March 7, 2025 • 40 mins
Jamie Mackay talks to Christopher Luxon, Gordon Rennie, Emma Higgins, Emma Brodie, and Todd McClay.
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Speaker 1 (00:00):
The best of the country with Rubbo Bag.
Speaker 2 (00:02):
Choose the Bank with one hundred and twenty years global
agribusiness experience.
Speaker 1 (00:06):
Grow with Rubbobag.
Speaker 3 (00:24):
Goday and Good Morning New Zealand. I'm Jamie McKay. This
is the best of the country here on News Talk
Zed Beach and every Saturday morning between six and seven
we play the best bits of our weekday show twelve
to one. The show is brought to you by Rabobank.
We're growing a better New Zealand together on International Women's Day.
Some of my favorite Kiwi women singers Debbie Harwood, Diane Swan,
(00:46):
Any Crummer, Kim Willoughby in the late great Margaret Erlich
when the Cats a wide, great cover of the old
blue mink number Melting Pot Oh for the eighties. I'm
showing my age and they are going to kick it
off with Christopher Lux and the Prime Minister. Every Wednesday
on the Country he fronts up. This week we pondered
(01:06):
Trump Tariff's a four year parliamentary term, raising the age
of eligibility for national super to sixty seven and sandwidge Gate.
Gordon Rennie got an interesting text from a Scottish farmer
agronomist and journalist on Tuesday. He was on the show
on Wednesday, Emma Higgins out of Rabobank Emma Brody in
(01:27):
response to numerous listener complaints we had about Safe save
Animals from exploitation. Emma's a safe campaigner and I took
it a task over her mud farming ambush attack ads
running during our show and we wrap it with Todd McLay.
It is the big story of the week. Trump and tariffs.
(01:48):
He announced this week or did he that there would
be ag tariffs from April to second It's all on
the Best of the Country and it's brought to you
by Rabobank.
Speaker 2 (02:06):
The Best of the Country with Rabobank. Choose the bank
with a huge network of progressive farming clients.
Speaker 3 (02:13):
Rabobank Wednesdays on the Country. The PM kicks off the show.
I was going to kick off with sandwich Gate. I'm
coming back to that one because they're bigger fish to
fry Prime Minister around the world. Gee, it's getting messy
with Trump and his tariffs in Ukraine. You name it.
Speaker 4 (02:30):
Well. Look, I mean I saw the announcement yesterday or
peat from President Trump around agricultural tariffs. But the question
for us, we need to see the detail. Is it specific,
is it universal to all countries? We actually have quite
a balanced trade arrangement or relation a management between both
US and New Zealand. But look, we instructed our officials
(02:52):
several weeks ago to engage with the administration on agricultural tariffs.
And of course, you know, I'm an engaged I would
engage to it were President Trump if we if we
see any of our agricultural traders at RESK. But look,
we need to see the detail first. You know, often
there's a pronouncement on social media and it's important we
actually see the detail and actually what what does gets implemented?
Speaker 3 (03:13):
Finally, Okay, hypothetically he chucks the terrify and I don't know,
ten percent on April the second, do we put a
reciprocal terror on us stuff?
Speaker 4 (03:21):
Yeah, look, I'm not going to speculate on that because
I genuinely you know, you know, I spend every day
giving a running commentary on pronouncements from the new government.
You know, the reality is I need to make sure
that actually see the detail and then we actually respond
properly with that, because as I said, you know, we
actually have a very balanced trade relationship, particularly in agriculture
(03:43):
and actually a lot of our agricultural products. Remember we
have you know, even to take beef. You know, it
actually helps their market because we have a different quality
of beef product and they've got to hang a lot
of hamburgers that's held to Americans, and you know, this
terrifying ends up hurting them ultimately. And so let's just
see exactly what gets implemented. As I said, our officials,
(04:04):
we instructed them probably four or five weeks ago, engage
with the government and over there on this particular issue.
And let's just see where it all gets to. Having
said all that, we're ready to respond with an intervention
from myself to make the case for why we would
not feel it would be fair. The other thing I'd
just say is in a universal setting, obviously it gets
(04:24):
applied to everybody. It's about our relative competitiveness and what
is a very very large market. And so you know
how it's applied, whether it's specific to certain countries, whether
it's universally applied across all countries, that kind of matters.
To sort of see how it shakes down.
Speaker 3 (04:39):
Are you an unlucky prime minister every time you seem
to come up with a good news story or a
good news trade deal, you get swamped by other bad news.
Speaker 1 (04:49):
What do you mean You mean I'm talking about.
Speaker 3 (04:52):
Your trip to Vietnam that was highly successful, was it not?
Speaker 1 (04:55):
It was great?
Speaker 4 (04:56):
It was really really good. I mean we just for
your listeners. You know, Vietnam's like the fourteenth largest trading partner.
It's the fastest growing economy in our region. It's been
growing at five to six per seed every year for
twenty five years. It's about to start growing at seven
to nine percent. It will genuinely become sort of a
Singapore Taiwan's South Korea type economy. And they're moving from
(05:17):
low income to middle income and often is a high income.
But man, they love New Zealand products, and so this
trip was actually quite interesting because it was a big
focus on education. In fact, that's a really big focus
for Vietnam. They do an incredible job on educating their
own people. They've got a university that started in ten
seventy six, so they've just really it's embedded in their
culture about educate, educate, educate. But it was a big
(05:39):
for showcase on our traditional food and beverage and number
one and dairy, but I think you know we're number two,
just behind the Americans on Apple's for example. There's still
huge opportunity in red meat there. So it was a
real traditional you know, let's make sure they understand the
quality of our food and produce and as they get
from low income to middleland, they want.
Speaker 5 (06:00):
Better quality food.
Speaker 4 (06:02):
And so I did everything, Jamie. I did everything I
could to sell on New Zealand products and services from
our great farmers. Shamelessly war hats, I ate snails. I
did whatever it took to try and make sure we
could sell for some things. And we had a really
good business delegation representing the sector as well, So it
was really awesome.
Speaker 5 (06:20):
It was a really great group.
Speaker 3 (06:21):
Okay, Sandwich Gate not a mile away. But just before
we do a four year term for Parliament National super
at sixty seven, two quick fixes for the New Zealand economy,
do you agree?
Speaker 4 (06:33):
Yeah, Look, I mean the benefit of you personally. Look,
I'm in favor of a four year term. We've got
a bill that actually is an act bill which is
going to get a chance to go before the SELEC Committee.
That will also be a chance for all the parties
to sort of say is that the right approach or
is there a simpler approach and they can look at
all of that, but the other pieces and that's ultmately
(06:55):
we would get to. But right now, the New Zealand
people want me focused every day on not four year terms,
but actually on fixing the economy and making sure we
deal with the cost of living on National super as
you know, that's very much our policy. You know, I
think you know, people are aging well, quality of life
is going up, the living longer, We should race the retirement.
Speaker 5 (07:14):
Asia sixty seven.
Speaker 4 (07:15):
Having said that, you've got New Zealand first, who are
diametrically opposed and also the Labor Party.
Speaker 5 (07:20):
So those are things that we just.
Speaker 4 (07:23):
Have not been able to agree in the coalition. For sure.
Speaker 3 (07:26):
Well hey Winston's agent quite well, do you have to
wait till well, yeah, he pops off the perch. Do
you will?
Speaker 4 (07:34):
You make the case that about it?
Speaker 3 (07:35):
But I've tried to.
Speaker 4 (07:36):
I think it makes real sense. I mean, as we
said before the election, you know, it's you know, everyone know,
our living standard has gone up, people are working longer,
They are actually healthier at the same age to say
their parents were or their grandparents were, and many other
countries frankly around the world have sixty seven, some even
getting close to seventy. So yeah, I mean I think
(07:57):
it makes sense, but that's not something that politically has
been agreed between different parties.
Speaker 3 (08:02):
Sandwich gate, make a marmite sandwich and put an apple
in the bag, did you guys workshop? This is this
as a result of a focus group. And I say
that because Nikola Willis said exactly the same thing this
time a week ago when she was filling in for
you on this show while you were doing God's work
in Vietnam.
Speaker 5 (08:21):
No.
Speaker 4 (08:22):
We all like, no, no, no, we didn't. That's what I
got for my lunch. And we had a chat about
what did you act to have for lunches and stuff,
and everyone had had some slightly different ones, but I had,
you know, I was just I was every day as
a cheese mumma sandwich with an apple. Occasionally Mumbo makes
baking it which in a so on into a little
lunch box. And once a term I think I was
(08:44):
allowed to go buy a pie and chocolate zapp and
my custom square and it. So I just my point's
pretty simple, which is like, yeah, I think parents should
be feeding their own kids. I'd rather the state didn't
have to do so. It should be frankly a parental responsibility.
But lot the reality is, Jamie, we do have kids
that are coming to school with no lunch. I'm not
(09:05):
willing to go hungry because if the research chose if
they're not learning, they're not learning them, they're not failing
in school, and they're ending up umploughted, not welfare and
for limited option. So yep, some of the school lunches
aren't to scratched. David was across the issue. I've got
even conference, go go get sorted. But you know, if
you're if you're unhappy with it, frankly, you know, making
(09:26):
my night sandwich and ducking apple on the bag?
Speaker 3 (09:28):
Hey, is this the dynamic new hard hitting Crystopher Luxeen
was saying, is this the real Christopher Luxeon standing up? Please?
Are no more dancing on a pin over Andrew Bailey?
You know you get a workshop but and then you're
going to go hard at it.
Speaker 4 (09:41):
Well, look, I just think this is I think you know,
that's what I believe. But I mean to say on
the end of daily saying, look, yep, but that's of
the question from hosking better. But the point is also
I had an individual who had just resigned and given
up as significant decision, a tough one, very emotional one,
and the last thing someone piling on and that was
my know, the reason why my answer in the way.
Speaker 6 (10:04):
That I did.
Speaker 4 (10:05):
Yep, could have answered it better. I should have answered
it better. But look, yeah, the bottom line is we've
got a lot to focus on and we're a government
is just trying to drive every single day to get
things sorted, to give them mess that we've inherd. So yep,
it's it's hard and it's tough, and there's lots for
us to do. But that's what we're focused on.
Speaker 3 (10:21):
Is that focusing on or focusing grouping on anyhow, Look,
I'm being cheeky there, and I should.
Speaker 4 (10:26):
Recall I know you want to make that point, but
we don't do that.
Speaker 3 (10:29):
You don't do focus groups.
Speaker 4 (10:30):
No, No, we got back on track because that just
came out of a conversation I have on my team.
So that's how stuff happens.
Speaker 3 (10:36):
Good on you. Look, I really appreciate your time on
the country. Thank you, mate. Prime Minister Christopher Luxon on
Wednesday Show. Also on Wednesday Show, Gordon Rennie, Scottish farmer,
agronomist and journalist Emma Higgins from rabobank, and a bit
later in the hour Emma Brody. We've got two ems
(10:58):
for the price of one today from so Todd McLay,
Minister of Agriculture and Trade to rapid. As we all
talked about Trump and tariffs this week, this is the
best of the country. It's brought to you by Rabobank.
Speaker 2 (11:15):
The best of the country with Rabobank, the bank with
local agribanking experts, passionate about the future of rural communities, Rabobank.
Speaker 3 (11:24):
Really interesting text on yesterday's show by a Scottish farmer
and journalists by the name of Gordon Rennie. He's in
New Zealand for six weeks. Gordon said, I'm a British
farmer and a Nuffield scholar. UK consumers want one thing,
low prices for all food. Look at the rise of Audi,
(11:44):
the German discount store and he's talking about net zero
is nowhere near the mines of the vast majority of
consumers and a cost of living crisis. And Gordon, I
guess you're reflecting what a lot of people are saying.
So are Scottish farmers of a seat milk to their
New Zealand counterparts when it comes to us.
Speaker 5 (12:04):
Yeah, the very big similarity in the Scottish farmers. You know,
farmers have one objective is to produce food that's in
our DNA and to produce food efficiently. We still get
substitutes in Scotland, so I must say we're probably not
quite as efficient as you can't New chaps down here,
(12:24):
but we do get you know, we have a lot
of government intervention help it telling us to set aside
bit's the ground, do some regenerative farming, which comes with
a cost. But unfortunately these extra costs are not returned
at the at the farm gate price because the big,
(12:47):
the big supermarkets in Britain are they're under pressure to
keep prices down. So we may do lots of good
things for the for the climate change, but we very
seldom get rewarded.
Speaker 3 (12:58):
Now, the problem was that the UK has got is
that you're not food sufficient. I think you are only
only produced just over fifty percent of the food consumed
in the UK. So therefore you've got an issue to
start with. You actually want farmers to get credits and
this is a bit of a bugbear of mine get
credits for everything on their farm that sequesters carbon. And
(13:21):
we're not only talking vegetation, we're talking grass and we're
talking soil. You want farmers to measure soil carbon.
Speaker 5 (13:31):
I want farmers in New Zealand. I'm very passionate about that.
We are Professor David Polson from often Stead Research speaking
to us in Dundee about one year ago, and in
relation to New Zealand, I asked them a direct question,
what's sequestrates the most carbon one hector of pine trees
(13:52):
or one hectora of productive grass. And this is a
world expert. There is no difference, So I feel that
armers in New Zealand grass will be sequestrated. There's only
one single way we can remove carbon from the atmosphere
and it's called photosynthesis. So grass is fantastic and grass
(14:13):
not only reducing the carbon. We produce fruit from grass.
So it's really important that New Zealand farmers are valued
of what they're doing. And trees, you cannot eat trees.
Speaker 3 (14:25):
My friend talk to me about soil sequestor and carbon.
Speaker 5 (14:30):
Right, Well, what happens is there's only one mechanism in
the world that is for the synthesis. Well know, no,
by plants breathe, they absorb carbon dioxide, and that that
carbon dioxide is produced into the grass that she'd eat,
and also goes into the roots and into the soil,
building up humus and organic matter. And over time meganic
(14:52):
matter starts to build up and I'll not zero point
one percent increase in so organic matter will secretate an
extra nine terms for hectare of carbon dioxide. So farming
is the solution, not the problem. We have the solution
to climate change, and.
Speaker 3 (15:11):
That solution is more farming. Does it therefore follow golden
rinny from Scotland that we need more ruminants rising those pastures.
Speaker 5 (15:20):
Yes, absolutely, and you know the world, every single country,
New Zealand, this part of agreement is using the wrong
matrix for measuring methane meetings are short lived twelve year gas.
It's not really a true greenhouse gas. And we have
to get politicians to realize that grass is the most
fantastic crop. Ruminants eat grass, and ruminants produce food. So
(15:44):
in Britain, yes, we're only sixty percent self sufficient and
the British government doesn't seem to have food production in
its DNA. But we all have to eat. It's going
to be a population of nine billion people and it's
really important that we understand the value of and other
crops in the role for sequestrating carbon.
Speaker 3 (16:05):
So you yourself, you're an agronomist, you're an outgrower, you're
a journalist, obviously a farmer. You've been a kN Afield
scholar thirty years ago. You've been coming here to New Zealand,
Gordon Rennie for fifty years. What brought you over here?
Speaker 5 (16:20):
It's a long story that as a younger man and
I'd heard so many wonderful stories about New Zealanders. And
when I was a young kid doing geography, the mister
Newton toook pictures of all that, you know, all the.
Speaker 6 (16:35):
Red stuff, the British stuff, and one day we're a
day it said, the Canterbury Plains. It's one of the greatest,
the greatest places in the world for growing food. And
I just decided New Zealander's great people, lots of Scottish connections,
Canterby planes have been coming.
Speaker 5 (16:55):
Here ever since. I didn't know anybody fifty years ago,
and I was given comeness, hospitality and often ae drab
what's not to like?
Speaker 3 (17:05):
Hey, Gordon, Rannie, lovely to catch up. Thank you for
listening to the show, Thanks for texting in yesterday, and
I haven't got time to go through a wonderful story,
but you were the inspiration for Jeremy Clarkson's Clarkson's Farm
due to a young guy who worked for you who
ended up working for top Gear and was a bit
of an inspiration for Clarkson's farm. Another story for another day.
(17:28):
It's been great catching up. You enjoy the rest of
your stay in God's Own New Zealand.
Speaker 5 (17:33):
Thank you very much, my friend.
Speaker 1 (17:35):
The best of the country with Rubbobank.
Speaker 2 (17:38):
Choose the bank with one hundred and twenty years global
agribusiness experience.
Speaker 1 (17:42):
Grow with Rubbobank.
Speaker 3 (17:43):
Good global dairy trade auction result overnight even though it
went down zero point five percent. We're going to talk
about that with Emma Higgins, a Rabobank Senior ag analyst,
and also about her latest offering, the Q one Global
Dairy Quarterly, and we'll get the drum roll ready for
Emma's new milk forecast price for this season. But before
(18:07):
we do that, Emma talk to me about the GDT
auction I reckon that was a good result.
Speaker 7 (18:12):
Yeah, I think the same Jamie as well. So yeah,
sure the index moved back lower by half a percent. Sure,
but on picking some of those results, we actually saw
some glimmers of optimism when we look at skim milk powder,
which lifted by something similar and we're now looking at
two thousand, seven hundred or just above that US dollars
(18:32):
per ton for skim, So that's glimmers of optimism. But
actually again when we also look through the numbers, butter
prices reached a new chord once again. And I think
last time I was talking to you, we we were
talking about a couple of months ago or a couple
of weeks ago, the fact that butter prices had had
new records, And now what seems to have happened overnight
(18:53):
is the average butter price is now sitting above US
seven five hundred bucks a ton, which according to my calculations,
looks like another record has been had. So those two
factors around skerm and butter have helped to stop what
could have been a poorer performance overall. So I'm taking
that in some total as a positive result for our
(19:15):
New Zealand farmance.
Speaker 3 (19:17):
This auction obviously was after you'd completed your Q one
Global Dairy Quarterly report. Would it have changed anything?
Speaker 7 (19:26):
No, I think it underpins what we are talking about.
So and MC I'll lead with it first, Jam because
they know you're going to ask me what checkening were
they MILT price forecast. So look, we are moving it
up and Lyne to where Fonterra is sitting now at
tim Bucks. Before when we reset our forecast at the
end of last year, we had a nine dollars seventy
(19:48):
milk price forecast which was sitting slightly higher than where
Fonterra was at that when in time, So we were
expecting to see some upside come through and I think
we've obviously seen that in terms of some of the
volatility upwards, which has been good for in New Zealand farmers.
And so we are in line with Fonterra. I think
if we take a step back, there's a lot happening.
There's a lot of volatility out there, there's a lot
(20:09):
of uncertainty in global markets. We think that on the
supply side, we think that modest growth is set to
emerge across this year and into next year as well,
and that's because most farmers are making money now. Sentiment
is probably the highest here in New Zealand, but elsewhere
in the likes of the US and parts of the EU,
(20:31):
and then also in Brazil as well, we're seeing healthier
margins and we think that's going to translate into more
milk supply. If we look across onto the demand side,
we are expecting to see an improvement come out of
our major exporting region, China through importing region China, but
ultimately we're still cautiously optimistic around what might happen there
(20:54):
over the coming weeks and months, just because there's still
some challenges within some of the aspects that we look
at it comes to demand within China, and that's why
we're sitting still at ten dollars. There's a lot that
can happen between now and the end of the season, though,
and we have seen in the past that when China
jumps into the market, prices can surge. And the watching
(21:17):
point to that, Jamie, is that milk supply in China
is turning around and potentially tuning around quite quickly.
Speaker 3 (21:24):
So what about our domestic production here because we know,
particularly the North Island's getting very dry at ten dollars,
you can afford to buy supplementary feed. Poke it in
one end of the cow and outcomes some milk from
the other end. It's a wonderful mathematical equation. As Trump
would say, it's a beautiful thing. It is a great
and wonderful thing. Well, come back to Trump. But are
(21:45):
we going to see milk production fall off in this country?
Speaker 7 (21:49):
Look, I think there is a risk of that. We
know that certain parts of the country haven't received meaningful
rain in the last three while, and we've just seen
some drought declarations being made more recently in parts of
the North Island. So there is a risk of that
happening if farmers look to conserve cow condition and basically
(22:10):
try and draw the line and ensure that they heard
is in a really good shape for the new season.
The risk on the flip side, obviously, is what you've
just talked about, where economics do support perhaps some looking
to pump a little bit more feed into the system
to get them through. So I think it's a risk.
For now, we are expecting the milk production land somewhere
(22:32):
between two and a half and three percent for the
full season, which is a really good result. For the
twenty four to twenty five season and the great part
of that is that the market is still absorbing all
this extra milk production.
Speaker 3 (22:44):
Emma Higgins, thank you very much for your time as
always on the Country and well done. I'm getting to
ten bucks.
Speaker 7 (22:50):
Thanks Jamie.
Speaker 2 (22:51):
The Best of the Country with Rabobank. Choose the bank
with a huge network of progressive farming clients.
Speaker 1 (22:58):
Ravo Bank.
Speaker 3 (23:00):
That's one Gooday and good Morning New Zealand. I'm Jamie Mackay.
This is the Best of the Country. It's brought to
you by Rabobank. We're growing a better New Zealand together.
It's International Women's Day. One of my favorite key we
(23:23):
artists Margaret Earlitch and escaping. There's no escaping Donald Trumps
and that was a big topic on this week's show.
We're going to wrap the show with Todd McLay, Minister
of Agriculture and Trade. Caught up with them on Thursday
at Kate Ackland's Mount Summer's Farm. She's the chair of
Beef and Lamb New Zealand. They released the mid season
(23:45):
update for She Can Beef Farmers and it was pretty
good news. We just need Trump and co. To keep
eating those Hamburgers in America and not putting tariffs on.
But up next it's Emma Brody in response to a
whole lot of listener complaints we got because we're playing
ads during our show. I call it an ambush attack
(24:06):
and I asked Emma Brody, a safe campaigner, to come
on and defend us South. We had quite the discussion,
so that's to come before the end of the hour.
Also when it comes to our wonderful sponsor's Rabobank, how
good is this? Entries are now being sought from the
rural community from community groups across rural New Zealand for
the Rabo Community Hub Competition. It's running for the first
(24:29):
time this year in twenty twenty five. The competition provides
entrance with a chance to win five thousand dollars to
go towards the improvement of their rural community hall. Clubrooms
could be a local footy club or marai, so twenty
winners will be selected from across the country. Each all
receive five grand of funding to help upgrade their rural
(24:50):
community hub. Entries opened on a Saturday, the first of March,
but most importantly they close on the thirty first. To
enter go to the rabobank website rabobank dot co dot
and zaid. We'll announce the one is in early April.
Up next, the gloves come off. Emma Brody from Safe
(25:12):
in the Red Corner and yours Truly in the Blue Corner.
Speaker 2 (25:21):
The best of the country with rabobank. Choose the bank
with a huge network of progressive farming clients, Rabobank.
Speaker 3 (25:28):
So this from the text line in recent days complaint.
For the second day in a row, you've been broadcasting
safe anti farming ads. Please take appropriate action. That's Chris
from the Wycatto. Hi, guys, get rid of the safe
ad playing in your show, Breaks, dirty Buggers, Jamie, what
the hell is with safe advertising about mud farming leading
(25:50):
up to the start of your show? Chris from Central Otago, Well,
it's beyond my control. If I had my way, we
wouldn't be playing these safe mudfarming ads. But we have
to buy law now. To add some balance to this
conversation of invited Emma Brody, a safe campaigner, onto the show.
She knows we've received lots of complaints about her mud
(26:13):
farming ads. Emma, I want to start with this, is
this just plane out ambush marketing from you guys. It's safe.
Speaker 7 (26:21):
Hi, Cure Jamie, thanks for having us on to have
this chat. We are running these ads because we have
serious concerns about animals who are still suffering the consequences
of being confined and mud and their own wasteful months
on end every single winter. And I do want to
make it clear that we're not trying to attack farmers
or paint them all with the same brush. We know
(26:42):
that many farmers genuinely care about doing the right thing
and preventing harm. But the issue is that mud farming
or winter grazing is inherently high risk.
Speaker 3 (26:52):
Okay, Emma, where are you based, by the way, are
you in Wellington?
Speaker 7 (26:57):
I'm based up in Auckland.
Speaker 3 (26:58):
Auckland? Okay, when was the last time you spent a
winter in Southland? Can I ask you that? Have you
been out and shifted a swede break in Southland? Do
you understand how winter grazing works? Yeah?
Speaker 7 (27:10):
Absolutely, I mean although I am based in Auckland, every
single winter we receive hundreds of messages and images and
videos of animals suffering in winter grazing systems, and so
we believe that something needs to be done here for
both the sake of animals and for farmers as well.
Speaker 3 (27:27):
So if you want to get animals through a winter,
especially at the bottom end of the country, how do
you propose the farmers feed them if not on winter crops.
Speaker 7 (27:37):
Well, I'm sure there are plenty of farmers out there
who are listening who do use better systems over winter,
and it would be great to keep this discourse going
with your listeners about how we can better protect animals
over winter and innovative solutions from those who are doing
the right thing. But we do need more.
Speaker 3 (27:53):
But but, Emma, hang on, ninety nine percent of farmers
in Southland. And I probably know a lot more about
this than you because I'm a born and bred Southland.
I was a sheep farmer. I've got an interest in
a dairy farm now. I spend a lot of time
in Southend and I can tell you hand on heart,
ninety nine percent of the farmers in Southland or in
southern New Zealand where they're wintering on winter feed crops,
(28:17):
are doing a good job.
Speaker 7 (28:20):
I totally acknowledge that some farmers are absolutely doing a
good job.
Speaker 3 (28:24):
O no, no, no, no, no, not some an Emma, not some.
I said ninety nine percent, you're just cherry picking. Are
the bad? One percent is do you do the same
for people in towns who aren't feeding their cats and
dogs properly?
Speaker 7 (28:37):
Well, we feel that all animals have a right to
sufficient care and protection, and based on the well documented
evidence of harm on mud farms, that isn't what we're seeing.
And MPI are well aware of these risks. I'm sure
you know all about their task Force and Action Group
who five years ago calls for the immediate prevention of
animals giving birth and mud avoidable death in adverse weather,
(29:01):
and the ability for animals to lie comfortably on a
dry substrate. And five years later, these are still an
issue that we see year on year.
Speaker 3 (29:09):
Emma, what do you think happens to animals that are
living outdoors in their natural environment in winter when it rains.
Do you think an elephant in the jungle and Africa
doesn't create mud?
Speaker 7 (29:23):
Well, exactly. So that's kind of the point, is that
these systems are sort of designed to fail. Animals don't
have the ability to access shelter in these conditions or
take themsel the way to dry land in adverse weather.
The system is failing by design.
Speaker 3 (29:38):
You realize that animals that are grazing on pastures, for instance,
in the Southland winter can still get muddy even though
they're shifted every day. If it hoses down with rain,
for want of a better word, stock will get muddy.
Sometimes farmers shift them two and three times a day
to mitigate it.
Speaker 7 (29:56):
And that is the kind of thing we want to
be seeing, but it isn't the reality on self and
mud farms at the moment. And we know that weather
events are becoming more and more unpredictables that prevent animals
from ending up in the conditions that we're seeing every year.
Speaker 3 (30:11):
So how many examples and I know that you're very
good at cherry picking examples, but how many examples have
you got at safe of bad wintering practice in the
likes of Southland? Have you got hundreds?
Speaker 7 (30:25):
We have got hundreds of images and videos from across
salthlind as well as Canterbury and in the Cargo, all
across the southern regions. But we know it's not isolated
to there either. And we know that regulatory bodies step
in when conditions become extreme in this sort of reactive
enforcement model, but we know that these aren't isolated cases
(30:48):
of abuse. This is a system wide issue, Emma.
Speaker 3 (30:52):
Be honest, you'd be happier if farmers weren't farming animals
at all.
Speaker 7 (30:56):
Well, we're here to advocate for animals and ensure that
they're right under the law, are upheld. They have a
right to shelter, a right to express normal patterns of behavior.
And it isn't what we're seeing on New Zealand MD farm.
Speaker 3 (31:08):
But if you're farming animals outside in a pastoral system,
it is not always possible, even with perfect or best management,
that every day during the winter an animal will have
access to shelter. You realize, in the case of sheep,
they have something called wool, which nature designed to keep
them warm in the winter.
Speaker 7 (31:29):
Yeah, of course, but we're seeing a case where animals
routinely their right to shelter is routinely ignored.
Speaker 8 (31:38):
OK.
Speaker 3 (31:39):
So you and I are probably going to agree to
disagree on this one. But what's a safe way forward?
No bad pun intended so that you guys will get
off the backs of farmers. I don't mind you picking
on the bad one percent. Fill your boots there, get
stuck into them. But every section of society he has
(32:01):
a bad apple or the bad one percent, and I
think you're focusing in on them and ignoring the good
work done by the other ninety nine percent.
Speaker 7 (32:10):
Well again, I want to make it clear that we're
not trying to paint everyone with the same brush. We
think that farmers will agree with us that mud farming
is not just bad for animals, it's bad for public
trust in our farming sector. It's bad for our global
reputation for sustainable and ethical farming practices, and we should
work together to find a better way forward for both
animals and farmers.
Speaker 3 (32:31):
Emma Brody campaigner, it's safe. Thanks for your time.
Speaker 7 (32:34):
I think, thanks, Jami.
Speaker 2 (32:37):
The best of the country with Rubbo Bag, the bank,
with local agribanking experts, passionate about the future of rural communities,
Rubbo Bag.
Speaker 3 (32:45):
Todd McLay is the Minister of Agriculture and Trade. We're
going to hear from Kate Ackland shortly from Beef and
Lamb New Zealand as they release their mid season update.
Will keep Kate's power to dry on that one, But Todd,
I want to talk to you about trade. Gee who
would want to be a Minister of Trade at the moment?
Speaker 9 (33:03):
Well as New z Eld Minister of Trade. There's always
exciting times because there's always something going on. But yes,
the news of the last few days Jamie around the
US and Canada and Mexico and China and these tariff
war escalating, but probably much more concerning for not just
New Zealand but the world. You know, the social media
(33:24):
from the President the other night is telling US food
producers to get ready, to be ready rich and produce
lots of food. Not so good for the others. That's
worrying for New Zealand, but you know what of it
is very destabilizing you for world markets. We're seeing it
in stock prices.
Speaker 3 (33:40):
If he puts tariff on or tariffs on all agricultural inputs,
obviously it affects US badly as a trading nation, but
it also makes food more expensive, for instance, in America.
How will that go down with the billy bobs in
the Midwest who voted Trump.
Speaker 9 (33:56):
Well, that's the most important point. Actually, hamburgers will become
more expensive. So it's a very big beef market for US.
I quality beef going up there. But actually a lot
of our beef sat and tallow they mix it with
their beef and it goes into hamburger chains and they
depend upon it, and they choose the New Zealand beef
(34:17):
because it adds flavor that others known't. If hamburgers go
up in price, I've been there, Jamie will if it's
a bit of a staple, it will be inflation, right,
what we're going to see. And I've had a chance
this week to talk to the EU Trade Commission and
the Canadian Trade Minister and starting to talk to a
few others. They are putting tariffs on in place of
already anount some of them they'll be very, very targeted
(34:41):
from Canada and they look at areas where it hurts
the most. And as the Minister said to me, you know,
they import about sixty billion dollars worth from a number
of states that manufacture, as an example, washing machines will
are tarifle, mean, they don't come anymore. Some of those
factories will close, and so you know, the announcement around
agriculture trade is extremely concerning. I've got my officials in
(35:03):
Washington engaging now to find out one exactly what's going
on or what might happen, and to continue to make
the case of how well balanced we are in as
star as trade buy and sell more or less the
same amounts that the US exports in New Zealand face
much lower tariff rates across the board generally than ours
do on the other side, because we're a low tariff regime.
(35:24):
And if you're going to do this to your friends,
what does it say to the rest of the world.
Speaker 3 (35:28):
Exactly, our two way trade with the US is roughly equal,
so you know, we're different than a lot of other
countries he's attacking.
Speaker 9 (35:38):
That's right. So there's no medication that he's singingly out
or focused on New Zealand, but there is you know,
harm done to us. So Fisher and Pipe is an example.
Have a manufacturing plant in Mexico selling into the US
and they're hit by the twenty five percent tariff. Now,
straight away, that's hurtful, harmful to them, But ultimately what
(36:02):
happens is you put all these tariffsarm You know, we
are not less competitive in that market because it's on everybody,
but it is harder to sell our product there. However,
here's the most interesting thing. We are very trade diverse.
We have a very wide network of FTAs around the world,
and if you think about China, as an example. In
(36:22):
the moment the market is soft for red meat and
dairy and a few other things for us. But you
know they put a tarify on us beef. What's the
important It won't go and it'll be too expensive. Those
restaurants still need beef and lamb, and the supermarket shall
still need product there to sell to Chinese consumers. They
will pivot and come to countries like New Zealand, so
(36:43):
there will be opportunities for us to sell more around
the world. The EUFTA is not even into force a
year yet we've seen i think from member almost a
thirty percent increase in experts from New Zealand and the
EU sheep meat has been a big part of that,
so we will still do well. However, restrictions of trade
and tariff on New Zealand products are going into the
(37:03):
US is concerning and it will harm us.
Speaker 3 (37:05):
Todd McClay, Minister of Agriculture and Trade. Good luck with
Trump and enjoy your day at Mount Somers.
Speaker 9 (37:13):
Thanks Jamie, looking forward to it, and I'm looking forward
to some very very good news for our sheep and
beef farmers from Cape shortly. It's going to be a
good day for them.
Speaker 7 (37:20):
I think the.
Speaker 1 (37:21):
Best of the country with Rabobank.
Speaker 2 (37:23):
Choose the bank with one hundred and twenty years global
agribusiness experience, grow with Rubbobank.
Speaker 3 (37:35):
Todd McLay, Minister of Agriculture and Trade wrapping the best
of the country. Good morning, My name's Jamie mckaye. The
show's brought to you by Rabobank. Were growing a better
New Zealand together and yes it was mainly good news
and that mid season update from Beef and Lamb New Zealand.
Also good news this week on the dairy front from
Rabobank with the Global Dairy quarterly Report. They're now sitting
(37:58):
at ten bucks for the milk cast price. How good
are the black Cats going to be? Hopefully tomorrow night
against India in that Champion's Trophy Final, going to be
a lot of tired people on Monday. I've been playing
songs for International Women's Day from women artists from the
nineteen eighties, playing some key. We's going to finish with
(38:18):
the brick Kim Wild. Catch them back next Saturday morning, snow.
Speaker 8 (39:01):
That's scard Streets Beauty, the Mommy by Sound Sakes, Do
(39:25):
serve you gave me? Why not to be a man
about it, that brad, nice, knowing happy, and then you
may ham get up by the bad as a garment lave,
(39:57):
you said me.
The best of the country with Rubbo Bag.
Speaker 2 (00:02):
Choose the Bank with one hundred and twenty years global
agribusiness experience.
Speaker 1 (00:06):
Grow with Rubbobag.
Speaker 3 (00:24):
Goday and Good Morning New Zealand. I'm Jamie McKay. This
is the best of the country here on News Talk
Zed Beach and every Saturday morning between six and seven
we play the best bits of our weekday show twelve
to one. The show is brought to you by Rabobank.
We're growing a better New Zealand together on International Women's Day.
Some of my favorite Kiwi women singers Debbie Harwood, Diane Swan,
(00:46):
Any Crummer, Kim Willoughby in the late great Margaret Erlich
when the Cats a wide, great cover of the old
blue mink number Melting Pot Oh for the eighties. I'm
showing my age and they are going to kick it
off with Christopher Lux and the Prime Minister. Every Wednesday
on the Country he fronts up. This week we pondered
(01:06):
Trump Tariff's a four year parliamentary term, raising the age
of eligibility for national super to sixty seven and sandwidge Gate.
Gordon Rennie got an interesting text from a Scottish farmer
agronomist and journalist on Tuesday. He was on the show
on Wednesday, Emma Higgins out of Rabobank Emma Brody in
(01:27):
response to numerous listener complaints we had about Safe save
Animals from exploitation. Emma's a safe campaigner and I took
it a task over her mud farming ambush attack ads
running during our show and we wrap it with Todd McLay.
It is the big story of the week. Trump and tariffs.
(01:48):
He announced this week or did he that there would
be ag tariffs from April to second It's all on
the Best of the Country and it's brought to you
by Rabobank.
Speaker 2 (02:06):
The Best of the Country with Rabobank. Choose the bank
with a huge network of progressive farming clients.
Speaker 3 (02:13):
Rabobank Wednesdays on the Country. The PM kicks off the show.
I was going to kick off with sandwich Gate. I'm
coming back to that one because they're bigger fish to
fry Prime Minister around the world. Gee, it's getting messy
with Trump and his tariffs in Ukraine. You name it.
Speaker 4 (02:30):
Well. Look, I mean I saw the announcement yesterday or
peat from President Trump around agricultural tariffs. But the question
for us, we need to see the detail. Is it specific,
is it universal to all countries? We actually have quite
a balanced trade arrangement or relation a management between both
US and New Zealand. But look, we instructed our officials
(02:52):
several weeks ago to engage with the administration on agricultural tariffs.
And of course, you know, I'm an engaged I would
engage to it were President Trump if we if we
see any of our agricultural traders at RESK. But look,
we need to see the detail first. You know, often
there's a pronouncement on social media and it's important we
actually see the detail and actually what what does gets implemented?
Speaker 3 (03:13):
Finally, Okay, hypothetically he chucks the terrify and I don't know,
ten percent on April the second, do we put a
reciprocal terror on us stuff?
Speaker 4 (03:21):
Yeah, look, I'm not going to speculate on that because
I genuinely you know, you know, I spend every day
giving a running commentary on pronouncements from the new government.
You know, the reality is I need to make sure
that actually see the detail and then we actually respond
properly with that, because as I said, you know, we
actually have a very balanced trade relationship, particularly in agriculture
(03:43):
and actually a lot of our agricultural products. Remember we
have you know, even to take beef. You know, it
actually helps their market because we have a different quality
of beef product and they've got to hang a lot
of hamburgers that's held to Americans, and you know, this
terrifying ends up hurting them ultimately. And so let's just
see exactly what gets implemented. As I said, our officials,
(04:04):
we instructed them probably four or five weeks ago, engage
with the government and over there on this particular issue.
And let's just see where it all gets to. Having
said all that, we're ready to respond with an intervention
from myself to make the case for why we would
not feel it would be fair. The other thing I'd
just say is in a universal setting, obviously it gets
(04:24):
applied to everybody. It's about our relative competitiveness and what
is a very very large market. And so you know
how it's applied, whether it's specific to certain countries, whether
it's universally applied across all countries, that kind of matters.
To sort of see how it shakes down.
Speaker 3 (04:39):
Are you an unlucky prime minister every time you seem
to come up with a good news story or a
good news trade deal, you get swamped by other bad news.
Speaker 1 (04:49):
What do you mean You mean I'm talking about.
Speaker 3 (04:52):
Your trip to Vietnam that was highly successful, was it not?
Speaker 1 (04:55):
It was great?
Speaker 4 (04:56):
It was really really good. I mean we just for
your listeners. You know, Vietnam's like the fourteenth largest trading partner.
It's the fastest growing economy in our region. It's been
growing at five to six per seed every year for
twenty five years. It's about to start growing at seven
to nine percent. It will genuinely become sort of a
Singapore Taiwan's South Korea type economy. And they're moving from
(05:17):
low income to middle income and often is a high income.
But man, they love New Zealand products, and so this
trip was actually quite interesting because it was a big
focus on education. In fact, that's a really big focus
for Vietnam. They do an incredible job on educating their
own people. They've got a university that started in ten
seventy six, so they've just really it's embedded in their
culture about educate, educate, educate. But it was a big
(05:39):
for showcase on our traditional food and beverage and number
one and dairy, but I think you know we're number two,
just behind the Americans on Apple's for example. There's still
huge opportunity in red meat there. So it was a
real traditional you know, let's make sure they understand the
quality of our food and produce and as they get
from low income to middleland, they want.
Speaker 5 (06:00):
Better quality food.
Speaker 4 (06:02):
And so I did everything, Jamie. I did everything I
could to sell on New Zealand products and services from
our great farmers. Shamelessly war hats, I ate snails. I
did whatever it took to try and make sure we
could sell for some things. And we had a really
good business delegation representing the sector as well, So it
was really awesome.
Speaker 5 (06:20):
It was a really great group.
Speaker 3 (06:21):
Okay, Sandwich Gate not a mile away. But just before
we do a four year term for Parliament National super
at sixty seven, two quick fixes for the New Zealand economy,
do you agree?
Speaker 4 (06:33):
Yeah, Look, I mean the benefit of you personally. Look,
I'm in favor of a four year term. We've got
a bill that actually is an act bill which is
going to get a chance to go before the SELEC Committee.
That will also be a chance for all the parties
to sort of say is that the right approach or
is there a simpler approach and they can look at
all of that, but the other pieces and that's ultmately
(06:55):
we would get to. But right now, the New Zealand
people want me focused every day on not four year terms,
but actually on fixing the economy and making sure we
deal with the cost of living on National super as
you know, that's very much our policy. You know, I
think you know, people are aging well, quality of life
is going up, the living longer, We should race the retirement.
Speaker 5 (07:14):
Asia sixty seven.
Speaker 4 (07:15):
Having said that, you've got New Zealand first, who are
diametrically opposed and also the Labor Party.
Speaker 5 (07:20):
So those are things that we just.
Speaker 4 (07:23):
Have not been able to agree in the coalition. For sure.
Speaker 3 (07:26):
Well hey Winston's agent quite well, do you have to
wait till well, yeah, he pops off the perch. Do
you will?
Speaker 4 (07:34):
You make the case that about it?
Speaker 3 (07:35):
But I've tried to.
Speaker 4 (07:36):
I think it makes real sense. I mean, as we
said before the election, you know, it's you know, everyone know,
our living standard has gone up, people are working longer,
They are actually healthier at the same age to say
their parents were or their grandparents were, and many other
countries frankly around the world have sixty seven, some even
getting close to seventy. So yeah, I mean I think
(07:57):
it makes sense, but that's not something that politically has
been agreed between different parties.
Speaker 3 (08:02):
Sandwich gate, make a marmite sandwich and put an apple
in the bag, did you guys workshop? This is this
as a result of a focus group. And I say
that because Nikola Willis said exactly the same thing this
time a week ago when she was filling in for
you on this show while you were doing God's work
in Vietnam.
Speaker 5 (08:21):
No.
Speaker 4 (08:22):
We all like, no, no, no, we didn't. That's what I
got for my lunch. And we had a chat about
what did you act to have for lunches and stuff,
and everyone had had some slightly different ones, but I had,
you know, I was just I was every day as
a cheese mumma sandwich with an apple. Occasionally Mumbo makes
baking it which in a so on into a little
lunch box. And once a term I think I was
(08:44):
allowed to go buy a pie and chocolate zapp and
my custom square and it. So I just my point's
pretty simple, which is like, yeah, I think parents should
be feeding their own kids. I'd rather the state didn't
have to do so. It should be frankly a parental responsibility.
But lot the reality is, Jamie, we do have kids
that are coming to school with no lunch. I'm not
(09:05):
willing to go hungry because if the research chose if
they're not learning, they're not learning them, they're not failing
in school, and they're ending up umploughted, not welfare and
for limited option. So yep, some of the school lunches
aren't to scratched. David was across the issue. I've got
even conference, go go get sorted. But you know, if
you're if you're unhappy with it, frankly, you know, making
(09:26):
my night sandwich and ducking apple on the bag?
Speaker 3 (09:28):
Hey, is this the dynamic new hard hitting Crystopher Luxeen
was saying, is this the real Christopher Luxeon standing up? Please?
Are no more dancing on a pin over Andrew Bailey?
You know you get a workshop but and then you're
going to go hard at it.
Speaker 4 (09:41):
Well, look, I just think this is I think you know,
that's what I believe. But I mean to say on
the end of daily saying, look, yep, but that's of
the question from hosking better. But the point is also
I had an individual who had just resigned and given
up as significant decision, a tough one, very emotional one,
and the last thing someone piling on and that was
my know, the reason why my answer in the way.
Speaker 6 (10:04):
That I did.
Speaker 4 (10:05):
Yep, could have answered it better. I should have answered
it better. But look, yeah, the bottom line is we've
got a lot to focus on and we're a government
is just trying to drive every single day to get
things sorted, to give them mess that we've inherd. So yep,
it's it's hard and it's tough, and there's lots for
us to do. But that's what we're focused on.
Speaker 3 (10:21):
Is that focusing on or focusing grouping on anyhow, Look,
I'm being cheeky there, and I should.
Speaker 4 (10:26):
Recall I know you want to make that point, but
we don't do that.
Speaker 3 (10:29):
You don't do focus groups.
Speaker 4 (10:30):
No, No, we got back on track because that just
came out of a conversation I have on my team.
So that's how stuff happens.
Speaker 3 (10:36):
Good on you. Look, I really appreciate your time on
the country. Thank you, mate. Prime Minister Christopher Luxon on
Wednesday Show. Also on Wednesday Show, Gordon Rennie, Scottish farmer,
agronomist and journalist Emma Higgins from rabobank, and a bit
later in the hour Emma Brody. We've got two ems
(10:58):
for the price of one today from so Todd McLay,
Minister of Agriculture and Trade to rapid. As we all
talked about Trump and tariffs this week, this is the
best of the country. It's brought to you by Rabobank.
Speaker 2 (11:15):
The best of the country with Rabobank, the bank with
local agribanking experts, passionate about the future of rural communities, Rabobank.
Speaker 3 (11:24):
Really interesting text on yesterday's show by a Scottish farmer
and journalists by the name of Gordon Rennie. He's in
New Zealand for six weeks. Gordon said, I'm a British
farmer and a Nuffield scholar. UK consumers want one thing,
low prices for all food. Look at the rise of Audi,
(11:44):
the German discount store and he's talking about net zero
is nowhere near the mines of the vast majority of
consumers and a cost of living crisis. And Gordon, I
guess you're reflecting what a lot of people are saying.
So are Scottish farmers of a seat milk to their
New Zealand counterparts when it comes to us.
Speaker 5 (12:04):
Yeah, the very big similarity in the Scottish farmers. You know,
farmers have one objective is to produce food that's in
our DNA and to produce food efficiently. We still get
substitutes in Scotland, so I must say we're probably not
quite as efficient as you can't New chaps down here,
(12:24):
but we do get you know, we have a lot
of government intervention help it telling us to set aside
bit's the ground, do some regenerative farming, which comes with
a cost. But unfortunately these extra costs are not returned
at the at the farm gate price because the big,
(12:47):
the big supermarkets in Britain are they're under pressure to
keep prices down. So we may do lots of good
things for the for the climate change, but we very
seldom get rewarded.
Speaker 3 (12:58):
Now, the problem was that the UK has got is
that you're not food sufficient. I think you are only
only produced just over fifty percent of the food consumed
in the UK. So therefore you've got an issue to
start with. You actually want farmers to get credits and
this is a bit of a bugbear of mine get
credits for everything on their farm that sequesters carbon. And
(13:21):
we're not only talking vegetation, we're talking grass and we're
talking soil. You want farmers to measure soil carbon.
Speaker 5 (13:31):
I want farmers in New Zealand. I'm very passionate about that.
We are Professor David Polson from often Stead Research speaking
to us in Dundee about one year ago, and in
relation to New Zealand, I asked them a direct question,
what's sequestrates the most carbon one hector of pine trees
(13:52):
or one hectora of productive grass. And this is a
world expert. There is no difference, So I feel that
armers in New Zealand grass will be sequestrated. There's only
one single way we can remove carbon from the atmosphere
and it's called photosynthesis. So grass is fantastic and grass
(14:13):
not only reducing the carbon. We produce fruit from grass.
So it's really important that New Zealand farmers are valued
of what they're doing. And trees, you cannot eat trees.
Speaker 3 (14:25):
My friend talk to me about soil sequestor and carbon.
Speaker 5 (14:30):
Right, Well, what happens is there's only one mechanism in
the world that is for the synthesis. Well know, no,
by plants breathe, they absorb carbon dioxide, and that that
carbon dioxide is produced into the grass that she'd eat,
and also goes into the roots and into the soil,
building up humus and organic matter. And over time meganic
(14:52):
matter starts to build up and I'll not zero point
one percent increase in so organic matter will secretate an
extra nine terms for hectare of carbon dioxide. So farming
is the solution, not the problem. We have the solution
to climate change, and.
Speaker 3 (15:11):
That solution is more farming. Does it therefore follow golden
rinny from Scotland that we need more ruminants rising those pastures.
Speaker 5 (15:20):
Yes, absolutely, and you know the world, every single country,
New Zealand, this part of agreement is using the wrong
matrix for measuring methane meetings are short lived twelve year gas.
It's not really a true greenhouse gas. And we have
to get politicians to realize that grass is the most
fantastic crop. Ruminants eat grass, and ruminants produce food. So
(15:44):
in Britain, yes, we're only sixty percent self sufficient and
the British government doesn't seem to have food production in
its DNA. But we all have to eat. It's going
to be a population of nine billion people and it's
really important that we understand the value of and other
crops in the role for sequestrating carbon.
Speaker 3 (16:05):
So you yourself, you're an agronomist, you're an outgrower, you're
a journalist, obviously a farmer. You've been a kN Afield
scholar thirty years ago. You've been coming here to New Zealand,
Gordon Rennie for fifty years. What brought you over here?
Speaker 5 (16:20):
It's a long story that as a younger man and
I'd heard so many wonderful stories about New Zealanders. And
when I was a young kid doing geography, the mister
Newton toook pictures of all that, you know, all the.
Speaker 6 (16:35):
Red stuff, the British stuff, and one day we're a
day it said, the Canterbury Plains. It's one of the greatest,
the greatest places in the world for growing food. And
I just decided New Zealander's great people, lots of Scottish connections,
Canterby planes have been coming.
Speaker 5 (16:55):
Here ever since. I didn't know anybody fifty years ago,
and I was given comeness, hospitality and often ae drab
what's not to like?
Speaker 3 (17:05):
Hey, Gordon, Rannie, lovely to catch up. Thank you for
listening to the show, Thanks for texting in yesterday, and
I haven't got time to go through a wonderful story,
but you were the inspiration for Jeremy Clarkson's Clarkson's Farm
due to a young guy who worked for you who
ended up working for top Gear and was a bit
of an inspiration for Clarkson's farm. Another story for another day.
(17:28):
It's been great catching up. You enjoy the rest of
your stay in God's Own New Zealand.
Speaker 5 (17:33):
Thank you very much, my friend.
Speaker 1 (17:35):
The best of the country with Rubbobank.
Speaker 2 (17:38):
Choose the bank with one hundred and twenty years global
agribusiness experience.
Speaker 1 (17:42):
Grow with Rubbobank.
Speaker 3 (17:43):
Good global dairy trade auction result overnight even though it
went down zero point five percent. We're going to talk
about that with Emma Higgins, a Rabobank Senior ag analyst,
and also about her latest offering, the Q one Global
Dairy Quarterly, and we'll get the drum roll ready for
Emma's new milk forecast price for this season. But before
(18:07):
we do that, Emma talk to me about the GDT
auction I reckon that was a good result.
Speaker 7 (18:12):
Yeah, I think the same Jamie as well. So yeah,
sure the index moved back lower by half a percent. Sure,
but on picking some of those results, we actually saw
some glimmers of optimism when we look at skim milk powder,
which lifted by something similar and we're now looking at
two thousand, seven hundred or just above that US dollars
(18:32):
per ton for skim, So that's glimmers of optimism. But
actually again when we also look through the numbers, butter
prices reached a new chord once again. And I think
last time I was talking to you, we we were
talking about a couple of months ago or a couple
of weeks ago, the fact that butter prices had had
new records, And now what seems to have happened overnight
(18:53):
is the average butter price is now sitting above US
seven five hundred bucks a ton, which according to my calculations,
looks like another record has been had. So those two
factors around skerm and butter have helped to stop what
could have been a poorer performance overall. So I'm taking
that in some total as a positive result for our
(19:15):
New Zealand farmance.
Speaker 3 (19:17):
This auction obviously was after you'd completed your Q one
Global Dairy Quarterly report. Would it have changed anything?
Speaker 7 (19:26):
No, I think it underpins what we are talking about.
So and MC I'll lead with it first, Jam because
they know you're going to ask me what checkening were
they MILT price forecast. So look, we are moving it
up and Lyne to where Fonterra is sitting now at
tim Bucks. Before when we reset our forecast at the
end of last year, we had a nine dollars seventy
(19:48):
milk price forecast which was sitting slightly higher than where
Fonterra was at that when in time, So we were
expecting to see some upside come through and I think
we've obviously seen that in terms of some of the
volatility upwards, which has been good for in New Zealand farmers.
And so we are in line with Fonterra. I think
if we take a step back, there's a lot happening.
There's a lot of volatility out there, there's a lot
(20:09):
of uncertainty in global markets. We think that on the
supply side, we think that modest growth is set to
emerge across this year and into next year as well,
and that's because most farmers are making money now. Sentiment
is probably the highest here in New Zealand, but elsewhere
in the likes of the US and parts of the EU,
(20:31):
and then also in Brazil as well, we're seeing healthier
margins and we think that's going to translate into more
milk supply. If we look across onto the demand side,
we are expecting to see an improvement come out of
our major exporting region, China through importing region China, but
ultimately we're still cautiously optimistic around what might happen there
(20:54):
over the coming weeks and months, just because there's still
some challenges within some of the aspects that we look
at it comes to demand within China, and that's why
we're sitting still at ten dollars. There's a lot that
can happen between now and the end of the season, though,
and we have seen in the past that when China
jumps into the market, prices can surge. And the watching
(21:17):
point to that, Jamie, is that milk supply in China
is turning around and potentially tuning around quite quickly.
Speaker 3 (21:24):
So what about our domestic production here because we know,
particularly the North Island's getting very dry at ten dollars,
you can afford to buy supplementary feed. Poke it in
one end of the cow and outcomes some milk from
the other end. It's a wonderful mathematical equation. As Trump
would say, it's a beautiful thing. It is a great
and wonderful thing. Well, come back to Trump. But are
(21:45):
we going to see milk production fall off in this country?
Speaker 7 (21:49):
Look, I think there is a risk of that. We
know that certain parts of the country haven't received meaningful
rain in the last three while, and we've just seen
some drought declarations being made more recently in parts of
the North Island. So there is a risk of that
happening if farmers look to conserve cow condition and basically
(22:10):
try and draw the line and ensure that they heard
is in a really good shape for the new season.
The risk on the flip side, obviously, is what you've
just talked about, where economics do support perhaps some looking
to pump a little bit more feed into the system
to get them through. So I think it's a risk.
For now, we are expecting the milk production land somewhere
(22:32):
between two and a half and three percent for the
full season, which is a really good result. For the
twenty four to twenty five season and the great part
of that is that the market is still absorbing all
this extra milk production.
Speaker 3 (22:44):
Emma Higgins, thank you very much for your time as
always on the Country and well done. I'm getting to
ten bucks.
Speaker 7 (22:50):
Thanks Jamie.
Speaker 2 (22:51):
The Best of the Country with Rabobank. Choose the bank
with a huge network of progressive farming clients.
Speaker 1 (22:58):
Ravo Bank.
Speaker 3 (23:00):
That's one Gooday and good Morning New Zealand. I'm Jamie Mackay.
This is the Best of the Country. It's brought to
you by Rabobank. We're growing a better New Zealand together.
It's International Women's Day. One of my favorite key we
(23:23):
artists Margaret Earlitch and escaping. There's no escaping Donald Trumps
and that was a big topic on this week's show.
We're going to wrap the show with Todd McLay, Minister
of Agriculture and Trade. Caught up with them on Thursday
at Kate Ackland's Mount Summer's Farm. She's the chair of
Beef and Lamb New Zealand. They released the mid season
(23:45):
update for She Can Beef Farmers and it was pretty
good news. We just need Trump and co. To keep
eating those Hamburgers in America and not putting tariffs on.
But up next it's Emma Brody in response to a
whole lot of listener complaints we got because we're playing
ads during our show. I call it an ambush attack
(24:06):
and I asked Emma Brody, a safe campaigner, to come
on and defend us South. We had quite the discussion,
so that's to come before the end of the hour.
Also when it comes to our wonderful sponsor's Rabobank, how
good is this? Entries are now being sought from the
rural community from community groups across rural New Zealand for
the Rabo Community Hub Competition. It's running for the first
(24:29):
time this year in twenty twenty five. The competition provides
entrance with a chance to win five thousand dollars to
go towards the improvement of their rural community hall. Clubrooms
could be a local footy club or marai, so twenty
winners will be selected from across the country. Each all
receive five grand of funding to help upgrade their rural
(24:50):
community hub. Entries opened on a Saturday, the first of March,
but most importantly they close on the thirty first. To
enter go to the rabobank website rabobank dot co dot
and zaid. We'll announce the one is in early April.
Up next, the gloves come off. Emma Brody from Safe
(25:12):
in the Red Corner and yours Truly in the Blue Corner.
Speaker 2 (25:21):
The best of the country with rabobank. Choose the bank
with a huge network of progressive farming clients, Rabobank.
Speaker 3 (25:28):
So this from the text line in recent days complaint.
For the second day in a row, you've been broadcasting
safe anti farming ads. Please take appropriate action. That's Chris
from the Wycatto. Hi, guys, get rid of the safe
ad playing in your show, Breaks, dirty Buggers, Jamie, what
the hell is with safe advertising about mud farming leading
(25:50):
up to the start of your show? Chris from Central Otago, Well,
it's beyond my control. If I had my way, we
wouldn't be playing these safe mudfarming ads. But we have
to buy law now. To add some balance to this
conversation of invited Emma Brody, a safe campaigner, onto the show.
She knows we've received lots of complaints about her mud
(26:13):
farming ads. Emma, I want to start with this, is
this just plane out ambush marketing from you guys. It's safe.
Speaker 7 (26:21):
Hi, Cure Jamie, thanks for having us on to have
this chat. We are running these ads because we have
serious concerns about animals who are still suffering the consequences
of being confined and mud and their own wasteful months
on end every single winter. And I do want to
make it clear that we're not trying to attack farmers
or paint them all with the same brush. We know
(26:42):
that many farmers genuinely care about doing the right thing
and preventing harm. But the issue is that mud farming
or winter grazing is inherently high risk.
Speaker 3 (26:52):
Okay, Emma, where are you based, by the way, are
you in Wellington?
Speaker 7 (26:57):
I'm based up in Auckland.
Speaker 3 (26:58):
Auckland? Okay, when was the last time you spent a
winter in Southland? Can I ask you that? Have you
been out and shifted a swede break in Southland? Do
you understand how winter grazing works? Yeah?
Speaker 7 (27:10):
Absolutely, I mean although I am based in Auckland, every
single winter we receive hundreds of messages and images and
videos of animals suffering in winter grazing systems, and so
we believe that something needs to be done here for
both the sake of animals and for farmers as well.
Speaker 3 (27:27):
So if you want to get animals through a winter,
especially at the bottom end of the country, how do
you propose the farmers feed them if not on winter crops.
Speaker 7 (27:37):
Well, I'm sure there are plenty of farmers out there
who are listening who do use better systems over winter,
and it would be great to keep this discourse going
with your listeners about how we can better protect animals
over winter and innovative solutions from those who are doing
the right thing. But we do need more.
Speaker 3 (27:53):
But but, Emma, hang on, ninety nine percent of farmers
in Southland. And I probably know a lot more about
this than you because I'm a born and bred Southland.
I was a sheep farmer. I've got an interest in
a dairy farm now. I spend a lot of time
in Southend and I can tell you hand on heart,
ninety nine percent of the farmers in Southland or in
southern New Zealand where they're wintering on winter feed crops,
(28:17):
are doing a good job.
Speaker 7 (28:20):
I totally acknowledge that some farmers are absolutely doing a
good job.
Speaker 3 (28:24):
O no, no, no, no, no, not some an Emma, not some.
I said ninety nine percent, you're just cherry picking. Are
the bad? One percent is do you do the same
for people in towns who aren't feeding their cats and
dogs properly?
Speaker 7 (28:37):
Well, we feel that all animals have a right to
sufficient care and protection, and based on the well documented
evidence of harm on mud farms, that isn't what we're seeing.
And MPI are well aware of these risks. I'm sure
you know all about their task Force and Action Group
who five years ago calls for the immediate prevention of
animals giving birth and mud avoidable death in adverse weather,
(29:01):
and the ability for animals to lie comfortably on a
dry substrate. And five years later, these are still an
issue that we see year on year.
Speaker 3 (29:09):
Emma, what do you think happens to animals that are
living outdoors in their natural environment in winter when it rains.
Do you think an elephant in the jungle and Africa
doesn't create mud?
Speaker 7 (29:23):
Well, exactly. So that's kind of the point, is that
these systems are sort of designed to fail. Animals don't
have the ability to access shelter in these conditions or
take themsel the way to dry land in adverse weather.
The system is failing by design.
Speaker 3 (29:38):
You realize that animals that are grazing on pastures, for instance,
in the Southland winter can still get muddy even though
they're shifted every day. If it hoses down with rain,
for want of a better word, stock will get muddy.
Sometimes farmers shift them two and three times a day
to mitigate it.
Speaker 7 (29:56):
And that is the kind of thing we want to
be seeing, but it isn't the reality on self and
mud farms at the moment. And we know that weather
events are becoming more and more unpredictables that prevent animals
from ending up in the conditions that we're seeing every year.
Speaker 3 (30:11):
So how many examples and I know that you're very
good at cherry picking examples, but how many examples have
you got at safe of bad wintering practice in the
likes of Southland? Have you got hundreds?
Speaker 7 (30:25):
We have got hundreds of images and videos from across
salthlind as well as Canterbury and in the Cargo, all
across the southern regions. But we know it's not isolated
to there either. And we know that regulatory bodies step
in when conditions become extreme in this sort of reactive
enforcement model, but we know that these aren't isolated cases
(30:48):
of abuse. This is a system wide issue, Emma.
Speaker 3 (30:52):
Be honest, you'd be happier if farmers weren't farming animals
at all.
Speaker 7 (30:56):
Well, we're here to advocate for animals and ensure that
they're right under the law, are upheld. They have a
right to shelter, a right to express normal patterns of behavior.
And it isn't what we're seeing on New Zealand MD farm.
Speaker 3 (31:08):
But if you're farming animals outside in a pastoral system,
it is not always possible, even with perfect or best management,
that every day during the winter an animal will have
access to shelter. You realize, in the case of sheep,
they have something called wool, which nature designed to keep
them warm in the winter.
Speaker 7 (31:29):
Yeah, of course, but we're seeing a case where animals
routinely their right to shelter is routinely ignored.
Speaker 8 (31:38):
OK.
Speaker 3 (31:39):
So you and I are probably going to agree to
disagree on this one. But what's a safe way forward?
No bad pun intended so that you guys will get
off the backs of farmers. I don't mind you picking
on the bad one percent. Fill your boots there, get
stuck into them. But every section of society he has
(32:01):
a bad apple or the bad one percent, and I
think you're focusing in on them and ignoring the good
work done by the other ninety nine percent.
Speaker 7 (32:10):
Well again, I want to make it clear that we're
not trying to paint everyone with the same brush. We
think that farmers will agree with us that mud farming
is not just bad for animals, it's bad for public
trust in our farming sector. It's bad for our global
reputation for sustainable and ethical farming practices, and we should
work together to find a better way forward for both
animals and farmers.
Speaker 3 (32:31):
Emma Brody campaigner, it's safe. Thanks for your time.
Speaker 7 (32:34):
I think, thanks, Jami.
Speaker 2 (32:37):
The best of the country with Rubbo Bag, the bank,
with local agribanking experts, passionate about the future of rural communities,
Rubbo Bag.
Speaker 3 (32:45):
Todd McLay is the Minister of Agriculture and Trade. We're
going to hear from Kate Ackland shortly from Beef and
Lamb New Zealand as they release their mid season update.
Will keep Kate's power to dry on that one, But Todd,
I want to talk to you about trade. Gee who
would want to be a Minister of Trade at the moment?
Speaker 9 (33:03):
Well as New z Eld Minister of Trade. There's always
exciting times because there's always something going on. But yes,
the news of the last few days Jamie around the
US and Canada and Mexico and China and these tariff
war escalating, but probably much more concerning for not just
New Zealand but the world. You know, the social media
(33:24):
from the President the other night is telling US food
producers to get ready, to be ready rich and produce
lots of food. Not so good for the others. That's
worrying for New Zealand, but you know what of it
is very destabilizing you for world markets. We're seeing it
in stock prices.
Speaker 3 (33:40):
If he puts tariff on or tariffs on all agricultural inputs,
obviously it affects US badly as a trading nation, but
it also makes food more expensive, for instance, in America.
How will that go down with the billy bobs in
the Midwest who voted Trump.
Speaker 9 (33:56):
Well, that's the most important point. Actually, hamburgers will become
more expensive. So it's a very big beef market for US.
I quality beef going up there. But actually a lot
of our beef sat and tallow they mix it with
their beef and it goes into hamburger chains and they
depend upon it, and they choose the New Zealand beef
(34:17):
because it adds flavor that others known't. If hamburgers go
up in price, I've been there, Jamie will if it's
a bit of a staple, it will be inflation, right,
what we're going to see. And I've had a chance
this week to talk to the EU Trade Commission and
the Canadian Trade Minister and starting to talk to a
few others. They are putting tariffs on in place of
already anount some of them they'll be very, very targeted
(34:41):
from Canada and they look at areas where it hurts
the most. And as the Minister said to me, you know,
they import about sixty billion dollars worth from a number
of states that manufacture, as an example, washing machines will
are tarifle, mean, they don't come anymore. Some of those
factories will close, and so you know, the announcement around
agriculture trade is extremely concerning. I've got my officials in
(35:03):
Washington engaging now to find out one exactly what's going
on or what might happen, and to continue to make
the case of how well balanced we are in as
star as trade buy and sell more or less the
same amounts that the US exports in New Zealand face
much lower tariff rates across the board generally than ours
do on the other side, because we're a low tariff regime.
(35:24):
And if you're going to do this to your friends,
what does it say to the rest of the world.
Speaker 3 (35:28):
Exactly, our two way trade with the US is roughly equal,
so you know, we're different than a lot of other
countries he's attacking.
Speaker 9 (35:38):
That's right. So there's no medication that he's singingly out
or focused on New Zealand, but there is you know,
harm done to us. So Fisher and Pipe is an example.
Have a manufacturing plant in Mexico selling into the US
and they're hit by the twenty five percent tariff. Now,
straight away, that's hurtful, harmful to them, But ultimately what
(36:02):
happens is you put all these tariffsarm You know, we
are not less competitive in that market because it's on everybody,
but it is harder to sell our product there. However,
here's the most interesting thing. We are very trade diverse.
We have a very wide network of FTAs around the world,
and if you think about China, as an example. In
(36:22):
the moment the market is soft for red meat and
dairy and a few other things for us. But you
know they put a tarify on us beef. What's the
important It won't go and it'll be too expensive. Those
restaurants still need beef and lamb, and the supermarket shall
still need product there to sell to Chinese consumers. They
will pivot and come to countries like New Zealand, so
(36:43):
there will be opportunities for us to sell more around
the world. The EUFTA is not even into force a
year yet we've seen i think from member almost a
thirty percent increase in experts from New Zealand and the
EU sheep meat has been a big part of that,
so we will still do well. However, restrictions of trade
and tariff on New Zealand products are going into the
(37:03):
US is concerning and it will harm us.
Speaker 3 (37:05):
Todd McClay, Minister of Agriculture and Trade. Good luck with
Trump and enjoy your day at Mount Somers.
Speaker 9 (37:13):
Thanks Jamie, looking forward to it, and I'm looking forward
to some very very good news for our sheep and
beef farmers from Cape shortly. It's going to be a
good day for them.
Speaker 7 (37:20):
I think the.
Speaker 1 (37:21):
Best of the country with Rabobank.
Speaker 2 (37:23):
Choose the bank with one hundred and twenty years global
agribusiness experience, grow with Rubbobank.
Speaker 3 (37:35):
Todd McLay, Minister of Agriculture and Trade wrapping the best
of the country. Good morning, My name's Jamie mckaye. The
show's brought to you by Rabobank. Were growing a better
New Zealand together and yes it was mainly good news
and that mid season update from Beef and Lamb New Zealand.
Also good news this week on the dairy front from
Rabobank with the Global Dairy quarterly Report. They're now sitting
(37:58):
at ten bucks for the milk cast price. How good
are the black Cats going to be? Hopefully tomorrow night
against India in that Champion's Trophy Final, going to be
a lot of tired people on Monday. I've been playing
songs for International Women's Day from women artists from the
nineteen eighties, playing some key. We's going to finish with
(38:18):
the brick Kim Wild. Catch them back next Saturday morning, snow.
Speaker 8 (39:01):
That's scard Streets Beauty, the Mommy by Sound Sakes, Do
(39:25):
serve you gave me? Why not to be a man
about it, that brad, nice, knowing happy, and then you
may ham get up by the bad as a garment lave,
(39:57):
you said me.
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