The Royal Agricultural Society of New Zealand Inc.

Annual Report & Statement of Financial Performance

For the year ending March 31, 2004

THE ANNUAL GENERAL MEETING of the
Royal Agricultural Society of New Zealand
will be at the Kingsgate Hotel, Willis St, WELLINGTON
on Friday June 25, 2004 at 11.00 a.m.

Business

• Receive District Council reports

• Election of Administration Officers and Executive members: Messrs Tilsley and James retire by rotation

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

• Appointment of auditors

• Notices of Motion and consideration of Remits

• Special or general business.

MEMBERS, FRIENDS AND SPONSORS OF THE SOCIETY

The venue for the 2002 Royal Agricultural Society Conference in Queenstown will be a hard act to follow, as those who attended will testify. The conference, following significant snowfall in the South, created a wonderful scenic backdrop and it is easy to see why the tourist route always seems to lead to Queenstown.

Following the conference Bev and I left almost immediately to travel to Belfast, Northern Ireland to attend the RAS of the Commonwealth Conference. The purpose for the trip was two-fold. Firstly to present a paper on the state of New Zealand agriculture as opposed to European Union and secondly to determine the value of the RAS of the Commonwealth to our own organisation. I personally believe that we can benefit from membership to the RASofC and the contacts and opportunities that organisation can provide. Like any membership, the return is often only as good as the involvement one has in the first place.

Several observations were gleaned as a result of our visit. The first is that NZ agriculture is held in the highest regard as we operate efficiently and profitably without subsidisation. The British and Irish farmers we met simply cannot produce economically without state assistance and not withstanding the clouding of market signals etc that we all know about, it would appear that subsidies to European agriculture are there for the long haul.

The effects of the Foot and Mouth outbreak and B.S.E. while huge hits for the agricultural sector mask the fundamental problem they must address which is in my view to reduce production costs.

I can recall during the conference stating New Zealand agriculture had been through a period of unprecedented prosperity, largely as a result of an undervalued currency and that if the NZ dollar reached 55 US cents, we would see significant income reductions. With the NZ dollar approaching US 60 cents, alas that prediction was born out and today we see significant re-addressing of farm budgets. What has become quite apparent to me is the impact of a thriving rural sector on the economic well being as a nation. Despite the fact the agricultural sector gets little credit from our Government, the recent budget announcement of a $4 billion surplus must surely reflect the contribution of our industry to the national economy.

ROYAL EVENT

Early in the spring show season, Ashburton A&P Association hosted the RAS Royal Event for 2002. My congratulations to Brian Leadley and his team for giving the event the stature and quality it aspires to. Despite the weather attempting to disrupt proceedings, the show was a great success. The attendance of the Governor General, Dame Silvia Cartwright, the Society’s Patron, added a Vice-Regal touch to the proceedings, which culminated in a Vice-Regal Anniversary dinner attended by present and past supporters of the Ashburton A&P Association. The evening was a grand occasion and is I hope a forerunner of other similarly staged events.

ROYAL SHOW

Manawatu A&P Association hosted the Royal NZ Show in Palmerston North in November and credit must go to Lawrence Satherley and Grant Hadfield and their committees for staging an excellent event, assisted by the wonderful facilities of Arena Manawatu and the Stadium. The livestock sections were shown to great advantage and created a wonderful spectacle. Given the restraints of the limited overall space the showgrounds provides, Manawatu A&P Assn achieved a very satisfactory financial result, which was very pleasing to the RAS Executive.

RURAL ACHIEVERS AWARD

The Freemasons Rural Achievers Award was held in conjunction with the Royal Show in Palmerston North and three excellent candidates were interviewed during the show. The RAS was very pleased to be associated with the Freemasons who share the desire to encourage and identify progressive young people. The winner was Maria Hoogeveen, a Dexcel Consultant on the West Coast. A very worthy winner, Maria is playing a great part and extending the boundaries of West Coast dairy production. Maria has also had further involvement with the Freemasons and was –represented with the trophy and prizes at their national conference in Christchurch late last year. Maria will be a wonderful ambassador and is set to represent us at the Royal Perth Show in October 2003.

GOLDEN FLEECE COMPETITION

The Golden Fleece Competition was held in conjunction with the Conference in Queenstown and provided an excellent display of the competing fleeces. My grateful thanks to Roger and Estelle James for their untiring work in organising and running the presentation function as well as coordinating the event. With the changes going on in the sheep industry, we as an organisation must not lose sight of the fact that the quality of the New Zealand wool clip must not diminish and the Golden Fleece competition plays its part in achieving that objective.

EWE HOGGET COMPETITION

Many thanks are due to George Fletcher and William Mitchell for once again coordinating this event. The competition has continued to grow – profile and entries have continued to come forward in satisfactory numbers. Having said that, it was notable in the North Island that entries were not as forthcoming as the previous year. Whilst the drought on the West Coast obviously had an impact, it would appear that many competitors after being unsuccessful in the first year seem reluctant to enter again. I believe canvassing those worthy entrants may resolve the problem.

A very successful field day was held in early November at the 2002 national winners – Mark and Ann Loye’s – with their winning Romney flock at Glenross in the backcountry of Hawke’s Bay. The members of the RAS Executive attended the field day which had the two-fold effect of not only lifting the profile of the competition as well as that of the Royal Agricultural Society to those who attended. My grateful thanks to The National Bank for their support for the competition as well as past associations but while concluding, look forward to the possibility of renewing acquaintances at some point in the future.

RURAL EXCELLENCE AWARD

Following an extensive advertising campaign conducted by the competitions major sponsor – FMG – the profile of the competition continues to grow. However, entries continue to fluctuate with the result that there was a significant increase in the Northern and Mid Northern areas and a lack of entries in the Aorangi region. Subsequent to that the Northern areas were split and two winners were determined representing Northern and Mid Northern. The effect was four finalists from the North Island and only two from the South Island this year. I am sure that the situation will be addressed in the future. Richard Lemon has taken over the role of national convenor and ably handled the complexities of coordinating many busy people for the finals judging. My thanks to District Convenors for their efforts and for once again bringing forward an excellent line-up of finalists. My thanks also to the many people who gave of their time to judge the district competitions.

My grateful thanks to FMG for their continued support for this event and also to Ravensdown as supporting sponsor. Coming amongst a plethora of similar awards, their enthusiasm alongside ours will ensure that the Rural Excellence Award that commemorates A C Cameron will develop as the highest profile overall farming award in New Zealand.

DAIRY HEIFER COMPETITION

The committed South Island team, led by Charles Davis, that run the Dairy Heifer competition have been doing a great job and this competition has now expanded through the entire South Island. While there is still work to be done to establish this competition as strongly as some of our other events and ultimately into the North Island in future years, we are pleased to welcome a new sponsor to our fold – AMBREED – who shares our vision for this event and is willing to work in partnership with us to grow this competition. Thanks to Charles and his team for their work on behalf of the Society.

HOST SOCIETIES

The Executive took the initiative recently of convening a meeting in February of Royal Show Host Associations. Held in Wellington, the meeting created a forum to encourage a cross flow of opinions and information. With the Royal NZ Show being our premier event, the Executive felt that it was important that all parties held a frank and forthright exchange of views. The end result I believe justified the considerable cost as it enhanced the network amongst Host Societies – in particular those with new personnel in their respective executive positions.

EXECUTIVE

The Executive has continued to meet on a regular basis. This past year we welcomed David Dowd, Whakatane, to the Executive and he has slotted into the team well. Following the removal of the Treasurers role as an ‘additional position’ to the Executive at the last conference, the Executive appointed from within its ranks Malcolm McKerrow, Whangarei, as head of our finance committee. Malcolm’s professional experience in the A&P movement means that he has an excellent grasp of the financial affairs of the Society. The Executive is saddened to see the retirement of Bob Tilsley, Auckland. Bob’s experience with the Auckland A&P as well as breed society affairs along with his professional background meant that he has given excellent service to the Royal Agricultural Society as an Executive member. We owe Bob a special debt of gratitude in his wise counsel during the recent period of restructuring and constitutional changes.

SPONSORSHIP

The Royal Agricultural Society of New Zealand differs significantly from other Royal Agricultural Societies within the Commonwealth. We do not run a Royal Show in our own right and subsequently do not have the cash flow other societies enjoy. Sponsorship is the only realistic means by which we as an organisation can continue to fulfil the role we have. We are indeed fortunate to have a group of sponsors who believe in what we are endeavouring to achieve and on behalf of the RAS I extend the grateful thanks of the Society for those sponsorship partnerships. Given that we are largely a voluntary organisation, that support means we can continue to operate with realistic levies.

EQUESTRIAN SECTION

The new height certificates introduced during the 2002/2003 show season were generally well accepted and despite the longer time required to fill these in initially, there have been few other problems. The card is likely to be revised slightly to help reduce the level of detail required and thus speed up the process this year, but ultimately this system is working well and credit must be given to the measuring stewards and their helpers who undertake this task every year, giving their time so that the horses and ponies that attend are show have the necessary certificates.

OBITUARIES

Our sympathy is extended to the families of those Society members who have passed on during the 2002-2003 year.

PATRONAGE OF THE SOCIETY

Dame Silvia Cartwright has carried out her role as the Society’s patron during the year, and it was wonderful to have her presence at the ‘Royal Grain, Seed and Sheep Event’ hosted by Ashburton A&P Association in November 2001.

CONFERENCE 2003

The upcoming conference in Tauranga is set to be another milestone for the Society as we look to a new format that clear separates the two key business streams of the Society – the breed society business and that of our A&P Associations. We hope that the tighter format and reduced conference time will encourage more of our members to attend this annual event that is one of the few opportunities when people in this business get together to discuss matters of mutual interest.

FINANCIAL RESULT

The Society has achieved a better than expected financial result for the years activities. The executive has been mindful of the fact that without the direct sponsorship support we have enjoyed in the past, there needs to be careful stewardship of the finances. Members will notice some significant changes in income/expenses but the differences can be explained in that key costs have been allocated directly to the events or activities where they have been incurred.

My thanks and the thanks of those involved in the Royal Agricultural Society are due to our Executive Officer, Chris Mason. Her cheerful manner and professional approach to Society affairs resolves a lot of issues that arise on a day-to-day basis.

Finally, I would like to thank all those who have offered invitations to Bev and I to visit your shows. Your hospitality has been wonderful and we look forward to meeting many more of you in the future.

Ian McKelvie
President

FINANCIAL REPORT

Your executive at its meeting immediately prior to my appointment as financial chairman, resolved to adopt and fund from cash reserves a projected budget shortfall of some $20,000.00 for the 2002/003 financial period. I am sure that you can understand why I undertook my new role with some misgivings.

Therefore it is with some relief that I report that your society has operated well during the year and whilst income has been down, this has been counteracted by reducing costs to produce an operational surplus of $22,000. Much of the credit for this result must go to our Executive Officer.

In receiving the statement of financial performance shown on page 19, you will observe that there are a number of substantial differences between the cost comparisons for this financial period compared to that of last year. This has materialised due to a change in operational philosophy to provide more meaningful reporting for the governance of the society. It also offers more transparency to our members over all aspects of our operations.

Now, direct management and secretarial costs together with telephone rental/tolls, printing, stationery and web site costs for each competition are debited to that competition, therefore financial outcomes of each of these is more realistically reported.

By treating these costs in this way, you are able to better determine what the real costs are of running this organisation.

There are some cynics that question the relevance of the RAS competitions to the Breed Societies or the A & P movement in general and to be honest, to some extent I share some of those concerns, but one cannot ignore that they collectively make a substantial contribution towards the corporate budget income.

Higher than expected conference costs produced a negative financial result that highlights the difficulties of retaining registration costs at present levels. If the society is to move beyond a conference that purely deals with regulatory matters and focuses more on the business side of the A & P Show scene then more realistic registration costs must be expected.

Combined income from Equestrian & Forbidden Substance Levies shows we only just break-even. Each district has recently received and considered the discussion paper on the proposed restructuring of the FSJC Levy and irrespective of the options for consideration, it is important that the various multiple levies are replaced by a single levy that covers all compliance costs.

Fewer than expected Executive meetings have helped reduce costs for the year although the costs of a special Royal Show Host meeting held in Wellington earlier this year have been capitalised. Similarly, costs associated with the purchase of the Royal Show and Royal Events banners have also been capitalised.

Five per cent of the Life Members fund continues to be credited to the current account on an annual basis to cover the costs of servicing and maintenance costs of life members. Membership at year-end stood at 1,072 life members and 11 Corporate Members. Six new life members joined during the year.

A review of our accounting policies has also resulted in interest from investments being accrued for the financial year. In the past, the interest shown has been what was received or paid in the year. For the purposes of this report, this means that a higher level of interest shows for the 2002/2003 year but this will be rectified in future years as the accrued interest for the year will be accurately reflected. We have also shown the dividends received from Colonial First separately and recorded in the balance sheet the unrealised loss on this long term unit investment as at balance date, resulting in $9,470 being the earnings transferred to Members Funds.

The very satisfying financial result for 2002/03 confirms that the society is able to hold its current financial position. Members need to be mindful however that the society is severely restricted in its ability to increase income under its present operations but continues to face the pressure of escalating costs.

In closing I would like to thank my fellow sub-committee members for their input and support throughout the year. Last but not least, my very special thanks must go to Chris Mason the society’s Executive Officer who in my view does an outstanding job. Her dedication and total commitment continues to strengthen the ongoing viability of your society.

Mr President, I formally move the adoption of the financial statements for the year ended 31 March 2003.

Malcolm McKerrow
Hon. Chairman
FINANCE COMMITTEE

72nd ROYAL NEW ZEALAND SHOW – MANAWATU 2002

The Manawatu A&P Association hosted the 72nd Royal New Zealand Show from 7-9 November 2002. This was by far one of the best Shows we have hosted for a few years – especially as the weather was kinder to us – but mainly due to the great organisational skills of all the Committee Members, volunteers and supporters. Manawatu is a unique place to hold a Royal Show, being centrally located on a national level allowing easy access for exhibitors from both the North and South Islands. The facilities we provided would be one of the best in the country with our new indoor cattle pavilion a huge success. VIPs and RAS Members could utilise the viewing platform that looked out over the entire pavilion including the judging rings.

Our Friday night concert had the Topp Twins performing along with Michael Jackson impersonator and Theo Va’a. We also had these entertainers roaming through the Show and doing small performances on Saturday. Stockcars and fireworks ran even though we have a few scattering showers which cleared just before the fireworks display that was enjoyed by a good crowd.

Trade exhibits both indoors and outdoors were well up on previous shows to the extent we had to turn some away due to lack of space. We had trade people returning to our show – some of which have not been there since the instigation of the Central District Fieldays. Livestock Exhibits were well up compared to a normal Show and we had Alpacas for the first time. We also housed a large contingent of pigs – again exhibits we have not had for several years.

It can be difficult to get the mix of the traditional livestock classes and attractions for the farming visitors to the Show while also providing the entertainment and other attractions that bring the city folk. The mix provides the ultimate appeal – especially for family groups. We believe we had the mix right this year and the feedback we had from exhibitors, judges, stewards and of course the pubic was fantastic. Livestock exhibitors were very complimentary about our facilities and organisation.

Promotion played a great part in the success of the Show. We were thrilled with the effort of the local radio networks, TV, Manawatu Evening Standard, Manawatu Promotional Trust and Destination Manawatu, along with all our sponsors. The Royal NZ Show street banners and posters provided by the RAS helped create great atmosphere in the town centre and of course we would not have been able to achieve all that we did without the support of major sponsor – Genesis Energy – to whom we are most grateful. This combined effort proved that this is truly a community event and we were proud to host the Royal New Zealand Show.

Lawrence Satherley
President, Manawatu A&P Association

THE 2003 ROYAL EASTER SHOW

The Royal Easter Show was held from April 16th to 21st at the Auckland Showgrounds and incorporated the celebration of Auckland A&P Show’s 160th anniversary. In excess of 80,000 attended the Show, despite inclement weather on some days.

The exhibition halls - The Performance Zone - featured more than 50 modified four-cylinder and rotary performance vehicles with typical outrageous body kits and wheels, crazy paint schemes and interiors. The Bob the Builder Show was hit for younger family members with the man himself and his troupe of dancers performing all the kids’ favourites live on stage in the Logan Campbell Centre.

The carnival rides, Strongman and Axeman competitions, show jumping, and A&P competitions, were popular as usual, as were the herd of Cow Parade’s fibreglass bovines that stood grazing alongside their country cousins.

The extreme sports featuring at the Royal Easter Show this year added another dimension and assisted with national media coverage as well as appealing to a new crowd of enthusiasts. Australia’s number one freestyle sports team, the Pepsi Max team, made its first New Zealand appearance at the show.

The team, with its combination of freestyle motor cross, BMX, aggressive inline skating and skateboarding kept the audiences awestruck as they performed on a massive 20 tonne multi-sport course. The precisely choreographed sequences of tricks included crossovers, 360-degree vertical loops and triple stacks, with the athletes soaring through the air within inches of each other.

The first Royal Agricultural Society Beef Breeds Judging training programme held during the show went very well with 12 judges from all over New Zealand sharing their knowledge and testing their skills against the official judges at the show. The beef section had its usual high standard of entries making the task challenging for all involved. The feature beef breed this year was the Salers. Held in conjunction with their international conference, delegates from around the world attended the Royal Easter Show.

Robin Hill
Secretary – Royal Easter Show

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

This year when entries closed for the FMG Rural Excellence Award, 20 entries had been received – the largest number for quite a few years. FMG had undertaken an advertising programme to promote the award along with the engagement of a coordinator who set up a database of agricultural contacts who also received information about the award and were encouraged to nominate clients and other contacts. As a result, District convenors and judges had a tough task – to judge very strong competition and in some cases travel large distances in order to do so. Thanks to all those involved at District level – your assistance is much appreciated. The competition is truly a ‘best of the best’ with all candidates excelling in their different spheres. However, there can only be six district winners and this year they are:

The judges for the 2003 award were Mr Ian McKelvie, FMG Director and Manawatu businessman and farmer and Mr Andy Macfarlane, agribusiness consultant and Ashburton dairy farmer. The judges do an excellent job and I thank them both for their time and expertise.

Mike and Rachael Petersen, Eastern District, won this year’s competition, which was announced at a presentation function held in Timaru on 29 May. They received the Royal Agricultural Society’s gold medal and Life Membership, presented by President, Phil King. They also received the A C Cameron Memorial Trophy and 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.

I would like to thank the financial sponsors – FMG and Ravensdown – for their sponsorship support of the Rural Excellence Award.

Richard Lemon
National Convenor

THE 2002 GOLDEN FLEECE EXHIBITION

Lakes County A & P Association hosted the 2002 Golden Fleece Competition and Exhibition in conjunction with the Society’s conference and annual general meeting in Queenstown in June 2002.

Top honours in the strong wool section went to Edith Cromie, Waimate, who last won the award in 1992. First time winners, Graham and Bev Black of Blenheim won the fine wool section. The winning strong wool fleece was entered in Class 27 – Leicester Ram. The fleece measured 41.8 micron, with a clean weight of 6.0 Kgs and a greasy weight of 8.0 Kgs. The fleece yield was 75.7 percent and the fleece scored 97.5 points in total. The commercial value of the fleece is $25.32

The winning Merino fleece was entered in Class 5 - Merino Ewe 19.1 to 21 microns - and scored a near perfect 100 with 99 points in total. The fleece measured 19.6 micron, with a clean weight of 4.6 Kgs and a greasy weight of 6.25 Kgs. The fleece yield was 75 percent and the fleece was valued at $49.91.

The standard of competition was high despite the lower than usual entries – 76 in total compared to 117 last year and 127 the year before, and a new section – Highest Commercial Value fleece – was introduced. With the assistance of sponsorship support from NZ Wool Services International Ltd, RAW Elliot & Sons won the fine wool section Highest Value Commercial Fleece $112.20 and Edith Cromie won the strong wool Highest Value Commercial Fleece $25.32.

The Golden Fleece competition began in 1969 and encourages and recognises excellence in agriculture. Both the fine wool and strong wool winners will receive the Royal Agricultural Society’s prestigious Gold Medal and $500, courtesy of Ravensdown Fertiliser.

The 2003 Golden Fleece Competition fleeces will be on display at a special ‘Nutrition of Youngstock Seminar’ being hosted by Mayfield and Methven A&P Associations at the Chancellor Resort, Methven on 10 June, where the 2003 winners will also be announced.

Roger James
National Convenor

THE NATIONAL BANK EWE HOGGET COMPETITION 2001

Mark and Ann Loye’s Romney ewe hogget flock won the top prize in the 2002 National Bank Ewe Hogget Competition, earning the Loye’s an $8,000 travel prize and the Royal Agricultural Society’s prestigious Gold Medal.

The Loye’s manage two properties near Hastings – 600 hectares of rolling to steep hill country and 210 hectares of flat land. Both are breeding and finishing properties for sheep and cattle, with stock numbers comprising some 5,400 sheep and 762 cattle. The main Romney flock is farmed on the hill country, with a Romney/Suffolk flock on the flat.

The judging for the 2003 competition has just been completed. Following local and regional competitions held during April, five days of judging from Wairoa to Winton saw eighteen flocks judged. The winners of the seven breed categories are:

This year’s Judges were Mr William Mitchell, representing the Royal Agricultural Society, Mr David Eckhoff, Ravensdown and Mr Andrew Kirk, 2001 winner and farmer near Whakatane. The national competition awards points for flock performance, trueness to breed type, breeding and selection objectives plus wool quality and consistency.

The overall quality of the flocks was extremely high this year making the competition very tough on the judges. Judges saw some excellent flock performance figures, with very high lambing percentages and weaning weights, but in some flocks the quality of the wool had slipped. The introduction of a new section for composite breeds (three or more crosses) this year put the total number of entries to over 300 which was very good considering the farming conditions in some parts of the county this year.

We were fortunate this year to retain the competition sponsors and we thank them for their contribution -

THE NATIONAL BANK
ALLIANCE GROUP
COUNTRY-WIDE
IVOMEC &
RAVENSDOWN FERTILISER

The National Bank has been a great working partner for the Society and it is with sadness that we learned that The National Bank would not be renewing their sponsorship of the competition after the field day at the winners’ property this year. We thank them for their support in the past and wish them well with their future sponsorship arrangements.

The organising committee is currently seeking a suitable major sponsor and we hope that we will be able to announce that we have a new major sponsor in place in the near future.

A reminder to A&P Associations that hold ewe flock competitions – the top flock in each section is eligible to come through to the next stage of the competition.

Lastly, a big thank you to all of the volunteers, judges and the various breed societies who take part in this competition. I also make special mention of regional convenors – North Island, David Sherriff; top of the South Island, Ian Stevenson (with assistance from Bob Anderson this year); and Mid Canterbury, Charles Ruddenklau - thank you for the time, effort and personal expense I know you all contribute to this event. Thanks also to Chris Mason who organises travel, prepares information packs for the judges, liaises with finalists, writes news releases and does numerous other things to help ensure this competition is run as professionally as possible.

George Fletcher
National Convenor

The National Bank Ewe Hogget Competition is held in association with:

UNITED BREEDS SOCIETY

During the year the United Breed Society continued to represent the interests of its breed members on the Animal Biosecurity Consultative Committee. However, the number of meetings has been reduced and there seems to be less of an emphasis on this committee than has been the case in the past.

During the year the Executive of the RAS reviewed the way that its conference and voting was structured and in an endeavour to re-distribute the decision making processes of its members, at conference this year only the official breed society delegates will be able to vote at the respective breed meetings. It is hoped that this change will shift the emphasis away from wholly A&P business to specific breed related business. It is intended that breed related issues only will come through to the UBS meeting. I urge all breed societies to try to send delegates to these meetings. Remember, this is the one chance we have collectively to talk about issues specific to our industries.

Following conference last year the UBS and RAS offered its support to the campaign being staged by Universities and other relevant organisations related to the reduction in primary sector research funding and the lack of incentives for interested and qualified persons to join or stay in these important fields. We joined the many organisations – such as Federated Farmers – calling for the resurrection of the national level of investment in research, education and technology transfer in this vitally important sector. While progress is slow, indications are that the voices of concern have been heard and Government is looking to channel sufficient funding into these areas in the future for the long-term betterment of all New Zealanders.

Also as a result of conference last year, a national judges certificate course for the interbreed beef section has been piloted recently and we look forward to being able to offer this programme for all senior beef breed judges wishing to become recognized RAS National Interbreed Beef Judges. Thanks to Auckland A&P and the Royal Easter Show for hosting this event and Bob Tilsley and Roger James for setting in place a system for allowing this training to occur.

A number of matters are referred to the respective Breed Committee Chairmen during the year and I thank John Robins, Beef Breeds; Merv Livingstone, Dairy Breeds; John Grigg, Horse Stewards Council and George Fletcher, Sheep Breeds; for their work and support.

William Mitchell
Chairman

The Royal Agricultural Society would like to acknowledge its CORPORATE MEMBERS:

ALLFLEX NZ LTD
ALLIANCE GROUP LTD
FARMLANDS TRADING SOC
FMG
NOVARTIS NZ LTD
NUTRITECH INTERNATIONAL LTD
NZ PORK INDUSTRY BOARD
PRIMARY PRODUCERS CO-OP SOC
PYNE GOULD GUINNESS
RAVENSDOWN FERTILISER LTD
WILLIAMS & KETTLE

and SPONSORS and asks all members to support these organisations with their custom whenever possible

FMG
MERIAL/IVOMEC
RAVENSDOWN FERTILISER CO-OP LTD
THE NATIONAL BANK

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:

COUNTRY-WIDE
FREEMASONS

THE ROYAL AGRICULTURAL SOCIETY OF NEW ZEALAND

STATEMENT OF FINANCIAL PERFORMANCE - FOR THE YEAR ENDED 31 MARCH 2003

THE ROYAL AGRICULTURAL SOCIETY OF NEW ZEALAND

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2003

THE Royal Agricultural Society OF NEW ZEALAND

Notes to the Financial StaTements

For the year ended 31 March 2003

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 the lower of cost, determined on a first in first out basis, and market value.

Accounts Receivable

Accounts Receivable are valued at expected realisable value.

Investments

Investments are recorded at market value. Investment income other than dividend income is recognised on an accrual basis which in the current year has resulted in a one time increase in income of $3,381.97.

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

All accounting policies have been applied on bases consistent with those used in previous years except that certain administration expenses have been allocated against those activities they relate to. Comparative figures have not been restated. This change has had the effect of reducing both the income from activities and the administration expenses by $39,426 in the current year but has no effect on the Net Profit as reported.

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. (2002 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 year. The Society obtained an independent valuation of trophies from McLeay Jewellers (March 2003).

Note 6 – INVESTMENTS

THE ROYAL AGRICULTURAL SOCIETY OF NEW ZEALAND

STATEMENT OF MOVEMENTS IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2003

ADDITIONAL INFORMATION

Investment Summary

* Distributions received on this investment are net of Australian withholding tax. For the year ended 31 March 2003 , the sum of $A493 was deducted at source and is considered uneconomic to recover.

Additional Expenditure Notes:

General: Key expenditure includes:

Entertaining $-, Equestrian related $-, Freight/Courier $-, Hire/Venue $1,199, Manufacture Medals -$377, Ribbons $-, Subscriptions to publications $362, Sundry expenses $189.

Communications: Key expenditure includes:

Telephone and tolls $2,080, Advertising $-, Postage $984, Maintaining Website $477.

The 2003 Annual Report is located here

The 2002 Annual Report is located here

The 2001 Annual Report is located here

The 2000 Annual Report is located here

The 1999 Annual Report is located here