December 2, 2024 • 8 mins
The chief executive of Silver Fern Farms responds to criticism from high-profile farmer Jane Smith. Has SFF gone woke or broke? Why do we need to reduce emissions? Aren't we already the most efficient in the world? Our sheep and beef numbers have been in decline, aren't we already doing enough? What's Silver Fern Farms' view on carbon farming?
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Dan Bolton is the chief executive, relatively new one too,
since taking over from Simon Limmer of Silver Fern Farms. Right,
let's address the elephant in the room before we talk
about lower missions meat, Dan Bolton. Jane Smith. You never
die wondering what she's thinking. She had a crack at
you and the Alliance Group last week on this show.
(00:20):
Some irate text has said we needed to give you
a writer reply. We're absolutely going to do this, but
are you the meat company that's gone broke or woke?
Hang on, Dan, let me just put your favor up.
Apologies the where you go to be on the show
and hang on Dan, Sorry about that. We're just having
some issues in the studio here doing two jobs at
(00:40):
the moment. So the question was, and I apologize for
the technical difficulties. Are you the company that's gone woke
or broke?
Speaker 2 (00:48):
I don't think we're either. The I heard that statement
from Jane last week. It was interesting and I think,
you know, reflecting on our road shows and at the
end of the day, our farmers have of you on that,
you know, they've been overwhelmingly positive. Right now through the country.
You know, we we've spoke to about over one thousand
farmers and at about twenty locations across the country, and
feedback has been really, really positive. And you know, when
(01:08):
you're talking to that many people, you're always going to
have a few characters in there, and we did seem
to have a couple of those turned up in career
this year. So but everyone's going to right for their
own our own opinion.
Speaker 1 (01:18):
So our farmers, or as silver firm farms to be
more correct, getting a meaningful premium for lower missions product
at the moment, because I'm a big fan of the
free market, not quite as much as David Seymour, but
I kind of figure when you pay farmers to produce
slower missions meet and there's a meaningful premium, a bit
like organics, they'll go there.
Speaker 2 (01:38):
Yeah. I mean, we strongly believe, you know, that the
change that's going to need it, it needs to come from
the market. And we're seeing some really strong drivers coming
through from our high value customers, right And what we're
seeing is our customers, you know, they have set some
pretty ambitious sustainability targets and I can tell you they're
moving at pace to achieve them, and you know, and
they're wanting to work with companies like Civil Fon Farms
(01:59):
to help solve those and you know, you may have
read Sainsbury's was in New Zealand only a few weeks ago,
and you know your listeners will be interested. They've got
one billion pounds put aside to invest in their supply
chain to achieve zero by twenty thirty five, so there's
huge opportunities to unlock some of that. And we're seeing
not only Sainsbury's, but customers in all our key markets
wanting to partner with Silver Foon Farms to help achieve
(02:22):
you know, their sustainability targets. Because the great news is
is that our farming system in New Zealand and the
tools and the systems that we've invested in here can
actually provide some of those solutions and it's happening fast.
So they are is strong real market poll there and
that's creating opportunities, Jamie to actually have quite deeper partnerships
with these customers. And it's all coming off the back
(02:43):
of our leadership position around sustainability and I think that's
an excellent outcome for farmers and something that's we're celebrating
versus fighting.
Speaker 1 (02:50):
Okay, what about the Chinese, your biggest market or our
biggest market, or they were the US is certainly taking
a lot of our red meat at the moment. Do
they give a toss about low emissions meat or do
they want food safe meat?
Speaker 2 (03:05):
Yeah, I mean safe safe food has obviously been a
very very big priority there for in the Chinese market,
I think the green agenda is moving very very quickly.
You know, the government's got a strong green agenda, and
I think that the key reason behind that is that,
you know, their middle class is growing fast. You may
have heard me talk about, you know, the middle class
is going to grow from three hundred to eight hundred
(03:26):
million people. They care about the environment, they care about
their future, and I think what we're seeing is that
the uptake of sustainability claims in their in their food
food system is becoming front and center and will continue
to do in the future. So probably not at the
pace of you know, North America or Europe or UK,
but it is, it is, it is spreading. You know,
(03:47):
we've got some big global customers that operate in multiple countries,
including China. They've got the same targets no matter where
they are where that they are showing up. So I
think it will play out in China's probably a little
bit slower than other minds.
Speaker 1 (03:59):
So Dan Bolton, what do you say, not to the cynics,
but the skeptics. I would say, why do we need
to reduce emissions because we're already the most efficient in
the world. As long as we keep ahead of the field,
we're okay.
Speaker 2 (04:12):
Yeah. I think there's all sorts of all sorts of
accounting treatments you can apply to methane, you know, around
the New Zealand farming system. But I think at the
end of the day, for us, you know, we operate
in a global context and to do you know, to
show up in a global context, we need to play
by international standards and rules. And I think for our customers,
where these high valley customers, where our farmers deserve to be,
(04:32):
you know, they need to reduce emissions in their supply
chain and that's very clear. And their perspective is that
every ton of methane, whether it comes from a New
Zealand care or a care from Argentina, is treated equal
right and they need to see it reduced. So we've
got two options. We can lean into it, or we
can sit in the corner argue amongst ourselves and get
into the mindset that somehow this is all going to
(04:52):
go away. It's not going to go away. It's pretty
clear block camp that we sit in.
Speaker 1 (04:57):
Okay, well, you've made your position and clear. I know
one way to reduce methane emissions from ruminant livestock, and
that's to replace them with pine trees. That is a
real threat to the red meat industry. We're seeing it.
We saw it with the Alliance Group having to moth
all the Smithfield plant in Samaru. Are you worried that
(05:20):
some of the demands you're making upon your suppliers may
be too onerous and in effect the industry may just collapse.
Speaker 2 (05:29):
I think. I mean, our whole purpose is actually to
put our farmers on a pedalstal on a global stage
right and get more value for what they do on farm.
And that's not just the value for red meat, but
the value we can apply across their whole farming system.
So we're going to be working bloody hard to bring
that value back to our New Zealand farmers in terms
of the alternative land use around carbon farming. You know,
(05:50):
I think it's critical we get the settings right for that,
and I don't think that's the case where we are
right now. And though farmers should have toye around what
they can do on their land, you know, including how
a right tree right place. But you know, the current
settings of blanket planting of exodit trees on our productive
land is just it's criminals.
Speaker 1 (06:08):
Ye have you lobbied government on this? And bolt have
you lobbied government?
Speaker 2 (06:14):
We certainly have. So that's not what we want to see.
It's not right for the sector. It doesn't make economic,
environmental or social sense that fossil fuel mesters can easily
offset the emissions on our productive land. So that's our
strong view. At the same time, you know, there's a
whole lot of opportunity that's still unlocked that we can
unlock on our farmer's land to bring more value back
(06:35):
and make sheep, beef and venison sector really thriving going forward.
Speaker 1 (06:39):
Let's just finish on a positive note on this is
a positive story. Lamb price is thus far into the
season anyhow, and I'm concentrating on lamb because beef is
pretty good at the moment. No problems there. Lamb prices
are holding up nicely. Can they maintain their current level
of eight dollars plus.
Speaker 2 (06:56):
Yeah, I think we're pricing US today in really good shape.
And you know, we saw in the back this last
quarter of this year things really turning around. And one
of the key messages for our farmers a road shows
was we see that continuing into twenty twenty five. I think,
you know, supply for protein is going to continue, Demand
for protein is going to continue to grow in the
(07:17):
years to come. We seed the supply dynamics moving back
into our favor. So I think actually we are moving
into a really positive territory going forward. I think the
current eight dollar price will probably ease a little bit
as we get right into peak season. It just needs
to be a little bit more realignment with the market.
But I think what we're going to see going into
the new year is something far more sustainable, some more
favorable for our farmers. You know, that's at about beef
(07:39):
farmers are getting record pricing, and you know that's off
the back of the short supply you know out of
the US at this point in time. But you know,
I see climate change actually being a bit of a
tail and for New Zealand producers, you know, the US
is being hurt with climate change and droughts comes in
Intu Asia, Southern Europe. You know. Actually, New Zealand's in
a great spot here around delivering on food security and
(08:01):
food resilience into these markets and we're seeing it play
out now.
Speaker 1 (08:04):
Okay, well, let's hope that some of that makes its
way to the farmer's pockets. Stan Bolton Silver Firm Farms,
thanks for some of your time.
Speaker 2 (08:11):
Thanks, Thanks Sony
Dan Bolton is the chief executive, relatively new one too,
since taking over from Simon Limmer of Silver Fern Farms. Right,
let's address the elephant in the room before we talk
about lower missions meat, Dan Bolton. Jane Smith. You never
die wondering what she's thinking. She had a crack at
you and the Alliance Group last week on this show.
(00:20):
Some irate text has said we needed to give you
a writer reply. We're absolutely going to do this, but
are you the meat company that's gone broke or woke?
Hang on, Dan, let me just put your favor up.
Apologies the where you go to be on the show
and hang on Dan, Sorry about that. We're just having
some issues in the studio here doing two jobs at
(00:40):
the moment. So the question was, and I apologize for
the technical difficulties. Are you the company that's gone woke
or broke?
Speaker 2 (00:48):
I don't think we're either. The I heard that statement
from Jane last week. It was interesting and I think,
you know, reflecting on our road shows and at the
end of the day, our farmers have of you on that,
you know, they've been overwhelmingly positive. Right now through the country.
You know, we we've spoke to about over one thousand
farmers and at about twenty locations across the country, and
feedback has been really, really positive. And you know, when
(01:08):
you're talking to that many people, you're always going to
have a few characters in there, and we did seem
to have a couple of those turned up in career
this year. So but everyone's going to right for their
own our own opinion.
Speaker 1 (01:18):
So our farmers, or as silver firm farms to be
more correct, getting a meaningful premium for lower missions product
at the moment, because I'm a big fan of the
free market, not quite as much as David Seymour, but
I kind of figure when you pay farmers to produce
slower missions meet and there's a meaningful premium, a bit
like organics, they'll go there.
Speaker 2 (01:38):
Yeah. I mean, we strongly believe, you know, that the
change that's going to need it, it needs to come from
the market. And we're seeing some really strong drivers coming
through from our high value customers, right And what we're
seeing is our customers, you know, they have set some
pretty ambitious sustainability targets and I can tell you they're
moving at pace to achieve them, and you know, and
they're wanting to work with companies like Civil Fon Farms
(01:59):
to help solve those and you know, you may have
read Sainsbury's was in New Zealand only a few weeks ago,
and you know your listeners will be interested. They've got
one billion pounds put aside to invest in their supply
chain to achieve zero by twenty thirty five, so there's
huge opportunities to unlock some of that. And we're seeing
not only Sainsbury's, but customers in all our key markets
wanting to partner with Silver Foon Farms to help achieve
(02:22):
you know, their sustainability targets. Because the great news is
is that our farming system in New Zealand and the
tools and the systems that we've invested in here can
actually provide some of those solutions and it's happening fast.
So they are is strong real market poll there and
that's creating opportunities, Jamie to actually have quite deeper partnerships
with these customers. And it's all coming off the back
(02:43):
of our leadership position around sustainability and I think that's
an excellent outcome for farmers and something that's we're celebrating
versus fighting.
Speaker 1 (02:50):
Okay, what about the Chinese, your biggest market or our
biggest market, or they were the US is certainly taking
a lot of our red meat at the moment. Do
they give a toss about low emissions meat or do
they want food safe meat?
Speaker 2 (03:05):
Yeah, I mean safe safe food has obviously been a
very very big priority there for in the Chinese market,
I think the green agenda is moving very very quickly.
You know, the government's got a strong green agenda, and
I think that the key reason behind that is that,
you know, their middle class is growing fast. You may
have heard me talk about, you know, the middle class
is going to grow from three hundred to eight hundred
(03:26):
million people. They care about the environment, they care about
their future, and I think what we're seeing is that
the uptake of sustainability claims in their in their food
food system is becoming front and center and will continue
to do in the future. So probably not at the
pace of you know, North America or Europe or UK,
but it is, it is, it is spreading. You know,
(03:47):
we've got some big global customers that operate in multiple countries,
including China. They've got the same targets no matter where
they are where that they are showing up. So I
think it will play out in China's probably a little
bit slower than other minds.
Speaker 1 (03:59):
So Dan Bolton, what do you say, not to the cynics,
but the skeptics. I would say, why do we need
to reduce emissions because we're already the most efficient in
the world. As long as we keep ahead of the field,
we're okay.
Speaker 2 (04:12):
Yeah. I think there's all sorts of all sorts of
accounting treatments you can apply to methane, you know, around
the New Zealand farming system. But I think at the
end of the day, for us, you know, we operate
in a global context and to do you know, to
show up in a global context, we need to play
by international standards and rules. And I think for our customers,
where these high valley customers, where our farmers deserve to be,
(04:32):
you know, they need to reduce emissions in their supply
chain and that's very clear. And their perspective is that
every ton of methane, whether it comes from a New
Zealand care or a care from Argentina, is treated equal
right and they need to see it reduced. So we've
got two options. We can lean into it, or we
can sit in the corner argue amongst ourselves and get
into the mindset that somehow this is all going to
(04:52):
go away. It's not going to go away. It's pretty
clear block camp that we sit in.
Speaker 1 (04:57):
Okay, well, you've made your position and clear. I know
one way to reduce methane emissions from ruminant livestock, and
that's to replace them with pine trees. That is a
real threat to the red meat industry. We're seeing it.
We saw it with the Alliance Group having to moth
all the Smithfield plant in Samaru. Are you worried that
(05:20):
some of the demands you're making upon your suppliers may
be too onerous and in effect the industry may just collapse.
Speaker 2 (05:29):
I think. I mean, our whole purpose is actually to
put our farmers on a pedalstal on a global stage
right and get more value for what they do on farm.
And that's not just the value for red meat, but
the value we can apply across their whole farming system.
So we're going to be working bloody hard to bring
that value back to our New Zealand farmers in terms
of the alternative land use around carbon farming. You know,
(05:50):
I think it's critical we get the settings right for that,
and I don't think that's the case where we are
right now. And though farmers should have toye around what
they can do on their land, you know, including how
a right tree right place. But you know, the current
settings of blanket planting of exodit trees on our productive
land is just it's criminals.
Speaker 1 (06:08):
Ye have you lobbied government on this? And bolt have
you lobbied government?
Speaker 2 (06:14):
We certainly have. So that's not what we want to see.
It's not right for the sector. It doesn't make economic,
environmental or social sense that fossil fuel mesters can easily
offset the emissions on our productive land. So that's our
strong view. At the same time, you know, there's a
whole lot of opportunity that's still unlocked that we can
unlock on our farmer's land to bring more value back
(06:35):
and make sheep, beef and venison sector really thriving going forward.
Speaker 1 (06:39):
Let's just finish on a positive note on this is
a positive story. Lamb price is thus far into the
season anyhow, and I'm concentrating on lamb because beef is
pretty good at the moment. No problems there. Lamb prices
are holding up nicely. Can they maintain their current level
of eight dollars plus.
Speaker 2 (06:56):
Yeah, I think we're pricing US today in really good shape.
And you know, we saw in the back this last
quarter of this year things really turning around. And one
of the key messages for our farmers a road shows
was we see that continuing into twenty twenty five. I think,
you know, supply for protein is going to continue, Demand
for protein is going to continue to grow in the
(07:17):
years to come. We seed the supply dynamics moving back
into our favor. So I think actually we are moving
into a really positive territory going forward. I think the
current eight dollar price will probably ease a little bit
as we get right into peak season. It just needs
to be a little bit more realignment with the market.
But I think what we're going to see going into
the new year is something far more sustainable, some more
favorable for our farmers. You know, that's at about beef
(07:39):
farmers are getting record pricing, and you know that's off
the back of the short supply you know out of
the US at this point in time. But you know,
I see climate change actually being a bit of a
tail and for New Zealand producers, you know, the US
is being hurt with climate change and droughts comes in
Intu Asia, Southern Europe. You know. Actually, New Zealand's in
a great spot here around delivering on food security and
(08:01):
food resilience into these markets and we're seeing it play
out now.
Speaker 1 (08:04):
Okay, well, let's hope that some of that makes its
way to the farmer's pockets. Stan Bolton Silver Firm Farms,
thanks for some of your time.
Speaker 2 (08:11):
Thanks, Thanks Sony
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