The Country 09/04/25: Todd Charteris talks to Rowena Duncum

Rabobank’s chief executive on tariffs, the OCR, and how commodity prices are looking in the bank’s monthly Agribusiness report. Plus, he talks about Rabobank giving $100,000 to worthy causes.

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Episode Transcript

Speaker 1 (00:00):
Rather Bank CEO Todd Charter has joins me now on
the country. Good afternoon, Todd, good, how are you very well?
Thank you. I imagine it's been an interesting time for
you in the world of economics and finance with the
tariff talks recently. What are you seeing from your industry
and your perspective.

Speaker 2 (00:19):
I look, first of all, I mean huge volatility in
a fair amount of uncertainty in the markets, that's for sure.
Global financial markets have been a bit all over the place.
We've seen that in equity markets, exchange rates, interest rates
in different markets as well, So just a lot of volatility.
I mean, I think from our perspective when it comes

(00:42):
to food in New Zealand's position, I think will be okay,
but it's to me there's still a lot of uncertainty
around some of those secondary factors which we get to
set play out and just wear this. I mean, clearly
it's not over. I mean there's a lot going on
every day, so we're just monitoring it as closely as
we can know.

Speaker 1 (01:00):
Key we savor is not a massive thing in farming
in terms of being a priority like it is for
the rest of us who work in officers Todd and
as I mentioned with the Prime Minister, that's just not
worth looking at it the moment.

Speaker 2 (01:13):
No, that's right, and most of people don't look at
it anyway, so there is not a good time to start.
So it's a long term place that are seeing in there.

Speaker 1 (01:22):
Absolutely. Rabobank CAS released it's new Zealand Angry Business Monthly Report.
Let's look through some of the commodities, starting with dairy.
Global milk supply rising in most export regions.

Speaker 2 (01:37):
Yeah, that's what we're seeing. I mean, I think, you know,
there's there's still quite a bit of upside here for us.
I think interestingly what we are seeing in one of
the markets is just that herd reduction in China, So
it's going to be interesting to see what that does
to that particular market, which is obviously important for us.
But you know, the fundamentals are looking looking strong, so

(02:01):
I think the outlook for dairy continues to look really
good and obviously enjoying really good prices now, but prices
out into the future look strong as well.

Speaker 1 (02:11):
Beef and sheep meat doing pretty well, but obviously one
of the big ones to look at what the impact
of the tariffs will be.

Speaker 2 (02:20):
Yeah, certainly, beef has been very strong. You know, I
think it's in the range of thirty five to forty
five percent above the five year average for domestic markets here,
which is great for producers. Sheep meat, we've seen a
bit strong improvement which is needed, a huge, hugely welcome
after the last couple of years has been incredibly tough.

(02:41):
So you know, that looked strong for both of those
commodities as well, which is good and again, as you say,
just just pure supply of un fundamentals, particularly when it
comes to beef.

Speaker 1 (02:51):
Yeah, in terms of farm inputs. We chatted about this
with our US Farming correspondent Todd Clark on yesterday's so
he'd seen you know, prices coming back quite a bit,
but then uncertainty starting to buit away a bit.

Speaker 2 (03:06):
Yeah, it's right. I mean the big movie there's been
the your air prices, which which I hadn't been across
really but reading the update that was put out, I
mean it's a mess of nearly thirteen percent reduction in
your air prices. So they will certainly be welcome on
farm as an input cost.

Speaker 1 (03:24):
Yeah, interest rate and foreign exchange obviously, we've got an
OCR announcement coming through at two o'clock this afternoon here
in New Zealand. Where's that kind of sitting for you guys?

Speaker 2 (03:37):
Well, I think it's interesting, right, I mean, we certainly
were picking twenty five basis point cut today there's a
little bit of commentary that that you know where that
might end up. But you know, we're still thinking two
more cuts, maybe a third. But I mean, who knows.
There's a lot of volatilty out there, so you know,
we'll just wait and see. And I think the tone

(03:59):
of the announcement or comments at two o'clock will be
important to give us the steera where that might go
in the future.

Speaker 1 (04:05):
Indeed finding one for you oil and freight. What's looking
What is it looking like in this area?

Speaker 2 (04:12):
I look pretty stable, I think. I think, you know, again,
just the sort of trade implications out of the US.
I think shipping is going to becoming an interesting topic.
I think, you know, the US is certainly pretty keen
to control more of it, sort of shipping lanes and
things like that, and where the price sings up and

(04:33):
where that price is born I guess by what's part
of the market. So I think that's one to watch
and keep an eye but at pump prices. We've seen
f your prices come down here, so just again it
just highlights that volatilities all over the place.

Speaker 1 (04:48):
Let's finish on a high tide. You've had a phenomenal
response for your RABO Community Hub competition.

Speaker 2 (04:55):
It's been awesome. It's been great to see and been
really good and super proud of the team for pulling
it together. We went out to the market to get
twenty twenty winners from community hubs across New Zealand and
we've had a staggering I think there's been well I
know there's been more than five hundred entries, which is

(05:17):
high watering stuff and just highlights the demand that's out there. So,
as I've said previously, so it's closed now and the
team's doing the hard work of going through those five
hundred entries and then each of our client councils. We've
got four client councilors across the country. They will be
selecting five each for their regions and for this year.

(05:40):
But that's hopefully it's something that we can continue into
the future because the demand is there and so we
need to find a way to support those community hubs
right up and down the countryside, and I'm not sure
when it's going to be announced rowing it just because
of the quantum that they get getting through, but I
told it will be the sometime this month forward to that.

Speaker 1 (06:00):
My goodness, I don't envy them that job. I hope
you're feeding them lots of Easter eggs Todd to keep
them going.

Speaker 2 (06:06):
Yeah, and it's a big job, but they'll do it
well and there'll be some great winners in there, and
they'll be hopefully smart as we can support in futures.

Speaker 1 (06:14):
Absolutely Todd chatter us rather than CEO. Pleasure as always
to chat to you.

Speaker 2 (06:19):
Thanks Roy,