Episode Transcript
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Speaker 1 (00:00):
The best of the country with Rabobank. Choose the bank
with one hundred and twenty years global agribusiness experience. Grow
with Rubbobank.
Speaker 2 (00:10):
Laundry. Where is job can?
Speaker 3 (00:30):
I am?
Speaker 4 (00:30):
Good Morning New Zealand. My name's Jamie McKay. This is
the best of the country each and every Saturday morning
here on news Talk said be it's brought to you
by Rabobank. You know the drill. We're growing a better
New Zealand together. This is PAULA Cole bit of a
one wonder in some ways from the nineties. Where have
all the cowboys gone? Well, we've got a bit of
a political cowboy to wrap the show. One of my favorites,
(00:52):
Martua Shane Jones, the Prince of the province, has spent
a good part of Thursday Budget Day baiting at the
Green So we're going to talk him about that a
bit later, but we're going to kick it off with
Matt Chisholm, well known rural mental health advocate, racon tour
hobby farmer Chris Hipkins. Also on budget Day Thursday, I
caught up with him, So what would he have done
(01:12):
as leader of the opposition if he was running the Cutter,
Why the love and with federated farmers and why aren't
we seeing any agg policy from labor Anna Nelson. This
week's Silver Fern Farms had their AGM and Dunedin. Anna
had her first as chair of the cooperative, taking over
from Rob Hewitt. Of course he's been with the company
(01:33):
for more than seventeen years as a director and a chair. Also,
Lucas feis really interesting guy from Chicago. Here in New Zealand.
With Rabobank touring the country with their senior dairy analyst
Emma Higgins, will get his thoughts on the state of
play in the dairy and beef industries. It's all on
the best of the country and it's brought to you
(01:54):
by Rabobank.
Speaker 1 (02:07):
The best of the country with Rabobank choose the bank
with a huge network of progressive farming clients.
Speaker 4 (02:13):
Rabobank lots of talk as we discussed with David Seymour
about the budget and what might be in it for agriculture.
I do hope that there's some more funding for rural
mental health because it's a serious issue and a real issue.
One man who does a lot of great work in
that space is Matt Chisholm rural mental health advocate and
Matt can I still call you former celebrity, Treasure Island
(02:35):
star or you're sick of that?
Speaker 5 (02:38):
I've probably had enough of that, Jamie. To be honest,
I think I think we've all moved on. Twenty twenty
two I think was the last year I did that.
So now you can call me whatever you like on
the tip of you're talking to me, Jamie, nowhere is
at all what.
Speaker 4 (02:49):
I'm happy to be talking to you. Minds you. You
were the star at the Herriot one hundred and fortieth
rugby celebrations over the weekend, and I think your guest
speakers were Banks and none other than Andrew Whore. I
reckon Andrew whr is. I encouraged him a few years ago.
I said, you want to get onto the public speaking circuit.
I mean, I know he's a bit gruff, but gee,
(03:10):
he's dry witted. He's funny, that guy.
Speaker 5 (03:14):
Look, I had my doubts too, to be honest, and
I hope Andrew's listening because he's a lot stronger than me, obviously,
and I wasn't the only person who had my doubts,
and people were just worried because I was running the
cutter and there was Marty who's loses a goose, and
then Andrew. But I don't know if we could have
been any better. And Andrew Ware is brilliant. He is
a phenomenal speaker. He's really really funny, tells a great
(03:37):
yarn and he's not even he doesn't even look like
he's trying. He's actually very very quick with it. Yeah,
he's a clever man, and he's got some put stories
and he's not even afraid to tell them when his
wife sitting in the front row, which was brilliant.
Speaker 4 (03:51):
Yeah, some of them are a wee bit PG rated,
but there you go. If you're looking for a good
speaker at your Rugby centenary or one fiftieth, I know
we've got our one twenty fifth of his style coming up.
We might have to encourage Harey to come down. Here
is a great storyteller. Okay, so you were born and
raised in like Lawrence, which is just over the Hilton
Milton Milton. Okay, sorry, but you played forty for Lawrence,
(04:13):
didn't you.
Speaker 5 (04:14):
I did play forty for Lawrence. Yeah, and they were
Lawrence were playing Harriot on their big birth you know,
their celebration their birthday bash, and I turned up there
and I thought it's a bit torn here, and I
wanted to cheer for Lawrence, and then I was on
the Herriot side, and then I remembered that, you know,
if Lawrence beat Harriet at the one hundred and fortieth
birthday bash, well the night's not as going to be
(04:36):
as good as it could be. So I soon figured
that out and started backing Harriot. Yeah, and it worked,
but Lawrence they wanted to spoil the party. But it
was a bloody good game of footy and wet conditions
and I was pretty impressed with the talent on. So yeah,
it was a great game seven. I think the Blue
and White hopes got up.
Speaker 4 (04:51):
Yeah, that heartland rural in New Zealand at it's absolute best.
And of course, while you were seeing in Harriet over
the hell these towns by the way, folks are in
West Otago, Michelle was in seeing the Century Farm and
Station Awards at Lawrence. What are great little town Lawrences,
don't you think, mate?
Speaker 5 (05:10):
Lawrence is a cracker. Yeah. They've done a great job
on sort of beautifying their main street and there's not
probably a lot of streets off the main street. Little
sleepy little village, but beautiful main street. And I went
there for six weeks half my life ago and stayed
for about two years. It is a great little town,
great community, great footy club and yeah, yeah, she would
(05:32):
have had a good time Michelle doing that. A lot
of good people there in Lawrence.
Speaker 4 (05:35):
What are you doing with yourself these days other than
farming on your hobby farm. It's actually more than a
hobby farm now, because I know you've taken time out
of a really busy day in the stockyards to talk
to us today, Mattchism.
Speaker 5 (05:47):
That's right. I've got Ken from Silver Firm Farms turning
up here at three o'clock going to get rid of
the few cul us and the few cul lambs ram lambs, Jamie.
So you know, there's probably going to be twenty five
animals going away on a truck later on, and so
I don't know, I've really got time for this conversation.
But I love that sort of work. So I'm doing
(06:08):
a bit of that today, which is going to be fantastic.
But now I still do a lot of them. Seeing
I probably cut my throat before when I was talking
about how good Hori was but a lot of speaking,
and I've done those books and mucking around. But I
have got something else in the pipeline, which I'm told
IM can't quite tell you about yet because it hasn't
been made official, which is a bugger because I want
to tell you about it.
Speaker 4 (06:26):
Well, you've got to give me first stibs on it.
Does it like in the media.
Speaker 5 (06:30):
No, No, it's not in the media. Michelle was asking me,
she's talking about the budget, you know, and this rural
health stuff, and I said to her, any any funding
for Royal mental health a bloody good thing, because you know,
our farm has been doing it tough for a couple
of years. Things are obviously picking up now, so that's
a good thing. But I said to it, I don't
really follow the media now. Notice to speak, Michelle, but
I'm kind of living in a wee bubble with my
(06:50):
wee farm here in the country, in the rural community
and coaching a lot of sports which I really love.
But I can't comment on the budget and what's in
it because I haven't been following it.
Speaker 4 (07:00):
Well, no one knows what's in it yet. It's not
coming out till Thursday. I'll give you the clue on
that one. Have you ever thought about your twenty five
lambs you're sending away this afternoon, that maybe you could
load up the old four wheeler and the motorbike trailer.
You'd get them there in two trips.
Speaker 5 (07:13):
Yeah, would, And I often do a bit of that, Jamie.
But the thing is, I don't know if we've talked
about this or not, but I'm about nine weeks into
a twelve week loss of license, Jamie. So if I
wanted to go to the pub two k down the road,
I had to take the ride on Lawnmark.
Speaker 4 (07:30):
At least you didn't lose your license for drink driving
because you don't drink anymore. That's right as a heavy foot,
was it, mate?
Speaker 5 (07:37):
Yeah, it's just a couple too many times, Like I
do a lot of driving and I get complacent. But
my word, my evercy work today will go as far
as this, like if you don't drink drive because it
can kind of ruin your relationship with your partner at home.
You know, I coached the rugby, I coach the soccer.
I'm all over the country and my wife has really
had to pull a finger out even more than she
(07:59):
already does. He's already superwoman, but our and our relationship.
You know, we're in the trenches here with the young kids,
so it was an ideal in the first place. And
then then I go and do this to her. So
she's got to do three hundred more trips than she
usually does, and she's reasonably unhappy with me at the
moment because I've got my license that will pass.
Speaker 4 (08:17):
Take it from an older man, Matt, it will pass, all.
Speaker 5 (08:20):
Right, relationship to the relationship.
Speaker 4 (08:22):
No, no, no, the grumpiness. I'm just waiting for it
to pass at our place. Hey, Matt, I've got to go.
Thanks for some of your time, taking time out of
a very busy day in the stockyards to talk to us.
Speaker 5 (08:32):
Thank you so much. Jammie as always got to talk
to you, mate. Have you done well.
Speaker 1 (08:36):
The best of the country with Rubber Bank, the bank
with local agri banking experts, passionate about the future of
rural communities, Rubber Bank.
Speaker 4 (08:45):
Chris Hopkins is the Labor Party leader, leader of the
opposition Budget Day to day. Chris, if you were running
the cutter, what would you do? Borrow and damn the torpedoes.
Speaker 6 (08:55):
I think what we need to see from the government
is a plan to get New Zealand moving again. So
we need to get people back into work that has
a positive upside to the government and that they end
up paying less than unemployment benefits. We need to get
our infrastructure projects back up and running again. Despite all
their hot talk, we've actually seen less money being spent
on infrastructure over the last eighteen months than what was
(09:16):
happening before they became the government. So basically, I think
what we need to see from the government today as
a plan to actually start delivering on the promises that
they made to New Zealanders because so far I think
New Zealand is still waiting.
Speaker 4 (09:27):
Okay, and that's possibly a fair argument because they haven't
done that much in the first eighteen months. But there's
a philosophical difference here. Isn't that they want to balance
the books, they want to cut spending. Do it that way?
You want to borrow, borrow and spend that didn't work
so well for you in the COVID times.
Speaker 6 (09:45):
No, Look, I think you should stop reading your National
Party talking points, Jamie. There are different ways to balance
the books. We all want to see the books balanced.
The difference is Nikola Willis is borrowing money to pay
the day to day bills, and I don't think that's acceptable.
But I think borrowing money to do things like fixing
our roads, fixing up our schools and hospitals, building long
term as seats that the country's going to benefit from,
(10:07):
that is justified. You know, when you go out and
you buy a bigger house, most people will take out
a bigger mortgage to do that, and then they pay
it off over time. But if you're borrowing, if you're
increasing your mortgage to pay your power bill, then you're
in financial Tell Will this is borrowing to pay the
power bill.
Speaker 4 (10:21):
Totally get that, Chris. I've got an A minus and
accounting one. I want to believe it or not. I
won't tell you the rest of my marks. But what
happens if we get a major issue and we're talking about,
you know, another earthquake, another big disaster, a cyclone, Gabrielle,
and we no longer have the ability to borrow when
we become a banana republic? Is the National Party over
egging that?
Speaker 6 (10:42):
I think they are over egging that. And actually some
of the investments that we need to make now are
the sorts of investments that will make us more resilient
to those shocks of the future, So spending more money
on flood protection, for example, spending more money on making
sure that things like our roads and our infrastructure are
actually resilient to extreme wak the events, and even like
here in Wellington earthquakes, making sure that we're getting ahead
(11:04):
of that cure means actually the bill for the cleanup
afterwards will be smaller. So there is a justification for
investing now and making sure that we're actually fixing things up.
We're still relying on an infrastructure across the country that
was built for sort of three three and a half
million people. We've now got five and a half million
people here. We've actually got to do something about that.
Speaker 4 (11:23):
Next week, Labor has its annual lover and as I
call it, with Federated Farmers, yourself, Damian O'Connor, Karen maconnulty,
Joe Luxton, Rachel Brooking all labor and peace. I quite
like too. By the way, Chris, meeting with Federated Farmers.
Speaker 6 (11:38):
I'm not sure you call it a loven, Jamie, but
it is an opportunity for us to meet with sector,
you know, representatives from across the primary industries where we
get to talk about the future, and we get to
talk about future policy because we've actually got a lot
of shed objectives. When I met with farmers, for example,
they're actually very very focused on sustainability and on making
sure that they're being good guardians of the and and
(12:01):
you know, I think we actually find that we do
have a lot of common ground there, but they also
want to have access to things like good quality healthcare.
When they're going to find a lot of common ground
with the Labor Party, there are going to be areas
where where we've got some tricky stuff to work through.
You know, what we do around climate emissions is one
of those things that we're going to be working through
next week.
Speaker 4 (12:17):
Yeah, but you realize farmers would view the last Labor government,
the last term of the last Labor government. They ard
and Hipkins government as the worst government in history for farming.
Speaker 6 (12:29):
Well, I think and you.
Speaker 4 (12:30):
Agree on that because you had said that you'd made
mistakes in that area. You walk that back.
Speaker 6 (12:36):
Yeah, yeah, but I don't think I think thing the
way your characterizing is probably a bit extreme.
Speaker 4 (12:40):
No, No, it's not extreme.
Speaker 5 (12:41):
Trust me.
Speaker 4 (12:42):
I talk to these people all the time. That's how
you're regarded.
Speaker 6 (12:45):
As do I And actually we've developed a pretty good
working relationship with them over the last eighteen months and
I'm pretty optimistic about, you know, the fact that we
can work together in the future.
Speaker 4 (12:55):
Where's your ag policy? As much as I like Joe,
she doesn't ever come out with any policy.
Speaker 6 (13:01):
Well, that's because it's still too soon.
Speaker 4 (13:03):
I mean, are you We've got an election in eighteen months.
Speaker 6 (13:06):
Yeah, but we're only halfway through the term. The government
can do a lot in eighteen months and the risk
of putting out policy now is that everything can change
in that period of time and then we'd be saying, well,
are you still going to do this when the government
have done that or whatever. So actually, you know, you'll
get a good policy for us close to the election.
But one of the things that we are doing is
we're making sure that as we develop our agriculture policy
that we're speaking to people in agriculture. So it's not
(13:27):
going to be something that we're going to be doing
to them, We're developing it with them.
Speaker 4 (13:30):
Will Labor have a big team at field days. I
know you'll be.
Speaker 6 (13:33):
There, yeah, and I'm there for a day. Unfortunately I
can only make a day this year. But I'll be
there for a day. It's always good fun. I've always
enjoyed my time at field days. So yeah, we'll we're
have a team. There were probably, like like previous years,
we spread across all days, so we won't all be
there all at once, but we'll be coming and going
through the through the course of the event.
Speaker 4 (13:53):
Do you wake up sometimes in the middle of the
night in a cold sweat thinking how the hell am
I ever going to get elected? Because labor is relatively
so let's face it, but your coalition partners, gee, they
must test you.
Speaker 6 (14:04):
Chris Hipkins Well, I suspect Christopher Luxon has a similar
dilemma when he looks at New Zealand dust and hack.
You know, that's the nature of MMP. You know, you've
got to work with other parties. Doesn't mean, unlike Christoph Luckxon,
doesn't mean that you should let them do whatever they want.
You know, I think you've still got to have some
standards and you're still got to have some bottom lines.
So you know, I can work with other parties, doesn't
(14:24):
mean that I'm going to let.
Speaker 7 (14:25):
Them call the shots.
Speaker 6 (14:26):
You know, David Sema and Winston Peters have been caught
have been holding the country to ransom far too much
over the last year and a half, and frankly I
think Christopher Luxan should do more about that.
Speaker 4 (14:34):
But wouldn't Greens with good represented representation, should I say,
in Parliament potentially hold you to ransom? Would you have
to coalesce with some of their crazy nutty ideas around finance.
Speaker 6 (14:47):
No, you've still got to have bottom lines. You've still
got to be able to say no, we're not going
to go these are things that we're not going to do.
And actually the bigger vote shere Labor gets the stronger opposition,
is to do that. So that's why I'm out there.
I'm only got campaigning for one party in the next election,
and that's Labor. I want to get Labor to get
as big as share of the vote as possible because
that would put us in the strongest possible position to
form a good stable government.
Speaker 4 (15:08):
A final question for you, do you agree or disagree
that farming the primary sector, is our only savior? Why
would you kill the goose that lays the golden egg?
Do you agree with that proposition?
Speaker 6 (15:21):
I don't necessarily agree with that proposition. I do agree
that farming is vitally important for New Zealand, and of
course we'd never want to, you know, to kill the
golden goose, so to speak. But we've got other really
promising industries that we need to back as well. So
don't think it's an either or I think it's both.
Speaker 4 (15:38):
We might agree to disagree on that one, Hey, Chris Hipkins.
Whether we disagree or not, it's good to have you
on the country. Looking forward to yarning to you and
at Field Days in three weeks time, of.
Speaker 6 (15:47):
Course, cold look forward to seeing you there, Jamie.
Speaker 1 (15:49):
The best of the country with rubbo back. Choose the
bank with one hundred and twenty years global agribusiness experience.
Grow with rubbo back.
Speaker 4 (15:58):
So we've talked about dairy farming's talk about red meat.
It was Anna Nelson's first AGM as the chair of
the Silverfern Farm's Cooperative yesterday here in Dunedin, and Rob
Hewitt's last with the company after serving seventeen years as
a director. There's a lady by the name of Sally
Ray who writes for the Otago Daily Times, one of
(16:18):
the few good ag journalists we have left in this country.
And Anna, she's written a really interesting piece in today's edition,
and it's all about silver fern Farms and your focus
on a missions reduction being driven by what customers in
the markets want. Now, there has been criticism Anna, not
from me, of course, from some who were saying silver
(16:40):
fern farms have gone a bit woke. What do you
say in your defense?
Speaker 8 (16:44):
Yeah? Good a Jamie, good, good to catch up And yeah,
I thought that that was a great piece by Sally
Ray in our defense. In our defense, so we're really
driven by what the higher paying customers globally from their
products that they're purchasing from us, So they have a
(17:06):
real driver to reduce emissions in their supply chain and
our products and ultimately our farmers are part of the
supply chain. So if we want to supply those customers,
the high end customers, we have to be taken into
account and acting on that.
Speaker 4 (17:22):
So hang on and aw is the premium for the
lower missions meet at the moment? Is it out there
in the market?
Speaker 8 (17:31):
Yeah, that there is absolutely only on small percentages one hundred,
That is correct, Jamie. But we have got customers increasingly
and pretty frequently right now, Whole Foods Costco International, big
customers that are coming to us with their demands, and
they're actually talking to us about how they can help
(17:52):
fund changes on farmers supplies farms as well to meet
their requirements.
Speaker 4 (17:58):
Our Silver Fir and Farms has invested an over nine
million in Agri zero Enz, which is getting a bit
of stick in some quarters. You now have a shareholding
of just under eight percent. But to be fair to
Silver Fir and Farms, this investment represented zero point one
percent of total revenue. And you guys are going on
to say that about twenty percent of your customers want
(18:22):
this low emissions product. Is the number really that high?
Speaker 8 (18:28):
Yeah, well that's that's from then and the team executive team,
and we're seeing evidence of that at the board with
some really interesting reporting around the premiums that are available.
As I talked to before, so I don't have all
those details with me now, but yes, that is how
it is, and it's increasing. It's increasing really frequently, so
(18:50):
more customers from different countries to different markets EU, UK,
there's a widespread move this direction.
Speaker 4 (19:01):
Hey Anna, this is totally off the script, but I
was reading a story from the Southland Times from way
back in two thousand and nine. It involved a great
friend of mine, is not very well at the moment
at all. And John Key had turned up at his
farm in Riversdale and it was all about getting this
super conglomerate meat company. Two thousand and nine. This is
(19:23):
and I think it was when the Alliance Group and
silver Fern Farms were thinking of getting together and John
Key was all for it. Did we miss a trick
back then? And I know it predates you by a long.
Speaker 7 (19:34):
Way, does predate me?
Speaker 8 (19:38):
Potentially, we did miss a trick back then. I think
it's fair to say that plenty of us in the
industry are reflecting on that and why, probably the reasons
why it didn't happen in what we can learn from that.
But we have a lot less livestock now than we
did back then. Obviously we've reduced compete, but there is
(20:01):
more hard work to do there. So Yeah, firmly believe
we need good competition pricing wise at the farm gate.
But there is a lot of room for us in
this industry to cooperate.
Speaker 4 (20:13):
Yeah, I was thinking to you guys. You guys as
an industry must look jealously at the dairy industry model.
You know, Fonterra, the big strong player eighty percent of
the market. But then there's there's your open country dairies,
your sin lays, your Westlands or whatever. Just to keep them.
Speaker 8 (20:28):
Honest, absolutely need we need good, good competitive tension at
the farm gate one hundred percent, but the ability to
cooperate much more, particularly out of the market, is something
they're I'm really really determined to help see happen.
Speaker 4 (20:47):
Okay, just an in summary, then it's been a good
year or a good season for sheep and beef farmers
price wise, hasn't necessarily been a good year for the
meat processing companies for many reasons, including procurement pressures. If
you want, it's not going to get any easier because
we're losing, as you well know because you're a sheep
and beef farmer up in the king Country, we're losing
(21:07):
productive farming land to pine trees and land use change.
Speaker 8 (21:12):
Yeah, that's right. It's very confronting. Confronting is farmers in
our communities where it's happening, and it's confronting for silverf
and farms. As livestock numbers go down and as we
head in to the winter months the second half of
the year particularly, that's where we really feel it in
the processing sector.
Speaker 4 (21:31):
Yeah, and the good news is for the farmers anyhow,
not necessarily for you. The prices look like they're going
to remain strong.
Speaker 7 (21:37):
Yeah.
Speaker 8 (21:38):
Look, we've got great markets, are strong in the next
few years, are looking really positive, so that is excellent
and farmers can take real confidence out of its processes.
We've got some challenges to manage, but the direction of
travel with pricing and market and really those supplies demand
(22:01):
dynemics globally is meaning that there's a really positive story
at the moment.
Speaker 4 (22:05):
Anna Nelson, code Chair or you're actually the cooperative chair
and code chair of silver Fern Farms Limited. Thank you
very much for your time today on the Country. Good
to read Sally Ray's excellent work. Hello Sally, if you're
listening in the ODT. It's good that some journalists and
media were invited to the AGM. You realize that in
King Keith Cooper's Diana, which predates you as well, I
(22:27):
would have been first on the invite list for a
cup of tea and a scone.
Speaker 8 (22:31):
Hey, it's noted, Jamie, noted. I did say to the
meeting yesterday, hold me to a couple of things, so
you can hold me to your invite for SCON next
year in really cool Sally Ray and I just want
to call out, you know, note Rob Hewitt's seventeen year
contribution in moving On at dog Tacker Day. Thanks Rob
(22:52):
for all you've done.
Speaker 4 (22:53):
Good on you, Hey Anna Nelson, I might catch up
with you at Field Days. Thanks for your time.
Speaker 6 (22:57):
Sounds great tees Damist of the Country with Rabobank.
Speaker 1 (23:02):
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Speaker 4 (23:05):
Rabobank, Welcome back to the best of the Country and
New Zealand. My name's Jamie McKay. The show is brought
to you by Rabobank. We are truly growing a better
New Zealand together. Next week on the show I'll be
chatting too, talking about Rabobank. The chief Economist I think
(23:28):
is title is Senior market Strategist Ben Pickedon out of
the Sydney office. And of course we've got on Wednesday
the Reserve Bank official cash rate announcements, so we'll drop
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go to the website rabobank dot co dot Nz. Up
next on the Best of the Country. Had a really
interesting chat midweek with the guy by the name of
(24:14):
Lucas FeAs out of Chicago. He's touring the country talking
to New Zealand dairy and beef farmers with Rabobank. With
them Emma Higgins from rabobank and my favorite interview of
the week. I'm a sucker for this man because he's
such a great orator. Shane Jones, the Prince of the
province is the self titled Martua, commenting on Thursday's budget.
(24:36):
Caught up with them on yesterday's show, where a highlight
for me was his baiting of the Greens over his
spend up on fossil fuel energy. But should he who
has sinned cast the first stone my tour Shane jonester
at the Best of the Country.
Speaker 1 (25:00):
The Best of the Country with Robobank, the bank with
local Agribanking experts passionate about the future of rural communities Robobank.
Speaker 4 (25:08):
So you've heard from Richard Allen, Fonterra's President of Global
Markets Ingredients. What an americanized sort of title that is.
I'm going to stick with the US theme because now
I'm going to chat to a guy by the name
of Lucas Fees. He is a senior dairy analyst at Rabobank.
He's based out of Chicago, where Richard used to be based.
(25:30):
Did you two come across each other in a past
life by anyway, Lucas, good afternoon.
Speaker 7 (25:34):
By the way, good afternoon, Thanks for having me. I
spent a little bit of time in that Fonterra Chicago office.
I think reflective of Fonterra's global presence, no doubt. I
think I have Matt Richard in the past. But there's
a big office of Fonterra crew there, so there are a.
Speaker 4 (25:52):
Lot of Fonterra people around the world. You are spending
time with one of my favorite people at rabobank, Emma Higgins.
She's very smart. She it's the dairy analyst Rabobank. You're
on a bit of a roadshow around the country. What
are you telling new Zealand farmas.
Speaker 7 (26:06):
That's right, I essentially on Emma's global dairy team with
roble Bank investing heavily in the research side of things.
But yeah, here in New Zealand this week talking about
where the US is looking to go in terms of
a dairy and one of the major themes key to
our conversations right now is typically when we consider the
(26:30):
global dairy market, key exporting countries New Zealand, of course,
the US the EU are usually relatively in price alignment,
but we've seen some softer pricing from the US over
the past few months versus the rest of the world
on most products, I think it's safe to say, but
especially on the fat side of things, something like butter.
Two key drivers there that I'm seeing. US milk production
(26:53):
has returned to steady growth so far this year, one
of the few, if only, key exporting regions where we're
seeing that milk production growth. So plenty of supply coming
out of the US right now. And then also, of
course the trade and tariff escalation that we've seen some
concerns about the ability of US exporters to move product
(27:13):
overseas to foreign buyers, some buyers typically buying multi month
contracts pulling back a little bit and buying more hand
to mouth. So between higher supply and questions about exports
in the US, we are quite price competitive on a
global scale right now.
Speaker 4 (27:29):
Lookus face with us from Rabobank out of Chicago. Final
question for you, this isn't strictly a dairy question, but
I know you're doing the road shows with Emma Higgins
who's an expert in the field, and not only dairy
but also red and mate. The US beef cattle numbers,
how long will it take them to build them up again?
Speaker 7 (27:49):
It's we've certainly worked ourselves into kind of a structural
issue here where it will be a little bit challenging
to rebuild the herd. But we do think that twenty
twenty five will be the low for beef slaughter rates
in the US. We expect a bit of recovery into
the coming years, but it's not something that's going to
be fixed in the very near term. It will be
(28:11):
several years before we get back to anything that resembles
some semblance of normalcy around that beef production rate in
the US. Overall, though very good news for dairy farmers,
there is a significant revenue draw from beef on dairy
cross calves, so breeding your dairy cows to beef bowls
(28:32):
and of course eliminating the ability of that calf to
join the dairy stream, joining the beef stream instead several
hundred dollars. Several hundred US dollars is what a beef
on dairy cross calf is worse in the US right now.
Very significant revenue for an animal that's a few days
old versus one that you have to feed for two
years before you can see any revenue from her. So
(28:55):
interesting things happening on beef, but positive trends for dairy
farmers who who can tap into that revenue.
Speaker 4 (29:02):
Lucas Face out of Rabobank, out of Chicago, Thanks for
your time, Enjoy the rest of your stay in God's own.
Speaker 1 (29:07):
Thanks for having me the best of the country with Rubbobank.
Choose the bank with one hundred and twenty years global
agribusiness experience. Grow with Rubbobank.
Speaker 4 (29:16):
Budget twenty twenty five. While the highlight for me, without
a doubt was some glorious baiting of the greens from Martua.
Shane Jones, the Prince of the Provinces. Shane, you had
poor old Chloe fizzing at the bung.
Speaker 3 (29:31):
Someone gave me a nineteen sixty nine bottle of mar
Week gold oil, and I stood up and I invited
the greens to sniffe it. And I said to Chloe figuratively,
it's not the roses. Wake up and smell the oil.
That's your near term, long term future.
Speaker 4 (29:50):
And then you got stuck into a over wind powered energy.
You said, we can match it with wind, but we
don't want your mung been pronoun of wind. Do you
sit at home and make up these wei one liners
or do they come straight into your head?
Speaker 3 (30:06):
Well, they're like a reservoir. They're like a sort of
sitting on a library shelf and subject to being alert enough,
I just plucked them back off the shelf. But sometimes
I don't know where they come from. They just materialize
it. It always worked, but most times they get a giggle
and they kind of help define you in a political market.
Speaker 4 (30:26):
Mind you, you did have moments of contrition. You talked
about the worst decision made in the history of our nation,
delivered by Jasinda Adirn, supported by Meghan I'm presuming that's
Meghan Woods and sadly acquiesced by the good Martua, and
that's when you banned the search for natural gas or
banned the industry basically.
Speaker 3 (30:47):
Yeah, So that's why the two hundred million dollars that
are we got and announced as a form of atonement
for that that wayward decision that I was wrapped up on.
Speaker 4 (30:58):
Well, you've been involved in a few ways with decisions.
Speaker 8 (31:01):
And.
Speaker 3 (31:03):
Nothing rivals that. Of course, there's the ongoing madness of
climate change. And I also said in the speech that
under the United Nations we're allowed to exempt ourselves from
a lot of this climate change sort of overreach because
we're a food producing nation and our political campaign next
year is going to be built all around that we
shouldn't even be paying anything for food producing out in
(31:26):
New Zealand.
Speaker 4 (31:26):
Well, I wouldn't argue with you there. Are you going
to stay? Are you in Winston going to campaign strongly
on getting out of Paris?
Speaker 3 (31:34):
Well, the first thing we're going to do is going
to seek a mandate from KIWIS because obviously other political
parties are very very nervous about the main parties about
walking away from Paris. But New Zealand first, we're not
going to stay in the position that we are. The
extent that we kick it on the backside and get
(31:55):
rid of it all together is going to depend on
our next electoral result. But we're not campaigning for the
status quo. We believe that the high tide has come
and gone. There's a report that was put out by
an excellent lady called Nicholas Shedbolk. Sadly she was elbowed
out of the Climate Commission by the Zealots over the
last year or two. We have a great deal of
(32:16):
confidence in that lady, academic from Messi University, and she's
saying that for short lived gases, do we go at
twenty four percent or fourteen percent New Zealand versus toying
with the idea of execting the entirety of short short
lived gases. For in terms of agriculture, what.
Speaker 4 (32:33):
Did you make of the key elements of the budget
changes to key we say, and I'm thinking, if you're
earning one hundred and eighty grand, you don't need another
five hundred dollars per annum from the government. In fact,
Shane I were to put the threshold much lower than that.
Speaker 3 (32:50):
Yeah, well, we're making you know, we're making what obviously
our steps to shrink the size of the entitlements that
the state offers to you and I as citizens. David
Seymour wants us to go a lot further. We have
to be respectful of Nikola. She's sort of taking a
more of an incremental approach. But we've got our budget
(33:10):
next year and there's another opportunity. As I see in
the budget speech, there's going to be more cuts, and
there has to be because the state has ended up
elbowing the private sector out of the way and occupying
positions in your economy, our society where it doesn't blong.
Speaker 5 (33:26):
Now.
Speaker 4 (33:27):
I did like the new investment boost tax credit for
businesses where you can can deduct twenty percent of a
new assets value and that is on top of the
annual depreciation. Minds you, Shane, it does remind me of you,
and you're of a similar generation to me. Back in
the day when I left university, a lot of my
young farmer mates were all buying hold and uts and
(33:48):
the reason they were doing it through the farm is
they would get a forty percent investment allowance off the
top and then they could depreciate it after that cost
them next to nothing.
Speaker 9 (33:58):
Are we going to see any of that all of
the eye idea will be watching anyone gaining the system.
But I'm hopeful that in my beloved fishing and mining industry,
and not only we will first certainly at fishing, sorry
of mining if it's oil and gas, and have access
to the two hundred million, if they've got a decent
deal and they can expense at twenty percent capital investments,
(34:20):
and that's going to really turbocharge. And quite frankly, it's
those kinds of investments and incentives. It's going to help
people to do more to capital efficiency and that's a
better response to coping with the weather. This notion of
climatism closing down the economy, that's that's hoax politics.
Speaker 4 (34:39):
Talking about climate change and making the planet a better place.
You're off to Marston Point. There's a rich irony in
this to open a solar farm.
Speaker 3 (34:49):
Yeah, So at one level I have to At one level,
I have to respect the fact that we own the
gent tailors fifty one percent. They're spending taxpayers resources and
the seems that it's partly a taxpayer own company and
the private sector. But I do see an ongoing place
for Marsden Point importing diesel so they can run a
(35:10):
diesel picker power station at Marsden Point and shrink the
cost of energy. But I've now realized that it's impossible
to rely on these gent tailors over time to give
us more secure energy and cheaper energy there in the
short term market, and that keeps the prices high. And
we're about to get a major report over the next
month from some Aussie consultants and then the government's going
(35:33):
to make a call as to what changes we make
to the energy markets. Now you know that, Winstone. I
we campaign on major changes, including splitting up the gent
tailors and ensuring that it's a long term future for oil,
coal and gas to keep the lights on. I think
that I'm winning that debate.
Speaker 4 (35:53):
Hey, I just want to furnish with another one of
your one liners from the house here that I and
the budget debate a bit of coalition advice. If you
want for Labor you said this, I would say to Labor,
I need to give you speed dial relationship advice. And
my advice to mister Hipkins is you're going to have
to kiss a lot of frogs before you find the prince.
(36:16):
Were you referring to yourself? Were you offering your services to.
Speaker 3 (36:19):
Chippy, I did say I'm wearing a red tie to
remind you what could have been. No, I was saying
to them, you kiss the wrong frog, Chippy, and you
yourself will croak.
Speaker 4 (36:32):
Well he's kissing a green frog.
Speaker 3 (36:35):
Well, mate, that frog is actually a tadpole without leggs,
and it's distorted, misshapen, and sadly it's in the wrong
country because it doesn't believe. And kiwi's as sparring to
be wealthy, or kiwi's making their own children lunch to
take to school. They've fed this appetite and this toxic
diet of not only victimhood but dependability, and they are
(37:00):
now depending and becoming reliant on the state to an extent.
We cannot afford it to go back to the old values.
You have kids, you get off your moml your backside,
and you raise them. And if you are on the
doll and you are not prepared to work like other Kiwis,
then we're not going to pay you to maintain a misshapen,
very dangerous lifestyle.
Speaker 4 (37:19):
Well spoken Martua Shane Jones, Prince of the Provinces, thanks
as always for your time on the country.
Speaker 1 (37:25):
Take care, mete the best of the country with Rabobank.
Choose the bank with a huge network of progressive farming clients.
Speaker 4 (37:33):
Rabobank a mighty Martua telling it how it is here
on the country. Good morning New Zealand. My name is
Jamie McKay. This is the best of the country, the
best bits of our weekday show twelve to one. It's
brought to you by Rabobank. I have been an interesting
week with the budget o cr announcement next week and
(37:54):
of course tonight Mowana Pacifica. Can you dare to dream
even though the chiefs are default side after the Highlanders?
Because I love Damien McKenzie. She I'd love to see
Mowana Pacifica upset the apple cart. What a great story
that is. You enjoy your weekend. I'll catch your back
on Monday. I'm gonna leave you with Paula Cole. And
where have all the cowboys gone?
Speaker 1 (38:15):
Take your calling in the sweet.
Speaker 2 (38:18):
P raising children.
Speaker 1 (38:22):
You?
Speaker 10 (38:26):
Where is my job? Where is my very s? Where
is my happy cowboy dress? Virgine Umber Johnny.
Speaker 11 (39:04):
So we found a silver shitty when we had another baby,
and you took the Jerman Tennessee. You made friends at
the farm. You join them in the barns.
Speaker 8 (39:25):
Every single day.
Speaker 11 (39:27):
Of the week.
Speaker 10 (39:29):
I washed the dishes.
Speaker 2 (39:33):
You go have a beer.
Speaker 10 (39:37):
Where is my job, lady, Where is my very salt?
Where it is my happy edding? Where the cowboys gone weird?
Speaker 2 (39:53):
Is my marble man.
Speaker 10 (39:56):
Leers shining God? It is mildly Ranger Pad of Cowboys.
Co BA the Cowboys.
Speaker 4 (40:13):
Co.
Speaker 2 (40:22):
B of the Cowboys. Co