October 24, 2025 • 40 mins
Jamie Mackay talks to Shane Jones, Miles Hurrell, Jane Smith, and Emma Higgins.
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Speaker 1 (00:00):
The best of the Country with Rubbobak.
Speaker 2 (00:02):
Choose the bank with one hundred and twenty years global
agribusiness experience.
Speaker 1 (00:06):
Grow with Rubbo bag closer. They get it.
Speaker 3 (00:17):
When today and good Morning New Zealand. Welcome to the
Best of the Country. My name's Jamie McKay. The show's
(00:38):
brought to you each and every Saturday morning here on
Newstalk z'b by Rabobank. Were growing a Better New Zealand
together a bit of a Spice Girls theme this morning
because I had one midweek because apparently the Spice Girls
are having a reunion next year, thirty years on since
they took the world by storm, but Ginger Spice maybe
(00:59):
not winning the party. I don't know how you segue
from the Spye Girls to Shane Jones, but he's always
good at spicing things up on the radio. I caught
up with the Prince of the Province's self titled Martuur
Shane Jones in Sydney where he was at a mining
conference and naturally he was a bit like a Pegan muck,
(01:22):
so we discussed that. We also discussed the Alliance and
Fonterra votes. Now the Alliance vote came in earlier this week,
so they're doing a deal with Irish meat company Dawn meets.
The Fonterra vote comes in next week. They will vote
yes to the selling of the consumer brand's business. Mark
my words on that one. We also lamented the Mega
(01:45):
strikes this week, and I guess everyone's got a different
position on that, depending on who and where you are
talking about. Fonterra. Miles Hurrell on Wednesday Show Chief Executive
a very confusing GDT auction. Overnight we talked about that
farmer vote on the sale of the consumer brands. There's
a new butter planted plandy boy. We just can't make
(02:07):
enough butter in this country, and I asked him why
big brother Fonterra tells farmers how to vote when it
comes to electing the board of directors. We're going to
wrap it with a couple of our regular correspondents, who,
as Fate would have it, have very differing views on
the Spy Skirls. They're both of an age that they
(02:27):
grew up as teenagers when the Spice Girls were in
their primes. Jane Smith, North Otago farmer, Ebba Higgins, Rabobank's
senior agg analyst. It's a Spice Girls theme today on
the Country.
Speaker 4 (02:42):
The.
Speaker 1 (02:49):
Best of the Country with Rabobank.
Speaker 2 (02:51):
Choose the bank with a huge network of progressive farming clients.
Speaker 3 (02:55):
Rabobank, he is the Prince of the Provinces, the Minister
of digging it up and down coming it up. Yes,
Shane Jones, he's in Sydney for a mining conference. Shane,
before we talk about mining and having spent some time
recently in Perth, I can see the upside of it.
I want to get stuck into you in Winston momentarily
about your meddling in the Alliance vote and the upcoming
(03:17):
Fonterra vote. It's none of your business.
Speaker 5 (03:21):
No, Politicians who have a broad view of history and
have a good understanding of what are the vulnerabilities facing
our nation have every right to call out corporate leaders
if we disagree with their strategy, because Fonterra would not
exist if it wasn't for politicians. Helen Clark breathed life
into their entity and Alliance, by their own admission, we're
(03:43):
doing this to satisfy the Ossie owned banks. Both of
those issues are very political.
Speaker 3 (03:48):
But they're farm our own cooperatives effectively like a private company.
The owners decide their future.
Speaker 5 (03:56):
Now the owners aren't deciding their future. The owners are
jumping to the tune of the Ossie and banks. This
is what the promoter of the deal said all along,
and anything that looks like the Ossion banks are operating
in a manner that over time is going to deny
us more profit making opportunities with value added and going
(04:17):
up the value chain. Those are all yeah.
Speaker 3 (04:19):
But you realize, of course that your coalition partners Luxeon
and Seymour were totally supportive of, for instance, the Fonterra deal.
It's better for the economy, according to them, it's more profitable.
Speaker 5 (04:32):
Well, time will tell whether or not the whole existence
of Fonterra, what has been its net benefits since those
healthy and days of Helen Clark breathing life into it,
or Winston was saying, we know we're not luddites. We
can't stop the farmers from taking the capital and a
lot of them are at an aging cohort and they
probably want to get out of farming. The kids don't
on a milk cows. But know this from us Fonterra
(04:55):
and the farmers, we're knocking down our door. After the
next election. Can can we help them with water rights,
Can we help them with nutrient rights? Can we help
them with what they'll regard as the dead weight burden
of excessive environmentalism. Well, it's a two way street.
Speaker 3 (05:10):
That sounds a bit like a threat.
Speaker 5 (05:13):
It's not a threat. They're already knocking on my door.
They're already saying that the Waikato Regional Plan is so onerous.
A number of them doubt whether or not they can
raise the necessary capital to meet these new water standards. Now,
fortunately I agree with them. I agree more with the
vega growers that they're being forced out of business by
these klingon rent seeking sort of catastrophe suits. Believe everything
(05:36):
that we do to touch the land is going to
lead to some sort of permanent detrimental effect. There's always
trade offs when you use capital, land people, and you
try and satisfy markets.
Speaker 3 (05:47):
And here was I thinking you and once that would
be one hundred percent support of without a file of
our number one export industry.
Speaker 5 (05:58):
Now they know exactly when New Zealand first stands, and
it's not unreasonable for us to call out this huge
organization and look, I know them all, and we can't
stop what they're doing. But I've got to ask you,
are we just now an entity that creates an ongoing
(06:18):
flow of commodities and we've probably given up and surrendered
to others value associated with brands. They told me there
is no value in brands, So that's the case. How
come these other people are knocking on the door to
buy them?
Speaker 3 (06:30):
You might learn a listen lesson, should I say? From history?
Speaker 5 (06:32):
Here?
Speaker 3 (06:32):
Remember the old six million or eight million dollar man
Tao sparrings worldwide domination value add blah blah blah. How
did that end up for Fonterra Shane.
Speaker 5 (06:43):
That's exactly right. They wasted all that money in China,
but that had to do with a gregious governance failure.
And why is that the government's problem? If a large
organization like Fonterra was unable to execute a corporate strategy.
And I guess what you're saying is that there are
other entities around the world more than capable of kicking
(07:05):
that goal, and that New Zealand's largest company should surrender
to them the ability to make that level of money.
Speaker 3 (07:13):
What's happening in Sydney? What are you doing there? There's
a mining conference. You'd be like a pegan market. One
of these mate.
Speaker 5 (07:20):
Well over ten thousand people. The guts of the issue
is that we are here to promote the reinvigoration of
our mineral sector. There's a lot of Kiwis who are
selling We's goods services all around the world and this
is a great, big jamboree. I came last year after
a long period of absence from the New Zealand political
(07:42):
establishment and they invited me back and I'm giving a
speech in engaging with all sorts of media. But the
real story is we're legitimizing mining. We're opening up the opportunities.
And look, you can't change the weather climate speaking through
all these incantations, and we've got to bring to a
(08:02):
holt this rent seeking behavior from the stakeholders who don't
want mining to happen unless they get a they're part
of the pie, and then of course reduces the whole
viability of the project. But it won't be just mining
that's under attack. I mean, I'm telling you vegetable growing, farming,
and a variety of the primary produce sectors are going
to consistently be facing political stresses and attacks. That's why
(08:26):
the farmers, the miners, the forestry people they have a
sort of hate love relationship with New Zealand. First Sedley,
but the others realize that we're an important ingredient to
balance in robustness and pushing back against this green rent
seeking tape womb behavior.
Speaker 3 (08:42):
And as if you're not going to have enough fun
in Sydney with your mining jamboree as you called it,
Shane Jones, You're off then to the United States for
two more mining conferences. This is kind of utopia for you, yes, yes.
Speaker 5 (08:59):
Well and true putting our footprint down. We are world
leaders in terms of geothermal technology, geothermal human capital, but
we need more geothermal generation back home to reduce the
level of dependency that business has on the main grid.
(09:19):
Because I've long since decided the gentailors, I'm not going
to save New Zealand businesses. But I'll have more to
say about that at the next election. So us going
to America is to share our knowledge, attract further investment,
maintain the momentum that we've got geothermal fields, We've got
the knowledge, we've got the technological nohow and we just
(09:41):
need to affect better levels of connectivity.
Speaker 3 (09:44):
Hey one to really quickly finish on because I know
you've got to go to another interview. The mega strike
on Thursday, teachers, nurses, doctors. What the hou's Palestine got
to do with teachers.
Speaker 5 (09:56):
Well, a lot of these strikes, as Judith Collins has articular,
a lot of these strikes are driven by politics. They're
driven by the Green Party, They're driven by Labor Party.
And the kids in Kaitai Kaiko Eketahuna they don't give
a rats and neither do their parents as to what
status New Zealand has adopted in respect of Palestine. So
(10:19):
it's diversionary politics and it's just a reminder of how
egregious really the political workness has penetrated into the advocacy
of the public lest the public service the unions purporting
to represent them. I'm solidly with Simeon and Judith Collins,
but it's all design mate to sap the will of
(10:41):
the government to stand robustly and win another election. I'll
have more to say about that early next year. But
no one is going to use climate change strikes or
other forms of wokism to undermine our resolve to continue
to turn the country around and make more jobs, boost
our earnings. But we're we're all in it together. And
(11:02):
just because Fonterra and the meat farmers are capable of
making independent decisions, they should always expect people to have opinions,
not the least of which are the politicians are in
New Zealand.
Speaker 3 (11:16):
Okay, well we can agree on the war on wok
Core all in boots and all for that one, but
we can agree to disagree on the alliance and Fonterra.
You and Winston need to butt out.
Speaker 1 (11:27):
Great to chat, Okay mate, thank you very much.
Speaker 2 (11:31):
The Best of the Country with Rubbo Bank, the bank
with local agri banking experts passionate about the future of
rural communities Rubbo Bank.
Speaker 3 (11:53):
Good morning New Zealand, and welcome back to the Best
of the Country. Continuing on the spice Girl theme Wednesday show, Interestingly,
a couple of our guests and I'll tell you about
them in a tick. Jane Smith and Emma Higgins had
completely contrasting spice girl stories. Up next on the Best
of the Country, though, the man who's running the biggest
(12:15):
company in the country, Miles Horrell, chief executive of Fonterra,
commenting on a rather confusing GDT auction Midweek. Of course,
this week. This week we'll find out on Thursday the
big farmer vote on the sale of the consumer brands
it's going to go through. We talked about that a
new butter plant Clandee boy in South Canterbury and I
(12:37):
asked him why big brother Fonterra tells farmers how to
vote when it comes to electing the board of directors.
He also kind of dodged my question about whether Winston
and Shane had any right to comment on Fonterra and
the Alliance. That's the other big farmer vote that went
through earlier this week. Yes, Irish company Dawn Meets has
(12:58):
taken a sixty five percent steak and the Alliance group.
Jane Smith's on the show North Otago farmer former winner
of the Balance Farm Environment Awards. She took time out
of a busy tailing pen to talk reduced methane targets,
mega strikes the red meat industry. She had a wonderful
story about Jim Bolger. Of course, we farewelled our thirty
(13:21):
fifth Prime Minister this week and we got her take
on the Spice Girls and Emma Higgins raps at Rabobank's
senior agg analyst had her say on that GDT auction,
the Alliance vote, the really positive prospects for red meat prices,
if not perhaps the actual state of the industry, and
she had a great spice girl fangirl revelation. It's all
(13:44):
on the best of the country, brought to you by
Rabobank and the spy scirls.
Speaker 1 (14:05):
The best of the country with Rubbobak.
Speaker 2 (14:08):
Choose the bank with one hundred and twenty years global
agribusiness experience.
Speaker 1 (14:12):
Grow with Rubbobak.
Speaker 3 (14:14):
Wednesdays, every second, one twice a month, we have a
GDT auction. You wake up a bit earlier in the
morning to see what happens. Now, this man, chief executive
of Fonterra, Miles Hurrell, would have woken up to a
huge rise this morning, but it was a bit of
a false dawn. The initial numbers up twenty one point
nine percent or something like that. Miles. What happened to
(14:34):
your server?
Speaker 6 (14:35):
Yeah, Jamie, Yeah, there was a bit of a glipse
in the system. So the auction went through sort of fine,
but the data that was published was incorrect, so that's
been redacted and of course they're going to publish that
later today. But what we sense is that it was
in line pretty much with the sort of future markets
down maybe a couple of percent or thereabout. So it's
(14:56):
not ideal, I guess from a New Zealand perspective, but
been saying that in line with where we see the
market at the moment.
Speaker 3 (15:03):
Ten dollars under thread, Well not at this point.
Speaker 6 (15:07):
We'll go away and do the numbers once we get
clarity on what that looks like. But you know, we
signal right from the outset that you know, where the
international markets at, the geopolitics and play we just need
to be mindful is still while we have the spread
in there of nine to eleven dollars.
Speaker 1 (15:21):
But I think what.
Speaker 6 (15:22):
You've seen is some of that playing out, you know,
in particular North America. You know they haven't exported any
so we've been into China as they would have done,
you know this by this time of year, so there's
a lot more feed floating around the US market, which
leads to a bit more milk. Of course, Europe's had
a pretty good weather position and milk price which means
a bit more. And of course they come off the
back of so that that blue tongue issue. So you've
(15:45):
seen a carving a bit later. So all of that
has pointed to a little bit more milk in the
Northern Hemisphere at a time when you see them sort
of peel away. And of course, you know, we've had
a pretty good start here ourselves. I think we're probably
at peak peak production in the season this week or thereabouts,
and we're up you know, three or four percent on
this time last year. So all of those things would
suggest a.
Speaker 1 (16:05):
Bit more milk.
Speaker 6 (16:06):
And buyers, you know, they smell a bit of blood
and they want to sit on the sideline. So at
this point I'm not I'm not suggesting ten dollars under threat,
but we certainly need to keep an eye up.
Speaker 3 (16:15):
Yeah, very good September numbers for us, but the likes
of the bottom half of the South Island, especially South
and Big dairying area. Now it's been a bit miserable
again down there.
Speaker 1 (16:26):
It has weatherwise.
Speaker 6 (16:28):
That said, I think there's a bit more supplementary feed
given given sort of where we fork our prices to be.
So there's a bit more important feed that's sort of
going out into the farms, and so as a result
of that, we are seeing production up right through the
South Island. In fact, South Island's up more than the
North at this point too, so all and all are
pretty good. Start from a farmer perspective, you.
Speaker 3 (16:48):
Would have been an interested spectator yesterday with the result
of the Alliance vote. They romped home in the end.
I suggest next Thursday we'll be talking along the same
lines about the fontege eer A vote regarding the sale
of the consumer brands business. How many farmers have voted
so far, Miles Hurrel.
Speaker 6 (17:07):
Well, we don't we know the data yet that will
it will come clear next week, although sentiment from our
teams that there's been early voting has come through quite
quite strong from our from our farmer's yielders. So you know,
at the end of the day there is a big
decision for our farmers and we've we've provided them the
information you know, very early so they can make an
informed decision. But you know, from from where we sit,
it's all about investing in our ingredients in our food
(17:29):
service business, which you know, we we've we're back for
a long time, will continue to back into the future.
But you know, it is a big decision and we'll
lean into that next Thursday when we see the data.
Speaker 3 (17:38):
And I know you don't want to talk about this,
but you've got to. You'll be happy that Winston Peters
and Shane Jones aren't Fontira Farmer shareholders because they'd be
voting No.
Speaker 6 (17:47):
Well, of course, I what you know, we know we
know the view from from from Winston. He makes that.
There's no apologies from that perspective. But you know it
doesn't surprise that he's entitled to his views, of course.
But you know, as I think you've pulled it out
on many occasions, this is owned by our farmers and
they'll make the ultimate decision.
Speaker 3 (18:05):
Absolutely radio. Now I'm gonna have another crack at you here.
Why does big brother Fonterra tell farmers how to vote
on the Board of Director elections?
Speaker 6 (18:14):
Yeah, I mean I think you're referring to the independent
assessment panel. So you know, the board puts out sort
of skills matrix and the gaps they need to fill
into the future. That gets put to an independent panel.
They put through people that put their hand up and
out pops those those that will go through the process
that's overseen by the Shielders Council or the Corporate councilors.
It's called now. So you know, I think there's a
(18:35):
pretty robust process around that. At the same time, it
does mean that if you don't get through that process,
you can come through on your own right and there's
a few rules around that, but you can come through
on your own so and we've seen that done in
the past quite successfully. So yeah, I think the team
are quite happy with the process. It's it's you know,
it's got a nice robust process around it with the
(18:56):
likes the independent panel and overseen by the council.
Speaker 3 (18:59):
That's a draft and gate against democracy.
Speaker 6 (19:02):
Oh, I wouldn't call it that. You know, any board
needs to ensure you have the right skills and you know,
as we look at the sort of the new direction
of the cooperative, you know, it's really important we think
about that into the future. You've got, you know, a
couple of board members come off next year. They have
certain skills and I think the board looking to make
sure that they fill those gaps. And so yeah, that's
what it's about, and we'll see what comes through in
(19:23):
that process. I think late November, I think might be
early December.
Speaker 3 (19:26):
Now let's finish on a good news story. A new
butter plant for Clandy Boy in South Canterbury.
Speaker 6 (19:32):
Yeah, Look, we're excited about this. I mean, this is
very much aligned with sort of the strategic direction of
the cooperative. You know, fifty ton of new capacity we're
going to put into into clannyboards, so that's not quite
twenty percent increase on what we currently have, and very
much aligned to our international food service and our ingredients business,
a couple of different formats, a couple of types of butter.
So you're exciting and very much points to the direction
(19:54):
of where the cops heading. Add to that, the one
hundred and fifty million dollars recent announcement, another seventy five
million at Studham in one hundred and fifty million and
fodder are all aligned to the new strategy. And these
are the things that we're trying to sort of send
a message to our farmers that we have a heck
of a future in those areas that we have skills at,
such as food service ingredients.
Speaker 3 (20:16):
Maybe you need to send the block to Winston to
butter him up.
Speaker 6 (20:21):
Well, you know, I'm heading to Jim's funeral tomorrow, former
Prime Minister's funeral tomorrow, and no doubt ill run into
a few of the politicians there, but I'll pay my
respects to the former Prime Minister and you know he's
done a pretty good job for news End over the
years and sad to see him go.
Speaker 3 (20:39):
Yeah, the last of the great farmer politicians. And of
course his son Matt Bolger part of the Fonterra executive
two miles.
Speaker 6 (20:46):
Yes he is and we were away in Europe last
week as a team and he had to come back
at short notice given given Jim took a turn for
the worse at the end. But great to see Matt
and all his siblings and the grandchildren in Wellington, So
forwards passing as said as it is, it's really nice
to see that the family.
Speaker 3 (21:05):
You're all there, Miles Harrel, Thanks is always for your
time on the country. Appreciate it.
Speaker 1 (21:09):
Good only thanks Jammy, the best of the country with Rabobank.
Speaker 2 (21:13):
Choose the bank with a huge network of progressive farming
clients Rabobank.
Speaker 3 (21:18):
She is a North Otago farmer who's taken time out
from her busy day. She's been tailing in the wind
and there's been plenty of wind around the country at
the moment. Her name is Jane Smith, now Jane. Today's
musical theme is The Spice Girls and Without wanting to
give your age away. I reckon you would be of
an age where you were a bit of a Spicy
(21:39):
fan when you were a youngster. Now I'm going to
ask you who your favorite Spice girl is. But when
it comes to comparing you to one of the Spice girls,
it's not Baby Spice with the blonde hair. It's Scary Spice.
Speaker 7 (21:52):
Well, I think it's probably on point, Jamie. Actually, after
this mornings tailing out in the Norwester and I was
just thinking this morning, the Norwiesta is about as useful
as a unionist on strike, Jamie, in terms of absolutely
no use of all in its I think we're week
five a week six of the Norwesta today, So scarious Spider, Yeah,
(22:13):
I'll take that. But yeah, spice skills, I certainly they
are around in my era, but I absolutely couldn't stand them, Jamie.
Nothing worse than a girl band. So no, I don't
like your choice music at all today, Jamie.
Speaker 3 (22:23):
Oh, well there you go. I'm a big boy band fan,
so we differ on that one. Look in my absence, Jane.
The methane targets emission targets have been halved, so that
will negate any use for your bunch of merry men
and women. The Methane Science Accord.
Speaker 7 (22:39):
Oh, if I agreed with you, Jamie, we would both
be wrong on that one. In terms of the methane targets, yes,
they're slightly more palatable, but remembering that even the IPCC
have said that the methane the warming effect of methane
has been ovastated by four hundred percent, so we're not
even halfway there. So I mean, the Methane Review Panel
knew that as well, and they also knew that that
(23:01):
no reduction is required at all. But I guess politically again,
it would wouldn't have been very palatable because not so
much around the Paris are called expectations, but the amount
of money that still is being squandered of taxpayer money
on methane reduction pills and potions and balduses and that
we simply do not need nor want, and so that
(23:23):
would be quite embarrassing for the sector and for New Zealand.
So it's it's a step in the right direction, but
actually we just need to be coming out and saying actually,
if the focus is on warming, there's literally nothing to
see here. We're still already meeting that met zero getting
the chain hang on.
Speaker 3 (23:39):
That depends on who you believe when it comes to
the scientific arguments.
Speaker 7 (23:45):
Absolutely not that, Jamie, because even actually our anemic academics
last week, while slipping on their prune juice, did come
out and say, actually, we should make targets higher to
make it as the world is doing less and it
would be Rolic's leadership to actually offset any global increase
of methane I eat. You know, they were talking about cooling,
(24:06):
So even those academics could actually stay that this was
never about never about emissions or actually warming, It was
actually about political grandstanding Jamie. So again, if we focus
on warming, we are not adding to warming at all.
And that's even before we add in the nine million
hectares of native biodiversity, et cetera, of which two point
(24:27):
six millionaire that are on chief and beef farms like
our own ones. So actually we need to have that conversation.
And so in terms of heading forward, I certainly me
and my team will still be dedicated to removing methane
from the Paris Accord. We have to do that in
terms of trying to stop food inflation and also around
that food security. So because people need to remember every
(24:50):
time they complain about carbon forestry, the price of butter,
the price of meat, the price of fresh vegetables, energy fuel,
air flights, banking compl cience, all of these are symptoms
of the greater problem, which is again the Paris Accord.
And in New Zealand we have this really strange Stockholm
syndrome where we have started agreeing. Will we continue to
(25:11):
agree with our captives. The very thing that holds us
captive is the Paris Accord and it actually is very,
very damaging to pretty much everything that's leading to inflation
in this country, Jamie. So again we need to put
the grand standing out and actually I want to be
able to focus again on genuine environmental initiatives. I've said
this time and time again, biodiversity, water, sustainable food production,
(25:32):
and this unhinged obsession with emissions needs to stop.
Speaker 3 (25:35):
You all right, Who am I to argue with, scary spice?
Are you an Alliance? Two part question here, double barrel?
Are you an Alliance supplier? And that's so how did
your vote so we know.
Speaker 7 (25:45):
Yeah, we're not Alliance supply, Jamie. But I was pleased
to see that voter turnout was really impressive and it
was a mandate for change, and I mean, again, you
can have nostalgia around the ownership, but that doesn't pay
the bills. And actually it will be good to inject
some global governance and some other sort of oversight around
(26:06):
not just Alliance, but also the whole entire meat sector.
So we really need more transparency around that. So hopefully
that does bring that, Jamie, So well done to everyone
for voting, regardless of which way they vote.
Speaker 3 (26:16):
Yeah, an alliance was a totally impure in my mind
anyhow cooperative.
Speaker 7 (26:22):
Right, and so that's the thing I've seen many meat
companies in the sector there are that tend to be
a lot more transparent than some of those that call
themselves a cooperative. So hopefully, Jamie, that it's really woken
up shareholders and they're looking for that transparency and I
have no doubt that the entire sector that will hopefully
flow through to the entire sector.
Speaker 4 (26:42):
Jamie.
Speaker 3 (26:43):
Okay, you started off by talking about strikes. The northwester
was as much use as a unionist on strike, I
think was your quote. I'm really annoyed about these strikes
and I'm totally behind doctors and nurses are married to
a teacher. My older sister is a teacher. But really,
why should Palestine be on the top or on the
(27:03):
agenda at all? What are they striking against?
Speaker 7 (27:07):
Exactly, Jamie. And once again it's unionists, you know, pushing
their own agenda forward. And I think, is there one
hundred thousand people striking tomorrow? So just top of my
head while I was thinking in the tailing pen this morning,
that's probably twenty to fifty million dollars of our economy
a cost of the economy, let alone the cost to
children's learning and witless times, et cetera. And again, I
(27:30):
know many teachers and some of those in the health
care sector that don't necessarily agree with the way that
this has been executed. But there is certainly are some issues,
particularly in the health sector. So again you know these
type of things, Jamie, where is the money going to
come from? But also these unionists need to be less
focused on their incomes, and we'll focus on their outcomes
(27:51):
and pull the head in. If they want to be
in politics, Jamie, they should be an MP.
Speaker 3 (27:55):
Can we just finish with a quick word on the
late Jim Boulger. I know you've got an nice weeet
story to tell. We've already heard from Miles Hurrell and
Chris Lux and what's your story.
Speaker 7 (28:04):
I once made him a cup of tea, Jamie Axlely,
that's my only claim to fame. And I really enjoyed
a lot of the quotes of Jim Bulger, particularly what
was one politicians, no matter who they are, shouldn't be
able to manipulate public on a single issue. And you
know that is absolutely relevant today in terms of what's
happening in parliament, particularly Party Mary. But it was a
(28:26):
Clyde Damn opening. So I was thirteen and my friend Lisa,
her mum, was catering at this and I remember there
was I absolutely remember there was protests outside in quite
high security for those days in nineteen ninety four, and
Jim and Joan were there and I made them a
cup of tea and talk to them about farming. And
Jim said, at that point, make sure that you're sticking
(28:49):
at farming and be involved with that sector. Now, remembering
ninety four, things weren't great in the sector, so I'd
always remember that, and he just seemed like a really
a real statesman.
Speaker 3 (28:59):
I so you were thirteen and nineteen ninety I'm doing
the maths that makes you fifteen and nineteen ninety six
when the Spice Girls exploded onto the world stage. Jane Smith,
I can't believe you weren't a spicy.
Speaker 7 (29:15):
I'm definitely scary Jamie, but not a spy skill.
Speaker 1 (29:17):
See you later, Thanks Jammy.
Speaker 2 (29:20):
The Best of the Country with Rabobank, the bank with
local acribanking experts passionate about the future of rural communities Rubbobank.
Speaker 8 (29:35):
Thank you.
Speaker 3 (29:36):
Good morning New Zealand. Welcome back to the Best of
the Country. I'm Jamie McKay. The show today brought to
you by Rabobank as always, plus the Spice Girls today. Gee,
it's been a tough week weather wise. The cleanup is
going to take weeks rather than days. And for all
you people, especially you farmers out there affected by this
freakish weather, good luck. Now talking about Rabobank. Up next,
(30:00):
Rabobanks Senior ag analyst Emma Higgins reviewing a really interesting
week in agriculture. We got another one coming up next
week with the Fonterra vote. She also had a fascinating
Spice Girl fangirl a revelation. More from Emma in a tick,
but just talking about Rabobank. They've released a report on dairybeef.
(30:22):
So with nearly two million underutilized dairy carves born annually
and the outlook for beef pricing being so strong thanks
to Trump and his love of hamburgers, a new report
by Rabobank says the opportunity for New Zealand's ag sector
to build a scalable, profitable dairy beef system is now
right for the picking. The report is titled their Strategic
(30:45):
Moment for Dairy Beef in New Zealand. You can learn
lots about it at the Rabobank website rabobank dot co
dot inzet. Apparently, at current average market prices for this season, rearing,
an additional six hundred thousand surplus cut could unlock one
point two billion dollars in value That might help us
(31:06):
pay doctors and nurses a bit more. They deserve it.
I'm not so sure about the teachers in Palestine, but
I'll keep the powder dry there because I'm married to one.
It'll only get me in trouble up next to Emma Higgins.
Speaker 2 (31:25):
The best of the country with Rabobank choose the bank
with one hundred and twenty years global Agribusiness Experience Grow
with Rubbobank.
Speaker 3 (31:33):
She is a senior ag analyst with Rabobank and continuing
as Spice Girls musical theme today on the Country. Emma Higgins,
like Jane Smith, you're of an age where you were
probably a Spy Skirl fan growing up or am I
misreading you?
Speaker 4 (31:49):
Now? You have nailed me completely with what may likes were.
When it comes to the nineties pop band and I
did have the platform shows.
Speaker 3 (31:59):
Jamie Jane hated the Spy Girls. She looked a bit
like Baby Spice with the blonde hair, but in real life,
Jane Smith's scary Spice. If we were to compare you
to one of the Spy Girls, who would it be?
Speaker 5 (32:13):
Well, when I have a.
Speaker 4 (32:14):
Chuck because I have quite dark here. So I was
always referred to as Posh Space.
Speaker 3 (32:20):
So you actually you actually had a nickname called Posh Spice.
Speaker 4 (32:24):
Well, no, but when we were doing our band performances,
obviously in front of all the school, Posh Space was
my character that I was trussed into.
Speaker 7 (32:34):
And you know what, after.
Speaker 4 (32:35):
Watching her on Netflix, I'll still take Posh Space.
Speaker 3 (32:38):
Let's get on to stuff that we need to talk about.
Emma Higgins and of course we've already chatted to Miles
Hurrel about the GDT auction event. It was a bit
of a dog's breakfast overnight getting the results. But the
tone of it is it's down a couple of percent,
pretty much as expected with the futures market now, I
asked him, So I've got to ask you not only
(32:59):
about the spy skills, but as ten dollars under threat, Well,
I think.
Speaker 4 (33:03):
We need to be prudent here, Jamie and start thinking
about what a milk price looks like that's a little
lower than that. I think tim Bucks is still achievable
this season, but our sales people are going to have
to work pretty hard for that. And so in the
absence of, you know, putting a lot of trust and
hope into our sales team, it could be quite prudent
(33:24):
for you know, farmers out there to think about what
nine point fifty might look like or something a little
bit less than ten, just given that the milk right
the market right now has too much milk. And that's
what's reflected in the GDT outcomes that we've seen of
the last three while. And when you think about it,
we've just had our latest results come through for September.
(33:45):
When it comes to milk production, we've just seen a
record volume of milk being produced for the month of September,
and that's a trend that we've actually been playing out
since about May this year. So there's a plenty of
milk coming from this part of the world. That's the
same out of the United States as well, similar to
with Europe, and buyers are feeling pretty comfortable that they've
(34:08):
got plenty of choice.
Speaker 3 (34:09):
Yeah, Miles Harrel said, they're smelling a bit of blood
in the water and thereafter a good deal. Interestingly, talking
to farmer Tom Martin, my UK correspondent yesterday, British milk
exports have lifted by twenty percent. So let's move on
from dairy. I want you to put on your red
meat hat. What commentary have you got around that Alliance vote?
Speaker 4 (34:30):
Well, it was a very strong outcome, wasn't it, Jamie.
And look, I know that you've traversed a lot of
this over the last few days and certainly in the
weeks leading up to it, but certainly our farmers right
now are deciding the fate of cooperatives in one sense
or another. Whether it was the Alliance vote that we
just saw come through yesterday, or whether it's the Fonterra
(34:51):
vote and the outcome of which will be announced at
the end of this month. There are quite different circumstances
obviously between the two, but you know, it is a
watershed moment. Alliance was the last one hundred percent from
owned red meat cooperative and they clearly have voted against
this model in favor of what is effectively foreign ownership,
(35:12):
whereas Dawn meets owning sixty five percent stake in Alliance group.
Assuming it all goes through, all the eyes are dotted,
t's crossed, and the High Court is also an agreement
as well. So look, it is really a momentous time
I think for a red meat space, and we've talked
about it before, Jamie. You know, cooperatives do have a
(35:33):
few challenges when it comes to accessing capital to really
maximize on market opportunities. We've seen it before historically, and
Alliance is no different right to other cops have faced
their challenges. What we've seen in terumber This vote is
a vote for a fast capital injection, so external capital
(35:55):
coming in that will theoretically provide opportunity for the group
to progress and achieve whatever growth strategies that they have.
The risk is Jamie, yet we see a dilution or
a loss of farm control. And also just around what
does profit look like and what does I guess the
(36:17):
tensions maybe or what does the opportunity for the different
groups look like going forward? So you know, it's a
really interesting space right now.
Speaker 3 (36:25):
Let's wrap this on a very positive note. You've verged
a bit of caution around the dairy price, but you'd
have to say beef and lamb looking very promising for
this season.
Speaker 9 (36:36):
It is.
Speaker 4 (36:37):
Look, I think there's something to be really excited about
when it comes to the red meat space for farm
gate prices.
Speaker 7 (36:43):
Look, I joke about this all the time.
Speaker 4 (36:45):
We're having to adjust their axis when we're trying to
show where prices are right now compared to the five
year average range and compared to the last couple of years.
So it's great news out there. We're seeing very very
strong demand, particularly from the Northern hemisphere in the best space.
That US market absolutely is yanking up that farm gate price.
(37:05):
And when it comes to the lamb space as well,
our friends over in the UK and EU are certainly
helping underpend solid returns at the farm gate level. So
a lot to be really happy about, a lot to
be really confident about. I think, as we're passing through
Lemming and looking down the barrel of summer, let's just
(37:27):
hope the weather stays favorable in terms of maximizing on
as we move through the coming months.
Speaker 3 (37:34):
Well, Emma Bunton hopes that's a fraudy and slip. Let
me try Emma Higgins. Did you like what I did there?
Emma Higgins from rabobank, Thanks for your time and thanks
for sharing your stories about being a posh spice on
a past life.
Speaker 4 (37:47):
Anytime, Jamie, the.
Speaker 1 (37:49):
Best of the Country with Rabobank.
Speaker 2 (37:51):
Choose the bank with a huge network of progressive farming clients, Rabobank.
Speaker 3 (38:00):
Emma Huggins from Rabobank, wrapping the Best of the Country.
Good morning. My name is Jamie McKay. This is the
Best of the Country, brought to you by Rabobank. We're
growing a better New Zealand together. I just loved Emma's
story about being posh spice in a past life. It's
been a tough week, hasn't it. We're farewell to our
thirty fifth Prime Minister Jim Bolger and the weather has
been nothing short of abysmal. Good luck to all you
(38:23):
farmers and New Zealanders out there with the cleanup. The
good news is Otago will win the MPC final this
afternoon and christ Church I certainly hope. So catch your back,
same time, same place next Saturday morning. Enjoy you long
weekend if you're lucky enough to get one. I'm going
to leave you with the Spice girls.
Speaker 9 (39:00):
I s dancing great tangle space between we move off
(39:34):
the fast crowd, the talks that say six, I'm sett.
Speaker 8 (40:01):
Shooting shot. She see yeah, how time
The best of the Country with Rubbobak.
Speaker 2 (00:02):
Choose the bank with one hundred and twenty years global
agribusiness experience.
Speaker 1 (00:06):
Grow with Rubbo bag closer. They get it.
Speaker 3 (00:17):
When today and good Morning New Zealand. Welcome to the
Best of the Country. My name's Jamie McKay. The show's
(00:38):
brought to you each and every Saturday morning here on
Newstalk z'b by Rabobank. Were growing a Better New Zealand
together a bit of a Spice Girls theme this morning
because I had one midweek because apparently the Spice Girls
are having a reunion next year, thirty years on since
they took the world by storm, but Ginger Spice maybe
(00:59):
not winning the party. I don't know how you segue
from the Spye Girls to Shane Jones, but he's always
good at spicing things up on the radio. I caught
up with the Prince of the Province's self titled Martuur
Shane Jones in Sydney where he was at a mining
conference and naturally he was a bit like a Pegan muck,
(01:22):
so we discussed that. We also discussed the Alliance and
Fonterra votes. Now the Alliance vote came in earlier this week,
so they're doing a deal with Irish meat company Dawn meets.
The Fonterra vote comes in next week. They will vote
yes to the selling of the consumer brand's business. Mark
my words on that one. We also lamented the Mega
(01:45):
strikes this week, and I guess everyone's got a different
position on that, depending on who and where you are
talking about. Fonterra. Miles Hurrell on Wednesday Show Chief Executive
a very confusing GDT auction. Overnight we talked about that
farmer vote on the sale of the consumer brands. There's
a new butter planted plandy boy. We just can't make
(02:07):
enough butter in this country, and I asked him why
big brother Fonterra tells farmers how to vote when it
comes to electing the board of directors. We're going to
wrap it with a couple of our regular correspondents, who,
as Fate would have it, have very differing views on
the Spy Skirls. They're both of an age that they
(02:27):
grew up as teenagers when the Spice Girls were in
their primes. Jane Smith, North Otago farmer, Ebba Higgins, Rabobank's
senior agg analyst. It's a Spice Girls theme today on
the Country.
Speaker 4 (02:42):
The.
Speaker 1 (02:49):
Best of the Country with Rabobank.
Speaker 2 (02:51):
Choose the bank with a huge network of progressive farming clients.
Speaker 3 (02:55):
Rabobank, he is the Prince of the Provinces, the Minister
of digging it up and down coming it up. Yes,
Shane Jones, he's in Sydney for a mining conference. Shane,
before we talk about mining and having spent some time
recently in Perth, I can see the upside of it.
I want to get stuck into you in Winston momentarily
about your meddling in the Alliance vote and the upcoming
(03:17):
Fonterra vote. It's none of your business.
Speaker 5 (03:21):
No, Politicians who have a broad view of history and
have a good understanding of what are the vulnerabilities facing
our nation have every right to call out corporate leaders
if we disagree with their strategy, because Fonterra would not
exist if it wasn't for politicians. Helen Clark breathed life
into their entity and Alliance, by their own admission, we're
(03:43):
doing this to satisfy the Ossie owned banks. Both of
those issues are very political.
Speaker 3 (03:48):
But they're farm our own cooperatives effectively like a private company.
The owners decide their future.
Speaker 5 (03:56):
Now the owners aren't deciding their future. The owners are
jumping to the tune of the Ossie and banks. This
is what the promoter of the deal said all along,
and anything that looks like the Ossion banks are operating
in a manner that over time is going to deny
us more profit making opportunities with value added and going
(04:17):
up the value chain. Those are all yeah.
Speaker 3 (04:19):
But you realize, of course that your coalition partners Luxeon
and Seymour were totally supportive of, for instance, the Fonterra deal.
It's better for the economy, according to them, it's more profitable.
Speaker 5 (04:32):
Well, time will tell whether or not the whole existence
of Fonterra, what has been its net benefits since those
healthy and days of Helen Clark breathing life into it,
or Winston was saying, we know we're not luddites. We
can't stop the farmers from taking the capital and a
lot of them are at an aging cohort and they
probably want to get out of farming. The kids don't
on a milk cows. But know this from us Fonterra
(04:55):
and the farmers, we're knocking down our door. After the
next election. Can can we help them with water rights,
Can we help them with nutrient rights? Can we help
them with what they'll regard as the dead weight burden
of excessive environmentalism. Well, it's a two way street.
Speaker 3 (05:10):
That sounds a bit like a threat.
Speaker 5 (05:13):
It's not a threat. They're already knocking on my door.
They're already saying that the Waikato Regional Plan is so onerous.
A number of them doubt whether or not they can
raise the necessary capital to meet these new water standards. Now,
fortunately I agree with them. I agree more with the
vega growers that they're being forced out of business by
these klingon rent seeking sort of catastrophe suits. Believe everything
(05:36):
that we do to touch the land is going to
lead to some sort of permanent detrimental effect. There's always
trade offs when you use capital, land people, and you
try and satisfy markets.
Speaker 3 (05:47):
And here was I thinking you and once that would
be one hundred percent support of without a file of
our number one export industry.
Speaker 5 (05:58):
Now they know exactly when New Zealand first stands, and
it's not unreasonable for us to call out this huge
organization and look, I know them all, and we can't
stop what they're doing. But I've got to ask you,
are we just now an entity that creates an ongoing
(06:18):
flow of commodities and we've probably given up and surrendered
to others value associated with brands. They told me there
is no value in brands, So that's the case. How
come these other people are knocking on the door to
buy them?
Speaker 3 (06:30):
You might learn a listen lesson, should I say? From history?
Speaker 5 (06:32):
Here?
Speaker 3 (06:32):
Remember the old six million or eight million dollar man
Tao sparrings worldwide domination value add blah blah blah. How
did that end up for Fonterra Shane.
Speaker 5 (06:43):
That's exactly right. They wasted all that money in China,
but that had to do with a gregious governance failure.
And why is that the government's problem? If a large
organization like Fonterra was unable to execute a corporate strategy.
And I guess what you're saying is that there are
other entities around the world more than capable of kicking
(07:05):
that goal, and that New Zealand's largest company should surrender
to them the ability to make that level of money.
Speaker 3 (07:13):
What's happening in Sydney? What are you doing there? There's
a mining conference. You'd be like a pegan market. One
of these mate.
Speaker 5 (07:20):
Well over ten thousand people. The guts of the issue
is that we are here to promote the reinvigoration of
our mineral sector. There's a lot of Kiwis who are
selling We's goods services all around the world and this
is a great, big jamboree. I came last year after
a long period of absence from the New Zealand political
(07:42):
establishment and they invited me back and I'm giving a
speech in engaging with all sorts of media. But the
real story is we're legitimizing mining. We're opening up the opportunities.
And look, you can't change the weather climate speaking through
all these incantations, and we've got to bring to a
(08:02):
holt this rent seeking behavior from the stakeholders who don't
want mining to happen unless they get a they're part
of the pie, and then of course reduces the whole
viability of the project. But it won't be just mining
that's under attack. I mean, I'm telling you vegetable growing, farming,
and a variety of the primary produce sectors are going
to consistently be facing political stresses and attacks. That's why
(08:26):
the farmers, the miners, the forestry people they have a
sort of hate love relationship with New Zealand. First Sedley,
but the others realize that we're an important ingredient to
balance in robustness and pushing back against this green rent
seeking tape womb behavior.
Speaker 3 (08:42):
And as if you're not going to have enough fun
in Sydney with your mining jamboree as you called it,
Shane Jones, You're off then to the United States for
two more mining conferences. This is kind of utopia for you, yes, yes.
Speaker 5 (08:59):
Well and true putting our footprint down. We are world
leaders in terms of geothermal technology, geothermal human capital, but
we need more geothermal generation back home to reduce the
level of dependency that business has on the main grid.
(09:19):
Because I've long since decided the gentailors, I'm not going
to save New Zealand businesses. But I'll have more to
say about that at the next election. So us going
to America is to share our knowledge, attract further investment,
maintain the momentum that we've got geothermal fields, We've got
the knowledge, we've got the technological nohow and we just
(09:41):
need to affect better levels of connectivity.
Speaker 3 (09:44):
Hey one to really quickly finish on because I know
you've got to go to another interview. The mega strike
on Thursday, teachers, nurses, doctors. What the hou's Palestine got
to do with teachers.
Speaker 5 (09:56):
Well, a lot of these strikes, as Judith Collins has articular,
a lot of these strikes are driven by politics. They're
driven by the Green Party, They're driven by Labor Party.
And the kids in Kaitai Kaiko Eketahuna they don't give
a rats and neither do their parents as to what
status New Zealand has adopted in respect of Palestine. So
(10:19):
it's diversionary politics and it's just a reminder of how
egregious really the political workness has penetrated into the advocacy
of the public lest the public service the unions purporting
to represent them. I'm solidly with Simeon and Judith Collins,
but it's all design mate to sap the will of
(10:41):
the government to stand robustly and win another election. I'll
have more to say about that early next year. But
no one is going to use climate change strikes or
other forms of wokism to undermine our resolve to continue
to turn the country around and make more jobs, boost
our earnings. But we're we're all in it together. And
(11:02):
just because Fonterra and the meat farmers are capable of
making independent decisions, they should always expect people to have opinions,
not the least of which are the politicians are in
New Zealand.
Speaker 3 (11:16):
Okay, well we can agree on the war on wok
Core all in boots and all for that one, but
we can agree to disagree on the alliance and Fonterra.
You and Winston need to butt out.
Speaker 1 (11:27):
Great to chat, Okay mate, thank you very much.
Speaker 2 (11:31):
The Best of the Country with Rubbo Bank, the bank
with local agri banking experts passionate about the future of
rural communities Rubbo Bank.
Speaker 3 (11:53):
Good morning New Zealand, and welcome back to the Best
of the Country. Continuing on the spice Girl theme Wednesday show, Interestingly,
a couple of our guests and I'll tell you about
them in a tick. Jane Smith and Emma Higgins had
completely contrasting spice girl stories. Up next on the Best
of the Country, though, the man who's running the biggest
(12:15):
company in the country, Miles Horrell, chief executive of Fonterra,
commenting on a rather confusing GDT auction Midweek. Of course,
this week. This week we'll find out on Thursday the
big farmer vote on the sale of the consumer brands
it's going to go through. We talked about that a
new butter plant Clandee boy in South Canterbury and I
(12:37):
asked him why big brother Fonterra tells farmers how to
vote when it comes to electing the board of directors.
He also kind of dodged my question about whether Winston
and Shane had any right to comment on Fonterra and
the Alliance. That's the other big farmer vote that went
through earlier this week. Yes, Irish company Dawn Meets has
(12:58):
taken a sixty five percent steak and the Alliance group.
Jane Smith's on the show North Otago farmer former winner
of the Balance Farm Environment Awards. She took time out
of a busy tailing pen to talk reduced methane targets,
mega strikes the red meat industry. She had a wonderful
story about Jim Bolger. Of course, we farewelled our thirty
(13:21):
fifth Prime Minister this week and we got her take
on the Spice Girls and Emma Higgins raps at Rabobank's
senior agg analyst had her say on that GDT auction,
the Alliance vote, the really positive prospects for red meat prices,
if not perhaps the actual state of the industry, and
she had a great spice girl fangirl revelation. It's all
(13:44):
on the best of the country, brought to you by
Rabobank and the spy scirls.
Speaker 1 (14:05):
The best of the country with Rubbobak.
Speaker 2 (14:08):
Choose the bank with one hundred and twenty years global
agribusiness experience.
Speaker 1 (14:12):
Grow with Rubbobak.
Speaker 3 (14:14):
Wednesdays, every second, one twice a month, we have a
GDT auction. You wake up a bit earlier in the
morning to see what happens. Now, this man, chief executive
of Fonterra, Miles Hurrell, would have woken up to a
huge rise this morning, but it was a bit of
a false dawn. The initial numbers up twenty one point
nine percent or something like that. Miles. What happened to
(14:34):
your server?
Speaker 6 (14:35):
Yeah, Jamie, Yeah, there was a bit of a glipse
in the system. So the auction went through sort of fine,
but the data that was published was incorrect, so that's
been redacted and of course they're going to publish that
later today. But what we sense is that it was
in line pretty much with the sort of future markets
down maybe a couple of percent or thereabout. So it's
(14:56):
not ideal, I guess from a New Zealand perspective, but
been saying that in line with where we see the
market at the moment.
Speaker 3 (15:03):
Ten dollars under thread, Well not at this point.
Speaker 6 (15:07):
We'll go away and do the numbers once we get
clarity on what that looks like. But you know, we
signal right from the outset that you know, where the
international markets at, the geopolitics and play we just need
to be mindful is still while we have the spread
in there of nine to eleven dollars.
Speaker 1 (15:21):
But I think what.
Speaker 6 (15:22):
You've seen is some of that playing out, you know,
in particular North America. You know they haven't exported any
so we've been into China as they would have done,
you know this by this time of year, so there's
a lot more feed floating around the US market, which
leads to a bit more milk. Of course, Europe's had
a pretty good weather position and milk price which means
a bit more. And of course they come off the
back of so that that blue tongue issue. So you've
(15:45):
seen a carving a bit later. So all of that
has pointed to a little bit more milk in the
Northern Hemisphere at a time when you see them sort
of peel away. And of course, you know, we've had
a pretty good start here ourselves. I think we're probably
at peak peak production in the season this week or thereabouts,
and we're up you know, three or four percent on
this time last year. So all of those things would
suggest a.
Speaker 1 (16:05):
Bit more milk.
Speaker 6 (16:06):
And buyers, you know, they smell a bit of blood
and they want to sit on the sideline. So at
this point I'm not I'm not suggesting ten dollars under threat,
but we certainly need to keep an eye up.
Speaker 3 (16:15):
Yeah, very good September numbers for us, but the likes
of the bottom half of the South Island, especially South
and Big dairying area. Now it's been a bit miserable
again down there.
Speaker 1 (16:26):
It has weatherwise.
Speaker 6 (16:28):
That said, I think there's a bit more supplementary feed
given given sort of where we fork our prices to be.
So there's a bit more important feed that's sort of
going out into the farms, and so as a result
of that, we are seeing production up right through the
South Island. In fact, South Island's up more than the
North at this point too, so all and all are
pretty good. Start from a farmer perspective, you.
Speaker 3 (16:48):
Would have been an interested spectator yesterday with the result
of the Alliance vote. They romped home in the end.
I suggest next Thursday we'll be talking along the same
lines about the fontege eer A vote regarding the sale
of the consumer brands business. How many farmers have voted
so far, Miles Hurrel.
Speaker 6 (17:07):
Well, we don't we know the data yet that will
it will come clear next week, although sentiment from our
teams that there's been early voting has come through quite
quite strong from our from our farmer's yielders. So you know,
at the end of the day there is a big
decision for our farmers and we've we've provided them the
information you know, very early so they can make an
informed decision. But you know, from from where we sit,
it's all about investing in our ingredients in our food
(17:29):
service business, which you know, we we've we're back for
a long time, will continue to back into the future.
But you know, it is a big decision and we'll
lean into that next Thursday when we see the data.
Speaker 3 (17:38):
And I know you don't want to talk about this,
but you've got to. You'll be happy that Winston Peters
and Shane Jones aren't Fontira Farmer shareholders because they'd be
voting No.
Speaker 6 (17:47):
Well, of course, I what you know, we know we
know the view from from from Winston. He makes that.
There's no apologies from that perspective. But you know it
doesn't surprise that he's entitled to his views, of course.
But you know, as I think you've pulled it out
on many occasions, this is owned by our farmers and
they'll make the ultimate decision.
Speaker 3 (18:05):
Absolutely radio. Now I'm gonna have another crack at you here.
Why does big brother Fonterra tell farmers how to vote
on the Board of Director elections?
Speaker 6 (18:14):
Yeah, I mean I think you're referring to the independent
assessment panel. So you know, the board puts out sort
of skills matrix and the gaps they need to fill
into the future. That gets put to an independent panel.
They put through people that put their hand up and
out pops those those that will go through the process
that's overseen by the Shielders Council or the Corporate councilors.
It's called now. So you know, I think there's a
(18:35):
pretty robust process around that. At the same time, it
does mean that if you don't get through that process,
you can come through on your own right and there's
a few rules around that, but you can come through
on your own so and we've seen that done in
the past quite successfully. So yeah, I think the team
are quite happy with the process. It's it's you know,
it's got a nice robust process around it with the
(18:56):
likes the independent panel and overseen by the council.
Speaker 3 (18:59):
That's a draft and gate against democracy.
Speaker 6 (19:02):
Oh, I wouldn't call it that. You know, any board
needs to ensure you have the right skills and you know,
as we look at the sort of the new direction
of the cooperative, you know, it's really important we think
about that into the future. You've got, you know, a
couple of board members come off next year. They have
certain skills and I think the board looking to make
sure that they fill those gaps. And so yeah, that's
what it's about, and we'll see what comes through in
(19:23):
that process. I think late November, I think might be
early December.
Speaker 3 (19:26):
Now let's finish on a good news story. A new
butter plant for Clandy Boy in South Canterbury.
Speaker 6 (19:32):
Yeah, Look, we're excited about this. I mean, this is
very much aligned with sort of the strategic direction of
the cooperative. You know, fifty ton of new capacity we're
going to put into into clannyboards, so that's not quite
twenty percent increase on what we currently have, and very
much aligned to our international food service and our ingredients business,
a couple of different formats, a couple of types of butter.
So you're exciting and very much points to the direction
(19:54):
of where the cops heading. Add to that, the one
hundred and fifty million dollars recent announcement, another seventy five
million at Studham in one hundred and fifty million and
fodder are all aligned to the new strategy. And these
are the things that we're trying to sort of send
a message to our farmers that we have a heck
of a future in those areas that we have skills at,
such as food service ingredients.
Speaker 3 (20:16):
Maybe you need to send the block to Winston to
butter him up.
Speaker 6 (20:21):
Well, you know, I'm heading to Jim's funeral tomorrow, former
Prime Minister's funeral tomorrow, and no doubt ill run into
a few of the politicians there, but I'll pay my
respects to the former Prime Minister and you know he's
done a pretty good job for news End over the
years and sad to see him go.
Speaker 3 (20:39):
Yeah, the last of the great farmer politicians. And of
course his son Matt Bolger part of the Fonterra executive
two miles.
Speaker 6 (20:46):
Yes he is and we were away in Europe last
week as a team and he had to come back
at short notice given given Jim took a turn for
the worse at the end. But great to see Matt
and all his siblings and the grandchildren in Wellington, So
forwards passing as said as it is, it's really nice
to see that the family.
Speaker 3 (21:05):
You're all there, Miles Harrel, Thanks is always for your
time on the country. Appreciate it.
Speaker 1 (21:09):
Good only thanks Jammy, the best of the country with Rabobank.
Speaker 2 (21:13):
Choose the bank with a huge network of progressive farming
clients Rabobank.
Speaker 3 (21:18):
She is a North Otago farmer who's taken time out
from her busy day. She's been tailing in the wind
and there's been plenty of wind around the country at
the moment. Her name is Jane Smith, now Jane. Today's
musical theme is The Spice Girls and Without wanting to
give your age away. I reckon you would be of
an age where you were a bit of a Spicy
(21:39):
fan when you were a youngster. Now I'm going to
ask you who your favorite Spice girl is. But when
it comes to comparing you to one of the Spice girls,
it's not Baby Spice with the blonde hair. It's Scary Spice.
Speaker 7 (21:52):
Well, I think it's probably on point, Jamie. Actually, after
this mornings tailing out in the Norwester and I was
just thinking this morning, the Norwiesta is about as useful
as a unionist on strike, Jamie, in terms of absolutely
no use of all in its I think we're week
five a week six of the Norwesta today, So scarious Spider, Yeah,
(22:13):
I'll take that. But yeah, spice skills, I certainly they
are around in my era, but I absolutely couldn't stand them, Jamie.
Nothing worse than a girl band. So no, I don't
like your choice music at all today, Jamie.
Speaker 3 (22:23):
Oh, well there you go. I'm a big boy band fan,
so we differ on that one. Look in my absence, Jane.
The methane targets emission targets have been halved, so that
will negate any use for your bunch of merry men
and women. The Methane Science Accord.
Speaker 7 (22:39):
Oh, if I agreed with you, Jamie, we would both
be wrong on that one. In terms of the methane targets, yes,
they're slightly more palatable, but remembering that even the IPCC
have said that the methane the warming effect of methane
has been ovastated by four hundred percent, so we're not
even halfway there. So I mean, the Methane Review Panel
knew that as well, and they also knew that that
(23:01):
no reduction is required at all. But I guess politically again,
it would wouldn't have been very palatable because not so
much around the Paris are called expectations, but the amount
of money that still is being squandered of taxpayer money
on methane reduction pills and potions and balduses and that
we simply do not need nor want, and so that
(23:23):
would be quite embarrassing for the sector and for New Zealand.
So it's it's a step in the right direction, but
actually we just need to be coming out and saying actually,
if the focus is on warming, there's literally nothing to
see here. We're still already meeting that met zero getting
the chain hang on.
Speaker 3 (23:39):
That depends on who you believe when it comes to
the scientific arguments.
Speaker 7 (23:45):
Absolutely not that, Jamie, because even actually our anemic academics
last week, while slipping on their prune juice, did come
out and say, actually, we should make targets higher to
make it as the world is doing less and it
would be Rolic's leadership to actually offset any global increase
of methane I eat. You know, they were talking about cooling,
(24:06):
So even those academics could actually stay that this was
never about never about emissions or actually warming, It was
actually about political grandstanding Jamie. So again, if we focus
on warming, we are not adding to warming at all.
And that's even before we add in the nine million
hectares of native biodiversity, et cetera, of which two point
(24:27):
six millionaire that are on chief and beef farms like
our own ones. So actually we need to have that conversation.
And so in terms of heading forward, I certainly me
and my team will still be dedicated to removing methane
from the Paris Accord. We have to do that in
terms of trying to stop food inflation and also around
that food security. So because people need to remember every
(24:50):
time they complain about carbon forestry, the price of butter,
the price of meat, the price of fresh vegetables, energy fuel,
air flights, banking compl cience, all of these are symptoms
of the greater problem, which is again the Paris Accord.
And in New Zealand we have this really strange Stockholm
syndrome where we have started agreeing. Will we continue to
(25:11):
agree with our captives. The very thing that holds us
captive is the Paris Accord and it actually is very,
very damaging to pretty much everything that's leading to inflation
in this country, Jamie. So again we need to put
the grand standing out and actually I want to be
able to focus again on genuine environmental initiatives. I've said
this time and time again, biodiversity, water, sustainable food production,
(25:32):
and this unhinged obsession with emissions needs to stop.
Speaker 3 (25:35):
You all right, Who am I to argue with, scary spice?
Are you an Alliance? Two part question here, double barrel?
Are you an Alliance supplier? And that's so how did
your vote so we know.
Speaker 7 (25:45):
Yeah, we're not Alliance supply, Jamie. But I was pleased
to see that voter turnout was really impressive and it
was a mandate for change, and I mean, again, you
can have nostalgia around the ownership, but that doesn't pay
the bills. And actually it will be good to inject
some global governance and some other sort of oversight around
(26:06):
not just Alliance, but also the whole entire meat sector.
So we really need more transparency around that. So hopefully
that does bring that, Jamie, So well done to everyone
for voting, regardless of which way they vote.
Speaker 3 (26:16):
Yeah, an alliance was a totally impure in my mind
anyhow cooperative.
Speaker 7 (26:22):
Right, and so that's the thing I've seen many meat
companies in the sector there are that tend to be
a lot more transparent than some of those that call
themselves a cooperative. So hopefully, Jamie, that it's really woken
up shareholders and they're looking for that transparency and I
have no doubt that the entire sector that will hopefully
flow through to the entire sector.
Speaker 4 (26:42):
Jamie.
Speaker 3 (26:43):
Okay, you started off by talking about strikes. The northwester
was as much use as a unionist on strike, I
think was your quote. I'm really annoyed about these strikes
and I'm totally behind doctors and nurses are married to
a teacher. My older sister is a teacher. But really,
why should Palestine be on the top or on the
(27:03):
agenda at all? What are they striking against?
Speaker 7 (27:07):
Exactly, Jamie. And once again it's unionists, you know, pushing
their own agenda forward. And I think, is there one
hundred thousand people striking tomorrow? So just top of my
head while I was thinking in the tailing pen this morning,
that's probably twenty to fifty million dollars of our economy
a cost of the economy, let alone the cost to
children's learning and witless times, et cetera. And again, I
(27:30):
know many teachers and some of those in the health
care sector that don't necessarily agree with the way that
this has been executed. But there is certainly are some issues,
particularly in the health sector. So again you know these
type of things, Jamie, where is the money going to
come from? But also these unionists need to be less
focused on their incomes, and we'll focus on their outcomes
(27:51):
and pull the head in. If they want to be
in politics, Jamie, they should be an MP.
Speaker 3 (27:55):
Can we just finish with a quick word on the
late Jim Boulger. I know you've got an nice weeet
story to tell. We've already heard from Miles Hurrell and
Chris Lux and what's your story.
Speaker 7 (28:04):
I once made him a cup of tea, Jamie Axlely,
that's my only claim to fame. And I really enjoyed
a lot of the quotes of Jim Bulger, particularly what
was one politicians, no matter who they are, shouldn't be
able to manipulate public on a single issue. And you
know that is absolutely relevant today in terms of what's
happening in parliament, particularly Party Mary. But it was a
(28:26):
Clyde Damn opening. So I was thirteen and my friend Lisa,
her mum, was catering at this and I remember there
was I absolutely remember there was protests outside in quite
high security for those days in nineteen ninety four, and
Jim and Joan were there and I made them a
cup of tea and talk to them about farming. And
Jim said, at that point, make sure that you're sticking
(28:49):
at farming and be involved with that sector. Now, remembering
ninety four, things weren't great in the sector, so I'd
always remember that, and he just seemed like a really
a real statesman.
Speaker 3 (28:59):
I so you were thirteen and nineteen ninety I'm doing
the maths that makes you fifteen and nineteen ninety six
when the Spice Girls exploded onto the world stage. Jane Smith,
I can't believe you weren't a spicy.
Speaker 7 (29:15):
I'm definitely scary Jamie, but not a spy skill.
Speaker 1 (29:17):
See you later, Thanks Jammy.
Speaker 2 (29:20):
The Best of the Country with Rabobank, the bank with
local acribanking experts passionate about the future of rural communities Rubbobank.
Speaker 8 (29:35):
Thank you.
Speaker 3 (29:36):
Good morning New Zealand. Welcome back to the Best of
the Country. I'm Jamie McKay. The show today brought to
you by Rabobank as always, plus the Spice Girls today. Gee,
it's been a tough week weather wise. The cleanup is
going to take weeks rather than days. And for all
you people, especially you farmers out there affected by this
freakish weather, good luck. Now talking about Rabobank. Up next,
(30:00):
Rabobanks Senior ag analyst Emma Higgins reviewing a really interesting
week in agriculture. We got another one coming up next
week with the Fonterra vote. She also had a fascinating
Spice Girl fangirl a revelation. More from Emma in a tick,
but just talking about Rabobank. They've released a report on dairybeef.
(30:22):
So with nearly two million underutilized dairy carves born annually
and the outlook for beef pricing being so strong thanks
to Trump and his love of hamburgers, a new report
by Rabobank says the opportunity for New Zealand's ag sector
to build a scalable, profitable dairy beef system is now
right for the picking. The report is titled their Strategic
(30:45):
Moment for Dairy Beef in New Zealand. You can learn
lots about it at the Rabobank website rabobank dot co
dot inzet. Apparently, at current average market prices for this season, rearing,
an additional six hundred thousand surplus cut could unlock one
point two billion dollars in value That might help us
(31:06):
pay doctors and nurses a bit more. They deserve it.
I'm not so sure about the teachers in Palestine, but
I'll keep the powder dry there because I'm married to one.
It'll only get me in trouble up next to Emma Higgins.
Speaker 2 (31:25):
The best of the country with Rabobank choose the bank
with one hundred and twenty years global Agribusiness Experience Grow
with Rubbobank.
Speaker 3 (31:33):
She is a senior ag analyst with Rabobank and continuing
as Spice Girls musical theme today on the Country. Emma Higgins,
like Jane Smith, you're of an age where you were
probably a Spy Skirl fan growing up or am I
misreading you?
Speaker 4 (31:49):
Now? You have nailed me completely with what may likes were.
When it comes to the nineties pop band and I
did have the platform shows.
Speaker 3 (31:59):
Jamie Jane hated the Spy Girls. She looked a bit
like Baby Spice with the blonde hair, but in real life,
Jane Smith's scary Spice. If we were to compare you
to one of the Spy Girls, who would it be?
Speaker 5 (32:13):
Well, when I have a.
Speaker 4 (32:14):
Chuck because I have quite dark here. So I was
always referred to as Posh Space.
Speaker 3 (32:20):
So you actually you actually had a nickname called Posh Spice.
Speaker 4 (32:24):
Well, no, but when we were doing our band performances,
obviously in front of all the school, Posh Space was
my character that I was trussed into.
Speaker 7 (32:34):
And you know what, after.
Speaker 4 (32:35):
Watching her on Netflix, I'll still take Posh Space.
Speaker 3 (32:38):
Let's get on to stuff that we need to talk about.
Emma Higgins and of course we've already chatted to Miles
Hurrel about the GDT auction event. It was a bit
of a dog's breakfast overnight getting the results. But the
tone of it is it's down a couple of percent,
pretty much as expected with the futures market now, I
asked him, So I've got to ask you not only
(32:59):
about the spy skills, but as ten dollars under threat, Well,
I think.
Speaker 4 (33:03):
We need to be prudent here, Jamie and start thinking
about what a milk price looks like that's a little
lower than that. I think tim Bucks is still achievable
this season, but our sales people are going to have
to work pretty hard for that. And so in the
absence of, you know, putting a lot of trust and
hope into our sales team, it could be quite prudent
(33:24):
for you know, farmers out there to think about what
nine point fifty might look like or something a little
bit less than ten, just given that the milk right
the market right now has too much milk. And that's
what's reflected in the GDT outcomes that we've seen of
the last three while. And when you think about it,
we've just had our latest results come through for September.
(33:45):
When it comes to milk production, we've just seen a
record volume of milk being produced for the month of September,
and that's a trend that we've actually been playing out
since about May this year. So there's a plenty of
milk coming from this part of the world. That's the
same out of the United States as well, similar to
with Europe, and buyers are feeling pretty comfortable that they've
(34:08):
got plenty of choice.
Speaker 3 (34:09):
Yeah, Miles Harrel said, they're smelling a bit of blood
in the water and thereafter a good deal. Interestingly, talking
to farmer Tom Martin, my UK correspondent yesterday, British milk
exports have lifted by twenty percent. So let's move on
from dairy. I want you to put on your red
meat hat. What commentary have you got around that Alliance vote?
Speaker 4 (34:30):
Well, it was a very strong outcome, wasn't it, Jamie.
And look, I know that you've traversed a lot of
this over the last few days and certainly in the
weeks leading up to it, but certainly our farmers right
now are deciding the fate of cooperatives in one sense
or another. Whether it was the Alliance vote that we
just saw come through yesterday, or whether it's the Fonterra
(34:51):
vote and the outcome of which will be announced at
the end of this month. There are quite different circumstances
obviously between the two, but you know, it is a
watershed moment. Alliance was the last one hundred percent from
owned red meat cooperative and they clearly have voted against
this model in favor of what is effectively foreign ownership,
(35:12):
whereas Dawn meets owning sixty five percent stake in Alliance group.
Assuming it all goes through, all the eyes are dotted,
t's crossed, and the High Court is also an agreement
as well. So look, it is really a momentous time
I think for a red meat space, and we've talked
about it before, Jamie. You know, cooperatives do have a
(35:33):
few challenges when it comes to accessing capital to really
maximize on market opportunities. We've seen it before historically, and
Alliance is no different right to other cops have faced
their challenges. What we've seen in terumber This vote is
a vote for a fast capital injection, so external capital
(35:55):
coming in that will theoretically provide opportunity for the group
to progress and achieve whatever growth strategies that they have.
The risk is Jamie, yet we see a dilution or
a loss of farm control. And also just around what
does profit look like and what does I guess the
(36:17):
tensions maybe or what does the opportunity for the different
groups look like going forward? So you know, it's a
really interesting space right now.
Speaker 3 (36:25):
Let's wrap this on a very positive note. You've verged
a bit of caution around the dairy price, but you'd
have to say beef and lamb looking very promising for
this season.
Speaker 9 (36:36):
It is.
Speaker 4 (36:37):
Look, I think there's something to be really excited about
when it comes to the red meat space for farm
gate prices.
Speaker 7 (36:43):
Look, I joke about this all the time.
Speaker 4 (36:45):
We're having to adjust their axis when we're trying to
show where prices are right now compared to the five
year average range and compared to the last couple of years.
So it's great news out there. We're seeing very very
strong demand, particularly from the Northern hemisphere in the best space.
That US market absolutely is yanking up that farm gate price.
(37:05):
And when it comes to the lamb space as well,
our friends over in the UK and EU are certainly
helping underpend solid returns at the farm gate level. So
a lot to be really happy about, a lot to
be really confident about. I think, as we're passing through
Lemming and looking down the barrel of summer, let's just
(37:27):
hope the weather stays favorable in terms of maximizing on
as we move through the coming months.
Speaker 3 (37:34):
Well, Emma Bunton hopes that's a fraudy and slip. Let
me try Emma Higgins. Did you like what I did there?
Emma Higgins from rabobank, Thanks for your time and thanks
for sharing your stories about being a posh spice on
a past life.
Speaker 4 (37:47):
Anytime, Jamie, the.
Speaker 1 (37:49):
Best of the Country with Rabobank.
Speaker 2 (37:51):
Choose the bank with a huge network of progressive farming clients, Rabobank.
Speaker 3 (38:00):
Emma Huggins from Rabobank, wrapping the Best of the Country.
Good morning. My name is Jamie McKay. This is the
Best of the Country, brought to you by Rabobank. We're
growing a better New Zealand together. I just loved Emma's
story about being posh spice in a past life. It's
been a tough week, hasn't it. We're farewell to our
thirty fifth Prime Minister Jim Bolger and the weather has
been nothing short of abysmal. Good luck to all you
(38:23):
farmers and New Zealanders out there with the cleanup. The
good news is Otago will win the MPC final this
afternoon and christ Church I certainly hope. So catch your back,
same time, same place next Saturday morning. Enjoy you long
weekend if you're lucky enough to get one. I'm going
to leave you with the Spice girls.
Speaker 9 (39:00):
I s dancing great tangle space between we move off
(39:34):
the fast crowd, the talks that say six, I'm sett.
Speaker 8 (40:01):
Shooting shot. She see yeah, how time
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