October 15, 2025 • 36 mins
Jamie Mackay talks to Winston Peters, Mark Wynne, Mark Gunton, Peter Newbold, and Chris Russell.
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Speaker 1 (00:00):
Catch all the latest from the land.
Speaker 2 (00:02):
It's the Country Podcast with Jamie mckue Thanks to Brent.
Speaker 1 (00:07):
You're specialist in John Deere Machinery.
Speaker 3 (00:28):
Get a New Zealand and Welcome to the Country. Jamie McKay.
Back in the country after a couple of weeks and
I've been trying to keep up with things. We'll see
how I go. First day back on the tools. Off
to Gisbane tomorrow, looking forward to that one. With sadness,
we heard this morning about the passing of New Zealand's
thirty fifth Prime Minister, Jim Bolger, prime minister from nineteen
(00:49):
ninety to nineteen ninety seven. A bloke who spent a
wee bit of time with Jim Bolger. Some people said
they ran the country over a whiskey bottle. Was his
deputy prime minister for a time. Winstant Peter's he'll kick
off the show. We're going to talk to Mark one
win from the Alliance Group ahead of Monday's big vote.
I'll be keen to get Winston Winston Peter's nationalistic views
(01:10):
on that. Mark Gunton from a group of disgruntled large
scale Alliance Group farmers who say no to the Dawn
meat steal Peter Newbold from PGG Wrights and Chris Russell
Rossie correspondent. But no show without punch, Winston. Peter's a
former deputy Prime minister, in fact deputy prime minister three times,
or to three different prime ministers. Winston, can I start
(01:32):
with perhaps a nice and I'm sure you've got a
nice tribute to your old mate Jim Bolger.
Speaker 4 (01:39):
Well, look it's I'm shemmy, a sad day out for
Joan and Tulan and the Mini van Trull. And at
the end of the day it was inevitable, but it's
always unexpected. And I suppose you could say that he's
a great triumph as a person or tip these politics
(02:00):
very difficult business was to be a marvelous family man
and that's something he was.
Speaker 3 (02:07):
Very liberal for a king country farmer, a bloke who
left school at fifteen years of age.
Speaker 4 (02:13):
Oh no, I would not say he was liberal. He
was Blinda Norton's pressure the moment he became Prime minister,
because it recalled the then Labor Party had a eighty
nine million dollar service in the ninety budget, but it
turned out to be three point two billion dollars in
the red and that was a very very awful time.
(02:34):
And at the same time he had a very difficult
caucus to operate in and it showed within three years
of Pushier Home Parliament. So it wasn't easy to survive
all that.
Speaker 3 (02:46):
Well, he had to preside over Ruth Richardson's Mother of
all budgets and I know that you weren't a fan
of it.
Speaker 4 (02:55):
Well, I could see that this was just a repression,
repetition of Roger Douglas, which the public had rejected. But
she was going to pursue it, but only be better
at it, and consequently we went for into a recession.
You remember that I can, I can with great clarity,
and so this is awfully difficult. He had a cautus
(03:17):
were learning enough job, so to speak. It was never
going to be easy for him, but he survived it
just and then survived in ninety ninety sixty to be
a three term prime minister. Not bad.
Speaker 3 (03:30):
Yeah, he didn't survive that entire third term though. He
got rolled by Jenny Shipley while he was off shore,
and that in the end spelled the end for you
as a deputy prime minister for the first time.
Speaker 4 (03:43):
It's been still the end for me at all. I
mean I was still a Deputy Prime Minister. But my
enormous son discussed at the time was that had been
known that there was going to be a spill on
in the National Pay, that they were going to take
the benefit of the Coalition of May ninety six and
(04:06):
then get rid of a person we shook hands with.
That was very, very similar moment for us, and the
rest is history. She took as a national pay to
the worst election results since it's formation in nineteen thirty six.
Speaker 3 (04:23):
Let's move on from Jim Bolgia and may he rest
in in peace. Should I say, I want to get
your views on a couple of big farming issues, in fact,
a couple of big farming votes that are coming up.
Fonterra on the divestment of their consumer brand business and
of course the Alliance Group deal, which will be decided
by Monday. Well, well, I think we'll know the results
(04:46):
on Tuesday regarding the takeover bid from Dawn Meats. You
are a diet in the wall nationalist. I take it
that you're against both of these deals.
Speaker 4 (04:57):
Yes, then for very good reasons. This is the same
example of what happened under Silver ferns farms where the
directors manufactured the debt up, hugely, manufactured the earnings down massively,
gave the farmers one quarter of information they gave the
(05:18):
Chinese and the rest of history. And also they ended
up getting the benefit of seven to eight million dollars
by way of what's set aside for the directors who
bought that about This is an absolute disgrace about to
take place again, and the farming community needs to understand
that we're never ever going to make it as a
(05:38):
country if the added value of brilliant production in this country,
which is world leading, goes to some other economies, some
of the workforce and some other government.
Speaker 3 (05:50):
Mind you, if you're a Fonterra farmer shareholder, it's difficult
to look a four point two billion off the top
of my head. I've been out of the country for
a while. One stone gift horse in the mouth.
Speaker 4 (06:02):
Really, Yes, children, you've got grand children, You've got others
who would want to get onto the farming industry in
the same way as you did. As the person is
going to make this sale, how long is this going
to last?
Speaker 5 (06:15):
Three years?
Speaker 6 (06:17):
Four years?
Speaker 4 (06:18):
And then what well, I.
Speaker 3 (06:19):
Think in Fonterra's case. I think in Fonterra's case, Fonterra
will continue on. Can I go to these lines?
Speaker 4 (06:26):
No, no, no, no, no answer. This question is horrible.
And people who are running Fonterra right now, are they
going to be there when this is all over, after
they've taken their bonus from the sale. Please answer that question.
Everybody listen to this program on the Farming Show needs
to know what the answer that is. And here we are.
(06:47):
I've made this challenge for them. They refuse to come
out public in an answer. They were asked to come
before the Select Committee two times on this matter, refuse
to And here we got this disaster happening all over again,
but under our nose.
Speaker 3 (07:00):
Well, at least Fonterra, to be fair, has some options.
I'm not sure the Alliance Group has those options. We're
going to hear shortly from Mark Win, the Alliance Scroup chair.
He's saying it's take the deal or the banks might
call a halt to proceedings. What do you think about
that commentary?
Speaker 4 (07:17):
And what's the government doing? But we should be doing
a stepping and saying oh no, sorry, you Aussie banks,
you're not pulling the plug on us. This way, we'll
find a way out of that and your hold tit.
In the meantime, we're not going to have our country
run on economic strategy.
Speaker 3 (07:30):
Yeah, but surely it's not the government's role to run
private meat companies or farm are owned cooperatives.
Speaker 4 (07:36):
Of course, there's not the government roles to do that.
But the government's role is to step in when things
look like they're going wrong, and when they're going down
the drain. As a consequence, Dawn is an Irish company.
Now tell us as a French company, what they're over
here for. They're not over here to help us. This
is not John the Baptist coming to save us. No, No,
this is a disaster in our face. And what alarms
(07:59):
me is how many people in the rural and provincial
industry can't see what's going to happen here. Will become
a price taker, will not longer be what we were
We were setting in the case of agricultural production in
the eighteen eighties, a long time before you and I
are parents were alive, setting out to make this country
(08:20):
great in agriculture. Where will leaders the Irish the very
people have learned the lesson to Barnes themselves in the
one of these letter than that with the Irish Tiger.
Are any here in the case of Dawn buying out
and they've got all these politicians and dare I say
media people excusing it as the hidden of an option? Oh?
Speaker 3 (08:40):
Yes, we have a final question for you. Are you
going to argue with a similar amount of vigor because
we all know you love an argument when it comes
to the hang on, I haven't finished the question yet.
Speaker 4 (08:51):
It's a lesson. It's a lesson and a mistake. I
don't want us to go on repeating over and over again.
Speaker 3 (08:55):
Will you argue with such figure at the Oxford Union debate?
You're following the footsteps of David LONGI.
Speaker 4 (09:03):
Ah, well, of course I am going to argue with
thatch a figure because it's about democracy and how it's
constructed and why it's important.
Speaker 3 (09:13):
You are on a trip not only to the UK
but also to Scandinavia. You're a big fan of Scandinavia's economies.
Speaker 4 (09:22):
Oh, I most certainly am. I'm going to go and
look at Nortic e Comis when it comes to primary
and auculture production. They get all the added value, all
the top class added value out of their primary products
like milk. Go to the Scandinavians. See what I mean,
why we learned this lesson? Look you remember civil firms fans.
What a disaster that was. Here we go again, lack
(09:45):
tell us first when it comes to milk and dawn
when it comes to meat. When will we ever learn?
Speaker 3 (09:52):
Winstontatus, thanks as always for your time on the country.
Safe travels, and we'll await those farmer votes over the
next couple of whe with much interest. There we go,
Winston Peters on the country. We're going to take a
break and talking about the Alliance Group and the deal
with Dawn Meats. They've just sweetened it up. So we're
going to hear from the Alliance Group chair Mark win
(10:15):
Hopefully Mark Gunton one of a group of high profile,
high powered, disgruntled large scale Alliance Group farmers who say
no to the Dawn Meats deal, a bit like Winnie
Peter Newbold PGG writes and head of real estate, also
head of the livestock division. I wonder if he's got
a view on the Alliance Group deal and if we
(10:38):
find time, and if we find it before the end
of the hour. Our Australian correspondent Chris Russell from Australia,
where I've just been in the last couple of weeks
back with Mark win Next. It is the big story
at the moment in the meat industry, will or won't
(10:59):
the Alliance Group be sold to Irish company Dawn meets.
The chair is Mark One, of course, former chief executive
of Balance a Granade trans Mark. You've got a lot
on your plate trying to get this deal past the goalie.
I've been out of the country so I'm not up
to speed on this, but I put it to you
your biggest enemy in this process may be apathy.
Speaker 7 (11:22):
Yeah, Hi, Jamie, that's exactly right. Epathy is the big
challenge for us simply to get a change that is proposed.
There are a very very high There's two hurdles and
they're both very very high. So we need more than
fifty percent of all shares on issue to vote yes.
(11:43):
That's the first hurdle. So we've got one hundred and
six million shares on issue, so that's fifty three million
yes votes. And then there's a second hurdle that says, okay,
forgetting those people that now don't vote, we count up
the yes votes and versus the no votes and the
yeses must be seventy five percent or more of the total.
(12:05):
So those are two very high hurdles, which makes sense.
It's set by the takeover panels under New Zealand law.
But this is a significant change for shareholders, so very
high hurdles.
Speaker 3 (12:14):
Now, I note that Dawn Meets will stump up with
an extra twenty to twenty five million dollars for its
sixty five percent stake in the Alliance Group. It had
agreed to pay two hundred and fifty million, so this
is going to be on top of that. Is this
kind of mark when an eleventh hour sweetener from you guys, No,
it's it's not.
Speaker 7 (12:35):
Actually, it's all been very very transparent and highlighted deeply
all the details in the Northington Report, the Independent of
Devisors Report for shareholders. So what happens is that we
had to strike a price for the shareholding as part
of our negotiation in late June early July. But as
everyone knows, you know, July, August, September, which is the
(12:57):
last quarter of our school year in the winter months,
is very very volatile. So we set up a mechanism
that said, look if we underperform, then Alliance will, over
a period of time, have to pay back some money
to Dawn, and that's all in the in the mechanism.
And if we over deliver, then Dawn will have to
(13:19):
pay more money to Alliance shareholders. And so we're pleased
to announce that we announced our profit range. We've still
got the auditors all over us at the moment, but
our profit range is between eighteen and twenty four million,
and that's over and above the forecast we had landed
with Dawn, and so under the mechanism, the auditors are
(13:40):
all going through it at the moment, but Dawn will
make a further contribution between twenty and twenty five million,
and the exact number we finalize the next week.
Speaker 6 (13:49):
Or so two weeks.
Speaker 7 (13:51):
Because we over delivered the EBITDA target that we had
collectively agreed.
Speaker 3 (13:56):
Well, I guess that's a good come. Well that that
is a good news story. You've got a group of
high power farmers who are wanting to recapitalize the Alliance
group themselves. I'm not sure that that enthusiasm is shared
by all Alliance suppliers.
Speaker 7 (14:12):
No, look it's not. And we saw that last year
when we did our capital rays off Kelchek deductions, and
admittedly that was a terrible time of the year, but
farmers voted with their feet and took their livestock to
other processes. So that was the first signal. The second
signal is in April this year, we got Craig's Investment
Partners to do a survey across roughly thirty five percent
(14:35):
of the shares on issue and just get a sentiment,
and it was almost unanimous that farmers have no appetite
to put more capital into Alliance. They get a better
return investing that capital on farm and these days they
also have processor choice. So it was the second one.
And the last data point for US is we've just
(14:55):
completed twenty two roto meetings across the country and that's
probably around one thousand shareholders have turned up, those that support,
those that don't support, and those that are just still undecided.
And I would say reading the room is quite difficult,
but I would say ninety to ninety five percent have
(15:18):
indicated absolutely no appetite to put one.
Speaker 3 (15:21):
Okay, let's just quickly finish on the mechanics of this vote.
How many farmers have already voted because we're going to announce.
You've got a special meeting and in the cargo on Monday.
I think you announced the result on Tuesday. How many
farmers have voted already?
Speaker 7 (15:36):
So we've got a vote of just over twelve hundred
out of our four thy three hundred shareholders. But this
is more about shares voting, So one share is one
vote and so on. On shares. We've got one hundred
and six million shares and at the moment we've had
about sixty five million shares vote. Obviously, we don't know
(15:57):
whether they're voted use or no. We'll find out, and
we'll find out on Tuesday next week after the special
general meeting. But you know, our key request is to
all shareholders please vote. It's your company, it's your decision.
Speaker 5 (16:10):
But yeah, we'll vote.
Speaker 7 (16:12):
Is out a bad outcome, okay?
Speaker 3 (16:14):
And I just want to finish on that no vote.
If there is a no vote or apathy takes over,
you don't get enough votes to get past the threshold,
will the banks call in their outstanding debts? When's that
going to happen?
Speaker 7 (16:25):
Well, I would say the very the very next day
after the announcement. If it is a no vote, we'll
be back up in front of the banking syndicate with
a please explain no doubt they'll still call their one
hundred and eighty eight million overdue debt which is due
on the nineteenth of December. And then we go into
completely uncharted territory.
Speaker 5 (16:46):
We will fight.
Speaker 3 (16:48):
We will follow this one with great interest. In fact,
I'm hoping to get a hold of Mark Gundam, one
of those lards farmer shareholders, to get their side of
the story. Up next, Mark one, thanks for your time.
We'll eagerly awake next week's final vote.
Speaker 7 (17:01):
All good, Thanks Jamie, Thank you.
Speaker 5 (17:03):
Mark Well.
Speaker 3 (17:04):
From one Mark to another, Mark Gunton. Up next, we'll
get the other side of the story. It's twenty six
after make that twenty seven, after twelve year with the country.
It's brought to you by Brent. That's where I'm going
to be with Brent tomorrow at the gisban A and
p Show, the best amp show in the country. Half
the population goes through the gates over over two days.
So really looking forward to that. But up next, as
(17:25):
I said, Mark Gunton before the end of their Peter
Newbolt and Chris Russell twenty nine after twelve you've heard
from Mark One, let's hear from Mark Gunton, one of
those high profile large scale Alliance group farmers who say
(17:45):
no to the dawn meat steal. Mark, welcome back to
the country. You'll be pleased to know you've got high
level support from Winstons.
Speaker 5 (17:55):
Thanks for having us, Jamie, And yeah, that is appreciate it. Well,
it's Coe.
Speaker 3 (18:00):
It's one thing having support from Winston, but he's not voting.
You need support from kind of ground based sort of farmers.
And if we're to believe Mark win he said ninety
percent of them from the road shows anyhow, don't support
what you guys are up to.
Speaker 5 (18:17):
Of course, the democratic process, Jamie. And we'll let it
play out over the next three or four days and
on Monday's last Tuesday, we're going to know the result.
Speaker 3 (18:26):
Is this as I threw this at you last time,
but I am hearing commentary back from my connections, farming connections,
especially down in South and this is a case of
rich boys throwing their toys you and your mates.
Speaker 5 (18:40):
No, not at all, not at all. Historically, from my
personal bespeak of Jamie, corporatives have been anathema evn. They've
been a wonderful excuse for poor management performance, poor governance.
And we've seen these corporative staggers from fill of the
post over the last hundred years. But there's really tragic
(19:01):
that we're in a position now. We're having had the
company achieve the right outcomes in terms of the money spent,
that they're now finding a problem and dealing with the banks,
but they're now forced to a distress sale situation. Having
right sized the business in terms of getting rid of Smithfield,
having spent money on an ERP program, and we spent
money on health and safety, having institute a new venison
(19:23):
plant at Launville, and now we're being asked to accept
the sales as at pretty much twenty five percent of
the acid value of the company, as it wasn't the
books last year under a stress sale basis.
Speaker 3 (19:36):
But doesn't this deal value the company at half a
billion dollars?
Speaker 5 (19:42):
Well, figures can be made to do wonderful things. I
think I'd be misquoting Rob Muldoern, but you know you
can make them say anything, Well, how much is.
Speaker 3 (19:51):
Their Lines group worth? I would have sold half a
Billion's probably pretty good value, isn't it.
Speaker 5 (19:58):
Well, Well, in twenty twenty two, the balance the shaold
is well. The balance sheet suggested the worth of seven
hundred and fifty odd million sholders fund stood at four
hundred and forty seven million in twenty twenty four. That
balance sheet shareholders wealth comparted and diminished by circuit two
hundred million. If you look at the northern Ton report
(20:20):
that was attached to the notice of meaning in the
scheme of arrangement, they're suggesting the midpoint value of our
shareholding and Mark Twin just co oded one hundred and
six million shares. They had a midpoint value of sixty
one cents a year, which suggests that the sheld equities
dropped from four hundred and forty seven million to sixty
one million in the last three years. So how somebody
(20:41):
can pontificate and say it's worth five hundred and one million.
These people are supposedly paying a ninety three percent premium
in terms of their share acquisition price over that sixty
one midpoint, but the reality is they're getting sixty five
percent of the company. They're getting absolute control.
Speaker 3 (20:57):
Well left, yeah, I get all that mark, and it's
valiant of you and some of the larger shareholders to
try and maintain this cooperative ethos if you want. But certainly,
and I'm saying to you what I said to Mark.
When I'm hearing from farmers on the ground, especially in
South then where I have good farming connections, they don't
(21:18):
want to tip any more money into a cooperative that
could fail.
Speaker 5 (21:24):
Well, Unfortunately, the rules of business are that anything can
fail at any time, Janie. That's just a fact of life, right,
But without continued farmer support. And I mean the really is,
when was the last time the farming community was asked
to take money into this company? It was eighteen months ago,
in a really bleak time. I mean, things have improved.
And if we don't invest beyond the farm gate, you
(21:46):
know as the dairy farming community have done through Fonterra,
through Titur, etc. If we don't invest beyond the farm gate,
then we're going to be exactly where we see these people.
Hop Where are Monday dealing with another foreign.
Speaker 3 (21:59):
Company in northern Southland, Mark Gunton? And where we can
get where we can get some strong Northwest as I
know because I was born, born and bred just down
the road from there. Are you peeing into a Northwestern?
Final question for.
Speaker 5 (22:12):
You all we're doing is giving voice to the democratic
process that they've engaged and in terms of deciding the
fate of this particular concern, we will accept. We will
accept the answer, and if there's a no vote, we
accept that there's lots to be done, but we're very
confident that we have a bible plan in place with
(22:34):
capital allocated that we believe we can draw on to
see this company retain in New Zealand farming ownership.
Speaker 3 (22:41):
Okay, Mark Gunton, We're going to await this vote with
great interest. Thank you very much for your time. It
is twelve thirty four. You may know that is twenty
six away from one. I'm working in a strange studio
with the strange man. While he's not a strange man,
he's my favorite Auckland producer Andy McDonald better half, I
(23:01):
won't say the better half the other half of my
former producer, Rowena Duncan. My current producers Michelle wattch she's
going to give us rural news after the break. Andy,
you'll do sport before the end of the hour. Peter
Newbolden if I can track him down across the ditch.
Chris Russell Orosie correspondent. Yeah, welcome back to the country. Hey,
(23:28):
we're off to Gisbon tomorrow. No rest for the wicked.
Really looking forward to a couple of days out in Gizzy.
I said it was the best amp show in the country.
The people in christ Church mightn't be too please because
their's is the biggest. It's the christ Church Royal Amp
Show and it's back from the thirteenth to the fifteenth
in November. We've got family passes to give away on
(23:50):
the Country Facebook page. All you need to do is
comment Thursday for a Farmer's Day pass. We're going to
be there launching Makaiser on the Thursday. That's the day
to go, or Saturday for tickets to the Farmer's Family Day.
The christ chich A and p Show happening this time
next month thirteenth to the fifteenth of November. Right eo.
(24:11):
Great to be back in God's own Here's Michelle Watt
and add the Needin Studios with Rural News.
Speaker 2 (24:18):
The country's world news with Cold Cadet, New Zealand's leading
right on lawn Bower brand. Visit steel Ford dot co
dot nz for your local stockist.
Speaker 8 (24:28):
Thanks Jamie, nice to have you back. And last month
it was peaches and now what is. New Zealand is
further reducing fruit and vegetable crops from its sources in
its home of hawks Bay, citing ongoing struggle against cheaper imports.
Growers of key crops beechrouit, corn and tomatoes will be
affected by its recent crop intake review. A spokesperson for
the brand, owned by food giant Craft Hinds of the
(24:49):
United States, said it carried out these reviews each year
to respond to market demand, increased competition from input of goods,
and rising input costs. It's a sad news for some
growers and Hawks Bay by the lock of things, I
love my waddies. Coming up next, We've got sport with Andy.
Speaker 1 (25:05):
Sport with a FCO. Visit them online at a FCO,
dot co dot nzed.
Speaker 9 (25:10):
Yes, thanks Michelle. And In sports, golf star Rory McElroy
believes it's time to change the narrative around the recent
Ryder Cup in New York, saying we should stop talking
about the borish behavior of some American spectators and focus
on the incredible play by both teams in Team Europe
stunning away when over Team USA and Australia's full time
Olympic champion Arianne Tipmos has retired from swimming. The twenty
(25:31):
five year old finishes her career with eight games medals
from the Paris and Tokyo editions. That's sport jamming.
Speaker 3 (25:38):
Yeah, I love and I love Andy. Can I say that? No, no, no,
I love Rory. I don't mind you Andy. I reckon
those It's on record, Natura. I reckon those American spectators
were borish. There you go, and I loved the Ryder Cup.
Some of your feedback coming through Michelle's flicking it through
to me. I haven't got access to it here in
the Auckland Studios, Winston has spoken a lot of sense,
(25:58):
all very well. Bringing outside is in to get our
companies out of debt. But we're to earnings and profits
and dividends go best if we keep them in New Zealand.
And back to the producers. And here's a contrary view.
Peter's should keep his nose out. He hasn't got his
own money tied up in the Alliance group. There you go,
keep your feedback coming in on five double nine. Up
(26:20):
next Peter Newbold the state of the rural real estate
market monthly here on the country we tell you how
much your farm's worth, and I can tell you this
for nothing. Your farm's worth a bit more than it
was this time a month ago. Peter Newbold heads the
(26:42):
real estate division for PGG Rights, and interestingly he also
heads the livestock division. Just before we get to rural
real estate, Peter, what are your thoughts on this alliance group,
Dawn meets Deal. What are you hearing from your stock
agents and your farmers.
Speaker 6 (27:00):
Well, I guess my personal opinion is I hope it
goes through again, because you know, if it doesn't, there's
a lot of things that could happen which could then
disadvantage not only the shareholders, but the industry at large.
So I think, personally, and a lot of the guys
that work for me and operate in the industry, think
(27:20):
it'd be a good thing to take place. I know
there's groups out there that have different views, but that's
our view, well, my view and the team that work
for me.
Speaker 3 (27:29):
Let's have a look at the state of the rural
real estate market. This is an interesting comment from you.
You say it will be hard to think we'll have
any dairy farm listings on the market at the end
of the selling season. Such is the demand.
Speaker 6 (27:44):
Yeah, look, it's incredible, really. I think there's a couple
of things at play. One, there's not a lot on
the market, and then those that are coming to the market,
there's a huge amount of interest. You know, when we
have open days, there's large numbers attending, and then just
the traffic to the websites and I'm sure that's the
same with our competitors as well is massive. So yeah, look,
(28:04):
it's it's moving along really well. There is a small
upward increase in value, which I think is healthy, but
there is a point. You know, we're at guest a
certain level and those buyers aren't going to move beyond that.
But look, it's a really healthy space to be in
and I think it's only going to continue on. And
when you look at the future of fairy why wouldn't it.
(28:24):
So Yeah, good time for dairy farmers. And I think
it's also good for those coming into the industry because
they can see a good future ahead of themselves.
Speaker 3 (28:33):
Should I be buying a Kiwi fruit farm and the
buyer plenty or of I missed that boat?
Speaker 6 (28:40):
I think you should. And I say that when you
look at that the industry as such it's well, it's
well managed. What they're looking ahead at is really positive.
You know, if you look at that whole healthy food
space in Asia, I think everything looks fantastic for fewy
fruit from a value point of view. We've seen some
(29:02):
upward movement and then probably a month or two away
to see any a lot of sales activity. But I
think here we've already has a magnificent future looking out.
So here's Jamie. If you've got a few, Bob, you
should invest that way.
Speaker 3 (29:15):
Well, I don't know if I have actually, to be
perfectly honest, just been over visiting family that's spent it
all on me. In Australia, Hey Peter, let's finish on
sheep and beef. Plenty of listings unlike dairy, plenty of
listings on the market at the moment.
Speaker 4 (29:30):
Yeah, there are a.
Speaker 6 (29:31):
Lot, and there's a couple of things happening there too.
There's still a large number to come to the market
and a lot of larger property. So I think that's
an interesting piece. You're probably a little bit slower out
of the blocks than I thought. But then you've also
got to look in the South Island. You know, carving's
just finished there's probably still a bit of lambing taking place,
(29:53):
a few issues in the North Island with weather, but
I think that momentum is growing. And I was speaking
to the North Island team this morning and definitely we're
just starting to see a bit of activity there. I
think the South Island will follow. But you know, one
thing's for sure, there are some magnificent properties out there
for people to get in. And again a bit like
the dairy, the future for red meats looks really strong.
(30:15):
So yeah, a little bit slower out of the blocks,
but I think we'll gain the mentum as we head
into Christmas.
Speaker 3 (30:21):
And falling Intostrate's a good time to buy a farm.
Speaker 6 (30:24):
Oh definitely. And I think you know we've often mentioned
it before, but if you look at you know, inflation
is sort of under control. You know, interest rates have
dropped again, they may even drop in the future and
then you've got good returns. You know, we're seeing that,
I think start to filter through to provincial New Zealand,
and you know when you drive around you can just
see a spring in people's step and I think things
(30:46):
are looking good and I think the country should be
proud of our rural community backbone of.
Speaker 3 (30:52):
The economy as we say here on the Country. Peter Newbold,
thanks for your time.
Speaker 6 (30:58):
Yeah, thanks, Jomie, and go the highlight on Friday night Highlanders.
Speaker 3 (31:02):
Hey, Hey, hey, hey, let's just go with Otago.
Speaker 6 (31:06):
Sorry, I mean, I mean Otargo.
Speaker 3 (31:08):
Good on you mate, See you later, Garth, he's there,
Elsie correspondent Chris Russell and Christof've just come back from
a couple of weeks in Perth and Adelaide. And I
must say, if Australia is the lucky country, then surely
Western Australia is the lucky state.
Speaker 6 (31:28):
Gee.
Speaker 3 (31:29):
There's some money over there.
Speaker 5 (31:31):
Yeah, there certainly is.
Speaker 10 (31:32):
I mean when you look at the amount. They've been
very smart too. In many ways. I haven't been a
big admirer for some of the leadership over there, but
the fact that they've kept a reserve of things like
gas available for Western Australians rather than selling everything off
overseas means their energy price the less. They ship about
ten billion dollars worth of iron ore globally, they're the
(31:55):
biggest iron ore supplier in the world. Out of Port
Headland and Krra up in the Northern up in the
north of Western Australia. Every month. That's amazing all the
royalties from that. You just drive go down that Swan
River and look at the sheer opulence on the sides
of the river. It is a very rich state. The
crazy thing, Jamie is that under the arrangements for the
(32:17):
GST money beings handed out to the states, here West Australia,
under a very old arrangement done under John Howard gets
a disproportionate amount of GST based on their population still
and yet they're the probably the state that needs at
the least they're running in surplus now. That nothing like
the financial concerns of Victoria in New South Wales.
Speaker 3 (32:38):
What's behind the recent Wall of price rise, because that's
the story I've been following in my absence from being
on air. Wall is suddenly worth something again.
Speaker 10 (32:49):
Yes, well, I've talked about it with Hamish while you've
been away. It's gone up two dollars in two weeks
a kilo, which we haven't seen that sort of price
rise for a long time now. My initial thoughts were
there was a combination of a very low flock here
of course down below seventy million, and of course going
down lower as the federal government bans live sheep exports
(33:12):
out of the West, which will affect their ability to
get rid of cast rage us and means that a
lot of people are going to go out of sheep.
But nonetheless, you know, I also thought it was due
to the extra demand for uniforms in China. They've suddenly
put a massive order for both their government worker uniforms
and the army. But in fact it looks like it
(33:33):
might be also a coincidence maybe, but certainly coincides with
a kind of secret meeting between Australian Wool Innovation and
the Chinese bull bars to say, look, you guys are
complaining about the fact you're struggling to get enough wool
to keep your woolen mills going, and yet you're not
(33:53):
paying enough money. And a week later the price went
up a dollar, and the week later that it went
up another dollar. You might say, that's coincidence, and it
doesn't sound like something the Chinese would do, because they're
always trying to screw another dollar out of everyone. But nonetheless,
that certainly happened, and maybe they've seen the fact that
if they want to have a supply of high quality
wall reliably produced in Australia, they've got to pay producers,
(34:17):
you know, at least their cost of production and some
to get them to stay in that given that they
can make a lot more money out of lamb and beef.
Speaker 3 (34:24):
Jamie, happy days for Ossie sheep farmers. Your new free
trade agreement with the UAE will bring an extra billions
for them.
Speaker 10 (34:34):
Yes. Well, uas already our largest trade and investment partner
in the Middle East, and we've got rid of tariffs
now on things like frozen beef and sheep meat. Alban
Easy stopped off in the UAE on one of his
overseas trips and it's been now signed and more than
(34:56):
ninety nine percent of Australian exports will now go into
the u duty free, and that's going to boost our
income from there by about one hundred and eighty five
million in its first year alone. UAE is our twelfth
biggest market by volume, but it sits in fifth spot
for chilled beef and six for grain fed beef. For lamb,
(35:19):
it's our third largest market and it certainly means that
we have about sixty eight percent of the UAE market
currently for shit sheep meat and we're certainly going to
make a lot more money out of that and have
continued benefits in dealing with them, and of course their
credit's always pretty good over there, Zomie.
Speaker 3 (35:37):
Hey, Chris Russell, great to be back on air, especially
chatting to you. Enjoyed my time in the Lucky country.
Speaker 10 (35:44):
Lovely to have you over here, Jamie, see you next week.
Speaker 3 (35:47):
Got on you, Chris Russell. Hey, just s of your
feedback coming and when does the media going? That's me,
I guess going to ask people trying to take over
lines group how much over and above the schedule they
have been paid over the years. Are they trying to
say because it's the end of their golden goose these
five and good on them, but they are half the problem.
One schedule for them and bugger the rest. That's from Cam.
(36:08):
But Chris says, Mark Gunton does make a lot of sense.
After so many years of struggle for the Alliance, it's
great to see someone prepared to fight for it. Let
me just check my watch for my time out. I
have bugger all time left, the time out, no time
even I don't think to talk Yes no I haven't
talk rugby with Andy McDonald, but we'll do that on
(36:30):
tomorrow's show. He's paneling and the show will be coming
from the Gisbon Amp Show.
Speaker 2 (36:40):
Catch you're the latest from the land. It's the Country
Podcast with Jamie McKay. Thanks to Fred, you're specialist in
John Deere construction equipment.
Catch all the latest from the land.
Speaker 2 (00:02):
It's the Country Podcast with Jamie mckue Thanks to Brent.
Speaker 1 (00:07):
You're specialist in John Deere Machinery.
Speaker 3 (00:28):
Get a New Zealand and Welcome to the Country. Jamie McKay.
Back in the country after a couple of weeks and
I've been trying to keep up with things. We'll see
how I go. First day back on the tools. Off
to Gisbane tomorrow, looking forward to that one. With sadness,
we heard this morning about the passing of New Zealand's
thirty fifth Prime Minister, Jim Bolger, prime minister from nineteen
(00:49):
ninety to nineteen ninety seven. A bloke who spent a
wee bit of time with Jim Bolger. Some people said
they ran the country over a whiskey bottle. Was his
deputy prime minister for a time. Winstant Peter's he'll kick
off the show. We're going to talk to Mark one
win from the Alliance Group ahead of Monday's big vote.
I'll be keen to get Winston Winston Peter's nationalistic views
(01:10):
on that. Mark Gunton from a group of disgruntled large
scale Alliance Group farmers who say no to the Dawn
meat steal Peter Newbold from PGG Wrights and Chris Russell
Rossie correspondent. But no show without punch, Winston. Peter's a
former deputy Prime minister, in fact deputy prime minister three times,
or to three different prime ministers. Winston, can I start
(01:32):
with perhaps a nice and I'm sure you've got a
nice tribute to your old mate Jim Bolger.
Speaker 4 (01:39):
Well, look it's I'm shemmy, a sad day out for
Joan and Tulan and the Mini van Trull. And at
the end of the day it was inevitable, but it's
always unexpected. And I suppose you could say that he's
a great triumph as a person or tip these politics
(02:00):
very difficult business was to be a marvelous family man
and that's something he was.
Speaker 3 (02:07):
Very liberal for a king country farmer, a bloke who
left school at fifteen years of age.
Speaker 4 (02:13):
Oh no, I would not say he was liberal. He
was Blinda Norton's pressure the moment he became Prime minister,
because it recalled the then Labor Party had a eighty
nine million dollar service in the ninety budget, but it
turned out to be three point two billion dollars in
the red and that was a very very awful time.
(02:34):
And at the same time he had a very difficult
caucus to operate in and it showed within three years
of Pushier Home Parliament. So it wasn't easy to survive
all that.
Speaker 3 (02:46):
Well, he had to preside over Ruth Richardson's Mother of
all budgets and I know that you weren't a fan
of it.
Speaker 4 (02:55):
Well, I could see that this was just a repression,
repetition of Roger Douglas, which the public had rejected. But
she was going to pursue it, but only be better
at it, and consequently we went for into a recession.
You remember that I can, I can with great clarity,
and so this is awfully difficult. He had a cautus
(03:17):
were learning enough job, so to speak. It was never
going to be easy for him, but he survived it
just and then survived in ninety ninety sixty to be
a three term prime minister. Not bad.
Speaker 3 (03:30):
Yeah, he didn't survive that entire third term though. He
got rolled by Jenny Shipley while he was off shore,
and that in the end spelled the end for you
as a deputy prime minister for the first time.
Speaker 4 (03:43):
It's been still the end for me at all. I
mean I was still a Deputy Prime Minister. But my
enormous son discussed at the time was that had been
known that there was going to be a spill on
in the National Pay, that they were going to take
the benefit of the Coalition of May ninety six and
(04:06):
then get rid of a person we shook hands with.
That was very, very similar moment for us, and the
rest is history. She took as a national pay to
the worst election results since it's formation in nineteen thirty six.
Speaker 3 (04:23):
Let's move on from Jim Bolgia and may he rest
in in peace. Should I say, I want to get
your views on a couple of big farming issues, in fact,
a couple of big farming votes that are coming up.
Fonterra on the divestment of their consumer brand business and
of course the Alliance Group deal, which will be decided
by Monday. Well, well, I think we'll know the results
(04:46):
on Tuesday regarding the takeover bid from Dawn Meats. You
are a diet in the wall nationalist. I take it
that you're against both of these deals.
Speaker 4 (04:57):
Yes, then for very good reasons. This is the same
example of what happened under Silver ferns farms where the
directors manufactured the debt up, hugely, manufactured the earnings down massively,
gave the farmers one quarter of information they gave the
(05:18):
Chinese and the rest of history. And also they ended
up getting the benefit of seven to eight million dollars
by way of what's set aside for the directors who
bought that about This is an absolute disgrace about to
take place again, and the farming community needs to understand
that we're never ever going to make it as a
(05:38):
country if the added value of brilliant production in this country,
which is world leading, goes to some other economies, some
of the workforce and some other government.
Speaker 3 (05:50):
Mind you, if you're a Fonterra farmer shareholder, it's difficult
to look a four point two billion off the top
of my head. I've been out of the country for
a while. One stone gift horse in the mouth.
Speaker 4 (06:02):
Really, Yes, children, you've got grand children, You've got others
who would want to get onto the farming industry in
the same way as you did. As the person is
going to make this sale, how long is this going
to last?
Speaker 5 (06:15):
Three years?
Speaker 6 (06:17):
Four years?
Speaker 4 (06:18):
And then what well, I.
Speaker 3 (06:19):
Think in Fonterra's case. I think in Fonterra's case, Fonterra
will continue on. Can I go to these lines?
Speaker 4 (06:26):
No, no, no, no, no answer. This question is horrible.
And people who are running Fonterra right now, are they
going to be there when this is all over, after
they've taken their bonus from the sale. Please answer that question.
Everybody listen to this program on the Farming Show needs
to know what the answer that is. And here we are.
(06:47):
I've made this challenge for them. They refuse to come
out public in an answer. They were asked to come
before the Select Committee two times on this matter, refuse
to And here we got this disaster happening all over again,
but under our nose.
Speaker 3 (07:00):
Well, at least Fonterra, to be fair, has some options.
I'm not sure the Alliance Group has those options. We're
going to hear shortly from Mark Win, the Alliance Scroup chair.
He's saying it's take the deal or the banks might
call a halt to proceedings. What do you think about
that commentary?
Speaker 4 (07:17):
And what's the government doing? But we should be doing
a stepping and saying oh no, sorry, you Aussie banks,
you're not pulling the plug on us. This way, we'll
find a way out of that and your hold tit.
In the meantime, we're not going to have our country
run on economic strategy.
Speaker 3 (07:30):
Yeah, but surely it's not the government's role to run
private meat companies or farm are owned cooperatives.
Speaker 4 (07:36):
Of course, there's not the government roles to do that.
But the government's role is to step in when things
look like they're going wrong, and when they're going down
the drain. As a consequence, Dawn is an Irish company.
Now tell us as a French company, what they're over
here for. They're not over here to help us. This
is not John the Baptist coming to save us. No, No,
this is a disaster in our face. And what alarms
(07:59):
me is how many people in the rural and provincial
industry can't see what's going to happen here. Will become
a price taker, will not longer be what we were
We were setting in the case of agricultural production in
the eighteen eighties, a long time before you and I
are parents were alive, setting out to make this country
(08:20):
great in agriculture. Where will leaders the Irish the very
people have learned the lesson to Barnes themselves in the
one of these letter than that with the Irish Tiger.
Are any here in the case of Dawn buying out
and they've got all these politicians and dare I say
media people excusing it as the hidden of an option? Oh?
Speaker 3 (08:40):
Yes, we have a final question for you. Are you
going to argue with a similar amount of vigor because
we all know you love an argument when it comes
to the hang on, I haven't finished the question yet.
Speaker 4 (08:51):
It's a lesson. It's a lesson and a mistake. I
don't want us to go on repeating over and over again.
Speaker 3 (08:55):
Will you argue with such figure at the Oxford Union debate?
You're following the footsteps of David LONGI.
Speaker 4 (09:03):
Ah, well, of course I am going to argue with
thatch a figure because it's about democracy and how it's
constructed and why it's important.
Speaker 3 (09:13):
You are on a trip not only to the UK
but also to Scandinavia. You're a big fan of Scandinavia's economies.
Speaker 4 (09:22):
Oh, I most certainly am. I'm going to go and
look at Nortic e Comis when it comes to primary
and auculture production. They get all the added value, all
the top class added value out of their primary products
like milk. Go to the Scandinavians. See what I mean,
why we learned this lesson? Look you remember civil firms fans.
What a disaster that was. Here we go again, lack
(09:45):
tell us first when it comes to milk and dawn
when it comes to meat. When will we ever learn?
Speaker 3 (09:52):
Winstontatus, thanks as always for your time on the country.
Safe travels, and we'll await those farmer votes over the
next couple of whe with much interest. There we go,
Winston Peters on the country. We're going to take a
break and talking about the Alliance Group and the deal
with Dawn Meats. They've just sweetened it up. So we're
going to hear from the Alliance Group chair Mark win
(10:15):
Hopefully Mark Gunton one of a group of high profile,
high powered, disgruntled large scale Alliance Group farmers who say
no to the Dawn Meats deal, a bit like Winnie
Peter Newbold PGG writes and head of real estate, also
head of the livestock division. I wonder if he's got
a view on the Alliance Group deal and if we
(10:38):
find time, and if we find it before the end
of the hour. Our Australian correspondent Chris Russell from Australia,
where I've just been in the last couple of weeks
back with Mark win Next. It is the big story
at the moment in the meat industry, will or won't
(10:59):
the Alliance Group be sold to Irish company Dawn meets.
The chair is Mark One, of course, former chief executive
of Balance a Granade trans Mark. You've got a lot
on your plate trying to get this deal past the goalie.
I've been out of the country so I'm not up
to speed on this, but I put it to you
your biggest enemy in this process may be apathy.
Speaker 7 (11:22):
Yeah, Hi, Jamie, that's exactly right. Epathy is the big
challenge for us simply to get a change that is proposed.
There are a very very high There's two hurdles and
they're both very very high. So we need more than
fifty percent of all shares on issue to vote yes.
(11:43):
That's the first hurdle. So we've got one hundred and
six million shares on issue, so that's fifty three million
yes votes. And then there's a second hurdle that says, okay,
forgetting those people that now don't vote, we count up
the yes votes and versus the no votes and the
yeses must be seventy five percent or more of the total.
(12:05):
So those are two very high hurdles, which makes sense.
It's set by the takeover panels under New Zealand law.
But this is a significant change for shareholders, so very
high hurdles.
Speaker 3 (12:14):
Now, I note that Dawn Meets will stump up with
an extra twenty to twenty five million dollars for its
sixty five percent stake in the Alliance Group. It had
agreed to pay two hundred and fifty million, so this
is going to be on top of that. Is this
kind of mark when an eleventh hour sweetener from you guys, No,
it's it's not.
Speaker 7 (12:35):
Actually, it's all been very very transparent and highlighted deeply
all the details in the Northington Report, the Independent of
Devisors Report for shareholders. So what happens is that we
had to strike a price for the shareholding as part
of our negotiation in late June early July. But as
everyone knows, you know, July, August, September, which is the
(12:57):
last quarter of our school year in the winter months,
is very very volatile. So we set up a mechanism
that said, look if we underperform, then Alliance will, over
a period of time, have to pay back some money
to Dawn, and that's all in the in the mechanism.
And if we over deliver, then Dawn will have to
(13:19):
pay more money to Alliance shareholders. And so we're pleased
to announce that we announced our profit range. We've still
got the auditors all over us at the moment, but
our profit range is between eighteen and twenty four million,
and that's over and above the forecast we had landed
with Dawn, and so under the mechanism, the auditors are
(13:40):
all going through it at the moment, but Dawn will
make a further contribution between twenty and twenty five million,
and the exact number we finalize the next week.
Speaker 6 (13:49):
Or so two weeks.
Speaker 7 (13:51):
Because we over delivered the EBITDA target that we had
collectively agreed.
Speaker 3 (13:56):
Well, I guess that's a good come. Well that that
is a good news story. You've got a group of
high power farmers who are wanting to recapitalize the Alliance
group themselves. I'm not sure that that enthusiasm is shared
by all Alliance suppliers.
Speaker 7 (14:12):
No, look it's not. And we saw that last year
when we did our capital rays off Kelchek deductions, and
admittedly that was a terrible time of the year, but
farmers voted with their feet and took their livestock to
other processes. So that was the first signal. The second
signal is in April this year, we got Craig's Investment
Partners to do a survey across roughly thirty five percent
(14:35):
of the shares on issue and just get a sentiment,
and it was almost unanimous that farmers have no appetite
to put more capital into Alliance. They get a better
return investing that capital on farm and these days they
also have processor choice. So it was the second one.
And the last data point for US is we've just
(14:55):
completed twenty two roto meetings across the country and that's
probably around one thousand shareholders have turned up, those that support,
those that don't support, and those that are just still undecided.
And I would say reading the room is quite difficult,
but I would say ninety to ninety five percent have
(15:18):
indicated absolutely no appetite to put one.
Speaker 3 (15:21):
Okay, let's just quickly finish on the mechanics of this vote.
How many farmers have already voted because we're going to announce.
You've got a special meeting and in the cargo on Monday.
I think you announced the result on Tuesday. How many
farmers have voted already?
Speaker 7 (15:36):
So we've got a vote of just over twelve hundred
out of our four thy three hundred shareholders. But this
is more about shares voting, So one share is one
vote and so on. On shares. We've got one hundred
and six million shares and at the moment we've had
about sixty five million shares vote. Obviously, we don't know
(15:57):
whether they're voted use or no. We'll find out, and
we'll find out on Tuesday next week after the special
general meeting. But you know, our key request is to
all shareholders please vote. It's your company, it's your decision.
Speaker 5 (16:10):
But yeah, we'll vote.
Speaker 7 (16:12):
Is out a bad outcome, okay?
Speaker 3 (16:14):
And I just want to finish on that no vote.
If there is a no vote or apathy takes over,
you don't get enough votes to get past the threshold,
will the banks call in their outstanding debts? When's that
going to happen?
Speaker 7 (16:25):
Well, I would say the very the very next day
after the announcement. If it is a no vote, we'll
be back up in front of the banking syndicate with
a please explain no doubt they'll still call their one
hundred and eighty eight million overdue debt which is due
on the nineteenth of December. And then we go into
completely uncharted territory.
Speaker 5 (16:46):
We will fight.
Speaker 3 (16:48):
We will follow this one with great interest. In fact,
I'm hoping to get a hold of Mark Gundam, one
of those lards farmer shareholders, to get their side of
the story. Up next, Mark one, thanks for your time.
We'll eagerly awake next week's final vote.
Speaker 7 (17:01):
All good, Thanks Jamie, Thank you.
Speaker 5 (17:03):
Mark Well.
Speaker 3 (17:04):
From one Mark to another, Mark Gunton. Up next, we'll
get the other side of the story. It's twenty six
after make that twenty seven, after twelve year with the country.
It's brought to you by Brent. That's where I'm going
to be with Brent tomorrow at the gisban A and
p Show, the best amp show in the country. Half
the population goes through the gates over over two days.
So really looking forward to that. But up next, as
(17:25):
I said, Mark Gunton before the end of their Peter
Newbolt and Chris Russell twenty nine after twelve you've heard
from Mark One, let's hear from Mark Gunton, one of
those high profile large scale Alliance group farmers who say
(17:45):
no to the dawn meat steal. Mark, welcome back to
the country. You'll be pleased to know you've got high
level support from Winstons.
Speaker 5 (17:55):
Thanks for having us, Jamie, And yeah, that is appreciate it. Well,
it's Coe.
Speaker 3 (18:00):
It's one thing having support from Winston, but he's not voting.
You need support from kind of ground based sort of farmers.
And if we're to believe Mark win he said ninety
percent of them from the road shows anyhow, don't support
what you guys are up to.
Speaker 5 (18:17):
Of course, the democratic process, Jamie. And we'll let it
play out over the next three or four days and
on Monday's last Tuesday, we're going to know the result.
Speaker 3 (18:26):
Is this as I threw this at you last time,
but I am hearing commentary back from my connections, farming connections,
especially down in South and this is a case of
rich boys throwing their toys you and your mates.
Speaker 5 (18:40):
No, not at all, not at all. Historically, from my
personal bespeak of Jamie, corporatives have been anathema evn. They've
been a wonderful excuse for poor management performance, poor governance.
And we've seen these corporative staggers from fill of the
post over the last hundred years. But there's really tragic
(19:01):
that we're in a position now. We're having had the
company achieve the right outcomes in terms of the money spent,
that they're now finding a problem and dealing with the banks,
but they're now forced to a distress sale situation. Having
right sized the business in terms of getting rid of Smithfield,
having spent money on an ERP program, and we spent
money on health and safety, having institute a new venison
(19:23):
plant at Launville, and now we're being asked to accept
the sales as at pretty much twenty five percent of
the acid value of the company, as it wasn't the
books last year under a stress sale basis.
Speaker 3 (19:36):
But doesn't this deal value the company at half a
billion dollars?
Speaker 5 (19:42):
Well, figures can be made to do wonderful things. I
think I'd be misquoting Rob Muldoern, but you know you
can make them say anything, Well, how much is.
Speaker 3 (19:51):
Their Lines group worth? I would have sold half a
Billion's probably pretty good value, isn't it.
Speaker 5 (19:58):
Well, Well, in twenty twenty two, the balance the shaold
is well. The balance sheet suggested the worth of seven
hundred and fifty odd million sholders fund stood at four
hundred and forty seven million in twenty twenty four. That
balance sheet shareholders wealth comparted and diminished by circuit two
hundred million. If you look at the northern Ton report
(20:20):
that was attached to the notice of meaning in the
scheme of arrangement, they're suggesting the midpoint value of our
shareholding and Mark Twin just co oded one hundred and
six million shares. They had a midpoint value of sixty
one cents a year, which suggests that the sheld equities
dropped from four hundred and forty seven million to sixty
one million in the last three years. So how somebody
(20:41):
can pontificate and say it's worth five hundred and one million.
These people are supposedly paying a ninety three percent premium
in terms of their share acquisition price over that sixty
one midpoint, but the reality is they're getting sixty five
percent of the company. They're getting absolute control.
Speaker 3 (20:57):
Well left, yeah, I get all that mark, and it's
valiant of you and some of the larger shareholders to
try and maintain this cooperative ethos if you want. But certainly,
and I'm saying to you what I said to Mark.
When I'm hearing from farmers on the ground, especially in
South then where I have good farming connections, they don't
(21:18):
want to tip any more money into a cooperative that
could fail.
Speaker 5 (21:24):
Well, Unfortunately, the rules of business are that anything can
fail at any time, Janie. That's just a fact of life, right,
But without continued farmer support. And I mean the really is,
when was the last time the farming community was asked
to take money into this company? It was eighteen months ago,
in a really bleak time. I mean, things have improved.
And if we don't invest beyond the farm gate, you
(21:46):
know as the dairy farming community have done through Fonterra,
through Titur, etc. If we don't invest beyond the farm gate,
then we're going to be exactly where we see these people.
Hop Where are Monday dealing with another foreign.
Speaker 3 (21:59):
Company in northern Southland, Mark Gunton? And where we can
get where we can get some strong Northwest as I
know because I was born, born and bred just down
the road from there. Are you peeing into a Northwestern?
Final question for.
Speaker 5 (22:12):
You all we're doing is giving voice to the democratic
process that they've engaged and in terms of deciding the
fate of this particular concern, we will accept. We will
accept the answer, and if there's a no vote, we
accept that there's lots to be done, but we're very
confident that we have a bible plan in place with
(22:34):
capital allocated that we believe we can draw on to
see this company retain in New Zealand farming ownership.
Speaker 3 (22:41):
Okay, Mark Gunton, We're going to await this vote with
great interest. Thank you very much for your time. It
is twelve thirty four. You may know that is twenty
six away from one. I'm working in a strange studio
with the strange man. While he's not a strange man,
he's my favorite Auckland producer Andy McDonald better half, I
(23:01):
won't say the better half the other half of my
former producer, Rowena Duncan. My current producers Michelle wattch she's
going to give us rural news after the break. Andy,
you'll do sport before the end of the hour. Peter
Newbolden if I can track him down across the ditch.
Chris Russell Orosie correspondent. Yeah, welcome back to the country. Hey,
(23:28):
we're off to Gisbon tomorrow. No rest for the wicked.
Really looking forward to a couple of days out in Gizzy.
I said it was the best amp show in the country.
The people in christ Church mightn't be too please because
their's is the biggest. It's the christ Church Royal Amp
Show and it's back from the thirteenth to the fifteenth
in November. We've got family passes to give away on
(23:50):
the Country Facebook page. All you need to do is
comment Thursday for a Farmer's Day pass. We're going to
be there launching Makaiser on the Thursday. That's the day
to go, or Saturday for tickets to the Farmer's Family Day.
The christ chich A and p Show happening this time
next month thirteenth to the fifteenth of November. Right eo.
(24:11):
Great to be back in God's own Here's Michelle Watt
and add the Needin Studios with Rural News.
Speaker 2 (24:18):
The country's world news with Cold Cadet, New Zealand's leading
right on lawn Bower brand. Visit steel Ford dot co
dot nz for your local stockist.
Speaker 8 (24:28):
Thanks Jamie, nice to have you back. And last month
it was peaches and now what is. New Zealand is
further reducing fruit and vegetable crops from its sources in
its home of hawks Bay, citing ongoing struggle against cheaper imports.
Growers of key crops beechrouit, corn and tomatoes will be
affected by its recent crop intake review. A spokesperson for
the brand, owned by food giant Craft Hinds of the
(24:49):
United States, said it carried out these reviews each year
to respond to market demand, increased competition from input of goods,
and rising input costs. It's a sad news for some
growers and Hawks Bay by the lock of things, I
love my waddies. Coming up next, We've got sport with Andy.
Speaker 1 (25:05):
Sport with a FCO. Visit them online at a FCO,
dot co dot nzed.
Speaker 9 (25:10):
Yes, thanks Michelle. And In sports, golf star Rory McElroy
believes it's time to change the narrative around the recent
Ryder Cup in New York, saying we should stop talking
about the borish behavior of some American spectators and focus
on the incredible play by both teams in Team Europe
stunning away when over Team USA and Australia's full time
Olympic champion Arianne Tipmos has retired from swimming. The twenty
(25:31):
five year old finishes her career with eight games medals
from the Paris and Tokyo editions. That's sport jamming.
Speaker 3 (25:38):
Yeah, I love and I love Andy. Can I say that? No, no, no,
I love Rory. I don't mind you Andy. I reckon
those It's on record, Natura. I reckon those American spectators
were borish. There you go, and I loved the Ryder Cup.
Some of your feedback coming through Michelle's flicking it through
to me. I haven't got access to it here in
the Auckland Studios, Winston has spoken a lot of sense,
(25:58):
all very well. Bringing outside is in to get our
companies out of debt. But we're to earnings and profits
and dividends go best if we keep them in New Zealand.
And back to the producers. And here's a contrary view.
Peter's should keep his nose out. He hasn't got his
own money tied up in the Alliance group. There you go,
keep your feedback coming in on five double nine. Up
(26:20):
next Peter Newbold the state of the rural real estate
market monthly here on the country we tell you how
much your farm's worth, and I can tell you this
for nothing. Your farm's worth a bit more than it
was this time a month ago. Peter Newbold heads the
(26:42):
real estate division for PGG Rights, and interestingly he also
heads the livestock division. Just before we get to rural
real estate, Peter, what are your thoughts on this alliance group,
Dawn meets Deal. What are you hearing from your stock
agents and your farmers.
Speaker 6 (27:00):
Well, I guess my personal opinion is I hope it
goes through again, because you know, if it doesn't, there's
a lot of things that could happen which could then
disadvantage not only the shareholders, but the industry at large.
So I think, personally, and a lot of the guys
that work for me and operate in the industry, think
(27:20):
it'd be a good thing to take place. I know
there's groups out there that have different views, but that's
our view, well, my view and the team that work
for me.
Speaker 3 (27:29):
Let's have a look at the state of the rural
real estate market. This is an interesting comment from you.
You say it will be hard to think we'll have
any dairy farm listings on the market at the end
of the selling season. Such is the demand.
Speaker 6 (27:44):
Yeah, look, it's incredible, really. I think there's a couple
of things at play. One, there's not a lot on
the market, and then those that are coming to the market,
there's a huge amount of interest. You know, when we
have open days, there's large numbers attending, and then just
the traffic to the websites and I'm sure that's the
same with our competitors as well is massive. So yeah, look,
(28:04):
it's it's moving along really well. There is a small
upward increase in value, which I think is healthy, but
there is a point. You know, we're at guest a
certain level and those buyers aren't going to move beyond that.
But look, it's a really healthy space to be in
and I think it's only going to continue on. And
when you look at the future of fairy why wouldn't it.
(28:24):
So Yeah, good time for dairy farmers. And I think
it's also good for those coming into the industry because
they can see a good future ahead of themselves.
Speaker 3 (28:33):
Should I be buying a Kiwi fruit farm and the
buyer plenty or of I missed that boat?
Speaker 6 (28:40):
I think you should. And I say that when you
look at that the industry as such it's well, it's
well managed. What they're looking ahead at is really positive.
You know, if you look at that whole healthy food
space in Asia, I think everything looks fantastic for fewy
fruit from a value point of view. We've seen some
(29:02):
upward movement and then probably a month or two away
to see any a lot of sales activity. But I
think here we've already has a magnificent future looking out.
So here's Jamie. If you've got a few, Bob, you
should invest that way.
Speaker 3 (29:15):
Well, I don't know if I have actually, to be
perfectly honest, just been over visiting family that's spent it
all on me. In Australia, Hey Peter, let's finish on
sheep and beef. Plenty of listings unlike dairy, plenty of
listings on the market at the moment.
Speaker 4 (29:30):
Yeah, there are a.
Speaker 6 (29:31):
Lot, and there's a couple of things happening there too.
There's still a large number to come to the market
and a lot of larger property. So I think that's
an interesting piece. You're probably a little bit slower out
of the blocks than I thought. But then you've also
got to look in the South Island. You know, carving's
just finished there's probably still a bit of lambing taking place,
(29:53):
a few issues in the North Island with weather, but
I think that momentum is growing. And I was speaking
to the North Island team this morning and definitely we're
just starting to see a bit of activity there. I
think the South Island will follow. But you know, one
thing's for sure, there are some magnificent properties out there
for people to get in. And again a bit like
the dairy, the future for red meats looks really strong.
(30:15):
So yeah, a little bit slower out of the blocks,
but I think we'll gain the mentum as we head
into Christmas.
Speaker 3 (30:21):
And falling Intostrate's a good time to buy a farm.
Speaker 6 (30:24):
Oh definitely. And I think you know we've often mentioned
it before, but if you look at you know, inflation
is sort of under control. You know, interest rates have
dropped again, they may even drop in the future and
then you've got good returns. You know, we're seeing that,
I think start to filter through to provincial New Zealand,
and you know when you drive around you can just
see a spring in people's step and I think things
(30:46):
are looking good and I think the country should be
proud of our rural community backbone of.
Speaker 3 (30:52):
The economy as we say here on the Country. Peter Newbold,
thanks for your time.
Speaker 6 (30:58):
Yeah, thanks, Jomie, and go the highlight on Friday night Highlanders.
Speaker 3 (31:02):
Hey, Hey, hey, hey, let's just go with Otago.
Speaker 6 (31:06):
Sorry, I mean, I mean Otargo.
Speaker 3 (31:08):
Good on you mate, See you later, Garth, he's there,
Elsie correspondent Chris Russell and Christof've just come back from
a couple of weeks in Perth and Adelaide. And I
must say, if Australia is the lucky country, then surely
Western Australia is the lucky state.
Speaker 6 (31:28):
Gee.
Speaker 3 (31:29):
There's some money over there.
Speaker 5 (31:31):
Yeah, there certainly is.
Speaker 10 (31:32):
I mean when you look at the amount. They've been
very smart too. In many ways. I haven't been a
big admirer for some of the leadership over there, but
the fact that they've kept a reserve of things like
gas available for Western Australians rather than selling everything off
overseas means their energy price the less. They ship about
ten billion dollars worth of iron ore globally, they're the
(31:55):
biggest iron ore supplier in the world. Out of Port
Headland and Krra up in the Northern up in the
north of Western Australia. Every month. That's amazing all the
royalties from that. You just drive go down that Swan
River and look at the sheer opulence on the sides
of the river. It is a very rich state. The
crazy thing, Jamie is that under the arrangements for the
(32:17):
GST money beings handed out to the states, here West Australia,
under a very old arrangement done under John Howard gets
a disproportionate amount of GST based on their population still
and yet they're the probably the state that needs at
the least they're running in surplus now. That nothing like
the financial concerns of Victoria in New South Wales.
Speaker 3 (32:38):
What's behind the recent Wall of price rise, because that's
the story I've been following in my absence from being
on air. Wall is suddenly worth something again.
Speaker 10 (32:49):
Yes, well, I've talked about it with Hamish while you've
been away. It's gone up two dollars in two weeks
a kilo, which we haven't seen that sort of price
rise for a long time now. My initial thoughts were
there was a combination of a very low flock here
of course down below seventy million, and of course going
down lower as the federal government bans live sheep exports
(33:12):
out of the West, which will affect their ability to
get rid of cast rage us and means that a
lot of people are going to go out of sheep.
But nonetheless, you know, I also thought it was due
to the extra demand for uniforms in China. They've suddenly
put a massive order for both their government worker uniforms
and the army. But in fact it looks like it
(33:33):
might be also a coincidence maybe, but certainly coincides with
a kind of secret meeting between Australian Wool Innovation and
the Chinese bull bars to say, look, you guys are
complaining about the fact you're struggling to get enough wool
to keep your woolen mills going, and yet you're not
(33:53):
paying enough money. And a week later the price went
up a dollar, and the week later that it went
up another dollar. You might say, that's coincidence, and it
doesn't sound like something the Chinese would do, because they're
always trying to screw another dollar out of everyone. But nonetheless,
that certainly happened, and maybe they've seen the fact that
if they want to have a supply of high quality
wall reliably produced in Australia, they've got to pay producers,
(34:17):
you know, at least their cost of production and some
to get them to stay in that given that they
can make a lot more money out of lamb and beef.
Speaker 3 (34:24):
Jamie, happy days for Ossie sheep farmers. Your new free
trade agreement with the UAE will bring an extra billions
for them.
Speaker 10 (34:34):
Yes. Well, uas already our largest trade and investment partner
in the Middle East, and we've got rid of tariffs
now on things like frozen beef and sheep meat. Alban
Easy stopped off in the UAE on one of his
overseas trips and it's been now signed and more than
(34:56):
ninety nine percent of Australian exports will now go into
the u duty free, and that's going to boost our
income from there by about one hundred and eighty five
million in its first year alone. UAE is our twelfth
biggest market by volume, but it sits in fifth spot
for chilled beef and six for grain fed beef. For lamb,
(35:19):
it's our third largest market and it certainly means that
we have about sixty eight percent of the UAE market
currently for shit sheep meat and we're certainly going to
make a lot more money out of that and have
continued benefits in dealing with them, and of course their
credit's always pretty good over there, Zomie.
Speaker 3 (35:37):
Hey, Chris Russell, great to be back on air, especially
chatting to you. Enjoyed my time in the Lucky country.
Speaker 10 (35:44):
Lovely to have you over here, Jamie, see you next week.
Speaker 3 (35:47):
Got on you, Chris Russell. Hey, just s of your
feedback coming and when does the media going? That's me,
I guess going to ask people trying to take over
lines group how much over and above the schedule they
have been paid over the years. Are they trying to
say because it's the end of their golden goose these
five and good on them, but they are half the problem.
One schedule for them and bugger the rest. That's from Cam.
(36:08):
But Chris says, Mark Gunton does make a lot of sense.
After so many years of struggle for the Alliance, it's
great to see someone prepared to fight for it. Let
me just check my watch for my time out. I
have bugger all time left, the time out, no time
even I don't think to talk Yes no I haven't
talk rugby with Andy McDonald, but we'll do that on
(36:30):
tomorrow's show. He's paneling and the show will be coming
from the Gisbon Amp Show.
Speaker 2 (36:40):
Catch you're the latest from the land. It's the Country
Podcast with Jamie McKay. Thanks to Fred, you're specialist in
John Deere construction equipment.
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