5.0 TAUPO DISTRICT OVERVIEW

Information provided in this section is based in part on the report "Taupo District Council Rural Sector Review" prepared by KPMG in December 1996. Copies of this report are available from Taupo District Council. The report provides an overview of the Taupo District. Key points from this report are presented here along with some information gathered during the course of research for this study.

5.1 Demographics

The rural area of Taupo District where dairy conversions have been undertaken is covered by three 1996 Census Area Units. The areas are shown on Figure 5-1 and are,

- Marotiri, CAU 78
- Oruanui, CAU 79
- Kuratau, CAU 80

The 1986, 1991 and 1996 Census data on total populations (all that is currently available for 1996) are set out below.

Table 5.1.1: Historical Total Population Census Data

CAU Usually Resident Pop 1986 Total Occupied Dwellings Usually Resident Pop 1991 Total Occupied Dwellings Usually Resident Pop 1996 Total Occupied Dwellings
Marotiri 1484 414 1371 422 1307 417
HH Occ.*
3.6
3.2
3.1
Oruanui 1340 441 1474 530 1789 663
HH Occ.
3.0
2.8
2.7
Kuratau 380 114 363 133 363 138
HH Occ.
3.3
2.7
2.6
Taupo District 26974 8934 27979 9956 30691 11036
HH Occ
3.0
2.8
2.8

(*) Household Occupancy Rate

From this Census data it can be seen that;

- The usually resident population has declined slightly in the last 10 years in the Marotiri and Kuratau areas.
- The number of occupied dwellings has increased by 24 (or 21%) in the Kuratau area. Given the slight decrease in population, this has resulted in a lowering of the household occupancy rate.
- A population increase of 315 (or 21%) in the Oruanui area over the last five years. Total occupied dwellings have also increased indicating new settlement in the area. Despite this, the household occupancy rate is declining.
- With respect to Taupo District overall, the population has increased 9.7% since the 1991 Census while the household occupancy rate has declined.

Taupo District Map

(click for full picture)

Overall, if there are dairy conversions being undertaken in these areas, they have not raised populations in two of the three areas. In all three areas, the household occupancy rate is declining, suggesting fewer children in the areas.

Other demographic data for the three CAU’s from the 1991 Census is set out below.

As 1996 data is not yet available, no comment is made. However that data is expected to be available in the second half of 1997, and an update of these tables at that time would enable some picture to be gained on this data.

Table 5.1.2 : Income: 1991 Census

CAU

Marotiri (N=939)

Oruanui (N=1011)

Kuratau (N=261)

Taupo District (N=20813)

Income # % # % # % # %
$0-$10,000 333 36 393 39 99 38 7874 38
$10,001-$20,000 237 25 285 28 78 30 5751 28
$20,001-$40,000 237 25 288 28 60 23 5505 26
$40,001-$50.000 45 5 48 5 9 3 912 4
$50,001 + 42 5 42 4 0 0 771 4

Lower income levels are reasonably consistent throughout the three areas and Taupo District as a whole. However, the Kuratau CAU has a lower percentage than the other areas of people with incomes above $40,000.

Table 5.1.3 : Age: 1991 Census

CAU

Marotiri (N=939)

Oruanui (N=1011)

Kuratau (N=261)

Taupo District (N=20813)

Age

#

%

#

%

#

%

#

%

0 - 5

150

11

153

10

33

8

2610

9

5 - 14

339

24

234

16

105

27

4755

16

15 - 19

114

8

108

7

18

5

2322

8

20 - 29

183

13

204

14

51

13

4509

15

30 - 39

258

18

270

18

66

17

4521

15

40 - 59

312

22

351

24

96

24

6336

22

60 +

75

5

165

11

27

7

4242

14

The three areas are similar with respect to age groups, except for fewer 5-14 year olds in Oruanui and Taupo District and greater numbers over 60 in those areas. Given that the total population has increased in the Oruanui CAU between 1991 and 1996, the age breakdown from the 1996 Census is key to understanding whether more families and more children in the 5-14 age group are now in the area.

Table 5.1.4: Major Ethnic Groups - 1991 Census

CAU

Marotiri (N=1428)

Oruanui (N=1488)

Kuratau (N=396)

Taupo District (N=29298)

Ethnicity

#

%

#

%

#

%

#

%

European

1140

80

1191

80

228

56

20166

71

NZ Maori

177

12

195

13

120

30

6645

23

European & NZ Maori

99

7

63

4

27

7

1464

6

Marotiri and Oruanui areas have similar ethnicity profiles. The Kuratau area has a significantly increased percentage of Maori population with a consequential drop in the level of European population. Taupo District overall sits between the rural areas, on ethnicity issues.

5.2 Employment

Key statistical figures on employment in the Taupo District are presented in table 5.2. (a).

Table 5.2.(a): Taupo District Employment Statistics

Total
Total Workforce 13,335
Unemployed 1,305
Agricultural Workers
Farm Owners 600
Farm Workers (full-time) 440
Agricultural Servicing 250

Notes:

  1. Statistics for agricultural workers as at 26th February 1995
  2. Total unemployed ex Department of Labour, Taupo, June 1997
  3. Agricultural Servicing figures are estimated, based on proportion of a larger grouping in 1991 census
  4. Total workforce statistics are ex 1991 census

Accurate figures on the number and type of agricultural contractors in the district are not available. On the basis of discussion with farmers and stock and station agents, estimates have been made as detailed in table 5.2 (b).

Table 5.2.(b): Agricultural Contractors
Type Number (estimated)
Fencing 6-8
Hay/Silage making 5-7
Fertiliser - ground
               - air 		3-4
2
Tracks/Races, earthmoving 4-5
Shearing 10-15

Refer also to sections 6.2.4 and 7.2.4 for commentary on contractors

5.3 Physical Geography

KPMG in their report stated, "The natural and physical environment is strongly centred around Lake Taupo in particular the Lake Taupo Basin which encompasses all of the land and water courses which ultimately drain into the Lake. The Taupo Basin is within an area known as the Central Volcanic Zone. The soil pattern of the basin is dominated by the distribution of pumiceous material from the volcanic eruptions in the area over the past twenty million years.

The region is part of the countryside known as the Volcanic Plateau, a broad expanse of volcanic rocks and ash which stretches north-eastwards from Lake Taupo to the Bay of Plenty. In addition to Lake Taupo, there are a number of other smaller lakes, for example, Rotoaira and Rotopounamu in the southwest and the sulphurous Lake Rotokawa in the north. Like Lake Taupo they were all formed by past volcanic upheavals.

About 40 streams and rivers flow into Lake Taupo. Most of the river tributaries are on the eastern side of Lake Taupo. The main ones are the Tongariro, the Waitahanui, the Hinemaiaia or Hatepe, Tauranga-Taupo, Waimarino and Waiotaka.

Farmland, scrub, bush and pine forest slope away from the Lake to the ranges of the Kaimanawas in the east and the Hauhungaroas in the west. Three major mountains dominate the landscape from the south of the Lake namely Ruapehu (2,797 metres), Ngaruahoe (2,291 metres) and Tongariro (1,986 metres), as well as Mt Tauhara to the north.

The geology of this part of the country is inextricably tied to the history of volcanic activity in the area. The lake and surrounding area were formed in a series of eruptions over hundreds of thousands of years. As a result of these eruptions the geology of the area is exceedingly complex. The surface landscape and the underground water tables, which frequently can be in three to four different layers, often bear no relationship between one another because of complex faulting and previous volcanic eruptions.

The pumice soils of the Lake Taupo catchment lack many nutrients and essential trace elements notably magnesium, potassium, cobalt and selenium. Regular applications of phosphatic fertilisers are required to maintain pasture growth while careful farm management is needed to prevent herbicide and nutrient run-off.

The pumice soils of the basin are also susceptible to erosion. This is due to their low density, low clay content and consequently weak cohesion of the mineral particles. When vegetation is removed from pumice soils, a rapid increase in the rate of erosion can occur. Cultivation, heavy grazing, compaction by stock, roading and disturbance of top soils during planting and logging can expose pumice soils to high intensity rain which can lead to severe soil erosion and subsequently de-stabilisation of the beds, streams and rivers."

Undoubtedly, Lake Taupo is the main feature of the district with a very high visual and conservational value. The lake is one of New Zealand’s clearest with in excess of 15 metres of visibility. The high clarity, size, and attractive blue colour make it a significant landscape feature, and of major conservation value. It currently has low levels of plant nutrients which limit algal growth. If these were to increase the water’s clarity is likely to reduce and it’s colour could change to green.

Lake Taupo and it’s tributaries are a significant trout fishery.

The Lake Taupo Catchment Control Scheme (LTCCS) was initiated in the mid 1970’s by the Waikato Valley Authority (a predecessor of Environment Waikato) to provide water and soil protection to land under pastoral use in the Lake Taupo Catchment. The LTCCS was phased down in 1989 at the time local government reform occurred, and is now in a low maintenance stage. This scheme has previously been responsible for, and has had a significant influence on, sustainable land management practices and improvements in the water quality of the whole Lake Taupo Basin. Significant areas of farmland were purchased by the Crown through the Lake Shore Reserves Scheme (LSRS). Areas of farmland, sides of gullies and water courses draining into the Lake were planted in forestry, or retired from farming to protect the lake.

These schemes are currently under review by Environment Waikato.

KPMG note the scheme cost to 1989 was $11 million. Achievements include 860 kilometres of conservation fencing, 4,360 hectares retired from grazing and 1370 hectares of land in conservation plantings.

5.4 Land Use

5.4.1 Farm Type

Accurately determining current land use in the Taupo District is difficult due to the most recent 1995 Agricultural Statistics having almost all data suppressed because or poor quality. Data for 1991 and 1994 is more complete than for 1995. For this reason table 5.4.1(a) includes 1991 and 1994 data only.

Table 5.4.1(a): Land Use Statistics for Taupo District Compared to Total New Zealand

1991 1994 % of National
Total in 1994
Number of Farms 578 532 0.08%
Grassland, arable, fallow (ha) 130,559 140,169 0.01%
Horticulture (ha) 63 60 0.00%
Plantations (ha) 113,275 207,302 13.93%
Other Land (ha) 88,938 82,297 5.56%
Total Land (ha) 332,835 429,827 2.59%

Note: 1. Total land change can not be explained

2. Statistics do not include conservation estate

Table 5.4.1(a) highlights that with the exception of plantations and other land, land use for purposes such as pastoral farming is insignificant from a national perspective.

Using the 1994 statistics as the basis for analysis, land use in the district is split as follows.

  • 33% grassland
  • 48% plantations
  • 19% other land

Key land uses are detailed in figure 5.4.1.

KPMG reported that Taupo District holds the largest forestry resource for any district in New Zealand with 14% of total plantation forests in New Zealand. The next largest district is Whakatane at 8%. In April 1995 there were 192,977 hectares of forest in the Taupo District of which 170,000 hectares were radiata pine. The balance is made up of Douglas Fir and Eucalypts. Forestry land use will continue to dominate land use statistics with steady growth predicted in response to increasing investments made in the district into processing facilities. Increased areas will be driven as much by farmers planting moderate areas as by large forestry corporations. No accurate estimates have been made as to likely growth. However, a strong likelihood exists that the recent rate of planting of over 30,000 ha per year will decrease.

Key pastoral and dairying farming statistics as reported in Agricultural Statistics are detailed in table 5.4.1 (b).

Table 5.4.1 (b): Sheep, beef and dairy statistics

1991 1994 1995 % of National Total in 1995
Dairy cow and heifers in milk or in calf 15,766 18,284 17,170 <1%
Total dairy cattle 21,751 28,616 31,328 <1%
Total beef cattle 76,591 99,240 100,049 2.0%
Total deer 27,066 31,883 27,087 2.2%
Breeding ewes 536,837 510,274 525,526 1.6%
Total Sheep 780,854 709,815 727,324 1.5%

Figures in table 5.4.1 (b) indicate a substantial rise in dairy cattle and in beef cattle. Deer numbers rose by 18% from 1991 to 1994 but fell by the same amount from 1994 to 1995 probably in response to depressed prices that year.

Total sheep and lambs tailed have dropped by 7% each over the period 1991 to 1995.

The total rise in stock units over four years is significant at over 9%, due to increased land use for beef and dairy farming.

Numbers of dairy farms are not accurately reported by Agricultural Statistics. However total farms and number of sheep farms are reported. Total farms in 1995 were 530 and farms with sheep were 271. Agriculture New Zealand have calculated the total number of dairy farms in the Taupo District as 102 based on a combination of NZDG supplier ward maps and Livestock Improvement Corporation figures.

Taupo Land Use
(click for full picture)

The rate of dairy conversions is discussed in section 5.4.3. Conversion rates are likely to decrease. The sheep and beef cattle numbers are likely to continue to decline steadily over the next three to five years as returns from these sectors remain depressed. Some substitution of beef cattle by dairy heifers grazed on farms in reasonably close proximity to dairy farms will occur. This will free up capital stock and improve seasonal cash flow on beef farms.

5.4.2 Distinctive Features of Farming in Taupo District

Farmland in the Central Volcanic Plateau was among the last farmland broken in for large scale farming. This late development has been attributed to factors such as cobalt deficiency and poor access to the coast. Forestry establishment on the Central Plateau was to some extent due to it’s rejection for farming.

The development of good transport networks, application of fertiliser and improved animal health practices have enabled farms on the Central Plateau to achieve production almost comparable to prime areas such as Waikato and Taranaki. Trace element deficiencies such as cobalt and selenium are readily overcome through the incorporation of trace elements either in lime and other fertilisers applied or through drenching cattle. While still having some importance they are no longer considered to limit land use for pastoral farming.

Initial development centred on sheep and beef farming systems, although the Kinloch to Tihoi area was originally settled as dairy farms in the late 1950’s to early 1960’s. Due to difficulties faced with ragwort control and low profitability, this area reverted to predominantly sheep and beef farming from the early 1970’s through to the late 1980’s.

Farm forestry has been a popular alternative to sheep and beef farming since the removal of farm subsidies in the early 1980’s. Steep land, often erosion prone, and largely uneconomic to farm has been planted in forestry, predominantly radiata pine. Many farms in the district now have significant plantings of forestry. Most plantings were associated with periods of high demand for timber and subsequent strong prices.

The continued decline in sheep and beef returns in the 1990’s, and parallel relatively strong performance of the dairy industry has seen renewed interest in converting farms from sheep and beef to dairy farming.

The free draining pumice soils present some particular difficulties for pastoral farming systems. These include the potential for high levels of leaching of fertilisers and dairy shed effluent to groundwater systems and the potential for erosion where the soil surface is broken. These issues are addressed further in sections 8.3.2 to 8.3.6.

Climatic conditions peculiar to the district are very cold winters and relatively wet summers. Average temperatures through winter are 9.50 C in May, 70 C in June, 60 C in July, 70 C in August and 9.50 C in September. These very low temperatures mean pasture growth rates are low. This can necessitate grazing off farms during winter or providing additional feed during this period.

Mean annual rainfall in Taupo is approximately 1200mm. This is spread relatively evenly throughout the year with 80-110mm per month typical except for March which on average has only 60mm of rainfall. Even rainfall levels ensure relatively good pasture growth continues throughout the summer. This is countered by the free draining nature of the soils which means the ability to store soil moisture is reduced compared to volcanic loams and clays.

5.4.3 Dairy Conversions

In the early 1990s dairy farming in the district was located almost exclusively in the Mangakino, Tirohanga, Whakamaru area in the north of Taupo District. The decision by the New Zealand Dairy Group (NZDG) to construct a large processing facility at Lichfield between Tokoroa and Putaruru meant that dairy farms in the Taupo District were no longer located long distances from processing plants.

Dairy conversions have increased dramatically. Figures obtained from the NZDG indicate the following numbers of conversions in the Taupo District.

Table 5.4.3: Dairy Conversions in Taupo District

Year

Number of Conversions
1991 1
1992 4
1993 4
1994 5
1995 6
1996 15
Total 1991-1996 35

These figures show an increasing rate of conversions particularly in 1996 with the commissioning of the Lichfield processing plant, and in response to good dairy payouts over the 1993 to 1995 period. Some of the increased level of conversions in 1996 may also have been attributable to farmers wishing to join the NZDG prior to the introduction of capital share issues at the end of that season. This would have saved significant capital costs.

The estimated number of dairy farms has grown from 67 in 1991, to 102 in 1996. Recent conversions have included some very large conversions with one estimated at 1800 milking cows and several at 1100-1400 cows. Total milking cow numbers in 1996-1997 season are estimated to be in excess of 32,000.

The main area of conversion activity has been in the Whakamaru - Tihoi area. Other areas with some activity include the Oruanui area (SH1 north of Taupo), Rangitikei (Napier - Taupo Road) and Western Bays area. The changes in land use are detailed in the maps in figure 5.4.3.

The rate of dairy farm conversions has dropped dramatically this season (1996/97) with only three expected to start supply in spring 1997. This rate slow down is attributed largely to the introduction of the $2 per kilogram of milksolids share buy-in requirement introduced by the NZDG. The share buy in has been introduced to ensure new suppliers contribute to capital previously spent by NZDG on improving processing facilities.


(click for full picture)

The current less optimistic outlook for the dairy industry has also slowed down interest. Any improvement in beef and wool prices would also have an impact. There are however a few substantial properties considering conversions which could result in total cow numbers in the district reaching 45,200 to 50,000 by the year 2000 if they were to proceed. In the absence of any significant improvement in the meat and wool sectors conversions to dairying are likely to continue at 4-6 per annum in the district.

Bovine Turberculosis in cattle has been an issue in the past. Prior to converting to dairy farming, farmers must obtain a property clearance from the Ministry of Agriculture (MAF) veterinarians. MAF assess the properties for the NZDG highlighting proximity to sources of infection, property history of Tb, work being done by the farmer and Environment Waikato on controlling possible vectors eg possums. To date all requests for Tb clearance have fallen into the low to medium risk category, with no properties rejected for conversion on the basis of Tb. Farmers must also set up a pest management programme and trap or shoot possums regularly.

The NZDG has a computer spreadsheet programme which it uses to decide whether to collect milk or extend its collection run to new dairy farms. Exact details on selection criteria were not provided as these are confidential to the NZDG. Criteria considered have various weightings. Criteria include distance from nearest current supplier, likely milk production, cow numbers, road surface (gravel and tar seal) and depreciation on the milk vat. If the outcome of these factors on their computer programme are positive the new supplier is almost invariably accepted.

5.4.4 Rural Land Values

Rural land sale values over the period from 1990 to 1996 are detailed in table 5.4.4.

Table 5.4.4: Rural Land Sales Taupo District 1990-1996
Pastoral Land Dairy Land
Year Sales $/ha Sales $/ha
1990 12 $1,919 0 N/A
1991 4 $1,501 3 $5,001
1992 19 $2,824 1 $4,322
1993 23 $2,526 9 $7,574
1994 15 $3,861 5 $12,628
1995 7 $5,417 3 $11,266
1996 14 $5,223 5 $10,627

Note: 1996 Data for first three quarterly periods only.

These figures highlight the substantial growth in land values in the district associated with the demand for dairy land. Not only have dairy land sale prices doubled over a very short period but fattening land prices have also more than doubled. This is probably due to their perceived potential for conversion to dairy farming. Key factors driving the substantial increase from 1993 onwards were the strong dairy payouts and positive outlook for the industry. Significant capital gains have been made by both pastoral and dairy farmers over the last six years. Land values have more than trebled for pastoral farmers and doubled for dairy farmers. This has considerably improved the equity position of farmers in the district.

5.5 Economic Activity

Economic activity in the area centres around four key industries.

  1. Tourism
  2. Forestry
  3. Pastoral farming (largely dairy and sheep and beef)
  4. Electricity generation (geothermal and hydro)

Tourism in the Taupo District revolves around two key geographic features namely Lake Taupo and the mountains of the Central Volcanic Plateau.

Lake Taupo is known for its clear, clean water, trout fishing and recreational use during summer months. The Lake makes up approximately 10% of the total area of Taupo District being 616 square kilometres in area. Total Taupo District area is 6,970 square kilometres or 697,000 hectares. KPMG in their report stated the following, "The dominant feature of the Taupo Basin is Like Taupo. It is the largest lake in New Zealand and is of international, national, regional and local significance. Water quality within the Lake and particularly in the open water area, is very high. Preservation of this water quality is the most significant resource management issue for the district." The authors of this report endorse this commentary.

As previously reported, Taupo District holds New Zealand’s largest forestry resource. Taupo has several saw mills, timber treatment plants and one panel board mill. The mill is operated by Fletcher Wood Panels Limited.

Determining the economic value and production for forestry in isolation from the rest of the Central North Island is difficult. KPMG estimated that, "Theoretically, Taupo could sustain production of over 3,000,000 cubic metres per year. The intensive tending of the forest in the Taupo District to produce high quality clear wood, has been carried out on a larger proportion of the forest than anywhere else in New Zealand. Therefore the likelihood is for more saw milling rather than a large pulp mill being established."

Pastoral farming, while developing later than most of New Zealand, is now a significant land use in the district occupying 33% of productive land and 20% of the total area of the District. The access to good farm servicing industries and community facilities will ensure that the pastoral sector continues to contribute to the local economy.

Electricity generation has a significant presence in the Taupo District. This includes hydro electric facilities at Turangi and along the Waikato River, plus geothermal power generation in the Wairakei area.

5.6 District Infrastructure

5.6.1 Roads

Taupo District has a roading pattern and roading standard which reflects the topography of the area its geology, and the density of settlement. The majority of roads (500 km) are sealed. 150 km of roads are unsealed. Residents of the rural area who were surveyed for this report were generally of the opinion that the existing standard of the sealed roads is good but that the unsealed roads are not of a high standard and should be improved. In a few cases mention was made of the fact that milk tankers wear out the road and also have problems on the steep sections of the unsealed roads.

Taupo District Council operates a policy of upgrading and maintaining roads.

The aim is to seal an average of 10 km every year. In recent times however the actual length of roads which have been sealed has varied from 8 km to 28 km. Because of the geological nature of the country (mainly pumice) and the lack of a convenient supply of good roading metal, unsealed roads are subject to erosion and deterioration. However, the pumice provides a good base for seal.

For this reason, and also for reasons of cost, the roads which are sealed by Taupo District Council are not designed for prolonged use by heavy vehicles. The roads are in fact adequate for sheep/beef farming but Council officers anticipate that, if conversions to dairy farming continue, the standard of seal now being applied will be inadequate for continual use by milk tankers, and that maintenance problems will increase. No quantitative data is available on this matter however.

Also, Council officers consider that milk tanker turning movements into driveways will result in deterioration of the pavement edges unless farmers seal the entrances to their driveways.

Bridges in Taupo District are considered by Council officers to be adequate for either sheep/cattle or dairy farming. Also, the geometry of the roads is considered to be adequate except in relatively few local situations.

5.6.2 Electricity

Electricity is provided throughout Taupo District by the following three electricity supply companies:

  • Trustpower
  • King Country Energy
  • Waitomo Energy Services

Boundaries for these supply companies are detailed on figure 5.2. Three phase electricity is available at present in some rural areas - particularly in the north of Taupo District. On the western side of Lake Taupo two phase power is more generally provided, although there are individual properties where three phase is supplied. Two phase electricity is adequate for sheep/cattle farming but three phase is required for dairy farming. All the electricity supply companies confirm that there is no technical difficulty in providing three phase electricity but there are some legal questions which need to be resolved including easements and questions of who pays for the upgrade. The cost of upgrading to three phase will depend on a number of factors including distance from the road and the number of properties involved. The means of upgrading, and the cost, will vary from farm to farm. There is no "typical" cost.

In the King Country Energy area, for example, which is the area to the west of Lake Taupo, three phase power will be provided where two or more adjoining property owners request it.

5.6.3 Commercial Centres

The District is served mainly from Taupo, but Rotorua and Tokoroa are also visited by some people for some purchases. Vehicles and other major purchases may be bought from more distant centres such as Hamilton. Turangi is a significant centre in the south of the district. Other small centres provide little more than petrol sales, mechanical repairs and associated convenience shopping items.

5.6.4 Water Supply

Taupo District Council currently has four rural water schemes at Tirohanga, Kinlock, Mapara Road (above Acacia Bay) and Waihora (Western Bays). None of these schemes are in current dairy farmer areas and if they were their capacity to supply extra water would be limited.

The average sheep/beef farm requires 12-14,000 litres per day. About 50% of sheep/beef farms take groundwater. The other 50% take surface water from streams or rivers. Dairy farms require approximately 7 times as much water i.e. 84-98,000 litres per day. The majority of these dairy farms use ground water sources.

5.6.5 Other Services

  • The whole District is served by the Telecom network.
  • There are no communal waste water treatment facilities provided by the District Council in the rural area.
  • Gas is generally not available in the rural areas.
  • A rural mail service is available in the rural area.
  • Business services, including accountants, lawyers, banks, surveyors, farm advisory services are available at the larger centres such as Taupo, Turangi (in part), Tokoroa, and Rotorua.
  • Personal services, retailing, food and clothing is available in the larger centres such as Taupo, Tokoroa, Turangi and Rotorua.
  • Although the full range of mechanical services is available only in Taupo, Rotorua, Tokoroa and (in part) Turangi, there are a number of local garages and workshops which provide a service in the local area.
  • The NZ Dairy Group operates processing plants at Reporoa and Lichfield. These plants have capacity to accommodate the anticipated growth in the number of contributing dairy units.
  • Equipment such as tractors, fertilisers and other bulk items for use in the farming operation are available from Taupo, Tokoroa, and Rotorua.

5.6.6 Stock Sales

Saleyards are located in Taupo but sales through this facility are seasonal rather than regular e.g. weaner sales, lamb sales.

Regular weekly sales are held at Ngongotaha in Rotorua. According to Wrightson in Taupo most farmers buy their dairy cattle through agents directly or sales in Taranaki and Waikato. Cull cows are generally sold directly through agents for slaughter at meat processing plants e.g. AFFCO.


(click for full picture)

5.7 Institutional Framework

5.7.1 Taupo District Council

The district is administered by the Taupo District Council from headquarters in Taupo. The Council is primarily responsible for services which include:

  • roads
  • pest control
  • dog control
  • resource management
  • social/community services
  • refuse disposal

In terms of its resource management functions, these are set out in section 31 of the Resource Management Act 1991 and include the following:

  • The establishment, implementation, and review of objectives, policies, and methods to achieve integrated management of the effects of the use, development, or protection of land and associated natural and physical resources of the district.
  • The control of any actual or potential effects of the use, development or protection of land, including for the purpose of the avoidance or mitigation of natural hazards and the prevention or mitigation of any adverse effects of the storage, use, disposal, or transportation of hazardous substances.
  • The control of subdivision of land.
  • The control of the emission of noise and the mitigation of the effects of noise
  • The control of any actual or potential effects of activities in relation to the surface of water in rivers and lakes.

5.7.2 Waikato Regional Council

The Waikato Regional Council which is more commonly known as Environment Waikato, is primarily responsible for:

  • control of noxious weeds and plants
  • water quality (including the quality of Lake Taupo)
  • air quality
  • catchment management
  • resource management

The Council operates an area office in Taupo.

The resource management functions of the Regional Council are set out in section 30 of the Resource Management Act 1991 and include the following:

  • The establishment, implementation, and review of objectives, policies, and methods to achieve integrated management of the natural and physical resources of the region.
  • The preparation of objectives and policies in relation to any actual or potential effects of the use, development, or protection of land which are regional significance.
  • The control of the use of land for the purpose of:
    • Soil conservation
    • The maintenance and enhancement of water quality
    • The maintenance of the quantity of water in water bodies
    • The avoidance or mitigation of natural hazards
    • The prevention or mitigation of any adverse effects of the storage, use, disposal or transportation of hazardous substances
  • The control of the taking, use, damming and diversion of water, and the control of the quantity level, and flow of water in any water body, including:
    • the setting of any maximum or minimum levels or flows of water
    • the control of the range, or rate of change, of levels of flows of water
    • the control of the taking or use of geothermal energy
    • The control of discharges of contaminants into or onto land, air or water and discharges of water into water.
  • In relation to any bed of a water body, the control of the introduction or planting of any plant in, on, or under that land, for the purpose of:
    • soil conservation
    • the maintenance and enhancement of the quality of water in that water body
    • the maintenance of the quantity of water in that water body
    • the avoidance or mitigation of natural hazards

The functions of the Regional Council extended to all natural and physical resources whereas the territorial function (of the District Council) is focused on the effects of activities in relation to land and water surfaces. However, this does not necessarily exclude territorial authorities from controlling any actual or potential effects of the use, development of protection of land for the purpose of soil conservation, and the maintenance and enhancement of water quality and quantity in water bodies.

5.7.3 Transit New Zealand

Transit New Zealand is responsible for State Highways. In Taupo District these include parts of State Highway 1, 5, 30, 32, 41 and 47.

5.7.4 Ngati Tuwharetoa

Iwi, and in particular, the Tuwharetoa people, hold a critical role in the future development of the district. This is because of their large land holdings as well as their guardian role in respect of Lake Taupo. Also the obligations of the Resource Management Act which require that particular regard is had to matters of interest to Maori, gives them a significant stake in the management of the resources of the District. There is no evidence to suggest that the conversion to dairying per se will have any general significance to iwi. It can be expected however that any resource consents which may be required for the discharge of dairy shed effluent may attract the attention of iwi as well as others on account of the discharges’ potential effect on water quality. On a site by site basis farm development may be of interest to iwi if it is to occur in or near waahi tapu areas or urupa. Iwi issues are addressed more fully in section 9.5.

5.7.5 Department of Conservation

The Department of Conservation holds large areas of land in the conservation estate in and around the Taupo District. Weed and pest control (especially possums) are a responsibility of the Department and the success of control programmes could impact on dairying farming. The Department of Conservation has a regional office in Turangi and a field centre in Taupo.

- Government Departments

The following government agencies have offices in Taupo.

  • Accident Compensation Commission
  • NZ Children and Young Person Service
  • Fire Service
  • Geological and Nuclear Sciences
  • NZ Employment Service
  • NZ Income Support
  • NZ Police
  • NZ Post Ltd
  • Department of Social Welfare
  • Department of Courts
  • Department of Corrections

5.7.7 Heath Care

There is a hospital in Taupo which is run by Lakeland Health Ltd which has it’s headquarters in Rotorua. The Taupo Hospital includes maternity and mental health services as well as accident and emergency services and medical and some surgical services.

5.8 Environmental Overview

5.8.1 Surface Water Quality

5.8.1.1 Lake Taupo

A great deal of information exists on the water quality of Lake Taupo. Data up to 1993 is summarised in the report "Review and Report on the Accumulated Data on Lake Taupo to 1993" (NIWA, 1994). This report includes information on the hydrology, temperature, clarity, plankton, nutrients and dissolved oxygen levels in the lake.

NIWA has produced to date, two reports as part of the Lake Taupo Long Term Monitoring Programme (1995 and 1997). These reports summarise the sampling undertaken at a deep water location within the lake during the 1994/95 and 1995/96 summers. Data for the water quality parameters of nutrient concentrations, dissolved oxygen and temperature are reported. In general water quality is regarded as very good. Further details may be found in Appendix 2.

5.8.1.2 Waikato River

The water quality of the Waikato River is monitored regularly as part of the Environment Waikato Water Quality : Waikato River Programme. The data collected involves a wide range of parameters such as level, flow, clarity, dissolved oxygen, biological oxygen demand, pH, major ions, nutrients and suspended solids. Approximately six of the sampled sites are located within the study area.

5.8.1.3 Regional Rivers and Tributaries

Water quality data for streams and rivers in the Waikato region is also collected by Environment Waikato as part of the Regional River and Stream Water Quality Programme (up to 1993) and the Regional River Monitoring Programme (from 1993 onwards). While the majority of the sampling locations fall outside the study area, the following rivers/sites within the area of interest are sampled:

  • Waipapa
  • Torepatutahi
  • Pueto
  • Mapara
  • Waitahanui
  • Hinemaiaia
  • Tauranga-Taupo
  • Tokaanu
  • Kuratau
  • Waihaha
  • Mangakino

These rivers are sampled for pH, nutrients, temperature, level, flow, clarity, dissolved oxygen and conductivity. A summary of water quality for some of these streams is in Appendix 2. These show that currently water quality is high, although none of the monitored streams flow through dairying areas.

A list of all sites within the Waikato region that were sampled and tested for various water quality parameters in 1995 is presented in the Environment Waikato Environmental Data Report (1995). Again, many of the sites lie outside the specified study area.

Inflows to Lake Taupo have been identified in the 1997 report "Lake Taupo Long Term Monitoring Programme" (NIWA) and are located on a map within the document. The flow rate of each inflow is also given. Water quality of the inflowing water, however, is not recorded. A map with the key inflows to Lake Taupo is provided as figure 5.8.1.

The Mokai geothermal catchment falls within the study area and associated streams (Mokauteure, Okama, Ongarahu, Opareiti, Te Rakau, Uanui and Waipapa) were monitored as part of the Environment Waikato Mokai Geothermal Catchment Monitoring Programme. The programme was in place from 1987 to 1990 and tests for general water quality parameters were undertaken.

Both the Wairakei Geothermal Catchment and the Upper Waikato River Tributaries Programme sites fall within the study area and cover the periods 1986-1990 and 1989-1990 respectively. These programmes have been superseded by the Regional River and the Waikato River Monitoring Programmes.

Monitoring data for the streams in the Waiotapu catchment (near Reporoa) have now been incorporated into the Regional River and the Waikato River Monitoring Programmes.

5.8.2 Groundwater Quality

Limited information is available in the Taupo region on groundwater quality. A number of databases exist and are administered by Environment Waikato. The PERMITS database records information on wells and bores prior to drilling and was set up in 1989. Although approximately 300 to 400 bores are added annually, the location of many of these bores is expected to be outside the study area. A second database (WELARC) contains records of bores drilled up until the early 1980’s. Despite information being available on groundwater hydraulics, levels, nitrate concentrations, pesticides and bore chemistry, this information primarily applies to bores located outside the study area.

The 1995 Environmental Data Report (Environment Waikato) indicated that approximately 130 to 140 bores were monitored in the groundwater level monitoring network in 1995. Once again however, these bores were primarily located outside the study area.

Discussions with John Hadfield of Environment Waikato indicated that very little (if any) groundwater data was available for the western side of the lake. Limited data for the eastern side is available although the bores are located in the forestry region.

Discussions with Michael Rosen of IGNS revealed that IGNS currently have three projects underway associated with groundwater in the Waikato region. The projects are:

  • Turangi/Tongariro Delta area (Turangi oxidation pond)
  • Waimarino catchment
  • South Taupo Wetlands

Unfortunately the work is concentrated in areas where it is unlikely that there will be conversion to dairy farming.

IGNS are intending to apply for FORST funding in June 1998 to enable a study of the groundwater around the western side of Lake Taupo. It is possible that the model developed for the eastern side of the lake could be used for the western area. Despite the lack of monitoring locations in the western area at present it is anticipated that three aquifers will be identified:

  • perched water in pumice over ignimbrite
  • ignimbrite
  • gravels around rivers

5.8.3 Biological and Ecological Resources

A number of databases have been established by Environment Waikato to record and collate biological and ecological information relating the water quality, physical habitat and species distribution. These databases include Freshwater Biological Resources, Regional Ecological Monitoring of Streams and FISH.

Information of phytoplankton and coliform counts is often recorded as part of the general water quality monitoring programmes.


(click for full picture)

5.8.4 Land Resource and Farm Enterprise Data

Environment Waikato has a computerised Geographic Information System (GIS) which holds data from the New Zealand Land Resource Inventory (NZLRI). The NZLRI is a national database produced at a scale of 1 : 63,360 which maps the land surface in units that reflect the capacity of the land for sustained production. These "land use capability" (LUC) units are based upon an inventory of the following five physical factors that act within a given climate to influence land use:

  • Rock types
  • Soil
  • Slope
  • Erosion (type and severity)
  • Vegetation (recorded as subdivisions of five main groups, cropland, grassland, forest, scrub and miscellaneous).

The LUC of each unit is based upon the inventory and other relevant information, and comprises three components:

  • LUC class (degree of limitation)
  • LUC sub-class (dominant kind of limitations; erosion, wetness, soils or climate);
  • LUC unit (similar management and conservation requirements).

Landcare Research, Palmerston North is developing the NZLRI so that tiers of information can be accessed separately and overlaid. The five physical factors will be separated in the revised database, which will facilitate updating factors such as vegetation.

5.9 Relevant Environmental Policy and Planning Documents

5.9.1 Documents prepared under the Resource Management Act 1991

The purpose of the Resource Management Act is to promote the sustainable management of natural and physical resources. The organisations primarily responsible for ensuring that this occurs at a local and regional level are the District and Regional Councils. Through their Plans and Policy Statements, the Councils implement provisions of the Act and establish rules which apply to activities.

The Act establishes the requirements to obtain resource consents for certain activities which are not specifically provided for in Regional Plans or which do not meet specified performance criteria in District Plans.

Policy documents established under the Resource Management Act 1991 which apply to the environment in which sheep and beef farming and dairying are carried out include:

  • the Regional Policy Statement for the Waikato Region (March 1996);
  • the Waikato Regional Plan (Outline Plan April 1997)
  • the Taupo District Plan

These documents affect the use of land and water resources, including farming and dairying activities, particularly in terms of their actual and potential effects on the environment.

Regional Policy Statement for the Waikato Region (March 1996)

The Regional Policy Statement (RPS) for the Waikato Region has been prepared under the RMA. The RPS is a statement about managing the use, development and protection of the natural and physical resources of the Region.

The purpose of the RPS is, inter alia, to provide an overview of the Waikato’s resource management issues, and to set out policies and methods for the integrated management of the region’s natural and physical resources.

The RPS identifies a number of resource management issues and contains numerous policies which apply to all activities in the region, including farming and dairying. Issues addressed in the RPS include, for example, the issue of effluent discharges and the potential effects of these on the soil and water resources of the region. Rules which will apply to farming and dairying (and other) activities, and which reflect component policies of the RPS, are to be set out in the proposed Waikato Regional Plan.

The objectives, policies and methods in the RPS are neutral in terms of whether dairying or any other form of farming is carried out. The RPS is concerned rather about the environmental effects of activities.

Waikato Regional Plan (Outline Plan April 1997)

Environment Waikato is presently in the process of preparing a Regional Plan. The outline plan (April 1997) sets out the proposed approach to management of water, soil and air resources and reflects policy of the RPS. A draft proposed Regional Plan is expected by the end of 1997, with a proposed plan being notified in mid 1998.

The proposed Regional Plan will set out specific rules relating to the effects of activities. This will affect all sheep and beef farming and dairying activities and is likely to establish specific controls on land management practices and discharges to water and air.

The existing Transitional Regional Plan incorporates Dairy Shed Effluent Rules (October 1994).

The following are the key points of the rules.

  1. The discharge of dairy farm effluent onto land is a permitted activity provided that the following conditions are met:
  2. There must be contingency measures in place to take into account pump break down or prolonged wet weather.
  3. The ponds/holding facilities are to be sealed, if required, to prevent significant leakage.
  4. Spreading of effluent and sludge must be undertaken in a way which avoids odour and spray drift.
  5. The loading rate to be not more than 150 kilograms of nitrogen equivalent per hectare per year.
  6. There shall be not more than 25 millimetres depth per application.
  7. No effluent is to enter surface water ie run off land surface into waterways, or ponding on the surface for more than five hours.
  8. The farmer or contractor applying the effluent is to provide information to show how the requirements of the rule (conditions (a) to (f)) are being met, if requested by Council.

These conditions have to be met at all times by farmers and contractors operating under the permitted activity.

Two pond, or other effluent treatment systems are a discretionary activity, requiring consent from Environment Waikato.

For contractors undertaking the emptying and spreading the contents of ponds, conditions (c) through to (g) are of importance and must be adhered to.

Since the implementation of these rules, Environment Waikato reports that there has been a large increase in farm dairy effluent being applied to land. It is likely that the Dairy Shed Effluent Rules will be directly included in the proposed Regional Plan.

Any discharge of effluent on to land which does not meet the criteria for permitted activities (as summarised above), and the discharge of treated effluent to surface water are discretionary activities and resource consents from the Regional Council are required. The discharge of untreated effluent to water is a prohibited activity.

In terms of the implications for farming and dairying, it is recommended that the proposed Regional Plan be comprehensively examined when it becomes available for public submissions. Those converting from sheep and beef farming to dairying are likely to have to face strict controls on effluent treatment and quality, and monitoring requirements.

Taupo District Plan

The Transitional Taupo District Plan sets out objectives and rules relating to the use of land in the Taupo District. The District Plan relates specifically to land use activities and provides for all farming activities in rural areas, subject to meeting specified performance standards relating to building bulk and location.

The Proposed District Plan for the Taupo District is currently being written and is expected to be publicly notified late in 1997 or early 1998. This Plan will contain new rules relating to rural activities and is likely to affect the establishment and operation of farming and dairying activities.

An early draft of a new Taupo District Plan, (prepared in 1994), was less prescriptive than past district plans but focused on the effects of the activities

It is likely that a similar approach will be taken in the proposed District Plan, in accordance with the Resource Management Act. In terms of the implications for farming and dairying, it is recommended that the proposed District Plan be comprehensively examined when it becomes available for public submissions.

5.9.2 Other Relevant Environmental Policy and Planning Documents

Other relevant policy documents which apply to the environment in which sheep and beef farming and dairying are carried out include:

  • the Waikato Regional Land Transport Strategy (Draft Final Strategy June 1997)
  • the Regional Pest Management Strategy (August 1996)
  • the Lake Taupo Lakeshore Reserve Scheme
  • the Lake Taupo Catchment Control Scheme

The relevance of these documents is outlined below.

Waikato Regional Land Transport Strategy (Draft Final Strategy June 1997)

The Waikato Regional Land Transport Strategy has been prepared under the requirements of the Land Transport Amendment Act 1995.

The Regional Land Transport Strategy identifies the future land transport needs of the Region and the most desirable means of responding to those needs in a safe and cost effective manner, having regard to the effect the transport system is likely to have on the environment.

The LTS must not be inconsistent with the Regional Policy Statement and it forms the basis for funding applications to Transfund.

Features of the LTS which are relevant to dairying include:-

  • The LTS recognises the importance of development of major industries in the Waikato Region, such as forestry and dairying. The Strategy recognises that expansion in these areas depends heavily on the transport infrastructure including road, rail and air transport.
  • One of the most important needs of the region is identified as the need for an efficient land transport system which maintains and enhances the regional economic viability. The related objectives include to cater for changes in the agricultural sector and to maintain and enhance the existing land transport system.

The strategy notes that a steady increase in milk production is predicted over the next five years (the timeframe for the Strategy), and that most of the growth in dairying is likely to come from the south of the Waikato region.

Means identified to cater for change in the agricultural sector are:

  1. Encourage the dairy sector to investigate alternative methods of processing and transporting milk so that the adverse effects on local roads are reduced.
  2. Consult regularly with the agricultural sector and affected district and city councils over future transport requirements and strategic plans.
  3. Encourage the agricultural sector to utilise the most efficient, cost effective and environmentally sustainable mode of transport.
  4. Encourage district and city councils to specify within their district plans a requirement for stock underpasses in cases of land aggregation adjacent to roads where traffic volumes warrant.
Regional Pest Management Strategy (August 1996)

As a result of local government reform in 1989, Environment Waikato took over the functions of previous Noxious Plants Authorities and Agricultural Pest Destruction Boards.

Pest management is a significant component of Environment Waikato’s activities with total expenditure for the 1995/96 year, for example, estimated to be approximately $6.4m (including Bovine Tb vector control).

The Regional Pest Management Strategy for the Waikato region is an initiative taken by Environment Waikato under the Biosecurity Act 1993. The purpose of the Strategy is to provide for the efficient and effective management of plant and animal pests in the Waikato region with the desired end result of:

  • avoiding the introduction of new pests
  • eradicating existing and potential pests where this is achievable and realistic
  • controlling further spread of established pests where it is efficient to do so
  • minimising the adverse effects of pests on the environment

Environment Waikato is the principal management agency responsible for the development and implementation of the Regional Pest Management Strategy.

The Strategy notes that every land occupier, including city and district councils and Environment Waikato, is required to control the plant and animal pests on land that they are responsible for. The standards for this control are specified in the Strategy.

Lake Taupo Lakeshore Reserve Scheme

The Lake Taupo proposed Lakeshore Reserve Scheme (LTLRS) was reviewed in the 1996 KPMG report. The scheme was initiated more than 40 years ago by residents of the Taupo District with the aim being the protection of the riparian margins of Lake Taupo and its environs.

Issues of riparian protection are now dealt with principally under the Regional and District Plans prepared under the Resource Management Act 1991. In terms of controls of land use activities in the vicinity of the lake shores, it is likely that the proposed Taupo District Plan will establish special controls with the aim of protecting the margins of Lake Taupo from adverse effects of rural and other activities. Such controls already exist to some extent in the Transitional District Plan.

Lake Taupo Catchment Control Scheme

The Lake Taupo Catchment Control Scheme (LTCCS) was also reviewed in the 1996 KPMG report. This scheme was initiated in the mid 1970’s by the Waikato Valley Authority (a predecessor of Environment Waikato) to provide water and soil protection to land under pastoral use in the Lake Taupo catchment. The scheme was intended to complement the Lake Taupo proposed Lakeshore Reserve Scheme to protect the undeveloped lake margins and lower stream reaches.

Environment Waikato is currently producing a new Asset Management Plan which will update the 1970’s document. This is expected to be complete in July 1997.

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