutional Matters having been attended to last year, and lower legal and Executive meeting expenses.

With the change in the Society's constitution, annual membership ceased from 1 April 2001. Existing annual members were invited to join the Society as Life Members, at a special rate in recognition of their previous financial support of the organisation. Eleven annual members transferred to Life Membership under this offer and during the year five other new life members joined the Society. Membership at year-end stood at 1,085 and Corporate Membership at 14. As has been the case in the past, five percent of the Life Members Fund has been credited to the current account to assist with the costs of service/maintenance of the Society's life members.

The overall result for the 2001/2002 year is that the Society has become self-sufficient and has demonstrated that it is able to hold its current financial position. However, the introduction of any new initiatives or increased support of existing activities will require additional funding and this will be the challenge for the upcoming year and those in charge of the finances of the Society in the future.

I take the opportunity to thank the President, the Executive, and Conveners of all the Societies activities for their help and input to what has again been a very successful year. On behalf of the Executive I extend a very special thanks to Chris Mason for without her diligence, this result could not have happened.

As the position of Treasurer will become non-existent due to alterations to the Constitution during the 2002 conference, I wish to also record my thanks to all those involved in the A & P movement for their consideration and friendship during my involvement with the Society, and in doing so I wish the Society every good fortune for the future.

Mr President, I formally move the adoption of the Financial Statements for the year ended 31st March 2001.

Mike Vernon
Hon Treasurer


THE 71th NEW ZEALAND ROYAL SHOW - CANTERBURY 2001

The Canterbury A&P Association was proud to host the 71st New Zealand Royal Show from 14-16 November 2001. Following administration changes and reassessing the direction of the Canterbury A&P Association it was decided to return to a three-day format for the Canterbury Show and this was certainly a hit with livestock and trade exhibitors.

Fine weather, a buoyant rural economy, large entry numbers and quality entertainment all contributed to a very successful event that the Royal Agricultural Society should be proud to be associated with. The 6th World Sheep and Wool Congress hosted in Christchurch prior to the Show saw many overseas visitors attend the Show. Entries were very strong in the sheep, beef cattle and dairy section. The animals from these sections that progressed through to earn the major Royal Agricultural Society Awards were certainly deserved winners and congratulations are attributed to the owners.

Four days of equestrian events rescheduled to three, catering for a record 2868 entries, made for three very full days of competition, with again the major winners being well deserved. The 71st New Zealand Royal Show attracted a total of 5,384 livestock and equestrian exhibitors.

The 2001 Ravensdown Ambassador of the Year Award winners at the Royal Show were Bill and Judy Austin, successful exhibitors of Beef Shorthorn cattle.

Trade exhibitors responded to the three-day format by filling the exhibit area with a wide variety of agricultural items and it was pleasing to see the return of so many farm machinery exhibitors among the 300 plus trade exhibitors.

Just under 100,000 members and visitors attended the Show making it the highest gate taking for a Canterbury Show in the 139 year history of the Association. On the Wednesday and Thursday approximately 10,000 children, parents and teachers attended the Show as part of organised school visits.

A different format of entertainment was provided to patrons this year and was very well received. The Taste of Canterbury marquee was a buzz of activity for the whole of the three days. Peta Mathias, The Topp Twins and the New Zealand Army Band were some of the major entertainments. The Canterbury A&P Association contracted Tenth Dot Management Limited from Christchurch to manage the 71st New Zealand Royal Show, a move that has brought a new lease of life to the organisation.

THE 2001 ROYAL EASTER SHOW

The Prime Minister, Helen Clark, officially opened the 2002 Royal Easter Show in a ceremony that this year was combined with the Art Awards. The other keynote speaker Mayor, John Banks, reiterated the sentiments of the Prime Minister when he spoke to the crowd of over twelve hundred enthusiasts and official guests. John Banks emphasised the uniqueness of this inner city event and the important function the show performs in bringing the country to town - and in such a positive manner.

The Art Awards acknowledge the work of hundred of artists in the competitive disciplines of Pottery, Painting a division which includes work in charcoal, water colour and oil mediums and Mouth and Foot Painting, Ceramics, Photography, Wood Turning and the display sections of Jewelry, Furniture, Ikebana, and Chinese Calligraphy.

The flair and enthusiasm of young Curator Andrew Clifford was evident when the art hall was opened for viewing with sales on opening night and then throughout the ten-day show reaching an all time record. It is these sales that assist the artists in the most positive manner available - revenue. In fact as many sales are achieved by those from the amateur ranks as are achieved by the professionals.

Judged just prior to the main show, this years wine awards saw Judges select a record 50 gold medal wines, seven more than last year.

A panel of twelve judges, headed by Bob Campbell MW, assisted by eminent Australian wine author and judge, James Halliday, tasted 799 wines from a record 163 wineries. While the gold medal hoard is growing, so too are the silver and bronze awards. In all, 487 medals (50 gold, 125 silver and 312 bronze) were awarded.

In the Judging rings, Dairy and Beef Cattle were pronounced by the panel of respected Judges to be of top quality and particularly in the beef section where we had the full house sign up in the pavilion with entries at a very satisfactory level. As all farmers know, we struggle to get sheep entries in the north however our Committee was satisfied with both numbers and the quality.

The Caged Birds and small animals including Dairy Goats, Pigs and Alpacas were well represented and met with approval from both the public and the judges alike. The popular Donkey section now well and truly at home in Royal Pavilion proved yet again that with good facilities and a top class Judge that exhibitors will support showing these classes.

Equestrian rings were as usual well-supported and included classes for junior and senior dressage, showjumping, showhunters, round the ring jumping, harness and all the many and varied saddle classes and sections that are on offer these days.

An inaugural and very popular Royal Easter Show Cat Show catered for all cats from down-on-the-farm working cats through suburban moggies to the aristocratic new and well-known pedigree models - of all shapes and sizes.

Commercial halls at this year's show were interesting and varied and a credit to the sales team who work extremely hard to ensure that they fill all the available space. This is a big ask at a venue that hosts most of New Zealand's largest specialist shows which in many cases are better suited to the very clients we are targeting for the Royal Easter Show. An innovation was the introduction of a Pacific Village, which was a huge success and certainly assisted by adding variety and atmosphere in a area that we have found hard to liven up in the past.

A decision during planning for the 2002 Royal Easter Show to forego a major act to enable us to increase street theatre and to be able to maintain the entertainment on the Village Green Stage every hour gave us a lively and varied mix. Rodeo, as has been the custom for the past six years, was a feature and drew excellent crowds. Pole climbing attracted competitors from Great Britain, France and Australia and the Axemen's arena saw a first with School Teams competing in Sawing Relay events.

World records were broken in the dead lift in both divisions of the popular Strong Man Competition. Lightweight competitor Dave Dunford lifted a staggering 470kg beating the previous record by 40kg and heavy weight Mat Rossiter lifted 500kg to head off the previous record of 482.5 held by American, Ken Brown.

Showjumping fans also witnessed a performance worthy of the record books as young Kaukapakapa rider Anna Trent took out the two richest events of the equestrian schedule - the Pony Grand Prix and the Royal Easter Show Classic - in fine style. Showjumping has suffered in recent years at the Royal Easter Show with adverse weather turning the main arena into a swamp forcing last moment venue changes. However a new all weather surface allowed all events scheduled for the Royal Arena to proceed regardless of what the elements threw at us. On Easter Monday Auckland Branches of Riding For Disabled welcomed in the main arena the 'Four Beats to Freedom' campaigner and fundraiser Mary Pagnamenta to Auckland en-route from Bluff to Cape Reianga. This major promotion for RDA was assisted by the indefatigable Topp Twins who rode, sang and encouraged the disabled riders as they were assisted by their wonderful never tiring volunteers through a promotional games and agility afternoon - all in the face of a bitterly cold wind and heavy showers.
Unfortunately the Royal Easter Show, after excellent crowds on a wonderfully fine Good Friday, experienced very poor weather conditions Easter Saturday through to Easter Monday and Show attendance suffered badly as a consequence.

Always positive, the Board and Staff are now working towards a completely revamped 160th Anniversary Show set for April 2003.

Kevin Cholmondeley-Smith
Manager - Royal Easter Show




FMG RURAL EXCELLENCE AWARD in commemoration of A. C. CAMERON

It was agreed last year that the closing date for entries for the FMG Rural Excellence Award would be extended to the end of February and it seems that this change has not worked favourably for us with the nomination of contenders and finalists this year being very slow. (The one exception was Southern District where they held a regional final, which was very closely contended by four candidates, and was completed by the required end of March deadline.) As a result, the final judging this year has been much later than desired. This year also saw the merger of the Northern and Mid Northern Districts, with only one finalist being selected for the combined regions in an effort to balance the representation from both the North and South Islands to three finalists each.

Northern/Mid Northern	James & Jane Thomas	MORRINSVILLE
Western	Peter & Kay Eliason	KAPONGA
Eastern	Peter & Sylvia Jex-Blake	GISBORNE
Tasman	Robin & Phillipa Jamison	HAWARDEN
Aorangi	Trevor & Jo Johnson	TEMUKA
Southern	John & Mary Lindsay	SOUTHLAND

The judges for the 2002 award were again Prof Steve Morris, Massey University, and Mr Murray Donald, a FMG Director and farmer near Invercargill. The judges do an excellent job and I thank them both for their time and expertise.

Trevor and Jo Johnson, Rangitata, won this year's competition, which was announced at a presentation function held at the Convention Centre in Palmerston North on 30 May. They received the Royal Agricultural Society's gold medal and Life Membership, presented by President, Ian McKelvie. They also received the A C Cameron Memorial Trophy plus a $7000 Travel Voucher from FMG. Each finalist was also presented with the Society's District Medal, an award from FMG and a $1,000 voucher from Ravensdown Fertiliser.

As the last year as National Convenor of this competition, I wish to make a special acknowledgement to the District Conveners. It so often falls on these people to locate suitable candidates for this competition, often without the support of the A&Ps in their Districts. I call on all organisations to support this very worthy competition and ask you to assist the conveners by identifying members, exhibitors and farmers in your area who may be potential candidates for this competition. The satisfaction of involving these people in your organisation through this competition can not be understated - nor can the pride of knowing your organisation was involved - especially if the winner comes from your nomination. Competitions such as this raise the profile of not only the Society as the national body, but also the organisations that make up its membership.

I would also like to thank the financial sponsors - FMG and Ravensdown - for their sponsorship support of the Rural Excellence Award and for their assistance during my time as National Convenor. I wish the incoming Convenor, Richard Lemon, every success and I hope that he gains as much pleasure from convening this competition as I have over the past years.

Phil King
National Convenor


THE 2001 GOLDEN FLEECE EXHIBITION

Marlborough A & P Association hosted the 2001 Golden Fleece Competition and Exhibition in conjunction with a special 'sheep forum' in Blenheim in May 2001. A line of industry speakers was put together which provided an informative and productive forum, culminating in the presentation of the winners of both the Golden Fleece and The National Bank Ewe Hogget Competitions. Special thanks to Tim Leslie, President, and Pauline Childs, Secretary of Marlborough A&P Association, and their willing band of helpers whose assistance made this event such a success.

While previous winners Ian and Graeme Stevenson of Fernside, Rangiora again won the fine wool championship - this spot was hotly contested and the winning fleece was only half a point ahead of a top halfbred fleece.

Top honours in the strong wool section went to first time winner Rachel Humphrey of Feilding who has entered the competition consistently for many years and while scoring close to top points on a number of previous occasions, this was the first year she has won the section.

The winning strong wool fleece was entered in Class 20 - Romney Shorn Hogget. The fleece measured 34.2 micron, had a clean weight of 4.59 Kgs and a greasy weight of 5.95 Kgs. The fleece yield was 77.3 percent and the fleece scored 98 points in total. The winning Merino fleece was entered in Class 5 - Merino Ewe 19.1 to 21 microns - and scored 98.5 percent overall. The fleece measured 20.5 micron, had a clean weight of 4.64 Kgs and a greasy weight of 6.45 Kgs. The fleece yield was 72 percent.

A total of 117 fleeces were entered in the competition spread from Invercargill to Kaitaia. These were judged by Mr. Roger Fuller (fine wool section) and Mr. David Studholme (strong wool section) both of Wrightson Christchurch). Special thanks to the judges for their time and expertise.

The Royal Agricultural Society is grateful for the sponsorship support it receives for New Zealand's leading fleece wool competition from the following sponsors:

Lakes County A&P Association is hosting the 2002 Golden Fleece Competition and the fleeces will be on display during the Royal Agricultural Society conference in Queenstown from 26-28 June 2002.

Roger James
National Convenor

THE NATIONAL BANK EWE HOGGET COMPETITION 2001

The 2001 National Bank Ewe Hogget competition was won by 'Faraway' farm manager, Andrew Kirk and his wife Natasha, with a top flock of Perendale ewe hoggets. Since winning the competition last year, Andrew and Natasha have shifted to Whakatane where they are managing another property and we wish them well in their new operation.

Judging for the 2002 competition has recently been completed and the breed winners this year are:

Coopworth	Trevor & Bill Humphries	Five Rivers, Lumsden
Corriedale	RJ & OJ Scott	Southburn, Timaru
Crossbred	Warwick & Sue Bell	Methven
Merino	Catherwood Bros	Charing Cross, Christchurch
Perendale	Mark Mackenzie	Waipahi, Gore
Romney	Mark & Ann Loye	Hastings

This year's Judges were Mr William Mitchell, representing the Royal Agricultural Society, Mr George Murdoch, The National Bank; Mr Fraser Fletcher, Ravensdown and Mr Robbie Burrows of Culverden. It took five days to judge the national competition, awarding points for flock performance, trueness to breed type, size and condition of the flock, breeding and selection objectives plus wool quality and consistency. The biggest challenge for the judges was assessing flock performances relative to the class of country being farmed as the competition this year included flocks on very good country like Southland and Canterbury to flocks on harder country such as in Collingwood, Taumarunui and Wairoa.

The competition continues to be well supported in many areas of the country and we are pleased to continue to see strong competition with high performing flocks. The competition provides and additional avenues for A&P Associations to introduce commercial sheep farmers to the 'A&P' family and these people can often then be encouraged to exhibit or assist with many of the other A&P activities. Thanks to those A&P Associations who continue to support and promote the competition.

During the year NZ Rural Press withdrew its sponsorship from the competition and we have been very fortunate to welcome Country-Wide as a sponsor for the 2002 event. Our other supporting sponsors continue to assist us - ivomec, Alliance and Ravensdown - and we thank them for their contribution. Without their ongoing support The National Bank Ewe Hogget competition would not be able to continue as a national event.

There have been a few changes suggested for the 2003 competition:

• That all fine wool sheep go into one class (that is Merino and Corriedale/Halfbred as there have been fewer entries in these classes over the past few years) and
  
• The introduction of a composite (a minimum of three crosses) class.
  

Finally I want to thank all of the volunteers, judges and the various breed societies involved for continuing to support the national event which continues to identify top-performing hogget flocks throughout the country. To Chris Mason, my personal thanks for her contribution, ensuring this competition runs so smoothly.

George Fletcher
National Convenor

UNITED BREEDS SOCIETY

During the year I have continued to represent the United Breed Society on the Animal Biosecurity Consultative Committee, and on behalf of the UBS, approached MAF regarding the export of live cattle to Australia as discussed at the UBS meeting last June. At the time of writing, the Australians have agreed to reconsider the TB safeguards relating to the import of cattle from New Zealand.

The 6th World Sheep and Wool Congress was held in Christchurch in November 2001. There were 25 plenary sessions, a special 'NZ Young Guns' session featuring seven of New Zealand's top sheep and wool farming young farmers and eight breakout speakers running simultaneously so delegates could select sessions relevant to them. There were 420 delegates from ten different countries at the Congress.

The Congress covered many aspects of sheep and wool farming and provided participants with new understandings of technology (such as gene markers), market requirements such as traceability and other new ways of thinking for the future like future farming and industry structures. The Congress reinforced that there are many innovations and opportunities available to sheep and wool farmers if they want to take them. One of the key messages was that the success of the industry would be dependant on it being consumer driven rather than product focussed and that this success will only be achieved through the building of partnerships with all the links along the food/wool chain.

Over the past 20 years a wealth of information has been collected which is now available for the farmer to use to help them better monitor and manage their business.
While there are still challenges ahead for the industry, better genetics, feed quality, the utilisation of management information and the many innovations available to the industry means that there is the potential for further growth and income. The Congress was concluded with the message that the destiny of the sheep and wool industry lies within farmer's own hands and that they need to "get out there and do it."

I would like to thank the Royal Agricultural Society and the UBS for their support of this event and congratulate our Sheep Breeds Chairman, Mr George Fletcher of Heriot, Southland who was elected President of the World Sheep and Wool Executive. The next World Sheep and Wool Congress will be held in Quebec, Canada in 2004.

During the year a number of matters are referred to the respective Breed Committee Chairmen and I thank John Robins, Beef Breeds; Maurice Pedley, Dairy Breeds; John Grigg, Horse Stewards Council and George Fletcher, Sheep Breeds; for their work and support during the 2001/2002 year.

William Mitchell
Chairman


The Royal Agricultural Society would like to acknowledge its CORPORATE MEMBERS and asks all members to support these organisations with their custom whenever possible:

NOTE 1 - ACCOUNTING POLICIES

Reporting Entity

The Royal Agricultural Society of New Zealand is incorporated under the Agricultural and Pastoral Societies Act 1908.

General Accounting Policies

These financial statements are a General Purpose Financial Report as defined in the Institute of Chartered Accountants' Statement of Concepts and have been prepared in accordance with generally accepted accounting practice as defined in that Statement.

Measurement Base

The accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on an historical cost basis is followed by the Entity subject to any revaluations as detailed in the specific policies below.

SPECIFIC ACCOUNTING POLICIES

The following specific accounting policies, which materially affect the measurement and reporting of financial performances and financial position, have been applied.

Differential Reporting

The Royal Agricultural Society of New Zealand is the Entity for the purposes of the Financial Reporting Act 1993.  The Entity qualifies for Differential Reporting as provided for in the New Zealand Institute of Chartered Accountants' Framework for Differential Reporting as it is not publicly accountable (as defined) and it is not large (as defined.)  The Entity has applied all applicable differential reporting exemptions.

Stock

Stock of items held for resale or use in later years are valued at cost, determined on a first in first out basis, or market value.

Accounts Receivable

Accounts Receivable are valued at expected realisable value.

Trophies

Trophies are recorded at market value from an independent valuation.  Market value is reviewed every three years.

Investments

Investments are recorded at market value.  Investment income other than dividend income is recognised on an accrual basis where appropriate.

Goods & Services Tax

Income and expenditure items are stated exclusive of Goods & Services Tax where applicable.

Taxation

The Society, being a charitable organisation, is exempt from taxation under Section CB4 of the Income Tax Act 1994.

Changes in Accounting Policies

There have been no changes in accounting policies; all accounting policies have been applied on bases consistent with those used in previous years.

NOTE 2 - LIFE MEMBERS' FUND

An amount of 5% of the balance of the Life Members' Fund is transferred into income each year being the estimated amount applicable to income in that year.

NOTE 3 - COMMITMENTS FOR CAPITAL EXPENDITURE & CONTINGENCY LIABILITIES

As at balance date, there were no commitments for capital expenditure, and the Society had no contingent liabilities. (2001 Nil.)

NOTE 4 - OTHER SPONSORSHIP AND INCOME INCLUDED IN ACTIVITIES

Net income from Activities reports the net surplus or deficit from each activity that is, it is the result of Income less Expenditure. Included in the following activities are the following amounts of sponsorship and other income:

NOTE 5 - TROPHIES

The trophies are revalued to market value every three years. The Society obtained an independent valuation of trophies from McLeay Jewellers (June 2000 & March 2001) and from Dunbar Sloan Limited (Registered Valuers) in February 2001.

2001 Market Value $

$88,980

 

NOTE 6- INVESTMENTS

THE ROYAL AGRICULTURAL SOCIETY OF NEW ZEALAND
STATEMENT OF MOVEMENTS IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2002

ADDITIONAL INFORMATION

Additional Expenditure Notes:

General:	Key expenditure includes: Entertaining $-, Equestrian related $-, Freight/Courier $71, Manufacture Medals $2,611, Ribbons $-, Subscriptions to publications $549, Sundry expenses $181.
Communications:	Key expenditure includes: Media Clippings Service $1,529, Telephone and tolls $3,075, Advertising $-, Postage $2,173, Maintaining Website $1,220.