The Country 16/07/25: Andrew Murray talks to Jamie Mackay

Fonterra’s CFO reviews last night’s positive GDT Auction - up 1.1%, WMP + 1.7%, SMP + 2.5%.

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Episode Transcript

Speaker 1 (00:00):
This was a good news result overnight. The latest global
dairy trade auction up one point one percent, Pull milkpowder
one point seven percent, skim milk powder two point five percent.
Tell us a bit more from Fonterra CFO chief financial
officer Andrew Murray. And Andrew I had other pundits on
the show yesterday suggesting the result would be flat to

(00:23):
down one percent. So we'll take this we.

Speaker 2 (00:26):
Sent in the world Jemmy, Yep. It's nice there to
see it go up a little bit after four in
the rule. I think it was that we were done.

Speaker 1 (00:31):
So Andrew Murray, let's have a look at where the
buying interests came from overnight. Yeah.

Speaker 2 (00:38):
Look, I think as we've seen the Percy's moderate a
little bit over the past few options will certainly see
demand supported well in China and also in social theater
like get into this sort of post levels where the
demand becomes pretty strong. So actually a really good spread geographically.

Speaker 1 (00:53):
Hole milk powder, as I said, one point seven percent.
What was behind skim milk powder, star of the show
last night up two point five percent?

Speaker 2 (01:01):
Yeah. Well, actually it's interesting, I think, you know, sort
of look at it compared to the US prices, but
I think, to be honest, it's just it's been down
a little bit and so we're starting to see that
leading demand really come back through very strongly Southeast Asia
actually as well through in skins. So I think, you know,
if prices where they are, that's just encouraging valuers to
come back into the market.

Speaker 1 (01:20):
Butter, no change at all. Cheese down five point six percent.
There might be a few people listening to the show
domestically who think that's a good news story.

Speaker 2 (01:30):
Yeah, yeah, Look, I mean I think you know, Butter,
you know, it's it's sort of settled to here it is,
and certainly still if you look at you know, New
Zealand origin, it's still a lot less than your paying
in Europe. So you know, I think that that will
put a bit of a floor on our butter prices
for a while. I think, you know, you look at Cheddar,
yes down and you know, I think I think the
US and the EU prices they're also easy as well,

(01:53):
so not unsurprising. I guess that there's a little bit
of movement downwards on on in Cheddar. But yeah, that's
off the back of the global space.

Speaker 1 (02:00):
Our twenty five twenty sixth season is really about to
get underway. Carving just getting underway and parts of the
North Island now, so our production we still have no
idea for this season. But in terms of Northern Hemisphere,
what are you seeing there?

Speaker 2 (02:16):
Look, it's interesting. I mean it is very hot over
there at the moment. That doesn't seem to be actually
impacting production at the moments. Or Europe's up, the US
is up, and Latin America actually up as well, so
you know globally does certainly still production is growing for sure.

Speaker 1 (02:32):
Ten dollars is where you sit at the moment. You've
got a huge price range from eight dollars to eleven dollars.
So on these numbers, I mean, there was talk last
or a couple of weeks ago that the ten dollars
might be under threat. This might make dairy farmers Andrew
Murray's sleep a wee bit easier at night as they
head into the new season.

Speaker 2 (02:52):
I mean, there's still a lot of uncertainty, I think
is the best way to put it. So you know,
we did put that sort of larger range out there,
and just to reflect that, I mean, you know, we're
still not really sure what talents look like I think,
you know, we think there's an answer and then it
changes a little bit. You know, you look at the
focus I guess, you know, moving a bit from Iran, Israel,
you know, Russia, Ukraine definitely back on there. So you

(03:14):
sort of look at those and you're like, yes, there's
still a lot of uncertainty which is open. We're pretty
comfortable that a arranger and actually a forecast of ten
dollars is certainly reflective of what we're seeing. But again,
just conscious there's still a lot of olive risk that
sits around.

Speaker 1 (03:28):
Okay, Andrew Murray out a Fontira, thanks for your time.
A good global dairy trade action

Speaker 2 (03:32):
Overnight try Thank you