Apple Fields loses its chairman to NZI Bank

Press, 20 December 1988, Page 25

Apple Fields loses its chairman to NZI Bank

The troubled NZI Bank has cost Apple Fields, the listed Christ-church-based orchardist, its chairman.

The Apple Fields’ chairman, Mr Don Clark, was appointed to succeed Mr R. B. Clarke, as executive of NZI Bank, in October, after the bank cost its parent, NZI Corporation, a loss of $140.5M and a further S34M in write-offs. Mr Clark told the Apple Fields shareholders at yesterday’s annual meeting that his appointment as executive director of NZI Bank was a full-time one and that this had required him to withdraw from most of his commercial involvements.

“I regret, therefore, that early in the New Year I will be resigning as a director and your chairman of Apple Fields.”

The benefit of the move into dairy farming would not be felt by the company until the next financial year, he said.

World markets for dairy products were strong, and were expected to remain so for some time. The company believed the future of dairy farming was encouraging.

The most economic units were in the South Island, and therefore, buying had been concentrated in North Otago and Canterbury.

Apple Fields has acquired 1634 ha of dairy country and expected to milk more than 3500 cows next year.

The executive director, Mr Tom Kain, said he believed that the future of the dairy industry was particularly strong. Because of deregulation overseas, the company believed that the future of the New Zealand dairy industry, as the most efficient in the world, was good. This was in spite of recent hiccups, such as the talks of “Fortress Europe,” and the failure of the General Agreement on Tariffs and Trade negotiations on agriculture. The management structure of the dairy units would be on a similar basis to that of the apple orchards. There was no intention to acquire dairy farms in other top dairying areas, such as Taranaki or Waikato, he said.

Mr Clark said Apple Fields now owned, managed, or had in joint venture, more than 620 ha of planted orchards. Joint venture

partners now included individuals, professionals, merchant banks, and leading commercial companies, indicating wide acceptance and approval of the company’s developments.

The developments would provide a great impetus for Christchurch and Canterbury, leading to employment and commercial development. During the picking season more than 1000 people would be employed. At maturity, the planted area surrounding Christchurch would become one of the three main appleproducing areas in New Zealand, he said.

Mr Clark admitted that Apple Fields high profile over its attitude to marketing by the Apple and Pear Marketing Board and to the transferable carton certificates (TCCs) proposed by the board, were controversial.

Although the company had been subject to criticism, misinformation, and attack, and its motives questioned on its stands, the efforts had brought greater responsiveness from the Apple and Pear Marketing Board to market signals and grower requirements.