September 8, 2026 • 7 mins
The chief executive of Open Country Dairy fires a shot across the bow of the Paris Accord, has a crack at the DIRA legislation, and looks at the prospects for the 26/27 season.
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Speaker 1 (00:04):
He is a man of the people. He is sitting
amongst the people in a car in the main street
of New Plymouth. His name is Mark Delatorre, Chief Executive
of Open Country Dairy, our second biggest dairy company, obviously
behind Fonterra. We're going to come back to the Daira
subject because it's near and Daira to his heart. Did
you like that, Mark? Hey, but firstly, it was terrible.
(00:27):
It was a dad joke. You're all fired up about
Damien O'Connor and what he had to say about us
being shut out of markets in potentially Europe if we
don't stick with the Paris Agreement.
Speaker 2 (00:41):
Well, I guess that's the key. Good to have you
back too, Jamie. I'm glad you're over your man flu.
It gets the best of us. But I'm getting just
a little bit tired of people saying we're going to
get shut out of markets. And it's like the sword
of Damocles, isn't it, hanging over New Zealand farmers when
people say that. And I would ask you, which markets
(01:03):
and which customers? Because if customers are starting to limit
demand access for New Zealand products based on emissions, there's
a lot of countries that need to be worried about
it before New Zealand are, because New Zealand are the
best in the world at either scope one, scope two,
scope three emissions.
Speaker 1 (01:22):
Yeah, but Damien would tell us, and the Prime Minister
would tell us, because they are in agreement on this,
that it's written into these free trade agreements with the
EU and the UK that we have to do this.
Speaker 2 (01:34):
Yeah, okay, so let's look at where most of our
protein products go and for the best returns in New Zealand.
You know, you are talking North Africa, Middle East, China,
Southeast Asia. That's where the bulk of our earnings are
and that's where the bulk of the growth is in
the world. And again, I would ask you when... If
New Zealand products are banned from those markets and food
(01:58):
inflation hits those markets, how quickly those governments will change
their tune. You just also had Jacqueline Roweth on your
show yesterday, and she was talking food security. Let's not forget...
that the biggest challenge for people in the world right
now is food access and food prices. And quite frankly,
I don't think any government in their right mind is
(02:20):
going to ban New Zealand products from markets if it
challenges their population and food prices. I think it's insanity.
Speaker 1 (02:27):
Well, I'm glad you've been listening to the show, Mark.
Thank you very much. Now, are you still bitching about DERA,
the Dairy Industry Review Act? Is that what it's called, DERA?
Speaker 2 (02:37):
Yeah, great intro there. Thanks for the support. It's not really.
I guess in a nutshell, and I won't go on
about legislation too much because you'll be able to hear
your listeners turn off, but I guess our position on it,
this is quite a serious piece of legislation, the DERA review.
Four years or so it gets reviewed. And we were
just concerned the way the terms of reference were being
(03:01):
framed for this review and sort of saying, you know,
we want double export earnings and legislation like DERA is
just red tape. And the answer is it's not. It's
a fundamental document for the dairy industry and it protects farmers.
It ensures that competition is going forward. When the DERA
Act created Fonterra and created a monopoly, and it is
(03:26):
a government construct. It allowed for the fact that competition
needed to happen to make all parties better, and I
think Fonterra would admit they're better because of Open Country,
and Open Country are better because of Fonterra. So competition
is good.
Speaker 1 (03:40):
But don't you reckon we've got it about right in
the dairy industry? We've got a big player, 80% of
the market or whatever, but Open Country, as the second
biggest player, you're big enough to keep them honest.
Speaker 2 (03:52):
Yeah, I guess that's the key, right? So we are.
We're saying, OK, what we don't want to see is
the continuation of dilution that's happened in the last review.
So make sure farmers have open entry and exit. That is,
they can willingly switch from processor to processor without any fear.
That's important. And that's written to DERA. And we've just
(04:12):
seen it progressively get diluted. So again, it can look
on the face of it quite boring. And as you're
using your words, like open country or bitching, We're not, Jamie.
We're just saying we need to make sure it's about
right now that we don't see this legislation get diluted.
Speaker 1 (04:28):
Talking about Fonterra, this later this month, Fonterra will come
out with their final number for the 25-26 season. When
does Open Country produce your number?
Speaker 2 (04:39):
Well, we've already done money. Our farmers are fully paid
up for last season, and so they've got the money
in the bank. So I guess it's interesting. We just
wait and see now where it all washes out and
where it compares.
Speaker 1 (04:53):
So, Mark Delatorre, what was your number for 2526?
Speaker 2 (04:57):
Yeah, well, we don't actually come out with a published
season number. As you know, we've got four payment periods
through the year, and it does depend on where your
grass curve fits and what the market does, depending on
your volumes. But I guess on a weighted average point
of view, our season will be around the $ 9. 74 for
the season.
Speaker 1 (05:18):
What is your forecast, or do you have a forecast
for $ 26, $ 27? Because I was a wee bit worried
at the beginning of this new season. We started with
two or three bad or falling GDT auctions, but we
seem to have picked up a wee bit. And this
talk of a super El Nino and heat waves in
the northern hemisphere and global supply perhaps reducing a wee bit.
(05:40):
How do you see the coming season?
Speaker 2 (05:42):
Yeah, we're in the mid-nines. So we're sort of probably
a little bit ahead, I guess, at this early stage
of the season. There's a lot of water to go
into the bridge, obviously. So we're around that $ 9. 50, $ 9. 60
mark through the four periods again. But look, we see
it really positively. I think these GLP-1 drugs, the Ozempex,
are meaning protein is really, really valuable now. A couple
(06:04):
of years ago, it was fat driving the milk price,
and now we see it's protein. So And that will
go up and down as the years go through. But
we're positive, and the season started really well from a
production point of view.
Speaker 1 (06:16):
Mark Delatorre, a man of the people, sitting in the
main street of New Plymouth. What's the name of the
main street of New Plymouth, by the way?
Speaker 2 (06:22):
I'm actually on Devon Street, to be honest.
Speaker 1 (06:25):
Devon Street's the main... Well, that is the main street
of New Plymouth. I remember it from my rugby commentary days. Well,
you are a man of the people, sitting amongst the people.
Thanks for some of your time today on The Country,
and sorry for saying... You were bitching about Dara. You
know I still love you, Mark.
Speaker 2 (06:41):
One more thing, Jamie. I do want to do a
quick shout-out to our ice cream division, the Motuaga Creamery brand.
The Mount Arthur Snowfall Vanilla Ice Cream won the New
Zealand Supreme Champion Award at the Ice Cream Awards. So
not only is open country of the people, it makes
the best ice cream for the people.
Speaker 1 (07:02):
Oh, beautiful. Thanks for your time.
Speaker 2 (07:04):
No problem.
Speaker 1 (07:04):
Bye.
He is a man of the people. He is sitting
amongst the people in a car in the main street
of New Plymouth. His name is Mark Delatorre, Chief Executive
of Open Country Dairy, our second biggest dairy company, obviously
behind Fonterra. We're going to come back to the Daira
subject because it's near and Daira to his heart. Did
you like that, Mark? Hey, but firstly, it was terrible.
(00:27):
It was a dad joke. You're all fired up about
Damien O'Connor and what he had to say about us
being shut out of markets in potentially Europe if we
don't stick with the Paris Agreement.
Speaker 2 (00:41):
Well, I guess that's the key. Good to have you
back too, Jamie. I'm glad you're over your man flu.
It gets the best of us. But I'm getting just
a little bit tired of people saying we're going to
get shut out of markets. And it's like the sword
of Damocles, isn't it, hanging over New Zealand farmers when
people say that. And I would ask you, which markets
(01:03):
and which customers? Because if customers are starting to limit
demand access for New Zealand products based on emissions, there's
a lot of countries that need to be worried about
it before New Zealand are, because New Zealand are the
best in the world at either scope one, scope two,
scope three emissions.
Speaker 1 (01:22):
Yeah, but Damien would tell us, and the Prime Minister
would tell us, because they are in agreement on this,
that it's written into these free trade agreements with the
EU and the UK that we have to do this.
Speaker 2 (01:34):
Yeah, okay, so let's look at where most of our
protein products go and for the best returns in New Zealand.
You know, you are talking North Africa, Middle East, China,
Southeast Asia. That's where the bulk of our earnings are
and that's where the bulk of the growth is in
the world. And again, I would ask you when... If
New Zealand products are banned from those markets and food
(01:58):
inflation hits those markets, how quickly those governments will change
their tune. You just also had Jacqueline Roweth on your
show yesterday, and she was talking food security. Let's not forget...
that the biggest challenge for people in the world right
now is food access and food prices. And quite frankly,
I don't think any government in their right mind is
(02:20):
going to ban New Zealand products from markets if it
challenges their population and food prices. I think it's insanity.
Speaker 1 (02:27):
Well, I'm glad you've been listening to the show, Mark.
Thank you very much. Now, are you still bitching about DERA,
the Dairy Industry Review Act? Is that what it's called, DERA?
Speaker 2 (02:37):
Yeah, great intro there. Thanks for the support. It's not really.
I guess in a nutshell, and I won't go on
about legislation too much because you'll be able to hear
your listeners turn off, but I guess our position on it,
this is quite a serious piece of legislation, the DERA review.
Four years or so it gets reviewed. And we were
just concerned the way the terms of reference were being
(03:01):
framed for this review and sort of saying, you know,
we want double export earnings and legislation like DERA is
just red tape. And the answer is it's not. It's
a fundamental document for the dairy industry and it protects farmers.
It ensures that competition is going forward. When the DERA
Act created Fonterra and created a monopoly, and it is
(03:26):
a government construct. It allowed for the fact that competition
needed to happen to make all parties better, and I
think Fonterra would admit they're better because of Open Country,
and Open Country are better because of Fonterra. So competition
is good.
Speaker 1 (03:40):
But don't you reckon we've got it about right in
the dairy industry? We've got a big player, 80% of
the market or whatever, but Open Country, as the second
biggest player, you're big enough to keep them honest.
Speaker 2 (03:52):
Yeah, I guess that's the key, right? So we are.
We're saying, OK, what we don't want to see is
the continuation of dilution that's happened in the last review.
So make sure farmers have open entry and exit. That is,
they can willingly switch from processor to processor without any fear.
That's important. And that's written to DERA. And we've just
(04:12):
seen it progressively get diluted. So again, it can look
on the face of it quite boring. And as you're
using your words, like open country or bitching, We're not, Jamie.
We're just saying we need to make sure it's about
right now that we don't see this legislation get diluted.
Speaker 1 (04:28):
Talking about Fonterra, this later this month, Fonterra will come
out with their final number for the 25-26 season. When
does Open Country produce your number?
Speaker 2 (04:39):
Well, we've already done money. Our farmers are fully paid
up for last season, and so they've got the money
in the bank. So I guess it's interesting. We just
wait and see now where it all washes out and
where it compares.
Speaker 1 (04:53):
So, Mark Delatorre, what was your number for 2526?
Speaker 2 (04:57):
Yeah, well, we don't actually come out with a published
season number. As you know, we've got four payment periods
through the year, and it does depend on where your
grass curve fits and what the market does, depending on
your volumes. But I guess on a weighted average point
of view, our season will be around the $ 9. 74 for
the season.
Speaker 1 (05:18):
What is your forecast, or do you have a forecast
for $ 26, $ 27? Because I was a wee bit worried
at the beginning of this new season. We started with
two or three bad or falling GDT auctions, but we
seem to have picked up a wee bit. And this
talk of a super El Nino and heat waves in
the northern hemisphere and global supply perhaps reducing a wee bit.
(05:40):
How do you see the coming season?
Speaker 2 (05:42):
Yeah, we're in the mid-nines. So we're sort of probably
a little bit ahead, I guess, at this early stage
of the season. There's a lot of water to go
into the bridge, obviously. So we're around that $ 9. 50, $ 9. 60
mark through the four periods again. But look, we see
it really positively. I think these GLP-1 drugs, the Ozempex,
are meaning protein is really, really valuable now. A couple
(06:04):
of years ago, it was fat driving the milk price,
and now we see it's protein. So And that will
go up and down as the years go through. But
we're positive, and the season started really well from a
production point of view.
Speaker 1 (06:16):
Mark Delatorre, a man of the people, sitting in the
main street of New Plymouth. What's the name of the
main street of New Plymouth, by the way?
Speaker 2 (06:22):
I'm actually on Devon Street, to be honest.
Speaker 1 (06:25):
Devon Street's the main... Well, that is the main street
of New Plymouth. I remember it from my rugby commentary days. Well,
you are a man of the people, sitting amongst the people.
Thanks for some of your time today on The Country,
and sorry for saying... You were bitching about Dara. You
know I still love you, Mark.
Speaker 2 (06:41):
One more thing, Jamie. I do want to do a
quick shout-out to our ice cream division, the Motuaga Creamery brand.
The Mount Arthur Snowfall Vanilla Ice Cream won the New
Zealand Supreme Champion Award at the Ice Cream Awards. So
not only is open country of the people, it makes
the best ice cream for the people.
Speaker 1 (07:02):
Oh, beautiful. Thanks for your time.
Speaker 2 (07:04):
No problem.
Speaker 1 (07:04):
Bye.
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