New Zealand Farmers Slam Proposed Green Finance Rules
Lobby group Federated Farmers has written to government ministers and other officials outlining its concerns about the so-called Sustainable Finance Taxonomy, which is a system for classifying economic activities according to their environmental impact. A New Zealand taxonomy is being developed for the government by the independent Centre for Sustainable Finance, which recently closed submissions on an initial consultation document.
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New Zealand farmers battle pine forests to 'save our sheep'
New Zealand sheep farmers are fighting to stop the loss of pasture to fast-spreading pine plantations, which earn government subsidies to soak up carbon emissions. Concern over the scale of the farm-to-forest switch led the government to impose a moratorium in December on any new conversions not already in the pipeline. But farmers say forestry companies are flouting the clampdown. Last month, farmers launched a "Save our Sheep" campaign to reverse the loss of productive farmland. Sheep numbers have plummeted to around 23 million, down from a peak of around 70 million in the 1980s, according to official figures. Falling wool prices and rising milk and beef costs initially drove the decline, but the emissions trading since 2008 has added to the strain. The government is now investigating potential breaches of its moratorium by forestry companies, which have been buying up farmland as recently as June. Federated Farmers -- a lobby group for rural communities -- submitted to the government "a list of properties we believe have been sold for carbon forestry" since the halt, a spokesman said. The federation is concerned about the sale of more than 15,200 hectares (37,600 acres) of farmland, he told AFP. Dean Rabbidge, who runs a farm outside the Southland town of Wyndham, said some of the newly purchased farms had already been planted with pine trees. - 'Criminal' - "They're just ploughing on ahead, effectively giving the middle finger to the government announcement," Rabbidge told AFP. The moratorium had created a "gold rush", he said. "It's criminal what's happening." Agriculture and Forestry Minister Todd McClay said the government would change the law by October because it had become more profitable to plant pine forests than to farm sheep. "The law will include clarity on what qualifies as legitimate evidence of a pre-December investment and enable any specific cases to be properly assessed," McClay said. "Anyone who has bought land since December 4, 2024, irrespective of whether they also had trees or not, will not be able to register this land into the emissions trading scheme." Rural New Zealand once abounded with rolling pastures, rickety wire fences hemming in millions of sheep chewing on the green grass. But Rabbidge said those days were gone. "You won't see anything now," he said. "You're just driving through long pine tree tunnels -- shaded, wet, and damp." New Zealand is one of the rare countries to allow 100 percent of carbon emissions to be offset by forestry. "We're not anti planting trees," sheep farmer Ben Fraser told AFP. "There are areas of land that should be retired, that aren't necessarily productive." But the trading scheme had driven an excessive loss of sheep pastures to forestry, he said. "That's the issue here." - 'So short-sighted' - Fraser, who farms near the North Island town of Ohakune, said he had seen an exodus of people from the district in recent years. "Since 2018, there've been 17 farms converted to forestry," he said. "That's about 18,000 hectares gone. So you're looking at about 180,000 sheep gone out of the district, plus lambs." The loss of sheep impacted the region. "If the farms thrive, then the towns thrive because people come in and spend their money," he said. "You've got farm suppliers, your fertiliser guys, your supermarkets, your butchers, all of that stuff struggling. "The local schools now have less kids in them. The people who stayed are now isolated, surrounded by pine trees." Rabbidge said the same was happening in Southland. "This whole thing is just so short-sighted," Rabbidge said. "Businesses here are forecasting anywhere between a 10 and 15 percent revenue reduction for the next financial year, and that's all on the back of properties that have sold or have been planted out in pine trees," he said. - 'Lamb on a plate' - "Think of all the shearers, the contractors, the transporters, the farm supply stores, the workers, the community centres, the schools, rugby clubs. Everything is affected by this." Government figures from 2023 show agriculture accounted for more than half of New Zealand's total greenhouse gas emissions. But farmers argue they have been working hard to reduce emissions, down more than 30 percent since the 1990s. "I could put a leg of lamb on a plate in London with a lower emissions profile, transport included, than a British farmer," Rabbidge said. "We just use our natural resources. We're not housing animals indoors and carting feed in and manure out. "Everything's done outside and done at low cost, low and moderate intensity." bes/djw/dhw/amj Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Coventry Group (ASX:CYG) Is Looking To Continue Growing Its Returns On Capital
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. So on that note, Coventry Group (ASX:CYG) looks quite promising in regards to its trends of return on capital. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. What Is Return On Capital Employed (ROCE)? If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. To calculate this metric for Coventry Group, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.051 = AU$12m ÷ (AU$346m - AU$118m) (Based on the trailing twelve months to December 2024). Thus, Coventry Group has an ROCE of 5.1%. In absolute terms, that's a low return and it also under-performs the Trade Distributors industry average of 12%. See our latest analysis for Coventry Group Historical performance is a great place to start when researching a stock so above you can see the gauge for Coventry Group's ROCE against it's prior returns. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of Coventry Group. The Trend Of ROCE Even though ROCE is still low in absolute terms, it's good to see it's heading in the right direction. The data shows that returns on capital have increased substantially over the last five years to 5.1%. The amount of capital employed has increased too, by 51%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. Our Take On Coventry Group's ROCE A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Coventry Group has. And investors seem to expect more of this going forward, since the stock has rewarded shareholders with a 49% return over the last five years. In light of that, we think it's worth looking further into this stock because if Coventry Group can keep these trends up, it could have a bright future ahead. If you'd like to know about the risks facing Coventry Group, we've discovered 3 warning signs that you should be aware of. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Euroz Hartleys Group Limited's (ASX:EZL) top owners are individual investors with 54% stake, while 28% is held by insiders
Key Insights The considerable ownership by individual investors in Euroz Hartleys Group indicates that they collectively have a greater say in management and business strategy A total of 22 investors have a majority stake in the company with 46% ownership 28% of Euroz Hartleys Group is held by insiders Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. A look at the shareholders of Euroz Hartleys Group Limited (ASX:EZL) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 54% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Individual insiders, on the other hand, account for 28% of the company's stockholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Let's take a closer look to see what the different types of shareholders can tell us about Euroz Hartleys Group. Check out our latest analysis for Euroz Hartleys Group What Does The Institutional Ownership Tell Us About Euroz Hartleys Group? Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. Institutions have a very small stake in Euroz Hartleys Group. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too. We note that hedge funds don't have a meaningful investment in Euroz Hartleys Group. Our data suggests that Andrew McKenzie, who is also the company's Top Key Executive, holds the most number of shares at 8.5%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. Meanwhile, the second and third largest shareholders, hold 7.8% and 7.7%, of the shares outstanding, respectively. Additionally, the company's CEO Timothy Bunney directly holds 1.2% of the total shares outstanding. On studying our ownership data, we found that 22 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held. Insider Ownership Of Euroz Hartleys Group The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own a reasonable proportion of Euroz Hartleys Group Limited. Insiders have a AU$45m stake in this AU$157m business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling. General Public Ownership The general public, mostly comprising of individual investors, collectively holds 54% of Euroz Hartleys Group shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability. Private Company Ownership It seems that Private Companies own 16%, of the Euroz Hartleys Group stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. Next Steps: While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Euroz Hartleys Group (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process. Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
