It was once a $125 million mega dairy operation, but it later collapsed owing millions.

Five years ago the purchase of a portfolio of several farms totalling 3500 hectares across both islands was announced with much fanfare.

“Combined, the farms milk 10,000 cows and produce more than four million kilograms of milk per year, making Waitonui Milltrust Agricultural Holdings (WMAH) one of the largest suppliers to Fonterra, the top dairy processor in New Zealand,” the press release from the international asset management company said.

The statement went further, noting the “carefully curated and diversified portfolio of cash-flow positive and environmentally responsible farms”.

Two of the North Otago farms have since sold.
KELLY HODEL/WAIKATO TIMES

But all four entities connected to that $125m dairy operation, known as the Waitonui Group, went into liquidation late last month by order of the High Court upon an application from Inland Revenue.

Two of those entities managed and operated dairy farming operations in Taupō and Oamaru, while the other two were involved the holding of assets of those entities.

The court heard that group the Waitonui Group owed $36.5m to BNZ, and was the remaining amount outstanding from a much larger debt of $63m which fell due in May 2022.

Following repayments of some of the debt and a farm debt mediation agreement in October 2022, the Waitonui Group failed to repay the remaining debts.

BNZ demanded repayment of the amount outstanding, which on April 15 was $33.4m, with receivers appointed the same day.

But prior to the hearing of the liquidation application, the company’s lawyers filed a certificate of unpaid debt, which certified that a sum of at least $12,268,881.57 remaining unpaid. That reduced sum comes after further recoveries in the receivership.

At least two North Otago properties the 550ha Burnside Dairy Farm and the 598ha Enfield farm have sold in recent months.

The judge in an August 28 decision noted that a liquidation order would protect or preserve the assets of the company, and that the receivers considered it necessary and appropriate to appoint liquidators over each of the Waitonui Group entities.

An affidavit was served on the two directors of the general partners on June 18, but neither director appeared at the hearing.

The appointment of the receivers “gives rise to a presumption that the companies are unable to pay their debts”, Judge Rachel Sussock noted.

She was satisfied that liquidators be appointed.

The group’s cashflow was impacted by farm cost inflation according to an initial receiver’s report.

After the appointment of that receiver, the Milltrust International Group issued a statement “to clarify its current and historical relationship with Waitonui”.

That included exiting the New Zealand operation in November 2021.

“This strategic move was part of our broader initiative to refocus our investment portfolio and enhance our commitment to sustainable prosperity worldwide.”

While the group retained the Milltrust name, the management and control of those entities were entirely transferred to new ownership post the 2021 transaction.

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