October 17, 2024 • 8 mins
We catch up with the Minister of Agriculture and Trade live from the Poverty Bay A & P Show, to talk about the CPTPP and a tough day for South Canterbury with the shutdown of the Smithfield meat processing plant.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
I believed here too, the Poverty Bay am P show.
(00:02):
Now that we find Minister for Agriculture, Todd McLay, Good afternoon, Todd.
Speaker 2 (00:08):
Ro good afternoon. Thanks for having me on.
Speaker 1 (00:09):
Oh my absolute pleasure. Look I love a good AMP show.
How are things looking in Poverty Bay.
Speaker 2 (00:15):
It's a lot of fun. The sunshining, people are feeling good.
I've just actually spent the first hour at the show
doing a beef tasting competition and they've decided as Minister
of Agriculture, I can hold my own when it comes
eating beef earlier in the morning. But people having great time,
lots of families here. It's a celebration of farming and
agriculture and so good to see because it's been pretty
(00:36):
tough for farmers over the last year or so.
Speaker 1 (00:39):
Absolutely and luck you've got a very tough job being
the judge of that one. But speaking of genuinely tough times.
Obviously devastating news for South Canterbury today, Alliance Group confirming
it will shut at Smithfield plant. Let's be honest, consultation
closed on October eleven. They were never going to reverse
this decision, but also aboup to six hundred jobs at
(01:03):
page This is huge for that region.
Speaker 2 (01:05):
Yeah, it is really big, and look, it's very going
to be very challenging at a very difficult time for
those workers, but many the others around there. You know
that meat plant was an institution and been there for
a long time, and I know that the local community
cared a lot about it. There are challenging times ahead.
We know that there've been big costs on farmers for
a period of time, which has an impact upon you know,
(01:26):
the way they farm. Commodity prices have been low, and
if you take lamb, there's been oversupplying the world market.
And of course there is the role that farm to
forest conversion has been playing. It's part of a picture,
it's not all of it. So you know, I've spoken
to my colleagues who are involved in other areas of
government to make sure the support is needed for those
(01:48):
families and those workers are there. Away from that, you know,
there is always ongoing consolidation around processing and production. But
there are a couple of you know, starting to be
positive signs out there for sheep meet the prices up internationally.
You know, the Australian production is out of the world system.
They're not over supplying anymore. And I'm really optimistic both
(02:10):
for sheep and for beef farmers that we can see
and improvement in the price around the world. But there's
a government. Our job is to get the cost down
for them, because in there it doesn't matter what somebody's
paying you. If the government is putting a place dumb rules,
it costs too much. It makes it too hard. And
so that's why Chris Lutson has said. Lax said, relentlessly
focus on better rules, funerals, cost down and open up
(02:32):
market so that we can sell more overseas, so that
farmers earn more.
Speaker 1 (02:35):
Speaking of Australians and Australian Lamb, actually Australian Abatar representatives
have told workers at Smithfield they have the capacity to
hire all of those made redundant. Look, not everyone will
want to head over to Australia, but if you're looking
for a job and a place that hasn't got massive
job opportunities, this could be a huge death now for
(02:57):
that community.
Speaker 2 (02:59):
Yeah, Look, I think there are other things going on
down there around economic development, and you know the government's
looking at all the things we can do to sort
of build the economy, and you know there will be
some people that pick up and go overseas, and that's
that's a direct function of the space the place we're
in the economy at the moment. You know, you can't
have a government that over six years borrows and spends
(03:19):
as much as they can unproductively, there's nothing to show
for it. With interest rates you know, almost some of
the highest in the developed world, and it doesn't have
a consequence on business and on jobs. And every farmer
I talk to and every household in New Zealand is
doing it hard. That's why you've seen this as a government,
you know, reducing cost and read of waste will spend
and focusing on the front line getting interest rates and
(03:40):
inflation down. And it's really good news for eral New
Zealand that you know inflation was two point two percent
announced this week and you know interest rates will come
down further. We're working really hard to get the economy
effects and get it back on its feet and to
back New Zealand businesses and New Zealand farmers are at
the forefront of that. We need our farmers productive and
doing well so we can sell to the world and
(04:00):
you become a richer nation. But it takes a while
to turnership around, particularly when the last guys wasted so
much money.
Speaker 1 (04:07):
Todd, tell me what's happening with the cp TPP that
Canadian government and the Comprehensive Progressive Agreement for Trans Specific Partnership. Gosh,
there's a lot of.
Speaker 2 (04:16):
Words in there, Yeah, there are. So today we've announced
that we're taking legal action against the Canada for not
meeting its obligation to New Zealand under the CPTPP for
dairy trade. You know, Canada came to New Zealand seven
or eight years ago to sign that deal. They knew
that it was getting in drawed. They made commitments, they're
not honoring them. Last year there was a panel that
looked at this for US, a dispute panel that found
(04:38):
in New Zealand's favor and Canada is still not meeting
their obligation, and so we're going to stand up for ourselves.
It's not a huge amount of trade arow compared to
the twenty five billion dollars worth a dary exports around
the world, but it is important. And so what happens
now is within fifteen days they have to have a
compulsory negotiation with us. And it's simple. They either give
(05:02):
us access, pay us compensation, or we'll take further action,
which could include terriff rates upon Canadian trade into New Zealand.
We don't want to do that. We'd rather fix it.
But they own New Zealand dairy farmers and exporters. We're
negotiated in good faith. We're honoring our commitment. They're not.
It's time for them to pay up or get out
of the way.
Speaker 1 (05:21):
Canadians have got a reputation for being kind and nice.
This isn't kind or nice.
Speaker 2 (05:28):
Well talk to any dairy trader and they're kind of
nice in everything everything except dairy trade. Well, think a
little bit of form here before America some years ago
took a similar case and sort of won it as well.
But look, there are other countries that we have preferences
for dairy products to go into, and you know, they
are allowed to organize the market however they want, but
(05:48):
they can't do so in such a way as it
becomes a barrier trade and we can't sell into it.
And if we don't sort of take issue with this
and use the full force of the law, then other
countries will say, oh, well, look at New Zealand. They
didn't really do it thing with Canada, we can do
what we want as well. It's a bit of a
slippery slope. So this is a matter of principle. We're
standing up for the rights of New Zealand dairy exporters
(06:09):
and the farmers that you are behind them because we
entered into an agreement. Canada must honor their obligations or
pay our exporters and our farmers' compensation. You will hear
much more about this from us.
Speaker 1 (06:20):
Got a backbone from New Zealand. I like it, Todd.
You are heading overseas next week.
Speaker 2 (06:26):
What's this about the G twenty. So it's the twenty
biggest economies of the world and I along's going to
be invited to go to attend that meeting in Brazil's Look,
it's quite a big deal as egg and trademen this
to be invited there. These are countries we don't always
get to sit around the table and talk to, and
I'll be there talking to them about how we bring
(06:47):
barriers down, getting rid of non tariff barriers, how they
should be less subsidy of agricultural food production around the world,
and why they should just trade more with New Zealand.
I will be having a meeting with the US Trade Ress. Importantly,
I'll also be meeting with the Canadian Trade Minutter to
talk about what's going on there. She and I get
on very well. We're all friends. We get on well together,
(07:09):
but we have a disagreement here. But for New Zeldad
to be invited to the G twenty so soon after
we're also invited to the G seven little early this
year to talk about trade is good for us because
we're a trading nation and it's a bit like that
UAE deal that we did in record time four and
a half months. You know. From when we get to
talk about trade, the better access, the wealthier our farmers
(07:29):
will be, the better the price that they will receive
at the farm date.
Speaker 1 (07:33):
I think I'd still like to be sitting in the
corner of that room, silently, but with my popcorn there.
Todd Hey, final question for you. A lot of rugby
happening this weekend. We're going to be chatting to Matt
Cooper out of ind Are you later this hour about
the Heartland Finals and the NPC semi finals. You're a
proud White cuttle man. Are you hitting along to the game.
Speaker 2 (07:52):
I'm not, but I'm very interested. I'm not I'm back
in my electorate and tomorrow's Sunday. A lot of the
rural schools have got sort of cart days, what they
call animal days now, so it's a chance to get
out and talk to, you know, my constituents in the
rural area. That was going on. But more than that,
eat some of the best homemade sausages in the country.
(08:12):
And if you weigh me today and then again on
Monday morning, there'll be fifteen kilos of sausages of me
by then. I reckon.
Speaker 1 (08:20):
Yeah, I don't like your chances on that one, but
you will have the best time, and I'm very jealous.
Todd mclag Minister for Agriculture, appreciate your time from the
Poverty Bay amp Show today. We'll catch up with you
from Brazil next week.
Speaker 2 (08:33):
That'd be great. I love to talk
I believed here too, the Poverty Bay am P show.
(00:02):
Now that we find Minister for Agriculture, Todd McLay, Good afternoon, Todd.
Speaker 2 (00:08):
Ro good afternoon. Thanks for having me on.
Speaker 1 (00:09):
Oh my absolute pleasure. Look I love a good AMP show.
How are things looking in Poverty Bay.
Speaker 2 (00:15):
It's a lot of fun. The sunshining, people are feeling good.
I've just actually spent the first hour at the show
doing a beef tasting competition and they've decided as Minister
of Agriculture, I can hold my own when it comes
eating beef earlier in the morning. But people having great time,
lots of families here. It's a celebration of farming and
agriculture and so good to see because it's been pretty
(00:36):
tough for farmers over the last year or so.
Speaker 1 (00:39):
Absolutely and luck you've got a very tough job being
the judge of that one. But speaking of genuinely tough times.
Obviously devastating news for South Canterbury today, Alliance Group confirming
it will shut at Smithfield plant. Let's be honest, consultation
closed on October eleven. They were never going to reverse
this decision, but also aboup to six hundred jobs at
(01:03):
page This is huge for that region.
Speaker 2 (01:05):
Yeah, it is really big, and look, it's very going
to be very challenging at a very difficult time for
those workers, but many the others around there. You know
that meat plant was an institution and been there for
a long time, and I know that the local community
cared a lot about it. There are challenging times ahead.
We know that there've been big costs on farmers for
a period of time, which has an impact upon you know,
(01:26):
the way they farm. Commodity prices have been low, and
if you take lamb, there's been oversupplying the world market.
And of course there is the role that farm to
forest conversion has been playing. It's part of a picture,
it's not all of it. So you know, I've spoken
to my colleagues who are involved in other areas of
government to make sure the support is needed for those
(01:48):
families and those workers are there. Away from that, you know,
there is always ongoing consolidation around processing and production. But
there are a couple of you know, starting to be
positive signs out there for sheep meet the prices up internationally.
You know, the Australian production is out of the world system.
They're not over supplying anymore. And I'm really optimistic both
(02:10):
for sheep and for beef farmers that we can see
and improvement in the price around the world. But there's
a government. Our job is to get the cost down
for them, because in there it doesn't matter what somebody's
paying you. If the government is putting a place dumb rules,
it costs too much. It makes it too hard. And
so that's why Chris Lutson has said. Lax said, relentlessly
focus on better rules, funerals, cost down and open up
(02:32):
market so that we can sell more overseas, so that
farmers earn more.
Speaker 1 (02:35):
Speaking of Australians and Australian Lamb, actually Australian Abatar representatives
have told workers at Smithfield they have the capacity to
hire all of those made redundant. Look, not everyone will
want to head over to Australia, but if you're looking
for a job and a place that hasn't got massive
job opportunities, this could be a huge death now for
(02:57):
that community.
Speaker 2 (02:59):
Yeah, Look, I think there are other things going on
down there around economic development, and you know the government's
looking at all the things we can do to sort
of build the economy, and you know there will be
some people that pick up and go overseas, and that's
that's a direct function of the space the place we're
in the economy at the moment. You know, you can't
have a government that over six years borrows and spends
(03:19):
as much as they can unproductively, there's nothing to show
for it. With interest rates you know, almost some of
the highest in the developed world, and it doesn't have
a consequence on business and on jobs. And every farmer
I talk to and every household in New Zealand is
doing it hard. That's why you've seen this as a government,
you know, reducing cost and read of waste will spend
and focusing on the front line getting interest rates and
(03:40):
inflation down. And it's really good news for eral New
Zealand that you know inflation was two point two percent
announced this week and you know interest rates will come
down further. We're working really hard to get the economy
effects and get it back on its feet and to
back New Zealand businesses and New Zealand farmers are at
the forefront of that. We need our farmers productive and
doing well so we can sell to the world and
(04:00):
you become a richer nation. But it takes a while
to turnership around, particularly when the last guys wasted so
much money.
Speaker 1 (04:07):
Todd, tell me what's happening with the cp TPP that
Canadian government and the Comprehensive Progressive Agreement for Trans Specific Partnership. Gosh,
there's a lot of.
Speaker 2 (04:16):
Words in there, Yeah, there are. So today we've announced
that we're taking legal action against the Canada for not
meeting its obligation to New Zealand under the CPTPP for
dairy trade. You know, Canada came to New Zealand seven
or eight years ago to sign that deal. They knew
that it was getting in drawed. They made commitments, they're
not honoring them. Last year there was a panel that
looked at this for US, a dispute panel that found
(04:38):
in New Zealand's favor and Canada is still not meeting
their obligation, and so we're going to stand up for ourselves.
It's not a huge amount of trade arow compared to
the twenty five billion dollars worth a dary exports around
the world, but it is important. And so what happens
now is within fifteen days they have to have a
compulsory negotiation with us. And it's simple. They either give
(05:02):
us access, pay us compensation, or we'll take further action,
which could include terriff rates upon Canadian trade into New Zealand.
We don't want to do that. We'd rather fix it.
But they own New Zealand dairy farmers and exporters. We're
negotiated in good faith. We're honoring our commitment. They're not.
It's time for them to pay up or get out
of the way.
Speaker 1 (05:21):
Canadians have got a reputation for being kind and nice.
This isn't kind or nice.
Speaker 2 (05:28):
Well talk to any dairy trader and they're kind of
nice in everything everything except dairy trade. Well, think a
little bit of form here before America some years ago
took a similar case and sort of won it as well.
But look, there are other countries that we have preferences
for dairy products to go into, and you know, they
are allowed to organize the market however they want, but
(05:48):
they can't do so in such a way as it
becomes a barrier trade and we can't sell into it.
And if we don't sort of take issue with this
and use the full force of the law, then other
countries will say, oh, well, look at New Zealand. They
didn't really do it thing with Canada, we can do
what we want as well. It's a bit of a
slippery slope. So this is a matter of principle. We're
standing up for the rights of New Zealand dairy exporters
(06:09):
and the farmers that you are behind them because we
entered into an agreement. Canada must honor their obligations or
pay our exporters and our farmers' compensation. You will hear
much more about this from us.
Speaker 1 (06:20):
Got a backbone from New Zealand. I like it, Todd.
You are heading overseas next week.
Speaker 2 (06:26):
What's this about the G twenty. So it's the twenty
biggest economies of the world and I along's going to
be invited to go to attend that meeting in Brazil's Look,
it's quite a big deal as egg and trademen this
to be invited there. These are countries we don't always
get to sit around the table and talk to, and
I'll be there talking to them about how we bring
(06:47):
barriers down, getting rid of non tariff barriers, how they
should be less subsidy of agricultural food production around the world,
and why they should just trade more with New Zealand.
I will be having a meeting with the US Trade Ress. Importantly,
I'll also be meeting with the Canadian Trade Minutter to
talk about what's going on there. She and I get
on very well. We're all friends. We get on well together,
(07:09):
but we have a disagreement here. But for New Zeldad
to be invited to the G twenty so soon after
we're also invited to the G seven little early this
year to talk about trade is good for us because
we're a trading nation and it's a bit like that
UAE deal that we did in record time four and
a half months. You know. From when we get to
talk about trade, the better access, the wealthier our farmers
(07:29):
will be, the better the price that they will receive
at the farm date.
Speaker 1 (07:33):
I think I'd still like to be sitting in the
corner of that room, silently, but with my popcorn there.
Todd Hey, final question for you. A lot of rugby
happening this weekend. We're going to be chatting to Matt
Cooper out of ind Are you later this hour about
the Heartland Finals and the NPC semi finals. You're a
proud White cuttle man. Are you hitting along to the game.
Speaker 2 (07:52):
I'm not, but I'm very interested. I'm not I'm back
in my electorate and tomorrow's Sunday. A lot of the
rural schools have got sort of cart days, what they
call animal days now, so it's a chance to get
out and talk to, you know, my constituents in the
rural area. That was going on. But more than that,
eat some of the best homemade sausages in the country.
(08:12):
And if you weigh me today and then again on
Monday morning, there'll be fifteen kilos of sausages of me
by then. I reckon.
Speaker 1 (08:20):
Yeah, I don't like your chances on that one, but
you will have the best time, and I'm very jealous.
Todd mclag Minister for Agriculture, appreciate your time from the
Poverty Bay amp Show today. We'll catch up with you
from Brazil next week.
Speaker 2 (08:33):
That'd be great. I love to talk
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