The Country Full Show: Wednesday, May 7, 2025

Jamie Mackay talks to Christopher Luxon, Matt Bolger, Kate Acland, Wayne McNee, and Jen Corkran.

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Catch all the latest from the land. It's The Country
Podcast with Jamie mckue. Thanks to Brent, You're specialist in
John Deere machinery.

Speaker 2 (00:14):
My way slowly, Jesus, my mind suddenly filter through. I
feel my Bursday. I get a good afternoon, New Zealand.

(00:40):
I'm Jamie McKay. This is The Country, brought to you
by Brent New Zealand Music Month. Michelle's loaded me up
with wonderful New Zealand songs. This is vote of the
greatest New Zealand pop song of all time, Nature by
the Formula, Great remake by the Mutton Birds. Earlier this
morning I call up with the Prime Minister, Christopher Luxen,

(01:03):
great GDT auction Overnight. We're going to talk to Matt
Bolger from Fonterra about that one. Fonterra's new managing director
of co op Affairs. But carbon farming loopholes, the windfall
from the FTAs and as Trump responsible for left leaning
governments in Canada and Australia. Kate Ackland someone else I

(01:24):
also caught up with earlier this morning. That's because she's
in Brussels getting a warm reception apparently from the Europeans.
She is the chair of Beef and Lamb New Zealand.
We're going to have a look at those livestock numbers
and the carbon forestry, the gift that keeps on giving.
Wayne McNee, chief executive of Agri Zero n Z defending
the investment in methane emissions reductions being made on behalf

(01:49):
of you, the New Zealand Farmers and Jen Corchran out
of Rabobank got a full show for you and we'll
tell you who won the Field days passes from yesterday's
show The Country as we go back to Nature Mind's
language Nature Wednesdays on the Country. The Prime Minister kicks

(02:27):
off the show. Great GDT auction overnight four point six
percent whole milk out of six point two percent. It's
going to dig us out of the economic mere but
not Christopher lux and if we run out of dairy
cows and sheep.

Speaker 3 (02:42):
How are you, Jamie? Good to be with you?

Speaker 2 (02:44):
Good to be with you?

Speaker 4 (02:46):
Yeah, no, Look, it's a really great result and I
think what you're seeing is definitely agriculture is leading Zealand
And along with tourism actually out of the slum that we've.

Speaker 3 (02:54):
Been in, which is great.

Speaker 4 (02:56):
Yeah, looks some really promising signs there. And with respect
to life stock numbers, you know that is a function
of some changing land utes. You know, you've got up
I think a thirty two percent growth in Key we
fruit land in particular. And yes, we're trying to deal
with this issue of farmed forestry conversions. And as you know,
we announced our intentions in December last year and actually

(03:17):
that's the anchor date for things in retrospective applied back
to December last year and the legislation we fully approved
and in the House.

Speaker 3 (03:24):
By the end of this year.

Speaker 4 (03:25):
So that's good, you know, but I appreciate there are
still some things and niggles for people as we deal
with that transition. But Tom maclay, as you know, we've
gone to the election with our campaign and we've delivered
it and it will be law by the end of
the year now.

Speaker 2 (03:38):
I caught up with Kate Ackland earlier this morning in Brussels.
She is urging you were beef and lamb. New Zealand's
urging you to close those carbon farming loopholes before more
damage is done. And I said to her, you could
drive a truck and trailer unit through some of those
loopholes at the moment, Prime Minister.

Speaker 4 (03:56):
Yeah, but what we said is we're going to bring
the full Farm to Forest Conversions Band in to law
by the said as promised.

Speaker 3 (04:00):
We're doing that exactly as we said. That'll take effect.

Speaker 4 (04:03):
From the date that we announced it, which was the
fourth of December last year, so that's you know, and
that law will clearly set out the criteria people who
actually were in the process of conversion on that date,
you know, whether you bought trees or ordered trees, you know,
it's unlikely to.

Speaker 3 (04:17):
Meet that test. So there, I get it.

Speaker 4 (04:19):
There is a you know, we're in a transition phase.
But there's been no doubt from our government. We've got
to shut it down. We've been very clear about the
proposal to do that. But yes, I get you know,
as you work through the law and it goes through
the three readings and it goes out for submissions and
then it comes back. You know, that's the process that
we followed. But we have made the spell effective from
the fourth of December last year. There'll be people in

(04:39):
transition in the center and transition, but we are closing
those loopholes and we will have you know, this sort
of properly in.

Speaker 2 (04:45):
The early two thousands, no doubt you were upshore learning
your craft in business. But we had literally a white
gold rush. We had a dairy boom. A lot of people,
myself included, would say we put dairy farms where we
shouldn't have put them and went too quickly. Interestingly, in
the last decade we've lost thirteen percent nearly a million

(05:06):
dairy cattle. Now you're trying to double exports in the
next ten years, and I put it to you you
can't do it without an increase in dairy income.

Speaker 4 (05:15):
Well, no, absolutely, But the way that if you think
about what's happening versus even ten years ago, though, Jamie,
you know, you go to Korea today and you'll see
a Fonterra ambient whipping cream being used for Korean bakers
and cake shops up and down the country, and there's
a huge opportunity that.

Speaker 3 (05:30):
Is billions of dollars of value because we're.

Speaker 4 (05:33):
Creating higher value products with higher margins and as a result,
that's what's driving demand from New Zealand products.

Speaker 3 (05:39):
So it's not it is a volume.

Speaker 4 (05:41):
You know, we've got to make sure we've got the
right volume and we're not turning as you know, with
the changes we've made around not putting egg into each years,
disbanding haywalk echinoa. We want to see agriculture pumping, but
the volume will be a consequence of what's needed to
meet the demand and also ultimately.

Speaker 3 (05:55):
The products and the extra added value products that.

Speaker 4 (05:58):
Can be created off dairy that where their high margin is,
and particularly when it's distributed not to consumers but to
business to other businesses. When you get ambient whipping cream,
which is a unique New Zealand innovation that no one
else in the world can do because of the research
and development, it's been applied to the dairy sector here
being sold into Korean bakers and there's a gazillion cake
shops in that country and similar products exist in other

(06:20):
parkets around the world. That's where you want to be
and so higher value as well as volume is kind
of what we're looking for.

Speaker 2 (06:26):
I see the UK now has an FTA with India
after three years and talks are we fast forwarding ours?

Speaker 4 (06:34):
Well, we've already started our full more negotiations as you know,
and we had our very first day of in person
meetings this week as well as we've had a series
of virtual meetings that started five days after I left India.

Speaker 3 (06:45):
So you know, that's a good sign that the UK.
It's really good.

Speaker 4 (06:49):
It's a good intention for India that it wants to
do these deals, which is great. And as I said,
there's been really good intensity from both Tom McLay and
Minister Sakoyal Trade minister in India asked with sponsorship from
Prominise and Modia myself to get on and get this done.
So the negotiations are up and running and away, which.

Speaker 3 (07:08):
Is which is really good. I thought.

Speaker 4 (07:10):
The other good news that we had this week, as
Todd talked about it on Monday, was you know, we've
had a billion dollars of extra value added into the
EU trade because of us bringing that eu f TA
forward a season and abled a whole bunch of benefit
to the country, which was great.

Speaker 3 (07:26):
I think. I think our exports up the EU are
sort of up.

Speaker 4 (07:29):
Over twenty five twenty eight percent, and then you know
the UK FTA in the last twelve months, you know,
we had twenty one percent growth in exports into the
UK as well. So New Zealanders are finding where the
biggest payments and money and margin actually is in the
world and are directing their products to those places, which
is a good thing.

Speaker 2 (07:47):
Who needs Trump and his tariffs? Say a final word
on the Canadian and Ossie elections, Trump won them for
the left.

Speaker 3 (07:54):
No, I disagree. Actually, if you look at the last week.

Speaker 4 (07:57):
And I know, you know, the Primise Albanese really well
had a good chat with Promise to Khani earlier on
the weekend as well, and Lawrence Wong, the Promise of
Singapore also went through an election and they increased their
popular vote as well.

Speaker 3 (08:08):
And it's not about whether they're left or right.

Speaker 4 (08:11):
It's actually about whether they're good economic managers in very
uncertain times and the public are sticking with incumbent governments.
They have strong economic leadership in these uncertain times. And
I have to tell you, as you know, people may
criticize me for it, but I just taught the economy
every single day, have done from day one, because that
is the.

Speaker 1 (08:27):
Fact hang on prime.

Speaker 2 (08:28):
So you can't tell me that Trump didn't flip the
Canadian election.

Speaker 4 (08:33):
No, I think, Well, there's different dynamics in each of
the country. When you've got someone threatening your sovereignty by
threatening to take you over as a state, when you've
got seventy five percent of your economy tied into the
US economy. YEP, that's a factor in terms of the
US Canadian relationship and that local election. If you look
at Australia, a different set of dynamics in play, And
if you look at Singapore, another different set of dynamics

(08:55):
in play, where essentially incumbent governments have gone for the
best economic leaders at this time given the uncertainty that exists.
And if you look at Mark Carney, who's you know,
taken over the Liberal Party in Canada, Reserve Bank governor
for Canada, for the UK, very very business literate globally,
you know, very well versed in global trade. You know,

(09:16):
he's a guy that I don't know well and get
on well with, and that's great, and.

Speaker 2 (09:20):
He's a good talk Hey, maybe you need Trump to
annex New Zealand about July or August of next year
or claim to want to do so. Could be good
for your reelection chances.

Speaker 4 (09:30):
If I want the New Zealand people to know they've
got the right pro minists or an economic team and
place to deal with what the Ansunday We've got and
we've got a great future and we're going to navigate
our ship through those chopping waters incredibly well.

Speaker 3 (09:42):
And we're making progress, which is great.

Speaker 2 (09:44):
And Onceton's happy to be the MP for two. Thanks
for your times. Catch you next week, Jamie. Take that,
Prime Minister, turn your mic on. Now, that's always a
good start. That's a basic, basic error, isn't it, Michelle.
Just like when I said to you when you when
you chucked in Nature a vote of our top pop

(10:06):
song of all time, I said, which version did you
put in? What did you say? I might? Well, maybe
you don't want your mic on?

Speaker 5 (10:14):
Are you trying to silence me?

Speaker 2 (10:16):
Well, no, I'm just I suppose it's an age thing.

Speaker 5 (10:19):
I think it is an age.

Speaker 2 (10:20):
I mean the mutton Birds do a great cover. But
you said I didn't realize there was an original.

Speaker 5 (10:24):
It's all learnings, all learnings in general.

Speaker 2 (10:26):
We don't use learnings on the show, Michelle. Okay, here's
some here's some interesting texts coming in. This is around
the announcement. In December last year, it was down on
my momo just outside of Gore. The announcement hasn't been
worth The empty seedling box that has been written on
certainly hasn't had much effect. Thus, far and I agree

(10:49):
with this text of Matt who says tourism is just
a side show compared to agriculture, especially if you take
into account the infrastructure costs with tourism, road up keep, etc.
And what about the carbon costs? Yeah, good point. And
the other thing we forget about tourism. It's a two
way street. Yes, it brings them lots of money into

(11:10):
the country, but we export lots of money when we
tour around the world. Agricultures are one way street. We're
just bringing in the money. Baby up next on the Country,
new Blood. He's Fonterra's new MD of co op Affairs.
His name is Matt Bolger. I wonder if, following on
from the Prime minister, he might have a connection to

(11:34):
National Party prime ministers. We'll ask him next.

Speaker 6 (11:39):
Mine's laguage.

Speaker 2 (11:54):
New blood on the Country. Yeah, to talk about a
great global dairy trade auction over night. He's the new
head of co op affairs for Fonterra. His name is
Matt Boulger. Grew up on a sheep farm sheep and
beef farm in Tekawetti, but studied in Japan and the US.
With a name like Boulger and a town like Tekawetti.

(12:15):
I've got to ask this question, Matt, are you any
relation to Sir Jim good Da.

Speaker 4 (12:21):
I mean, yes, Sherlo comes is on the case. You've
onn covered me, so now I'm one of Jim and
James kids.

Speaker 3 (12:30):
Although there's a lot of us. So you know, there's there's.

Speaker 4 (12:33):
Quite a few bulgers roaming around the country, and on
one of them.

Speaker 2 (12:36):
How's your father keeping? I always thought he was a
good prime minister. You can't you can't go wrong when
you get a good, honest farmer as prime minister.

Speaker 3 (12:43):
Exactly exactly. He's good.

Speaker 4 (12:45):
He's getting on its kilto ninety this month, and so
you know when you hit ninety the body runs into
the normal wear and tear. But he's in good foreman.
I'm looking forward to getting down and seeing him in
a couple of weeks.

Speaker 2 (12:58):
You've been the head of co Op affairs for a
couple of months, first time. As I said on the wireless,
as your dad would probably say, that Global Dairy Trade
auction overnight, Matt Bolger up four point six percent, whole
milk powder six point two. I'm told that the spot
price right at the moment is like eleven dollars per
kilogram of milk solids. You guys have to announce your

(13:21):
opening shot in a couple of weeks, and I'm going
to get straight into you here, Matt. It's got to
start with two ones.

Speaker 3 (13:28):
I thought you'd ask that.

Speaker 4 (13:29):
Yeah, we will wait till the announcement of the outlook
for next year later this month, but that's coming very close. Look, obviously,
anybody who's been in the dairy game for a while
with they're on farm or anywhere else, knows that there's
a lot of latility and so we we start a
season can obviously go up or down and need even

(13:49):
more volatility at the moment than we normally see. So
look forward to say they're putting an announcement. But yeah,
know there's quite a lot of positivity out and market,
and I think the auction overnight reinforces.

Speaker 2 (14:00):
How much of the auction was due to the end
of season and lower volumes.

Speaker 4 (14:06):
Yeah, there's a mix of things. So as we get
to the end of the New Zealand season, obviously we're
putting a bit less volume up in each period now
before we start offering next season's production up for sale.
So there's a little bit of Eden. There's also some
other factors. They you know, we saw some strike quite
strong demand out of Southeast Asia. We also, if you
look around the globe, New resses up a little bit,

(14:29):
but big milk markets or big milk producers like Europe
were actually down a little bit in the last couple
of months. So it's all of those factors coming together.

Speaker 2 (14:36):
Do you think you'll see a strong finish to the
season production wise? And I know parts of the North Island,
including your original home patch, have been very dry. They've
had some rain. Now will farmers and I know they
are in my home province of South I reckon they're
going to milk on while the weather's good. Why not?

Speaker 4 (14:55):
Yeah, And it's I mean you've already touched on it.
It's quite different region to region. Right has got right
through the South Island a few weeks ago and had
a nuke a couple of weeks back. And obviously and
I'm based in the way Kido, so it's it's quite different,
different places. Quite a lot of farmers and Mi Kido
probably dried off a bit early, so we've seen that
falling back. But year on year, we're still you know,

(15:17):
we're still up across the country and as you say,
it's quite a strong tale in the South Island, which
is keeping that milk flying across the board. So it's
a really interesting season actually. But combine you know it's
not been easy for everyone, but combine those farmers who
did get a good volume of production with a with
ten dollars milk price, and you know that's it's a

(15:39):
good season.

Speaker 2 (15:40):
Well, Matt Bolger, first time to the batter's box on
the country. I think you've got a pass mark. Well done.

Speaker 3 (15:45):
All right, I'll go and I'll go and test it
out with a family.

Speaker 2 (15:48):
We'll go and ask the Jim what he thought, or
play him the interview a week but later. Thank you
very much for your time and a great result too
for New Zealand.

Speaker 3 (15:56):
Think great stuff.

Speaker 2 (15:57):
Thanks Jamie, Thank you Matt. What a great family. Lots
of Bulger kids. I do remember that good Catholic right
yesterday we were giving away tickets two double passes to
field Days on Mystery Creek June eleven to fourteen, and
we asked you to text the keyword in field Days

(16:19):
and then your name and where you're from, where you address. Look, honestly,
some of you are shocking spellers. Michelle had trouble getting
some or didn't have trouble. There was plenty of correct entries.
But I can't believe, Michelle, how many people couldn't spell
field days.

Speaker 5 (16:34):
There was quite a few or didn't give all of
the information. So make sure you listen before you texting
for competitions.

Speaker 2 (16:39):
Mind you, I forgive anyone who misspelled field days if
they're from fielding. Do you know why? I know why? Yes? Why?

Speaker 5 (16:47):
The spelling of it is actually I always spell that.
I get them.

Speaker 2 (16:51):
Yeah, Okay, the old rulers I before E except after C.
That's for field days, but fielding, for some reason is
FEI trick for young players. You learn something every day
on this show, hopefully interestingly also with that good GDT
auction overnight the twenty five to twenty six season Milk

(17:11):
Futures that's next season obviously starting in August or late
July if you're in the North Island is now trading
at nine dollars ninety five, up thirteen cents. On tomorrow's show,
we're going to talk to Hayden Dylan from Findex about
maybe taking some risk management to your farming operation and
fixing some of those milk prices up next Earlier this morning,

(17:33):
I went to Brussels. Well I didn't go. I phoned
up Kate Ackland from Beef and Lamb New Zealand, who
was there. We're going to talk about some of these
loopholes around carbon farming. She is the chair of Beef

(17:53):
and Lamb New Zealand Canterby Farmer Kate Ackland, but she's
not on the farm today. She's in Brussels, Europe, representing
us selling our wares over there, Kate. Today we're going
to talk about the drop in livestock numbers and why
Beef and Lamb New Zealand is urging the government to
close carbon farming loopholes before more damage is done. But

(18:13):
first tell me what you're doing in Brussels on our behalf.

Speaker 7 (18:17):
Well, hi, Jamie. Yes, we come over to Brussels in
the UK every couple of years and the primary services
for us to connect with farmer groups and like minded groups,
government ministers, things like that and just try and form
a bit of a global consensus on how we can
collaborate on some of the challenges that we're all facing.

(18:37):
And I guess just you know, it's harder for some
of those farming groups to throw stones at us stuff
had lunch with us?

Speaker 2 (18:45):
Well, fair enough. There's nothing quite like a face to
face as long as the Levy pears are getting their
pounds of flesh from U Kate look good demand in
Europe at the moment. It's really helping Lamb.

Speaker 7 (18:56):
Well, look, there really is. And I think that our
face with some of the similar chalne that we have
in terms of dropping sheep numbers. It's been really interesting
being over here since the FDA, the cold conversation has shifted. So,
you know, a couple of years ago we got quite
a prickly reception, but this time it's really been around
you know, what are those shared challenges and opportunities and

(19:17):
how can we collaborate on things like defending the role
of animal proteins and a healthy diet, getting a bit
of a global narrative on the warming impacts of me
saying so it's been a really positive trip.

Speaker 2 (19:28):
Am I right in saying on your farm in Canterbury there,
mid Canterbury, that you're a sheep beef dairy and deer farmer.
Have you got a finger in all those pies?

Speaker 4 (19:39):
We do?

Speaker 7 (19:40):
Although our deer numbers have dropped pretty dramatically in the
last few years, so we're almost out of deer.

Speaker 2 (19:45):
Well you're not alone there. In the past ten years,
the deer numbers in this country have dropped by a quarter.

Speaker 7 (19:52):
Yeah, they absolutely haven't. I think the sheep numbers are
almost the same and it's probably some similar reasons for that.

Speaker 2 (20:00):
To be last man standing, last man, woman, person non binary.

Speaker 6 (20:04):
I don't know.

Speaker 2 (20:04):
I'm afraid of offending people these days, Kate, is that
the last person standing will make a fortune farming sheep.

Speaker 7 (20:12):
Look, I would like to think that some of the
policy settings that we've seen come and will start to
have an impact. But you know, an absolutely knowledge a
forestation is a major driver of that, and the government
made some moves last year put some restrictions on the
whole farm sales being converted into forestry. But you know,
as we both knowed, some loopholes that are being exploited

(20:34):
still and there's been some really significant farm sales and
particularly the Hawks day in Southland, which is really concerning.

Speaker 2 (20:41):
Yeah, where you can drive a truck and trailer unit
through some of those loopholes. You're urging the government to
close them before more damage is done. And part of
The issue is some of the key flaws if you
want in guidance that relate to accepting receipts for ordering seedling.
So if you can claim you've got a receipt before

(21:01):
December the fourth of last year, you're allowed to go
ahead and plant a whole lot of pine trees, perhaps
on good pastoral or even worse arable country. From this
announcement in December last year, we've seen nothing in terms
of action.

Speaker 7 (21:16):
Yeah, look absolutely, and the intent real I think the
intent of it was actually fair enough. I mean, if
someone had purchased the farm with the genuine intent to
plant it at the date the announcement happened, you know,
we understand that. But we do know sort of addedisally
that that farm sales are continuing on the basis of
some pretty questionable evidence, So that that's the loophole. I

(21:40):
guess we really need to see the government closed out.

Speaker 2 (21:42):
Will this all sort itself out once the legislation has passed.

Speaker 7 (21:48):
We're still really concerned. We know that the government's signed
modeling is still suggesting some really significant plantings going through
to twenty fifty, so you know, we question whether it
will enough in the year twenty twenty three year, which
is the latest one I've got figures for, there was
sixty nine thousand hect yares of new aphorestation, which was

(22:09):
up eight percent on the year before. That's half a
million's documents. You know, these limits are a good start,
but I'm concerned that with our the allowance of one
hundred percent offsetting, and I suppose the artificial market that
the carbon market is driving for land, we're going to
continue to see some of this.

Speaker 2 (22:29):
Isn't there enough wriggle room in there for people who
want to grow forestry or even be carbon farmers, because
I know some of them have no intention there you go,
that's my opinion, not yours, of ever harvesting them. So
you're allowed to plant what up under these new regulations
up to twenty five percent of land class classes one
to six on your own farm, so there's your personal

(22:50):
property rights. That would be a good mix. I know
you've got plenty of forestry on your farm.

Speaker 7 (22:55):
Oh absolutely, And to be very clear, our concern is
that whole farm go into trees. Absolutely support the integration
of trees within farms, you know, landscapes. It's got to
be the way of our farm and future, I think.
But this concern that we have is about whole farms.
And I know this song in your area, Jamie, that

(23:16):
has been brought in blanket planted into trees.

Speaker 2 (23:19):
Yep, previously arable land. It's criminal anyhow, Kate to Eckland,
it's late in the evening, Brussels time. Thanks for some
of your time. Safe travels home.

Speaker 7 (23:29):
Thanks Tommy, nice to seek.

Speaker 2 (23:31):
Yeah, earlier this morning caught up with Kate. Good of
it to give us some of the time from Brussels.
While I was going through my spelling lesson, I cut
pour on Michelle off. She didn't get round to announcing
the winners for the field day's tickets. Who were they?

Speaker 5 (23:44):
We have Kevin Hall from Cambridge and peeked right from
the mighty white cattow.

Speaker 2 (23:49):
That was I think I know Kevin who picked these winners?

Speaker 5 (23:52):
I'm randomly packed by a generator.

Speaker 2 (23:54):
Okay, here's a good text.

Speaker 3 (23:56):
I like this.

Speaker 2 (23:57):
I love a corrector. So Jamie, how do your spells?
This is great, that's a great text. When I said
I before e except after see it's a rule of
thumb texter. But well spotted, well done, indeed, up next
to the latest and rural news and sports news twenty

(24:23):
one away from One on the Country. Here's the latest
and rural news with Michelle Watt.

Speaker 1 (24:29):
The country's world news with Cob Cadet, New Zealand's leading
right on lawn Bower brand. Visit Steelford dot co dot
nzent for your local stockist.

Speaker 5 (24:39):
The Meat Industry Association has reported a record month for
New Zealand red meat exports during March, achieving record sales
over any other month. Values were up thirty four percent
compared to March twenty twenty four, with both sheep meat
and beef up by ten percent. The USA was the
biggest customer for both the first quarter and March, followed
by China, with March also setting a new monthly record

(25:02):
for the value of beef in the US. The one
area where exports continue to be weak was China, which
largely is due to China continuing to import large volumes
from South America. And just quickly, the Prime Minister's Chief
Science Advisor has been announced. After almost a whole year.
We have doctor John Roche. Now you may recognize that

(25:22):
name because we've had him on the show before. MPISA.
Congratulations mister Roche, and he's going to form obviously the
Sciencing Technology Advisory Council, so it'll be interesting to follow
sport with.

Speaker 1 (25:35):
AVCO Kiwi to the bone since nineteen oh four.

Speaker 2 (25:39):
Sam Dowry has re signed with the Blues on a
three year extension until the end of the twenty twenty
eight Super Rugby season. He's been sidelined since February with
a shoulder injury. Played six tests for the All Blacks
last year. Well bred that boy and Warriors coach Andrew
Webster expects Mitch Barnett to earn State of Origin League

(26:03):
selection with New South Wales. The Warriors skipper helped the
Blues to their first title since twenty twenty one in
his debut series last year. He's good. Can't beat a
tough Ossie import. Up next, it's Wayne McNee defending himself
and defending the investment we're making in methane emission reductions

(26:25):
being paid for by the government and new farmers out there.
Wayne McNee is the chief executive of Agri Zero end Z,
a joint venture with the Government in the industry, and

(26:47):
it's all about reducing emissions and how we're going to
go about doing it. But Wayne, it would be fair
to say that you and Agri zero end Zed have
your critics. Ground Swells one of them, and Jane's north Otago,
very outspoken north Otago farm is another one of them.
This is what she had to say about mitigating against

(27:08):
methane earlier in the week. We spoke to David Seymour
about pulling out of the Paris accord. And I know
you're a bit of a poster girl for Groundswell, Jane Smith,
so you're all for it?

Speaker 6 (27:19):
Yeah, Well again, Jamie, that whole methane conversation has never
really happened, I mean the end of the day, and
you know this, and we all know this. Unfortunately, our
industry has painted ourselves into some sort of sacrificial corner
and we all know that methane, if it is steady
or decreasing, it is not adding to warming. So that
fact seems to have been markedly missed out. And what

(27:41):
have we done. We've actually doubled down and put more
money wasted Moore's tax pay money. I think there's another
four hundred million dollars in the pipeline to be used
on methane mitigation, which just seems fascical when you think
that could have gone into real research, Jamie.

Speaker 2 (27:56):
So there you go. Jane Smith. Now with the falling
livestock numbers Swayne McNee announced this week from Stats and
Z is it an issue?

Speaker 8 (28:06):
Well, Jamie, you thanks for that. And as you know,
I was also brought up on a sheep farm in
North Tago, so I do know it's been tough sheep
farming down there.

Speaker 3 (28:13):
For a while.

Speaker 8 (28:14):
Our focus is on reducing methane and notxious oxide emissions
from ruminants to meet global customer goals and maintain market
access and trade agreements. And as long as our global
customers continue to call for lower missions milk and meat,
then that continues to be important for New Zealand because
you know, we export ninety five percent of what we
make and major customers, you know, the premium customers across

(28:37):
all markets actually are calling for lower missions products. So
that's the key driver. It's about the market and if
you do go back. I know you had doctor Frank
Mittler Lenna on the show earlier from UC Davis. He
talked about the science side of it. He's a scientist.
I'm not, but very focused. We're very focused on the market.

Speaker 2 (28:56):
Do the likes of China, our biggest export, Marke could
pay a premium for lower missions products at the moment.

Speaker 8 (29:04):
Well, we know that if you look at dairy, the
major companies, like the premium companies like Nesle, DeNoon, Mars
and others are paying premiums and those are going through
to farmers and the meat sector. It's just becoming a
requirement to supply from Tesco, Sainsbury's, Whole Foods and the like.
China is an interesting one, isn't it, because you know

(29:24):
China just it is putting a massive investment into a
mission's reduction in China, huge move towards electric cars, and
it's just a matter of time, I would think before
they turn their focus onto animals.

Speaker 3 (29:38):
But you never know.

Speaker 8 (29:38):
I mean at the end of the day. But China's
one part of our market. We have the premium part
of the market too that we also need to meet
their expectations.

Speaker 2 (29:45):
Are we getting bangs for our bucks with the money
you're investing on behalf of New Zealand farmers.

Speaker 8 (29:52):
Well we think we are. So I've heard some numbers around,
but you know, we've had one hundred and ninety one
million collectively invested in US or we'll have by the
end of next year, between the private and.

Speaker 4 (30:02):
The public sector.

Speaker 8 (30:04):
We've made fourteen investments so far across a range of
different tools, some in New Zealand, some offshore. The first
of those are expected to come to market in New
Zealand next year, and then we should see two or
three each year after that becoming available for New Zealand farmers.
Now those products will obviously be available in other markets
as well, and we know farmers and other markets are

(30:25):
looking to use technology, and some already are, as Frank said,
I mean in California, they're getting a bit ahead of
the game with the technology they are able to access.

Speaker 3 (30:34):
There.

Speaker 2 (30:34):
What do you say to people like me? Science alliterates
I left it behind? And the fifth form, what's that year?
Help me out here? We'll go with year eleven there, Wayne,
And I'm looking at these falling livestock numbers and I'm
thinking we're omitting less methane than we did in nineteen
ninety by a country mile. Why are we worried about methane? Man?

(30:58):
Burning fossil fuel is the problem?

Speaker 8 (31:00):
Command Beating fossil fuels certainly a problem, significant problem, and
a lot of works happening around the world to decarbonize
various industries. But in our case, you know, we're fifty
three percent of our missions come from agriculture. Methane is
a significant proportion of that. And I'll just bring you
back again, like the amount of methane per kilo of
milk or meat is what the customer is thinking about

(31:22):
the emission's intensity, and that's where their focus is. When
they buy milk or meat from us. You know what
emissions were produced in the production of that, and the
more we can do to reduce that, the better from
their perspective. And we are going to be able to
do it.

Speaker 3 (31:35):
I mean.

Speaker 8 (31:35):
The good thing is there will be things available for
farmers to use, and they they may choose not to
use them, and they may say they don't believe in
it or they don't want to focus in this area.
That's fine, but they will have options.

Speaker 2 (31:46):
Ultimately, will the market drive farmer behavior When there's a
premium for low emissions milk or meat, farmers will be
into it, boots and all.

Speaker 8 (31:55):
It's starting to happen now. We've seen the first of
it from Terra with its first announcements around incentives. We're
expecting the meat industry to have incentives as well over
the next couple of years, that's what we're hearing. And yeah,
and then farmers can make the choice. As I've said
on your show before, this is about giving farmers choice.
At the moment, there's not much they can do to
reduce emissions, and so I can understand why people get

(32:17):
upset about being asked to do so. But when these
things are available and they'll have the choice, and there'll
be different, different technologies, different ways of using them. We've got,
you know, most recently the investment we announced in who
print biome a second one. That's a technology that's looking
to reduce emissions but also improve efficiency of animals, so
better productivity by between five and eight percent. And if

(32:40):
you can get that with the same amount of feed, well,
that would be something I would have thought farmers would
be particularly interested in.

Speaker 2 (32:45):
Wayne mcneaeche, executive of Agri zero Z, look forward to
catching up at field days.

Speaker 3 (32:51):
Yeah.

Speaker 8 (32:51):
Great, thanks, and.

Speaker 2 (32:53):
As tan away from Moncha, you're getting stuck into wine
on the text machine. We'll try and get to some
of your feedback shortly, but up next she's waiting patiently.
Jen Corchoran from Rabobank, that's hot off the press from
Rabobank the May Egg Monthly Report. The author certainly of

(33:16):
the beef and sheep meat sections as Jen Corkran, Senior
Animal Proteins analyst, Jen. This must have been good fun
writing this positive report.

Speaker 9 (33:28):
Certainly good fun, Jamien, good, good afternoon to you. We
I was reflecting whilst writing is actually on the difference
in messages, you know, in the different and outlog that
we've got across read meat broadly versus this time last year.
And it was certainly good fun looking at the data
and just and seeing such a good news story there
in terms of our it's more returns than you know,

(33:51):
those returns getting returned to our New Zealand producers, which
is great new Well, well let's have a.

Speaker 2 (33:56):
Look at sheep. You know, this time a year ago
or last season, six bucks a kilo for lamb. Now
it's eight dollars or better. And no one picked this
rise and the rise continues. It scenes that we can't
produce enough lamb.

Speaker 9 (34:11):
Yeah, that's very much true. So we're seeing you know,
store lamb pricing as well as you know, so trying
to restock their peed X is also back at twenty
two levels and I think, you know, we've got this
interesting thing going on. So we've got tighter supplies globally
and we've got a more diverse range of export markets,

(34:31):
especially for lamb. So we've heard all these messages throughout
the year, but it's fair say no one's predicted the
pricing to be word of it now and the outlooks
certainly really strong for the rest of the season and
THENTO next season as well. Interestingly, the Australian lamb cross
is still really high at the moment, so obviously there
is great global demand because that competition's actually stored a

(34:54):
similar level to its last year at the moment.

Speaker 2 (34:56):
BIF record demand, record price doesn't look like easing. And
this is despite Trump's tariffs.

Speaker 9 (35:04):
Yes that is true, and record export earnings for beef
in the month of March, and that is quite remarkable really. Obviously,
the New Zealand dollar being weak here is helping that,
but that global demand being driven by the US is
the big thing here, and we just know that they're
going to continue to need that grinding beef and therefore

(35:26):
the demand is expected to remain. Of course, the tariffs
and what's going on with the reshuffling in global trade
is something that we'll watch, but it's looking like overall
that global supply of beef is down. In the demand
for particularly that New Zealand lenter and product, which is
rising all prices is going to continue.

Speaker 2 (35:44):
Hey, just perhaps a final comment, and I don't want
to be negative Nelly on this one, but we are
trumpeting these really good relative to last season lamb prices.
But you know, as any sheep farmer would tell you,
lamb needs to be ten bucks of kilo, not eight
dollars a kilo if they're really to make some meaningful
money and fight off the carbon farmer's gen.

Speaker 9 (36:07):
Yes, I one hundred percent agree Amy, These pricing increases
are returning to where they need to be, and I
think this still room to move upwards there in terms
of the cost structure that we see on farms too.
So one hundred percent agree somewhere close to ten dollars
will be a nice place to settle. So we'll keep
watching those prices, but certainly at the moment it's looking

(36:28):
that they were heading in the right direction, and the
fundamentals going into the next couple of years are also
indicating that the demand could remain quite strong. So we
will all be gunning for that double digit pay.

Speaker 2 (36:41):
Yeah, let's bring on ten dollars. Although the dairy farmers
might want eleven now, but certainly ten for beef and
lamb would be excellent. The key with fruit guys mightn't
like ten bucks. But all on all, it's all pretty positive.
All you need to do, Gen you can go away
and ponder this is how to get strong wall up
to ten dollars a kilo. I'll see you at field days.

Speaker 9 (37:00):
Your field days, Jamie. And wouldn't that pendola will price
be the.

Speaker 8 (37:03):
Icing on the cake?

Speaker 2 (37:05):
Absolutely, but I'm not holding my breath, thank you, jan
Look some of your feedback on Wayne McNee. Where do
I start New Zealand as carbon neutral as the country
national parks, all the forestry blocks in New Zealand, soil
carbon et cetera, et cetera, Jamie. The fact that our
sheep and cattle numbers have dropped significantly New Zealand should
be more than enough to offset our so called emissions period.

(37:26):
Another one. Just been down to Queenstown and overwhelmed by tourism. Yeah,
I was there last week. There's a bit of a
rat race. We came to the conclusion that tourism is
one hundred percent driven by fossil fuels. The lazy Hayes
over the town bears witness to that. From Chris, he's
an interesting one high team. What a crock of shit?

(37:47):
Can I say that?

Speaker 6 (37:47):
Yes?

Speaker 3 (37:47):
I have.

Speaker 2 (37:48):
Thirty years ago we were told that we needed to
be ISO accredited by the so called customers. Where is
that now? If we do the same with emissions, it'll
be another waste of time. So there's so many feedback.
We really appreciate it. We'll catch you back, same time,
same place tomorrow.

Speaker 1 (38:07):
Catch all the latest from the land. It's the Country
Podcast with Jamie McKay. Thanks to Frent You're specialist in
John Deere construction equipment.