For the first time in its 83 year history, a South Island dairy farm has won the prestigious Ahuwhenua Trophy BNZ Māori Excellence in Farming Award dairy.

The winner is the Proprietors of Rakaia Incorporation whose farm Tahu a Tao has a long and proud history dating back to 1886. The present 216 ha property near Ashburton runs around 830 Kiwi cross cows.

Rakaia Incorporation Chairman James Russell with the Ahuwhenua Trophy which the South Island dairy farm won in the BNZ Māori Excellence in Farming Award.

The announcement was made on Friday by the Minister for Māori Development, Te Ururoa Flavell at a special function in Hamilton attended by 850 people including the Minister for Primary Industries, Nathan Guy and other dignitaries, politicians and leading agribusiness people from throughout New Zealand.

The Ahuwhenua Trophy was presented to Rakaia Incorporation by Minister Flavell along with a replica trophy. They were also presented with a special medal by Pierre Tohe representing the Bank of New Zealand, the competitions platinum sponsor.

Rakaia Incorporation was chosen from two other finalists, Ngāi Tahu Farming Limited, also based in Canterbury, and Tewi Trust based near the South Waikato township of Tirau.

Kingi Smiler, Ahuwhenua Trophy Management Committee Chairman, says the achievements of all this year's finalists mirror the aspirational vision of Sir Apirana Ngata and Lord Bledisloe who inaugurated this competition way in 1932.

Kingi says what never ceases to amaze him 'is that every year we find another group of outstanding finalists and ultimately a winner who joins the ever expanding alumni that personifies the success of Māori agribusiness and its valuable contribution to Aotearoa”.

The presentation of the Ahuwhenua Trophy comes at the end of more than six months of assessing the applications, selecting and announcing the three finalists at a function at parliament and each of them holding a field day on their respective properties.

The field days were open to the public but were also part of the judging process.

The winner Rakaia Incorporation received various prizes to the value of $40,000 and the other finalists received prizes to the value of $20,000.

John Janssen, the Head of Agribusiness for the Bank of New Zealand, the principle sponsor for the Ahuwhenua competition, says once again the standard of this year's finalists was outstanding.

He says in a year when dairy farming is facing challenging times, it is great to see three outstanding finalists and a very worthy winner.

He also says it is fantastic to see two Māori farms from the South Island make the finals of the 2016 competition.

'BNZ is proud to be the principle sponsor of this competition and to be a part of the movement that is raising the standard and profile of Māori agribusiness.

All New Zealand farmers can look at the systems that Māori farmers have developed and take valuable lessons.

There is no doubt that the Ahuwhenua Trophy competition is a catalyst for much of the success of Māori farming,” he says.

The Proprietors of Rakaia Incorporation's Tahu a Tao farm has a history dating back to 1886. The present 216 ha property near Ashburton runs around 830 Kiwi/cross cows that produced 371,294 kgMS last season and is located 8km from the Rakaia river mouth.

In the early days this area proved to be quite a challenge for travellers going through the region, particularly crossing rivers.

Tahu a Tao is the Māori name for the Kyle district where the farm is located. It is also known for being a resting place for travellers where there was mahika kai - where food was gathered.

Tahu a Tao was converted to dairying in 1996 with highly reputable dairy consultant, John Donkers playing a major role in the development of the property which has always operated in conjunction with 50/50 sharemilkers.

The current sharemilkers Mark and Julie Cressey are into their ninth season.

When the farm was initially converted old pastures were sprayed out and new ones planted and since then the Incorporation has made concerted efforts to re-pasture withthe latest cultivars of seed as a key means to boost production.

With the conversion came new fences, stock water and irrigation and of course a 50 bale rotary dairy shed. Two bores supply the four irrigators that run on the property.

Irrigation is at the foundation of the overall dairy farm system. It is tightly managed using soil and water measuring technologies.

Water metering and moisture monitoring technologies help identify the optimal time to irrigate.

In addition to the cows in milk, a further 200 replacement calves are reared each year.

There is a strong farm culture with particular emphasis on animal welfare especially with the treatment of bobby calves which are fed good quality colostrum milk for four days before being sold. Health and safety is also given high priority status on Tahu a Tao.

Since the conversion there have been ongoing capital works the most notable being additional staff accommodation designed by Julie Cressey.

Being close to the Rakaia River, the soils on the farm are free draining and ideal for dairying.

Soil tests are taken annually and close attention is paid to recording data on the property.

Weekly farm walks are undertaken and feed budgeting is a key part of the management of the property.

Not surprisingly matters relating to the environment, kaitiakitanga and iwi values are a focus on the farm. An example of this is the implementation of a recycling system. This includes all farm and household waste which is stored in special containers.

Silage wrap, bale string and plastics are also recycled and are stored in such a way that they cannot be blown away by the wind.

The farm is provisioned with a quality dairy shed effluent handling system, which includes an effluent storage pond with about 15 day's capacity.

The storage provides flexibility in the application of effluent to the land which contributes to a reduced risk of nitrogen leaching.

The committee of management members are very conscious of their role to give value to their 300 shareholders.

Communication is key as is their whole approach to business, and forming respected relationships with key suppliers.

Shareholders are given an opportunity each year to visit the Rakaia farms so that they can view their investment, meet fellow owners and understand the life and style of a working dairying farm.