September 17, 2025 • 5 mins
We find the GM of PGG Wrightson Livestock and Real Estate in China, where he’s promoting New Zealand velvet. Plus, we look at the state of the rural property market.
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Episode Transcript
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Speaker 1 (00:00):
Heading all over the planet today. China is where we
head right now. There we find Peter Nubold, GM of
PGG Rights and Livestock and real Estate. You're on a
velvet trip, Peter, and you're heading to Korea as well.
Do you find, like I do, China to be perhaps
the most fascinating country on the planet.
Speaker 2 (00:21):
Oh? Yeah, it's amazing country, and I don't think until
you've been there you quite appreciate the size, what goes on,
how quickly they are to do things, the infrastructure, the people. Yeah,
it's just an amazing country.
Speaker 1 (00:35):
We could definitely learn from China about getting for want
of a better words, shit done. Can I say that,
I've already said it, but they do. They just get
on with it, and they build bridges and roads literally overnight.
Speaker 2 (00:48):
And it's incredible and I think you look at everywhere
you go, you can see where they've made solid investments
and I think it's paying off.
Speaker 1 (00:57):
What are you doing over there?
Speaker 2 (00:59):
Yeah, Look, basically it's to do with our velvet business,
and basically we're meeting existing customers, catching up with a
few new customers. We're sort of reviewing last season, which
we know was challenging, and then just sort of getting
a take on the market to see where it all sits.
So then over the coming weeks we can sort of
(01:19):
present contracts for the upcoming season, which I guess our
goal is to secure favorable pricing for all the farmers
out there. So that's the base of the trip prior
to coming into the season, which is only a couple
of months later.
Speaker 1 (01:35):
Am I correct in saying South Korea is a far
bigger market than China for velvet.
Speaker 2 (01:39):
Yes, it, as you correct, And a lot of velvet
that comes into China is then basically re exported to Korea.
Speaker 1 (01:48):
That's your live stock hat. Check on your real estate hat.
Are we seeing promising signs? Is there going to be
a spring flush when it comes to real estate sales?
Speaker 2 (01:58):
Yeah? Look, I think we're going to see some really
good sales right the way up till Christmas. You know,
if you look at all the listings coming onto the market,
the quality of them, You look at the returns that
sheep and beef and dairy and hoarder getting, they're really strong.
So you know, everything's lined up. I think the other
key thing, which we haven't seen for a long time,
(02:21):
there's a lot of genuine buyers out there, and that
tells me that things will take place. I think the
critical thing is those that are selling, you know, they
just need to make sure that you know, they're aware
that you know, just because values are high commodity price
or high rather doesn't mean you can crank up your price.
(02:43):
And I think, you know, I've got to always just
look at the yield.
Speaker 1 (02:46):
There's been a real change, hasn't there over the past
decade or so. You know, farms are always a good
bet for a bit of capital gain. Certainly have been
if you look from say the nineteen nineties onwards when
we had the dairy boom. But look at the past
ten years. My reckoning is there's hardly been any capital gain,
and farmers or business people are now buying on yield.
Speaker 2 (03:10):
Yeah, definitely, there hasn't been any real gains. And we've
looked at that at work, and so I think that's
pretty clear. And as you just mentioned, it's based on yield.
And so look, there's always the odd exception, and they
are the ones that get reported, whether it's a unique
property or a neighbor's boarder or whatever. But in general terms,
the values haven't moved a lot and I don't think
(03:31):
they will over the coming months because the purchases aren't
prepared to pay over Monchie.
Speaker 1 (03:37):
There are some positives there for people wanting to buy farms.
You're going to have lower interest rates. If you're a
dairy farmer, for instance, you might be getting a bit
of a helping hand with that potential three point two
billion dollars which is going to find its way into
Fonterra farmers, shareholders and pockets, which I think that might
encourage a bit of another burst on dairy farm sales.
Speaker 2 (04:00):
If you look at it, everything is lined up perfectly
at the moment. The only thing we can't guarantee is
the weather coming up. But if you look at everything,
as you said, interest rates on farm costs, the returns
they're getting, everything is really positive. So I think that
bodes well. And you know you talk about the potential fontierrapiece,
I think we're going to see a lot of those
(04:23):
funds actually dispersed between rural sales, you know, reduction and debt,
or a lot may use them for succession. So I
think you're going to see a mixture there, but definitely
we'll see another upside in sales.
Speaker 1 (04:36):
Put on your livestock hat again, it's been very very
positive for the industry recent times, especially the red meat industry.
Sheep and beef going really well in terms of returns.
Speaker 2 (04:50):
Yeah, look, it's amazing, and you know, some of the
people that have been around in that game for a
long time tell me that they have never seen it
in their lifetime. And you know, if you look ahead
and you listen and read and understand what's going on,
it'll be pretty hard to not say we're going to
have another strong season. And you know, let's just hope
(05:10):
that moves on for a couple more because I think,
you know, it's long overdue and a lot of those
sheep and beef farmers need to get a good return
for a couple of years.
Speaker 1 (05:19):
Peyton Newbald, Safe travels to Korea and then safe travels home.
Speaker 2 (05:23):
Yeah, thanks, Jamie, have a good afternoon.
Heading all over the planet today. China is where we
head right now. There we find Peter Nubold, GM of
PGG Rights and Livestock and real Estate. You're on a
velvet trip, Peter, and you're heading to Korea as well.
Do you find, like I do, China to be perhaps
the most fascinating country on the planet.
Speaker 2 (00:21):
Oh? Yeah, it's amazing country, and I don't think until
you've been there you quite appreciate the size, what goes on,
how quickly they are to do things, the infrastructure, the people. Yeah,
it's just an amazing country.
Speaker 1 (00:35):
We could definitely learn from China about getting for want
of a better words, shit done. Can I say that,
I've already said it, but they do. They just get
on with it, and they build bridges and roads literally overnight.
Speaker 2 (00:48):
And it's incredible and I think you look at everywhere
you go, you can see where they've made solid investments
and I think it's paying off.
Speaker 1 (00:57):
What are you doing over there?
Speaker 2 (00:59):
Yeah, Look, basically it's to do with our velvet business,
and basically we're meeting existing customers, catching up with a
few new customers. We're sort of reviewing last season, which
we know was challenging, and then just sort of getting
a take on the market to see where it all sits.
So then over the coming weeks we can sort of
(01:19):
present contracts for the upcoming season, which I guess our
goal is to secure favorable pricing for all the farmers
out there. So that's the base of the trip prior
to coming into the season, which is only a couple
of months later.
Speaker 1 (01:35):
Am I correct in saying South Korea is a far
bigger market than China for velvet.
Speaker 2 (01:39):
Yes, it, as you correct, And a lot of velvet
that comes into China is then basically re exported to Korea.
Speaker 1 (01:48):
That's your live stock hat. Check on your real estate hat.
Are we seeing promising signs? Is there going to be
a spring flush when it comes to real estate sales?
Speaker 2 (01:58):
Yeah? Look, I think we're going to see some really
good sales right the way up till Christmas. You know,
if you look at all the listings coming onto the market,
the quality of them, You look at the returns that
sheep and beef and dairy and hoarder getting, they're really strong.
So you know, everything's lined up. I think the other
key thing, which we haven't seen for a long time,
(02:21):
there's a lot of genuine buyers out there, and that
tells me that things will take place. I think the
critical thing is those that are selling, you know, they
just need to make sure that you know, they're aware
that you know, just because values are high commodity price
or high rather doesn't mean you can crank up your price.
(02:43):
And I think, you know, I've got to always just
look at the yield.
Speaker 1 (02:46):
There's been a real change, hasn't there over the past
decade or so. You know, farms are always a good
bet for a bit of capital gain. Certainly have been
if you look from say the nineteen nineties onwards when
we had the dairy boom. But look at the past
ten years. My reckoning is there's hardly been any capital gain,
and farmers or business people are now buying on yield.
Speaker 2 (03:10):
Yeah, definitely, there hasn't been any real gains. And we've
looked at that at work, and so I think that's
pretty clear. And as you just mentioned, it's based on yield.
And so look, there's always the odd exception, and they
are the ones that get reported, whether it's a unique
property or a neighbor's boarder or whatever. But in general terms,
the values haven't moved a lot and I don't think
(03:31):
they will over the coming months because the purchases aren't
prepared to pay over Monchie.
Speaker 1 (03:37):
There are some positives there for people wanting to buy farms.
You're going to have lower interest rates. If you're a
dairy farmer, for instance, you might be getting a bit
of a helping hand with that potential three point two
billion dollars which is going to find its way into
Fonterra farmers, shareholders and pockets, which I think that might
encourage a bit of another burst on dairy farm sales.
Speaker 2 (04:00):
If you look at it, everything is lined up perfectly
at the moment. The only thing we can't guarantee is
the weather coming up. But if you look at everything,
as you said, interest rates on farm costs, the returns
they're getting, everything is really positive. So I think that
bodes well. And you know you talk about the potential fontierrapiece,
I think we're going to see a lot of those
(04:23):
funds actually dispersed between rural sales, you know, reduction and debt,
or a lot may use them for succession. So I
think you're going to see a mixture there, but definitely
we'll see another upside in sales.
Speaker 1 (04:36):
Put on your livestock hat again, it's been very very
positive for the industry recent times, especially the red meat industry.
Sheep and beef going really well in terms of returns.
Speaker 2 (04:50):
Yeah, look, it's amazing, and you know, some of the
people that have been around in that game for a
long time tell me that they have never seen it
in their lifetime. And you know, if you look ahead
and you listen and read and understand what's going on,
it'll be pretty hard to not say we're going to
have another strong season. And you know, let's just hope
(05:10):
that moves on for a couple more because I think,
you know, it's long overdue and a lot of those
sheep and beef farmers need to get a good return
for a couple of years.
Speaker 1 (05:19):
Peyton Newbald, Safe travels to Korea and then safe travels home.
Speaker 2 (05:23):
Yeah, thanks, Jamie, have a good afternoon.
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