The Country 25/09/25: Miles Hurrell talks to Jamie Mackay

The chief executive of Fonterra comments on the annual results, and all the numbers are good.

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Episode Transcript

Speaker 1 (00:00):
It is today's big news story if you don't count
the naming of the All Blacks for the Eden Park test.
Miles Hurrell joins us from Fonterra. Fonterra reports continued strong
performance for the financial year ended twenty twenty five. Miles Hurrell,
where do we start with these numbers? They're all good?

Speaker 2 (00:18):
Yeah again our Jamie, Well, it is a good news story.
You're really pleased to put these numbers out here today.
And I start with obviously a strong milk price ten
to sixteen, really really positive end of the season, and
of course the milk price forecast a new head unchanged
at ten dollars, so it does start with that. We
recognize it's the most important number, I think for our
farmer sholders. But at the same time then we've got
to take take ten dollars sixteen and try and add

(00:41):
some valley on top. And team have done a superb
job and they couldn't have arsen more from them this year,
So really pleased.

Speaker 1 (00:47):
And of course the other important number for dairy farmers
is the dividend fifty seven cents per year, up from
fifty five cents last year, but that was unimputed this
year's imputed, which means what does it grows out to?

Speaker 2 (01:02):
So seventy nine cents on a light flight basis, Jamie,
So you know, again a superb result. I think both
the expectation for both our shielders but also the market,
and so I think that reflects fiously. It reflects yearnings,
no question, but also reflects the strength of our balance
sheet that we can pay at the top end of
our range again, things that we could only dreamed of

(01:23):
a few years ago. So you know, it is a
good news story. And hopefully we'll get someone of vice
a couple of team next week when we're out on
the road.

Speaker 1 (01:31):
Yes, so we'll talk about your road shows very shortly.
But your forecast or your season forecast milk collections, because
the season has got off to a strong start. What's
happening to happen there? What are you about to find
a home for all the s milk miles Hule, Well.

Speaker 2 (01:45):
That's our job. You know, we're a cooperative and we
pride ourselves on processing all the milk of their farms
astrideas so no question, that's what we'll do. And so
it has got off to a good start. I think
we're up about three three and a half percent, I
think from where we expected, which is which is a
very good start. So you know, obviously starts with the
decent price from that we pay our farmers and they

(02:05):
can do more with it. So but nowhere we'll process that.
You know, we've obviously got a few hick cups along
the way you when you start up our factories, but
that that's always happens the summer years. But will process
the milk, no questions.

Speaker 1 (02:18):
And despite what Greenpeace says Miles Harrald total group revenue
twenty six billion dollars up fifteen percent. Anyone who doesn't
see how important the dairy industry is to New Zealand inc.
And our economy is economically illiterate and that describes Greenpeace.

Speaker 2 (02:37):
Well well let me let's not comment on them, because
I'll probably have a crack at me on it. So
but but I will say, you know, we're trying to
do our bit of heavy lifting to the economy, no question.
And well you know, I wasn't long I was reading
the book from maybe twenty years ago called the deer
industry a sunset industry, and so you know, we we
know that that's laughable and hopefully we're proving to everyone
that the way our people farm here in New Zealand,

(02:59):
the way our farms farm, it is demanded for globally,
and you're seeing that play out with decent prices. And
so you know, we've still got issues on the horizon
when you look at some of the Jura politics we've
got to deal with. But I've been dealing with that
for one hundred and fifty years and I have no
reason to think we can't navigate our way through it
for another one. Yeah.

Speaker 1 (03:14):
So and your results today, next week you hit the
road because you've got that big farmer shareholder vote. I
think it's due to take place on October the thirtieth
regarding selling your consumer business for four point two billion
dollars to lack tallis.

Speaker 2 (03:30):
Yeah. So yeah. We'll obviously had a few meetings with
farmers over the last a few weeks on this in
for a few months. Early indications are they very much
support this generally. There are some clearly it's pulling on
the heartstrings a little bit in terms of the nostalgic
attachment to those brands, and we understand that, no question,
a lot of it, but a lot of time has
gone and infect cash has gone into investing in those brands.

(03:51):
So we understand that, but you know, economically, we know
it's the right thing to do. There is a two
dollar tax free return available, I think, is what we're
talking about. We'll go out, we'll talk to our farmers
next week. We'll get it between the eyes. They'll tell
us what they really think as farmers always doing. We
look forward to that and I'm not far from New
Jermy in the Deep South. I'm quite excited.

Speaker 1 (04:11):
Okay, there we go, Miles Harrald to you, Peter McBride
and all the team at Fonterra, well done on a
great result for New Zealand.

Speaker 2 (04:18):
Great thanks for much Jamy