May 20, 2025 • 38 mins
Jamie Mackay talks to Christopher Luxon, Richard Allen, Anna Nelson, Lucas Fuess, and James Denholm.
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Catch you're the latest from the land. It's the Country
Podcast with Jamie mckue. Thanks to Brent. You're specialist in
John Dee machinery.
Speaker 2 (00:24):
Get a New Zealand Welcome to the Country. I'm Jamie McKay.
The show's brought to you by Brant. No time to
waste today, We've got a full board for you. Going
to kick it off with the Prime Minister. Christopher Luxeen
caught up with them earlier this morning. Watson Tomorrow's budget
for farmers nothing. Probably maybe that's the way it should be.
(00:45):
Richard Allen out of Fonterra is Fonterra's president of Global
Markets Ingredients. Everyone has a good title, a long title
at the co op. Have a look at the last
GDT auction of the year and that was last night.
Anna Nelson out of Silver Fern Farm she had her
first AGM as the chair of the co op, Rob
(01:07):
Hewitt standing aside after serving the company for seventeen years.
We're going to talk to Lucas Fees who's based out
of Chicago with Rabobank. He's on a tour talking to
farmers with Emma Higgins from Rabobank, and we're going to
count down to field days three weeks to go. Today
with James Denham from Toyota and Army North Michelle. We'll
(01:31):
have the latest and rural and news for you as well,
and we'll update sport for you. No time to waste.
The Prime Minister up next Wednesdays on the Country. The
(01:55):
Prime Minister kicks off the show Christopher Lux and I
can see why Winston Peters is so to win an
argument against across the cabinet table. He didn't take any
nonsense from that clown with the lanyard yesterday. Is it
like that in Parliament?
Speaker 3 (02:09):
No?
Speaker 4 (02:09):
No, like Actually I really enjoy working with him. He's
got a lot of wisdom and he's been around a
long time, so he actually knows how work, which is
really great. But I thought that was, Yes, that was
a very interesting interlude, wasn't it yesterday.
Speaker 2 (02:22):
Well, you've got a busy life. You're juggling two balls,
once called winstont the other ones called David.
Speaker 4 (02:28):
Well, looking at this part of coalis and you know
our government and I think we've actually we're halfway through
the term. I think we've done a really good job
of doing something that's never been done before. In his
own politics, getting three parties to work together to give strong,
stable government. And that's what we're doing. And you know,
we've inherit a hell of a mess and we're turning
it around with the economy is getting stronger, which is fantastic.
And now we're setting up obviously for the budget on
(02:49):
Thursday tomorrow.
Speaker 2 (02:50):
Okay, budgets tomorrow. What's seeing the old days when I
first started out and broadcasting Prime Minister, I would ask
the Prime Minister of the day or the Minister of
Agriculture of the day, what's in the budget for farmers?
These days, farmers don't want anything. They just don't want
more red tape.
Speaker 4 (03:08):
Yeah, well that's right, and that's why we've been cutting
back some very restrictive rules over the lastly months. We
want much more flexible ability for farmers just to crack
on and get their things done and get their job done.
So but you know, again, what you're seeing is our
government that you know every day we've got to wake
up and actually to them and we're getting rid of
red tape that's just regulation that's not adding any value
or any benefit to farmers, to growers, to business people,
(03:31):
and make sure it's easier for them to actually invest
in their business and grow up.
Speaker 2 (03:35):
Well, Nikola willis have like a big top hat and
will she be pulling rabbits out of it tomorrow to
get some money? Because I'm interested to see how you're
going to do this.
Speaker 4 (03:45):
Well, it'll be revealed tomorrow. But you know, we've got
several things to do. One is to make sure that
we're investing in growth, and that means, you know, we
want businesses pumping, we want farmers pumping. You know, we
really want to be able to incentivize growth and make
sure that we get the country moving forward.
Speaker 2 (04:02):
Mystery Creek's coming up less than a month now. I
reckon this is just my opinion, and I said this
to Heather last night on Newstalks. Ed'd be I think
dairy conversions could be the topic dejure of the Field Days.
What do you think?
Speaker 4 (04:16):
Well, actually, I think I'm looking forward to Field Days.
I was speaking to the new director last night hanging over,
and I'm really quite excited about it. Actually, I've actually
been trying to encourage other leaders and agricultural ministers from
different countries that are visit to come down during field Days.
And I think going forward in the coming years will
make more of that to use it as a diplomatic
event as much as anything as well. But look, last
(04:38):
night I was with Halter, you know, and you think
about what they're doing to improve productivity, and you know,
just through using technology like das. Actually I spoke to
a number of farmers. I've visited a couple of those
farms where they've actually been able to add to their
herd because of more productive land juice. And I think,
you know, more productive lane and more flexibility of land
juice is kind of what's needed in order to get
(05:00):
more productivity and more return out of it.
Speaker 2 (05:02):
So more cows, but not more conversions.
Speaker 4 (05:05):
Well, ultimately, you know, if you think about the history
of the last one hundred and fifty years of how
land has moved from one purpose to another purpose, you know,
you think about going from sheep to beef to dairy
to kiwi fruit.
Speaker 2 (05:17):
To pine trees.
Speaker 4 (05:19):
Well, yeah, we'll stopping that obviously, But I mean the
bigger issue is sort of like, you know, you should
be able to flow where the biggest margin actually is,
and land should naturally sort of adapt to where where
that wants to get to. So you know, we've got
to make sure that we get rid of the restrictions
and the dumb stuff and the red tape on that.
Speaker 2 (05:34):
Now. I see Chloe Swarbrick had a crack at you
in the House, I think it was yesterday over this
critical part of the government's plan for cutting greenhouse scare
submissions over the next five years to meet our targets
by twenty thirty appears to have fallen over And this
is all about carbon capture and storing it underground at CAPERNI.
(05:55):
It's just there's no margin in it for Todd. Will
you be giving them a backhander in the budget?
Speaker 4 (06:01):
No, I mean those are decisions obviously for Todd to
work out whether they can I can't make it work,
that's up to them. But I just say to know,
other governments, other countries around the world are also, you know,
using carbon captures as a way of managing the emissions
component of it. And we think it's got a lot
of legs as well, just like every other country. And
so you know, the bottom line is we've got a plan.
(06:22):
You know, our ERP one is on track, our ERP
two is on track.
Speaker 3 (06:26):
Er P three.
Speaker 4 (06:27):
It's a little bit of work, but we know, you know,
there's got a lot of technologies and things that we
have in facts into our plans. You know, if you
think about it, from Terra is paying farmers more for
milk that's produced on farms for the missions lower than
I think twenty seventeen or twenty eighteen baselines, and that
hasn't been accounted for in our plans. So look, yeah,
there's some swims roundabouts through a plan obviously, but we're
quite confident. I mean, you know, we we're on track
(06:49):
for net zero twenty fifty and in fact, you know
some of the full cars say that we know we're
going to do that six year, could do that up
to six years earlier. So I mean know our plans
in place, and I appreciate close for what's got a
lot of different.
Speaker 5 (07:01):
Views of the world.
Speaker 2 (07:02):
She definitely has de.
Speaker 4 (07:03):
Growth and defunding the police and that's not something but
for either.
Speaker 2 (07:06):
And an inheritance tax, just like the Labor Party in
the UK.
Speaker 4 (07:09):
And in here it's okay, wealth text and exactly.
Speaker 2 (07:11):
That that would text that would destroy farming very quickly
to finish.
Speaker 4 (07:15):
On sorry Jamie, that's exactly what Labour will do as well. Okay,
all text and borrow more too.
Speaker 2 (07:20):
Just like the Greens, what happens if we don't meet
that targets? Do as we said, or as I discussed
with Heather last night, someone just gets the slap over
the risk with the wet bus ticket.
Speaker 4 (07:30):
Well, look, I mean the only the target that we're
committed to is next zero twenty fifty and as I said,
you know.
Speaker 2 (07:35):
We did sorry good step back a bit. So if
we don't meet twenty thirty, nothing happens.
Speaker 4 (07:39):
Well we're going to do We know that's a pre
stretching target. We're going to do everything we can to
try and hit it. But we're also not going to
send billions of dollars off shore. Let's be clear about that.
You know, we think the answers are on technology, not
through bankrupting farmers and sending billions off shit offshore.
Speaker 2 (07:53):
Good luck with the rabbits and the hats tomorrow and
the budget talk you next week.
Speaker 4 (07:57):
Thank Jamie, you have a great week.
Speaker 5 (07:59):
See.
Speaker 2 (07:59):
Yeah, it'll be interesting to see how they do balance
the books, or try to balance the books. They won't
be able to balance them tomorrow, but I think there
could be some conjuring with rabbits and top hats from
Nicholas be interesting. Lots of coverage tomorrow on News Talk,
said B. I think Heather who we were talking about,
Heather dupless L and of course is in the lock in,
(08:21):
I think, and then she's broadcasting live from there tomorrow
her show four to seven on News Talks zed B.
Now talking about emissions. Silverfern Farms had its AGM and
Dunedin yesterday and the chief executive, Dan Bolton, came out
and said basically, the market is demanding low emissions or
(08:45):
emissions reductions from New Zealand farmers. Has Silver Fern Farms
gone woke or has he got a fair argument there?
We will ask Anna Nelson, who is the cooperative chair.
She had her first. It was the first as chair
of the cooperative, remembering Rob Ewitt, He's literally on every
(09:07):
farmer's board in the country. Stepped aside after serving for
seventeen years as a director, many of those as a
chair or co chair. So we're going to chat to
Anna shortly, but up next Richard Allen from Fonterra. He
must be the only bloke left in the country because
I think most of the Fonterra teams in Shanghai at
(09:27):
a big food expo. We'll talk about that one next
and have a look at that last global dairy trade
auction for the season that happened last night. Final Global
(09:52):
dairy Trade auction of the farming season last night. Down
as predicted by some people anyhow, down zero point nine
percent holemet powder. I think down one percent all in all,
not a bad result. We have finished the season with
the wet sale. To tell us more about it from Fonterra,
he's not in Shanghai with the rest of the team,
(10:12):
as Richard Allen, who's the president of Global Markets Ingredients.
I love that title, Richard and always tease you about it.
But you did spend time recently in Chicago. Are you
missing America?
Speaker 3 (10:24):
Yeah?
Speaker 6 (10:25):
Look, I mean we loved our time up there. I think,
you know, it's a dynamic market. You know, the opportunities
we have up there as Daria or aments and you know,
continues to grow for us. But it's great to be back.
You know, we've we've had a good summer and all
in all, the you know, the global ingredients markets for
dari are pretty strong, so we've had a good six
months at home.
Speaker 2 (10:44):
I did allude to the fact that the team, some
of the Fonterra team anyhow, is up in Shanghai. And
I know that because I saw a picture on social
media of my correspondent Hunter McGregor having a quiet bear
with I think Henry Ackland, your PR guy who does
a good job, and with Riley Kennedy, one of our
team from Business Desk, who does an excellent job in
(11:05):
my mind covering the primary sector.
Speaker 6 (11:09):
Yeah, that's right. Big week in China this week it's
Bakery China and for our food service business in China,
which is our largest food service business around the world.
It really is a pre eminent event around I think
four hundred thousand people attend this event over four days.
It is massive. It is football fields of stands. We
have a pretty important position there and really that has,
(11:31):
I guess been the centerpiece of us taking dairy to
the Chinese food service market. And yeah, it's usually a
really successful event for us.
Speaker 2 (11:40):
You guys must be really pleased. In fact, the dairy
industry right across the board must be pleased. The way
the season has finished, I think above expectation. We know that,
for instance, you're sitting at ten dollars now. I think
at the end of this month, may the twenty ninth,
you announce your new season forecast. Will it begin with
the one Richard?
Speaker 6 (12:00):
Yeah, look, I won't won't steal the Big Bosses thunder
on that one. We'll come out with the new season
forecraft next week along with Q three results. But as
you say, it's been, it's been a really good season,
you know, across the board. You know, not often do
we get good commodity prices and good sort of demand
around the world, coupled with you know, some pretty decent
r rain across the country and some pretty good milk volumes. Right,
(12:22):
So we're happy with kind of how things have progressed
this season. I think last night's GUDT was another good
sign that, you know, there is still a good, strong
demand out there. Important we take this momentum, you know
going forward. You know, July is where we start to
see the new new season volumes start to come on,
and you know the volumes increase from here sort of
through through the next few months. So good momentum going forward. Obviously,
(12:46):
it's a very volatile world out there, you know, we
wake up every day and read the papers and figure
out what today's problem is to solve. But yeah, we're
very happy with kind of the season today and how
the markets are looking at the minute.
Speaker 2 (12:57):
So, as you said, next week we get the new
season four cast, I think we have to wait till
what September to figure out what we're going to get
paid for this season.
Speaker 6 (13:05):
Yeah, so we obviously will confirm that as part of
our annual results, and there's obviously quite a process as
we as we close the season, close the box and
then make sure those books are all tip top in
terms of auditors and all that. But as I said,
you know, we took some pretty good steps this year,
you know, including increasing our advanced rate to ensure that
we've got cash out on farm as soon as possible.
(13:27):
You know, we increased the December page January up to
eighty five percent, and that means that farmers have had
a lot more cash on farm earlier, and so you
know the impact of those retros is less.
Speaker 2 (13:36):
I think Fonterra deserves a nine out of ten for
the season. Even then, I might be a bit tough
on you. It's been very good and I don't think
your ten thousand farmer shareholders have too much to complain about.
Thanks for your time. We'll see you at field days.
Speaker 3 (13:50):
Great to show Jamie.
Speaker 6 (13:50):
We'll see you there.
Speaker 2 (13:52):
Twenty four after one. Thank you, Richard. Now talking about
farm and cooperatives. Up next, it's the turn of silver Farms.
If Fonterra's had a pretty good year. The dairy industries
had a pretty good year. Meat industry tougher year. Are
much tougher year for the process in companies. The farmers
are doing a bit better. Long over due too. But
(14:13):
up next Anna Nelson after yesterday's agm. She is the
chairwoman of silver Fern Farm's co Op. Have they gone woke?
Speaker 7 (14:22):
We'll ask her next.
Speaker 2 (14:45):
So we've talked about dairy farming, let's talk about red meat.
It was Anna Nelson's first AGM as the chair of
the silver Fern Farm's Cooperative yesterday here in Dunedin, and
Rob Hewitt's last with the company after serving seventeen years
as a director. Hey, there's a lady by the name
of Sally Ray who writes for the Otago Daily Times.
(15:06):
One of the few good ad journalists we have left
in this country. And Anna, she's written a really interesting
piece in today's edition and it's all about silver Fern
Farms and your focus on a mission's reduction being driven
by what customers in the markets want. Now there has
been criticism Anna, not from me, of course, from some
(15:27):
who are saying silver fern farms have gone a bit woke.
What do you say in your defense?
Speaker 5 (15:32):
Yeah, good a Jamie, good, good to catch up And yeah,
I thought that that was a great piece by Sally
Ray in our defense.
Speaker 3 (15:41):
In our defense.
Speaker 5 (15:41):
So we're really driven by what the higher paying customers
globally are wanting from their products that they're purchasing from us.
So they have a real driver to reduce emissions in
their supply chain, and our products and at our farmers
are part of the supply chain. So we if we
(16:04):
want to supply those customers, the high end customers, we
have to be taken into account and and acting on that.
Speaker 2 (16:11):
So hang on, and where's the premium for the lower
missions meet at the moment? Is it out there in
the market?
Speaker 5 (16:19):
Yeah, that there is absolutely only on small percentages one hundred,
That is correct, Jamie. But we have got customers increasingly
and pretty frequently right now, Whole Foods Costco International, big
customers that are coming to us with their demands and
they're actually talking to us about how they can help
(16:40):
fund changes on farmers supplies farms as well to meet
their requirements.
Speaker 2 (16:46):
Silver Fern Farms has invested over nine million and Agri
zero Enz, which is getting a bit of stick in
some quarters. You now have a shareholding of just under
eight percent. But to be fair to silver Fern Farms,
investment represented zero point one percent of total revenue. And
you guys are going on to say that about twenty
(17:08):
percent of your customers want this low emissions product. Is
the number really that high?
Speaker 5 (17:16):
Yeah, Well that's from Dan and the team executive team,
and we're seeing evidence of that at the board with
some really interesting reporting around the premiums that are available.
As I talked to before, so I don't have all
those details with me now, but yes, that is how
it is, and it's increasing. It's increasing really frequently, so
(17:38):
more customers from different countries to different markets EU UK,
there's a widespread move in this direction.
Speaker 2 (17:49):
Hey Anna, this is totally off the script, but I
was reading a story from the Southland Times from way
back in two thousand and nine involved a great friend
of mine is not very well at the moment at all,
and John Key had turned up at his farm in Riversdale,
and it was all about getting this super conglomerate meat
company two thousand and nine. This is and I think
(18:11):
it was when the Alliance Group and silver Fern Farms
were thinking of getting together and John Key was all
for it. Did we miss a trick back then? And
I know it predates you by a long.
Speaker 5 (18:23):
Way, does predate me potentially, we did miss a trick
back then. I think it's fair to say that plenty
of us in the industry are reflecting on that and why,
probably the reasons why it didn't happen in what we
can learn from that. But we have a lot less
livestock now than we did back then. Obviously we've reduced capacity,
(18:48):
but there is more hard work to do there. So Yeah,
firmly believe we need good competition pricing wise at the
farm gate, but there's a lot of room for us
in this industry to cooperate.
Speaker 2 (19:01):
Yeah, I was thinking, you guys as an industry must
look jealously at the dairy industry model. You know, Fonterra
the big strong player eighty percent of the market. But
then there's your open country dairies, your sin Lays, your
Westlands or whatever. Just to keep them honest absolutely.
Speaker 5 (19:18):
We need good, good competitive tension at the farm gate
one hundred percent, but the ability to cooperate much more,
particularly out of the market, is something they're I'm really
really determined to help see happen.
Speaker 2 (19:35):
Okay, just an in summary, then it's been a good
year or a good season for sheep and bee farmers
price wise, hasn't necessarily been a good year for the
meat processing companies for many reasons, including procurement pressures. If
you want, it's not going to get any easier because
we're losing, as you well know because you're a sheep
and bee farmer up in the king Country, we're losing
(19:56):
productive farming land to pine trees and land use change.
Speaker 4 (20:00):
Yeah, that's right.
Speaker 5 (20:01):
It's very confronting. Its confronting as farmers in our communities
where it's happening, and it's confronting for silverf and farms
as livestock numbers go down and as we head in
to the winter months the second half of the year particularly,
that's where we really feel it in the processing sector.
Speaker 2 (20:19):
Yeah. And the good news is for the farmers anyhow,
not necessarily for you, the prices look like they're going
to remain strong.
Speaker 5 (20:26):
Yeah, Look we've got great markets, are strong in the
next few years, are looking really positive, so that is
excellent and farmers can take real confidence out of that.
As processes, we've got some challenges to manage, but the
direction of travel with pricing and market and really those
(20:47):
supply demand dynamics globally is meaning that there's a really
positive story.
Speaker 3 (20:53):
At the moment.
Speaker 2 (20:54):
Ann and Nelson Code Chair where you're actually the cooperative
chair and code share of Silver fir and Farm Limited.
Thank you very much for your time today on the country.
Good to read Sally Ray's excellent work. Hello Sally, if
you're listening in the ODT. It's good that some journalists
and media were invited to the AGM. You realize that
in kN Keith Cooper's Diana, which predates you as well,
(21:16):
I would have been first on the invite list for
a cup of tea and a scone.
Speaker 5 (21:19):
Hey, it's noted, Jamie, noted. I did say to the
meeting yesterday, hold me to a couple of things, so
you can hold me to your invite for you scon
next year. In really cool Sally Ray, and I just
want to call out, you know. Note Rob Hewitt's seventeen
year contribution in moving on at dog Tacker Day. Thanks
(21:40):
Rob for all you've done.
Speaker 2 (21:41):
Good on you, Hey, Anna Nelson, I might catch up
with you at field Days. Thanks for your time.
Speaker 3 (21:46):
Sounds great you, Jammy.
Speaker 2 (21:48):
It is twenty six away from one. Thank you, Anna
shee some of your feedback. I need to pre read
some of this. I should actually get Michelle. Hello Michelle,
you've just wandered out in here. You need to censor
this for me and just send it to me so
I don't have to wade through all this. Mom Where
(22:10):
do I start? Oh? Here's one on Anna Anna Nelson,
a good North Canterbury girl and another famous veterinarian from
Cheviot or is it Cheviot? Another one saying Jamie, why
do I feel the lower mission scam is falling apart?
And that's from Jeff. Here's another one and I think
(22:30):
this is a bit of an issue to be honest.
This text says Luxon needs some speech training. He gabbles
too much without any pause, punctuation or expression in his voice.
Everything is said NonStop and the same monotonous tone, running
words and sentences into one another without any full stops.
He's hard to listen to and understand I he's much
(22:57):
I will tell he's much better than life than he
is in the media. Do you well, have you seen
him in real life yet?
Speaker 8 (23:04):
No, I've only met three politicians, I think.
Speaker 2 (23:07):
But he needs in my humble opinion, as someone who's
failed in the speaking business for more than thirty is,
I reckon he needs to stop with the cliched and
I should say this to him. Let me make this clear.
You know, we don't need that. They're just useless link words. Anyhow,
that's just my humble opinion on it. More silver fern,
(23:31):
I can't read that.
Speaker 9 (23:32):
One may read no.
Speaker 2 (23:33):
Look, we'll just ponder them. See I've got a higher
tolerance than you have for some of these texts. But anyhow,
the good, the good, the bad, and the ugly on
all sorts of feedback.
Speaker 5 (23:46):
So it was.
Speaker 2 (23:47):
Interesting and I threw it at Anna completely off the
script about this old story in the Southland Times from
two thousand and nine, and I hadn't realized or it
just reminded me of a time when the meat industry
had an option to get the two biggest players together,
and even Anna admitted, maybe they've lost a trick by
(24:08):
not doing that. I think the meat industry must look,
as I said to Anna jealously, at the structure in
the dairy industry. It just seems to be a week
bit better or even better. Look at Zespriy. Look what
they're doing. Maybe a single desk sealer who knows up
next rural news and sports news before the end of
the hour, Lucas fees, I hope that's how you pronounce
(24:30):
his name from Rabobank. He's from Chicago, but he's in
New Zealand at the moment. And a bloke from Palmi North.
What's Toyota up to a field days? Three weeks to goo,
three sleeps, three sleeps, make that twenty one sleeps to
go until field days getting underway at Mystery Creek June
eleven to fourteen. Welcome back to the country. Some more
(25:10):
of your texts coming through. You're all fired up there
out there in radio land. Have silver fern farms gone woke?
Question mark? Question mark? Question mark. Let's start with them
having a cupcake day for all staff nationally to promote
diversity in the workplace. I hate to think what that
costs the farmers, just saying says the text. See I
(25:32):
don't know if it was if it was a cupcake day,
and I should ask the team at silver Fern Farms.
If it was a cupcake day and you brought your
own cupcake along, that's fine. But I'm with the Texter.
If the co op played paid for all the cupcakes
for diversity Day, I think that's a waste of money
(25:54):
as well. Do we have diversity days here?
Speaker 8 (25:57):
Not that I know, but like we're mostly women, as
you pointed out, So just be the four of you
bringing stuff for diversity day for.
Speaker 2 (26:03):
Me now, number here. There's plenty of diversity here. Seriously,
the women, the two top dogs, I won't say that.
I mean the two top people in our building are women.
So they're running the place. We don't need a diversity
day and bringing along cupcakes. I think that would be
a golf day for me. I'm not really into diversity days.
I just say let people be employed or elected on
(26:26):
their merit. Here's a novel idea, Here's the latest and
rural news.
Speaker 1 (26:30):
What the Country's world news with Cob Cadet, New Zealand's
leading right on lawn bower Bread, visit steel for dot co,
dot nzid for your locals, Doggist, and it's.
Speaker 8 (26:40):
Time to mark your diaries for the annual Read Meat
Sector Conference hosted by the Meat Industry Association. This year
is the fortieth anniversary of the event, and it's being
held in christ Church on the twenty first and twenty
second of July. It's hard to believe that's come around
so quickly. Again. I had to look twice at that
media release in my inbox, and just some fun facts
for you, Jamie about this bakery China thing. So I
(27:02):
had Henry Acland texting me and sending messages pretty much
all night last night about this and photos and all
sorts of coose.
Speaker 2 (27:08):
I think, oh, Henry might have been on the terps.
Was he with Hunter McGregor and Riley Kennedy our man
from business desk.
Speaker 8 (27:14):
Might have been the wrong I don't know what the
time difference is over. I have to have a look
at that, but we've got a great photo on our
Facebook four hours.
Speaker 2 (27:20):
They're about four hours behind us.
Speaker 8 (27:22):
But some fun facts the show there, this is mind blowing,
actually gets more people through the doors than the entire
population of christ Church on the days that it's running.
It is insane, Like that's hard to believe a venue
that big there.
Speaker 2 (27:35):
You go everything you wanted to know about the bakery day.
I wonder if they do cupcakes at that I suppose
they do.
Speaker 8 (27:41):
Sounds like they do. I saw patches of cupcakes.
Speaker 2 (27:43):
Yeah.
Speaker 1 (27:44):
Sport with a fco Kiwi to the bone since nineteen
oh four.
Speaker 2 (27:49):
Sometimes I think the modern workplace has passed me by.
Have I done the sports liner? I've played it, haven't
I yes? An admission I have, haven't?
Speaker 3 (27:58):
I yes?
Speaker 2 (27:59):
I was just looking at some of your texts at
admission from Super Rugby officials that the refereeing panel made
a mistake disallowing a Mowana pacifica a try to Millennium
SNA reve in their victory over the Blues last weekend.
A try it can only be overturned if there is
an infringement in the final attacking passage of play, but
(28:19):
they went back for a foot in touch earlier. The
NFL's thirty two owners have voted to allow their charges
to take part in flag football at the twenty twenty
eight Olympics, and Manchester City football captain Kevin de Bruyne
has farewell home fans as a side moved to third
(28:41):
in the Premier League Ladder with a three to one
win over Bournemouth. That's your sports news. Up next, Lucas
Fees from Rabobank out of Where's he from Chicago? So
you've heard from Richard Allen, Fonterra's President of Global Markets Ingredients.
(29:06):
What an americanized sort of title that is. I'm going
to stick with the US theme because now I'm going
to chat to a guy by the name of Lucas Fees.
He is a senior dairy analyst Rabobank. He's based out
of Chicago, where Richard used to be based. Did you
two come across each other in a past life by anyway, Lucas,
(29:26):
good afternoon.
Speaker 3 (29:27):
By the way, good afternoon, Thanks for having me. I
spent a little bit of time in that Fonterra Chicago office.
I think reflective of Fonterra's global presence, no doubt. I
think I have Matt Richard in the past. But there's
a big office of Fonterra crew there.
Speaker 2 (29:44):
So there are a lot of Fonterra people around the world.
You are spending time with one of my favorite people
at Rabobank, Emma Higgins. She's very smart. She's the dairy
analyst at Rabobank. You're on a bit of a road
show around the country. What are you telling New Zealand farmers.
Speaker 3 (29:59):
That's right, I essentially on Emma's Global dairy team with
Rebel Bank investing heavily in the research side of things.
But yeah, here in New Zealand this week talking about
where the US is looking to go in terms of
a dairy and one of the major themes key to
our conversations right now is typically when we consider the
(30:22):
global dairy market, key exporting countries New Zealand, of course,
the US the EU are usually relatively in price alignment,
but we've seen some softer pricing from the US over
the past few months versus the rest of the world
on most products, I think it's safe to say, but
especially on the fat side of things, something like butter.
Two key drivers there that I'm seeing. US milk production
(30:46):
has returned to steady growth so far this year, one
of the few, if only, key exporting regions where we're
seeing that milk production growth, So plenty of supply coming
out of the US right now. And then also, of
course the trade and care escalation that we've seen some
concerns about the ability of US exporters to move product
(31:06):
overseas to foreign buyers, some buyers typically buying multi month contracts,
pulling back a little bit and buying more hand to mouth.
So between higher supply and questions about exports in the US,
we are quite price competitive on a global scale right now.
Speaker 2 (31:22):
LOOKUS phase with US from Rabobank out of Chicago. Final
question for you, this isn't strictly a dairy question, but
I know you're doing the road shows with Emma Higgins
who's an expert in the field and not only dairy
but also red mate the US beef cattle numbers, how
long will it take them to build them up again?
Speaker 3 (31:42):
It's we've certainly worked ourselves into kind of a structural
issue here where it will be a little bit challenging
to rebuild the herd. But we do think that twenty
twenty five will be the low for beef slaughter rates
in the US. We expect a bit of recovery into
the coming years, but it's not something that's going to
be fixed in the very near term. It will be
(32:03):
several years before we get back to anything that resembles
some semblance of normalcy around that beef production rate in
the US overall, though very good news for dairy farmers.
There is a significant revenue draw from beef on dairy
cross calves of breeding your dairy cows to beef bowls
(32:24):
and of course eliminating the ability of that calf to
join the dairy stream, joining the beef stream instead. Several
hundred dollars. Several hundred US dollars is what a beef
on dairy cross calf is worth in the US right now.
Very significant revenue for an animal that's a few days
old versus one that you have to feed for two
(32:44):
years before you can see any revenue from her. So
interesting things happening on beef, but positive trends for dairy
farmers who can tap into that revenue.
Speaker 2 (32:54):
Locas Sice out of Rabi Bank, Adam, Chicago, Thanks you too.
I'm enjoy the risky sty in God's eye.
Speaker 3 (33:00):
Good here, Thanks for having me.
Speaker 2 (33:02):
It is ten away from one year with the country.
Lots of feedback coming in and the cart sales have
been and gone, the beef carf sales I'm talking about
here and the bee the beef ball sales are on now.
Big money forty two thousand paid for a cimentale bull.
And I'll try and update some of those other numbers
that are being paid for beef genetics out there at
(33:26):
the moment. Look as you as you heard them say,
they're going to take away while to rebuild the herd
still in the US. So the prospects for beef, you
would have to say, look really good, certainly for the
next couple of years. Up next, we're starting off in
a way I countdown to field days. We're heading to
(33:46):
Palme North, only three weeks to go, twenty one sleeps
or is it twenty? Farmy North, the farming capital of
the country. Along with Fielding, our next porter call on
(34:09):
the country. There we find James Denham from Toyota. It's
great the Toyota bases itself out of Parmy North. James,
I want to give you some farming cred here. I
know you're not a farmer, but you're married to a
dairy farmer. Good afternoon, get it, Jamie.
Speaker 3 (34:23):
How's it going?
Speaker 2 (34:24):
Talk to me about what Toyota's up to at field days?
Three weeks to go? So just three weeks, and I
guess the barometer of how successful field days will be
because I was talking to a guy from Blue Wing
HONDI is that I actually about it and was tract
to sales, ute sales and of course four wheeler and
(34:44):
quad bike sales. How do you reckon Toyota's going to
go this year?
Speaker 9 (34:48):
Obviously pretty damn Well. We've got plenty of product here
to check out, accessories all over those products, and some
good deals to go with it, so that it stacks
up for a pretty nice offering.
Speaker 2 (34:58):
Well, you've got a good rural ambassador in Wayne length
of the old president of Federated Farmers.
Speaker 9 (35:04):
Yeah. Yeah, absolutely, It's not the only one either. We've
got a wide range of ambassadors who are all there
to chitchat with people on the day and sip over
a few coffees at the same time, including Dame val Adams.
Speaker 2 (35:15):
I'm a wee bit intimidated by her, to be perfectly honest,
and Matt Watson, the fishing guru. I for my sins,
not sins at all, James. I'm driving around to Toyota
high Lux Hybrid. They're kind of a hybrid and name only.
And I know there's a bit of misconception in the
market about whether you need a plug in for your
hybrid or whether it loses a bit of power, but
(35:36):
an actual fact All it gives you is a bit
more fuel economy and when you put your foot on
the throttle a bit more get up and go.
Speaker 3 (35:44):
You're on the money. I don't know what else they
have Dad to that, Jamie, you've crushed it.
Speaker 9 (35:47):
Yeah, absolutely realistically, a bit of extra takeoff on the mark,
the same waiting depth. The big thing we pushed in
making sure everyone can obviously understand is you can still
tell you three and a half ton and we've had
some pretty neat activations of the big old trailer tracking
around the country to showcase.
Speaker 3 (36:03):
That over the course of the year as well.
Speaker 2 (36:04):
Everyone knows you go to field days to get a deal.
What's Toyota coming up with for us?
Speaker 9 (36:09):
We've got a highlights offering across the whole range this
year as well as that, it'll be across some models
of the lankrus of seventy series. What that is for
us at the moment is two five hundred dollars worth
of accessories, or you could get a three point five
percent finance rate, which is pretty attractive in the market
at the moment. Obviously, all those usual lending criteria season
seas apply well.
Speaker 2 (36:30):
If you get two and a half grand of accessories, James,
you'd have to go with the bull bar, wouldn't you.
Speaker 9 (36:35):
Oh, there's plenty you can chuck on that, and I
think that's the whole point. You'll see a host of
things that you can chuck on those highlights when you
come on down to the side and check it out.
Speaker 2 (36:42):
Yeah, good stuff. Hey, looking forward to catching up with
you and the team from Toyota. I think Yolo, Wayne
Langford and myself are doing a week activation for you
one afternoon. I won't get a word in, but I'm
looking forward to spending some time with him at the
Toyota site. I'll look forward to meeting you in person then, James,
good luck on the dairy farm. Not you, but your
(37:02):
wife and the manor are two there. How's the season going.
Speaker 9 (37:05):
I believe it's going pretty good. Things are pretty desperate
if I ever have to get anywhere near the milk,
and said, that's for sure. But Na, it was a
dry summer. But it sounds like things attrack the pretty
well towards in the season for them at the moment.
Speaker 2 (37:14):
Good stuff. See at field days.
Speaker 5 (37:16):
We'll do.
Speaker 2 (37:17):
Look forward to Jamie, Yeah, look forward to it. James.
James Denham out of Toyota out of Parmy North, and
it is good that they base themselves in Palmi North
rather than Auckland. Regarding the emissions reductions, blah blah blah
blah blah. Customers may be demanding it, but not consumers
(37:39):
techs DR. They are simply greenwashing their own distribution systems
and making themselves look good. It's a real debate amongst
farming and farmers lower missions. And you know when we're
talking to lux and about the inability to do the
carbon capture and storage and chuck it underground at kap
(38:00):
any interesting times and as we said, what happens if
we don't meet the targets in twenty thirty? Guess what
at this stage? Nothing? Catch you tomorrow, Budget Day.
Speaker 1 (38:15):
Catch all the latest from the land. It's The Country
Podcast with Jamie McKay. Thanks to Brent, You're specialist in
John Deere construction equipment.
Catch you're the latest from the land. It's the Country
Podcast with Jamie mckue. Thanks to Brent. You're specialist in
John Dee machinery.
Speaker 2 (00:24):
Get a New Zealand Welcome to the Country. I'm Jamie McKay.
The show's brought to you by Brant. No time to
waste today, We've got a full board for you. Going
to kick it off with the Prime Minister. Christopher Luxeen
caught up with them earlier this morning. Watson Tomorrow's budget
for farmers nothing. Probably maybe that's the way it should be.
(00:45):
Richard Allen out of Fonterra is Fonterra's president of Global
Markets Ingredients. Everyone has a good title, a long title
at the co op. Have a look at the last
GDT auction of the year and that was last night.
Anna Nelson out of Silver Fern Farm she had her
first AGM as the chair of the co op, Rob
(01:07):
Hewitt standing aside after serving the company for seventeen years.
We're going to talk to Lucas Fees who's based out
of Chicago with Rabobank. He's on a tour talking to
farmers with Emma Higgins from Rabobank, and we're going to
count down to field days three weeks to go. Today
with James Denham from Toyota and Army North Michelle. We'll
(01:31):
have the latest and rural and news for you as well,
and we'll update sport for you. No time to waste.
The Prime Minister up next Wednesdays on the Country. The
(01:55):
Prime Minister kicks off the show Christopher Lux and I
can see why Winston Peters is so to win an
argument against across the cabinet table. He didn't take any
nonsense from that clown with the lanyard yesterday. Is it
like that in Parliament?
Speaker 3 (02:09):
No?
Speaker 4 (02:09):
No, like Actually I really enjoy working with him. He's
got a lot of wisdom and he's been around a
long time, so he actually knows how work, which is
really great. But I thought that was, Yes, that was
a very interesting interlude, wasn't it yesterday.
Speaker 2 (02:22):
Well, you've got a busy life. You're juggling two balls,
once called winstont the other ones called David.
Speaker 4 (02:28):
Well, looking at this part of coalis and you know
our government and I think we've actually we're halfway through
the term. I think we've done a really good job
of doing something that's never been done before. In his
own politics, getting three parties to work together to give strong,
stable government. And that's what we're doing. And you know,
we've inherit a hell of a mess and we're turning
it around with the economy is getting stronger, which is fantastic.
And now we're setting up obviously for the budget on
(02:49):
Thursday tomorrow.
Speaker 2 (02:50):
Okay, budgets tomorrow. What's seeing the old days when I
first started out and broadcasting Prime Minister, I would ask
the Prime Minister of the day or the Minister of
Agriculture of the day, what's in the budget for farmers?
These days, farmers don't want anything. They just don't want
more red tape.
Speaker 4 (03:08):
Yeah, well that's right, and that's why we've been cutting
back some very restrictive rules over the lastly months. We
want much more flexible ability for farmers just to crack
on and get their things done and get their job done.
So but you know, again, what you're seeing is our
government that you know every day we've got to wake
up and actually to them and we're getting rid of
red tape that's just regulation that's not adding any value
or any benefit to farmers, to growers, to business people,
(03:31):
and make sure it's easier for them to actually invest
in their business and grow up.
Speaker 2 (03:35):
Well, Nikola willis have like a big top hat and
will she be pulling rabbits out of it tomorrow to
get some money? Because I'm interested to see how you're
going to do this.
Speaker 4 (03:45):
Well, it'll be revealed tomorrow. But you know, we've got
several things to do. One is to make sure that
we're investing in growth, and that means, you know, we
want businesses pumping, we want farmers pumping. You know, we
really want to be able to incentivize growth and make
sure that we get the country moving forward.
Speaker 2 (04:02):
Mystery Creek's coming up less than a month now. I
reckon this is just my opinion, and I said this
to Heather last night on Newstalks. Ed'd be I think
dairy conversions could be the topic dejure of the Field Days.
What do you think?
Speaker 4 (04:16):
Well, actually, I think I'm looking forward to Field Days.
I was speaking to the new director last night hanging over,
and I'm really quite excited about it. Actually, I've actually
been trying to encourage other leaders and agricultural ministers from
different countries that are visit to come down during field Days.
And I think going forward in the coming years will
make more of that to use it as a diplomatic
event as much as anything as well. But look, last
(04:38):
night I was with Halter, you know, and you think
about what they're doing to improve productivity, and you know,
just through using technology like das. Actually I spoke to
a number of farmers. I've visited a couple of those
farms where they've actually been able to add to their
herd because of more productive land juice. And I think,
you know, more productive lane and more flexibility of land
juice is kind of what's needed in order to get
(05:00):
more productivity and more return out of it.
Speaker 2 (05:02):
So more cows, but not more conversions.
Speaker 4 (05:05):
Well, ultimately, you know, if you think about the history
of the last one hundred and fifty years of how
land has moved from one purpose to another purpose, you know,
you think about going from sheep to beef to dairy
to kiwi fruit.
Speaker 2 (05:17):
To pine trees.
Speaker 4 (05:19):
Well, yeah, we'll stopping that obviously, But I mean the
bigger issue is sort of like, you know, you should
be able to flow where the biggest margin actually is,
and land should naturally sort of adapt to where where
that wants to get to. So you know, we've got
to make sure that we get rid of the restrictions
and the dumb stuff and the red tape on that.
Speaker 2 (05:34):
Now. I see Chloe Swarbrick had a crack at you
in the House, I think it was yesterday over this
critical part of the government's plan for cutting greenhouse scare
submissions over the next five years to meet our targets
by twenty thirty appears to have fallen over And this
is all about carbon capture and storing it underground at CAPERNI.
(05:55):
It's just there's no margin in it for Todd. Will
you be giving them a backhander in the budget?
Speaker 4 (06:01):
No, I mean those are decisions obviously for Todd to
work out whether they can I can't make it work,
that's up to them. But I just say to know,
other governments, other countries around the world are also, you know,
using carbon captures as a way of managing the emissions
component of it. And we think it's got a lot
of legs as well, just like every other country. And
so you know, the bottom line is we've got a plan.
(06:22):
You know, our ERP one is on track, our ERP
two is on track.
Speaker 3 (06:26):
Er P three.
Speaker 4 (06:27):
It's a little bit of work, but we know, you know,
there's got a lot of technologies and things that we
have in facts into our plans. You know, if you
think about it, from Terra is paying farmers more for
milk that's produced on farms for the missions lower than
I think twenty seventeen or twenty eighteen baselines, and that
hasn't been accounted for in our plans. So look, yeah,
there's some swims roundabouts through a plan obviously, but we're
quite confident. I mean, you know, we we're on track
(06:49):
for net zero twenty fifty and in fact, you know
some of the full cars say that we know we're
going to do that six year, could do that up
to six years earlier. So I mean know our plans
in place, and I appreciate close for what's got a
lot of different.
Speaker 5 (07:01):
Views of the world.
Speaker 2 (07:02):
She definitely has de.
Speaker 4 (07:03):
Growth and defunding the police and that's not something but
for either.
Speaker 2 (07:06):
And an inheritance tax, just like the Labor Party in
the UK.
Speaker 4 (07:09):
And in here it's okay, wealth text and exactly.
Speaker 2 (07:11):
That that would text that would destroy farming very quickly
to finish.
Speaker 4 (07:15):
On sorry Jamie, that's exactly what Labour will do as well. Okay,
all text and borrow more too.
Speaker 2 (07:20):
Just like the Greens, what happens if we don't meet
that targets? Do as we said, or as I discussed
with Heather last night, someone just gets the slap over
the risk with the wet bus ticket.
Speaker 4 (07:30):
Well, look, I mean the only the target that we're
committed to is next zero twenty fifty and as I said,
you know.
Speaker 2 (07:35):
We did sorry good step back a bit. So if
we don't meet twenty thirty, nothing happens.
Speaker 4 (07:39):
Well we're going to do We know that's a pre
stretching target. We're going to do everything we can to
try and hit it. But we're also not going to
send billions of dollars off shore. Let's be clear about that.
You know, we think the answers are on technology, not
through bankrupting farmers and sending billions off shit offshore.
Speaker 2 (07:53):
Good luck with the rabbits and the hats tomorrow and
the budget talk you next week.
Speaker 4 (07:57):
Thank Jamie, you have a great week.
Speaker 5 (07:59):
See.
Speaker 2 (07:59):
Yeah, it'll be interesting to see how they do balance
the books, or try to balance the books. They won't
be able to balance them tomorrow, but I think there
could be some conjuring with rabbits and top hats from
Nicholas be interesting. Lots of coverage tomorrow on News Talk,
said B. I think Heather who we were talking about,
Heather dupless L and of course is in the lock in,
(08:21):
I think, and then she's broadcasting live from there tomorrow
her show four to seven on News Talks zed B.
Now talking about emissions. Silverfern Farms had its AGM and
Dunedin yesterday and the chief executive, Dan Bolton, came out
and said basically, the market is demanding low emissions or
(08:45):
emissions reductions from New Zealand farmers. Has Silver Fern Farms
gone woke or has he got a fair argument there?
We will ask Anna Nelson, who is the cooperative chair.
She had her first. It was the first as chair
of the cooperative, remembering Rob Ewitt, He's literally on every
(09:07):
farmer's board in the country. Stepped aside after serving for
seventeen years as a director, many of those as a
chair or co chair. So we're going to chat to
Anna shortly, but up next Richard Allen from Fonterra. He
must be the only bloke left in the country because
I think most of the Fonterra teams in Shanghai at
(09:27):
a big food expo. We'll talk about that one next
and have a look at that last global dairy trade
auction for the season that happened last night. Final Global
(09:52):
dairy Trade auction of the farming season last night. Down
as predicted by some people anyhow, down zero point nine
percent holemet powder. I think down one percent all in all,
not a bad result. We have finished the season with
the wet sale. To tell us more about it from Fonterra,
he's not in Shanghai with the rest of the team,
(10:12):
as Richard Allen, who's the president of Global Markets Ingredients.
I love that title, Richard and always tease you about it.
But you did spend time recently in Chicago. Are you
missing America?
Speaker 3 (10:24):
Yeah?
Speaker 6 (10:25):
Look, I mean we loved our time up there. I think,
you know, it's a dynamic market. You know, the opportunities
we have up there as Daria or aments and you know,
continues to grow for us. But it's great to be back.
You know, we've we've had a good summer and all
in all, the you know, the global ingredients markets for
dari are pretty strong, so we've had a good six
months at home.
Speaker 2 (10:44):
I did allude to the fact that the team, some
of the Fonterra team anyhow, is up in Shanghai. And
I know that because I saw a picture on social
media of my correspondent Hunter McGregor having a quiet bear
with I think Henry Ackland, your PR guy who does
a good job, and with Riley Kennedy, one of our
team from Business Desk, who does an excellent job in
(11:05):
my mind covering the primary sector.
Speaker 6 (11:09):
Yeah, that's right. Big week in China this week it's
Bakery China and for our food service business in China,
which is our largest food service business around the world.
It really is a pre eminent event around I think
four hundred thousand people attend this event over four days.
It is massive. It is football fields of stands. We
have a pretty important position there and really that has,
(11:31):
I guess been the centerpiece of us taking dairy to
the Chinese food service market. And yeah, it's usually a
really successful event for us.
Speaker 2 (11:40):
You guys must be really pleased. In fact, the dairy
industry right across the board must be pleased. The way
the season has finished, I think above expectation. We know that,
for instance, you're sitting at ten dollars now. I think
at the end of this month, may the twenty ninth,
you announce your new season forecast. Will it begin with
the one Richard?
Speaker 6 (12:00):
Yeah, look, I won't won't steal the Big Bosses thunder
on that one. We'll come out with the new season
forecraft next week along with Q three results. But as
you say, it's been, it's been a really good season,
you know, across the board. You know, not often do
we get good commodity prices and good sort of demand
around the world, coupled with you know, some pretty decent
r rain across the country and some pretty good milk volumes. Right,
(12:22):
So we're happy with kind of how things have progressed
this season. I think last night's GUDT was another good
sign that, you know, there is still a good, strong
demand out there. Important we take this momentum, you know
going forward. You know, July is where we start to
see the new new season volumes start to come on,
and you know the volumes increase from here sort of
through through the next few months. So good momentum going forward. Obviously,
(12:46):
it's a very volatile world out there, you know, we
wake up every day and read the papers and figure
out what today's problem is to solve. But yeah, we're
very happy with kind of the season today and how
the markets are looking at the minute.
Speaker 2 (12:57):
So, as you said, next week we get the new
season four cast, I think we have to wait till
what September to figure out what we're going to get
paid for this season.
Speaker 6 (13:05):
Yeah, so we obviously will confirm that as part of
our annual results, and there's obviously quite a process as
we as we close the season, close the box and
then make sure those books are all tip top in
terms of auditors and all that. But as I said,
you know, we took some pretty good steps this year,
you know, including increasing our advanced rate to ensure that
we've got cash out on farm as soon as possible.
(13:27):
You know, we increased the December page January up to
eighty five percent, and that means that farmers have had
a lot more cash on farm earlier, and so you
know the impact of those retros is less.
Speaker 2 (13:36):
I think Fonterra deserves a nine out of ten for
the season. Even then, I might be a bit tough
on you. It's been very good and I don't think
your ten thousand farmer shareholders have too much to complain about.
Thanks for your time. We'll see you at field days.
Speaker 3 (13:50):
Great to show Jamie.
Speaker 6 (13:50):
We'll see you there.
Speaker 2 (13:52):
Twenty four after one. Thank you, Richard. Now talking about
farm and cooperatives. Up next, it's the turn of silver Farms.
If Fonterra's had a pretty good year. The dairy industries
had a pretty good year. Meat industry tougher year. Are
much tougher year for the process in companies. The farmers
are doing a bit better. Long over due too. But
(14:13):
up next Anna Nelson after yesterday's agm. She is the
chairwoman of silver Fern Farm's co Op. Have they gone woke?
Speaker 7 (14:22):
We'll ask her next.
Speaker 2 (14:45):
So we've talked about dairy farming, let's talk about red meat.
It was Anna Nelson's first AGM as the chair of
the silver Fern Farm's Cooperative yesterday here in Dunedin, and
Rob Hewitt's last with the company after serving seventeen years
as a director. Hey, there's a lady by the name
of Sally Ray who writes for the Otago Daily Times.
(15:06):
One of the few good ad journalists we have left
in this country. And Anna, she's written a really interesting
piece in today's edition and it's all about silver Fern
Farms and your focus on a mission's reduction being driven
by what customers in the markets want. Now there has
been criticism Anna, not from me, of course, from some
(15:27):
who are saying silver fern farms have gone a bit woke.
What do you say in your defense?
Speaker 5 (15:32):
Yeah, good a Jamie, good, good to catch up And yeah,
I thought that that was a great piece by Sally
Ray in our defense.
Speaker 3 (15:41):
In our defense.
Speaker 5 (15:41):
So we're really driven by what the higher paying customers
globally are wanting from their products that they're purchasing from us.
So they have a real driver to reduce emissions in
their supply chain, and our products and at our farmers
are part of the supply chain. So we if we
(16:04):
want to supply those customers, the high end customers, we
have to be taken into account and and acting on that.
Speaker 2 (16:11):
So hang on, and where's the premium for the lower
missions meet at the moment? Is it out there in
the market?
Speaker 5 (16:19):
Yeah, that there is absolutely only on small percentages one hundred,
That is correct, Jamie. But we have got customers increasingly
and pretty frequently right now, Whole Foods Costco International, big
customers that are coming to us with their demands and
they're actually talking to us about how they can help
(16:40):
fund changes on farmers supplies farms as well to meet
their requirements.
Speaker 2 (16:46):
Silver Fern Farms has invested over nine million and Agri
zero Enz, which is getting a bit of stick in
some quarters. You now have a shareholding of just under
eight percent. But to be fair to silver Fern Farms,
investment represented zero point one percent of total revenue. And
you guys are going on to say that about twenty
(17:08):
percent of your customers want this low emissions product. Is
the number really that high?
Speaker 5 (17:16):
Yeah, Well that's from Dan and the team executive team,
and we're seeing evidence of that at the board with
some really interesting reporting around the premiums that are available.
As I talked to before, so I don't have all
those details with me now, but yes, that is how
it is, and it's increasing. It's increasing really frequently, so
(17:38):
more customers from different countries to different markets EU UK,
there's a widespread move in this direction.
Speaker 2 (17:49):
Hey Anna, this is totally off the script, but I
was reading a story from the Southland Times from way
back in two thousand and nine involved a great friend
of mine is not very well at the moment at all,
and John Key had turned up at his farm in Riversdale,
and it was all about getting this super conglomerate meat
company two thousand and nine. This is and I think
(18:11):
it was when the Alliance Group and silver Fern Farms
were thinking of getting together and John Key was all
for it. Did we miss a trick back then? And
I know it predates you by a long.
Speaker 5 (18:23):
Way, does predate me potentially, we did miss a trick
back then. I think it's fair to say that plenty
of us in the industry are reflecting on that and why,
probably the reasons why it didn't happen in what we
can learn from that. But we have a lot less
livestock now than we did back then. Obviously we've reduced capacity,
(18:48):
but there is more hard work to do there. So Yeah,
firmly believe we need good competition pricing wise at the
farm gate, but there's a lot of room for us
in this industry to cooperate.
Speaker 2 (19:01):
Yeah, I was thinking, you guys as an industry must
look jealously at the dairy industry model. You know, Fonterra
the big strong player eighty percent of the market. But
then there's your open country dairies, your sin Lays, your
Westlands or whatever. Just to keep them honest absolutely.
Speaker 5 (19:18):
We need good, good competitive tension at the farm gate
one hundred percent, but the ability to cooperate much more,
particularly out of the market, is something they're I'm really
really determined to help see happen.
Speaker 2 (19:35):
Okay, just an in summary, then it's been a good
year or a good season for sheep and bee farmers
price wise, hasn't necessarily been a good year for the
meat processing companies for many reasons, including procurement pressures. If
you want, it's not going to get any easier because
we're losing, as you well know because you're a sheep
and bee farmer up in the king Country, we're losing
(19:56):
productive farming land to pine trees and land use change.
Speaker 4 (20:00):
Yeah, that's right.
Speaker 5 (20:01):
It's very confronting. Its confronting as farmers in our communities
where it's happening, and it's confronting for silverf and farms
as livestock numbers go down and as we head in
to the winter months the second half of the year particularly,
that's where we really feel it in the processing sector.
Speaker 2 (20:19):
Yeah. And the good news is for the farmers anyhow,
not necessarily for you, the prices look like they're going
to remain strong.
Speaker 5 (20:26):
Yeah, Look we've got great markets, are strong in the
next few years, are looking really positive, so that is
excellent and farmers can take real confidence out of that.
As processes, we've got some challenges to manage, but the
direction of travel with pricing and market and really those
(20:47):
supply demand dynamics globally is meaning that there's a really
positive story.
Speaker 3 (20:53):
At the moment.
Speaker 2 (20:54):
Ann and Nelson Code Chair where you're actually the cooperative
chair and code share of Silver fir and Farm Limited.
Thank you very much for your time today on the country.
Good to read Sally Ray's excellent work. Hello Sally, if
you're listening in the ODT. It's good that some journalists
and media were invited to the AGM. You realize that
in kN Keith Cooper's Diana, which predates you as well,
(21:16):
I would have been first on the invite list for
a cup of tea and a scone.
Speaker 5 (21:19):
Hey, it's noted, Jamie, noted. I did say to the
meeting yesterday, hold me to a couple of things, so
you can hold me to your invite for you scon
next year. In really cool Sally Ray, and I just
want to call out, you know. Note Rob Hewitt's seventeen
year contribution in moving on at dog Tacker Day. Thanks
(21:40):
Rob for all you've done.
Speaker 2 (21:41):
Good on you, Hey, Anna Nelson, I might catch up
with you at field Days. Thanks for your time.
Speaker 3 (21:46):
Sounds great you, Jammy.
Speaker 2 (21:48):
It is twenty six away from one. Thank you, Anna
shee some of your feedback. I need to pre read
some of this. I should actually get Michelle. Hello Michelle,
you've just wandered out in here. You need to censor
this for me and just send it to me so
I don't have to wade through all this. Mom Where
(22:10):
do I start? Oh? Here's one on Anna Anna Nelson,
a good North Canterbury girl and another famous veterinarian from
Cheviot or is it Cheviot? Another one saying Jamie, why
do I feel the lower mission scam is falling apart?
And that's from Jeff. Here's another one and I think
(22:30):
this is a bit of an issue to be honest.
This text says Luxon needs some speech training. He gabbles
too much without any pause, punctuation or expression in his voice.
Everything is said NonStop and the same monotonous tone, running
words and sentences into one another without any full stops.
He's hard to listen to and understand I he's much
(22:57):
I will tell he's much better than life than he
is in the media. Do you well, have you seen
him in real life yet?
Speaker 8 (23:04):
No, I've only met three politicians, I think.
Speaker 2 (23:07):
But he needs in my humble opinion, as someone who's
failed in the speaking business for more than thirty is,
I reckon he needs to stop with the cliched and
I should say this to him. Let me make this clear.
You know, we don't need that. They're just useless link words. Anyhow,
that's just my humble opinion on it. More silver fern,
(23:31):
I can't read that.
Speaker 9 (23:32):
One may read no.
Speaker 2 (23:33):
Look, we'll just ponder them. See I've got a higher
tolerance than you have for some of these texts. But anyhow,
the good, the good, the bad, and the ugly on
all sorts of feedback.
Speaker 5 (23:46):
So it was.
Speaker 2 (23:47):
Interesting and I threw it at Anna completely off the
script about this old story in the Southland Times from
two thousand and nine, and I hadn't realized or it
just reminded me of a time when the meat industry
had an option to get the two biggest players together,
and even Anna admitted, maybe they've lost a trick by
(24:08):
not doing that. I think the meat industry must look,
as I said to Anna jealously, at the structure in
the dairy industry. It just seems to be a week
bit better or even better. Look at Zespriy. Look what
they're doing. Maybe a single desk sealer who knows up
next rural news and sports news before the end of
the hour, Lucas fees, I hope that's how you pronounce
(24:30):
his name from Rabobank. He's from Chicago, but he's in
New Zealand at the moment. And a bloke from Palmi North.
What's Toyota up to a field days? Three weeks to goo,
three sleeps, three sleeps, make that twenty one sleeps to
go until field days getting underway at Mystery Creek June
eleven to fourteen. Welcome back to the country. Some more
(25:10):
of your texts coming through. You're all fired up there
out there in radio land. Have silver fern farms gone woke?
Question mark? Question mark? Question mark. Let's start with them
having a cupcake day for all staff nationally to promote
diversity in the workplace. I hate to think what that
costs the farmers, just saying says the text. See I
(25:32):
don't know if it was if it was a cupcake day,
and I should ask the team at silver Fern Farms.
If it was a cupcake day and you brought your
own cupcake along, that's fine. But I'm with the Texter.
If the co op played paid for all the cupcakes
for diversity Day, I think that's a waste of money
(25:54):
as well. Do we have diversity days here?
Speaker 8 (25:57):
Not that I know, but like we're mostly women, as
you pointed out, So just be the four of you
bringing stuff for diversity day for.
Speaker 2 (26:03):
Me now, number here. There's plenty of diversity here. Seriously,
the women, the two top dogs, I won't say that.
I mean the two top people in our building are women.
So they're running the place. We don't need a diversity
day and bringing along cupcakes. I think that would be
a golf day for me. I'm not really into diversity days.
I just say let people be employed or elected on
(26:26):
their merit. Here's a novel idea, Here's the latest and
rural news.
Speaker 1 (26:30):
What the Country's world news with Cob Cadet, New Zealand's
leading right on lawn bower Bread, visit steel for dot co,
dot nzid for your locals, Doggist, and it's.
Speaker 8 (26:40):
Time to mark your diaries for the annual Read Meat
Sector Conference hosted by the Meat Industry Association. This year
is the fortieth anniversary of the event, and it's being
held in christ Church on the twenty first and twenty
second of July. It's hard to believe that's come around
so quickly. Again. I had to look twice at that
media release in my inbox, and just some fun facts
for you, Jamie about this bakery China thing. So I
(27:02):
had Henry Acland texting me and sending messages pretty much
all night last night about this and photos and all
sorts of coose.
Speaker 2 (27:08):
I think, oh, Henry might have been on the terps.
Was he with Hunter McGregor and Riley Kennedy our man
from business desk.
Speaker 8 (27:14):
Might have been the wrong I don't know what the
time difference is over. I have to have a look
at that, but we've got a great photo on our
Facebook four hours.
Speaker 2 (27:20):
They're about four hours behind us.
Speaker 8 (27:22):
But some fun facts the show there, this is mind blowing,
actually gets more people through the doors than the entire
population of christ Church on the days that it's running.
It is insane, Like that's hard to believe a venue
that big there.
Speaker 2 (27:35):
You go everything you wanted to know about the bakery day.
I wonder if they do cupcakes at that I suppose
they do.
Speaker 8 (27:41):
Sounds like they do. I saw patches of cupcakes.
Speaker 2 (27:43):
Yeah.
Speaker 1 (27:44):
Sport with a fco Kiwi to the bone since nineteen
oh four.
Speaker 2 (27:49):
Sometimes I think the modern workplace has passed me by.
Have I done the sports liner? I've played it, haven't
I yes? An admission I have, haven't?
Speaker 3 (27:58):
I yes?
Speaker 2 (27:59):
I was just looking at some of your texts at
admission from Super Rugby officials that the refereeing panel made
a mistake disallowing a Mowana pacifica a try to Millennium
SNA reve in their victory over the Blues last weekend.
A try it can only be overturned if there is
an infringement in the final attacking passage of play, but
(28:19):
they went back for a foot in touch earlier. The
NFL's thirty two owners have voted to allow their charges
to take part in flag football at the twenty twenty
eight Olympics, and Manchester City football captain Kevin de Bruyne
has farewell home fans as a side moved to third
(28:41):
in the Premier League Ladder with a three to one
win over Bournemouth. That's your sports news. Up next, Lucas
Fees from Rabobank out of Where's he from Chicago? So
you've heard from Richard Allen, Fonterra's President of Global Markets Ingredients.
(29:06):
What an americanized sort of title that is. I'm going
to stick with the US theme because now I'm going
to chat to a guy by the name of Lucas Fees.
He is a senior dairy analyst Rabobank. He's based out
of Chicago, where Richard used to be based. Did you
two come across each other in a past life by anyway, Lucas,
(29:26):
good afternoon.
Speaker 3 (29:27):
By the way, good afternoon, Thanks for having me. I
spent a little bit of time in that Fonterra Chicago office.
I think reflective of Fonterra's global presence, no doubt. I
think I have Matt Richard in the past. But there's
a big office of Fonterra crew there.
Speaker 2 (29:44):
So there are a lot of Fonterra people around the world.
You are spending time with one of my favorite people
at Rabobank, Emma Higgins. She's very smart. She's the dairy
analyst at Rabobank. You're on a bit of a road
show around the country. What are you telling New Zealand farmers.
Speaker 3 (29:59):
That's right, I essentially on Emma's Global dairy team with
Rebel Bank investing heavily in the research side of things.
But yeah, here in New Zealand this week talking about
where the US is looking to go in terms of
a dairy and one of the major themes key to
our conversations right now is typically when we consider the
(30:22):
global dairy market, key exporting countries New Zealand, of course,
the US the EU are usually relatively in price alignment,
but we've seen some softer pricing from the US over
the past few months versus the rest of the world
on most products, I think it's safe to say, but
especially on the fat side of things, something like butter.
Two key drivers there that I'm seeing. US milk production
(30:46):
has returned to steady growth so far this year, one
of the few, if only, key exporting regions where we're
seeing that milk production growth, So plenty of supply coming
out of the US right now. And then also, of
course the trade and care escalation that we've seen some
concerns about the ability of US exporters to move product
(31:06):
overseas to foreign buyers, some buyers typically buying multi month contracts,
pulling back a little bit and buying more hand to mouth.
So between higher supply and questions about exports in the US,
we are quite price competitive on a global scale right now.
Speaker 2 (31:22):
LOOKUS phase with US from Rabobank out of Chicago. Final
question for you, this isn't strictly a dairy question, but
I know you're doing the road shows with Emma Higgins
who's an expert in the field and not only dairy
but also red mate the US beef cattle numbers, how
long will it take them to build them up again?
Speaker 3 (31:42):
It's we've certainly worked ourselves into kind of a structural
issue here where it will be a little bit challenging
to rebuild the herd. But we do think that twenty
twenty five will be the low for beef slaughter rates
in the US. We expect a bit of recovery into
the coming years, but it's not something that's going to
be fixed in the very near term. It will be
(32:03):
several years before we get back to anything that resembles
some semblance of normalcy around that beef production rate in
the US overall, though very good news for dairy farmers.
There is a significant revenue draw from beef on dairy
cross calves of breeding your dairy cows to beef bowls
(32:24):
and of course eliminating the ability of that calf to
join the dairy stream, joining the beef stream instead. Several
hundred dollars. Several hundred US dollars is what a beef
on dairy cross calf is worth in the US right now.
Very significant revenue for an animal that's a few days
old versus one that you have to feed for two
(32:44):
years before you can see any revenue from her. So
interesting things happening on beef, but positive trends for dairy
farmers who can tap into that revenue.
Speaker 2 (32:54):
Locas Sice out of Rabi Bank, Adam, Chicago, Thanks you too.
I'm enjoy the risky sty in God's eye.
Speaker 3 (33:00):
Good here, Thanks for having me.
Speaker 2 (33:02):
It is ten away from one year with the country.
Lots of feedback coming in and the cart sales have
been and gone, the beef carf sales I'm talking about
here and the bee the beef ball sales are on now.
Big money forty two thousand paid for a cimentale bull.
And I'll try and update some of those other numbers
that are being paid for beef genetics out there at
(33:26):
the moment. Look as you as you heard them say,
they're going to take away while to rebuild the herd
still in the US. So the prospects for beef, you
would have to say, look really good, certainly for the
next couple of years. Up next, we're starting off in
a way I countdown to field days. We're heading to
(33:46):
Palme North, only three weeks to go, twenty one sleeps
or is it twenty? Farmy North, the farming capital of
the country. Along with Fielding, our next porter call on
(34:09):
the country. There we find James Denham from Toyota. It's
great the Toyota bases itself out of Parmy North. James,
I want to give you some farming cred here. I
know you're not a farmer, but you're married to a
dairy farmer. Good afternoon, get it, Jamie.
Speaker 3 (34:23):
How's it going?
Speaker 2 (34:24):
Talk to me about what Toyota's up to at field days?
Three weeks to go? So just three weeks, and I
guess the barometer of how successful field days will be
because I was talking to a guy from Blue Wing
HONDI is that I actually about it and was tract
to sales, ute sales and of course four wheeler and
(34:44):
quad bike sales. How do you reckon Toyota's going to
go this year?
Speaker 9 (34:48):
Obviously pretty damn Well. We've got plenty of product here
to check out, accessories all over those products, and some
good deals to go with it, so that it stacks
up for a pretty nice offering.
Speaker 2 (34:58):
Well, you've got a good rural ambassador in Wayne length
of the old president of Federated Farmers.
Speaker 9 (35:04):
Yeah. Yeah, absolutely, It's not the only one either. We've
got a wide range of ambassadors who are all there
to chitchat with people on the day and sip over
a few coffees at the same time, including Dame val Adams.
Speaker 2 (35:15):
I'm a wee bit intimidated by her, to be perfectly honest,
and Matt Watson, the fishing guru. I for my sins,
not sins at all, James. I'm driving around to Toyota
high Lux Hybrid. They're kind of a hybrid and name only.
And I know there's a bit of misconception in the
market about whether you need a plug in for your
hybrid or whether it loses a bit of power, but
(35:36):
an actual fact All it gives you is a bit
more fuel economy and when you put your foot on
the throttle a bit more get up and go.
Speaker 3 (35:44):
You're on the money. I don't know what else they
have Dad to that, Jamie, you've crushed it.
Speaker 9 (35:47):
Yeah, absolutely realistically, a bit of extra takeoff on the mark,
the same waiting depth. The big thing we pushed in
making sure everyone can obviously understand is you can still
tell you three and a half ton and we've had
some pretty neat activations of the big old trailer tracking
around the country to showcase.
Speaker 3 (36:03):
That over the course of the year as well.
Speaker 2 (36:04):
Everyone knows you go to field days to get a deal.
What's Toyota coming up with for us?
Speaker 9 (36:09):
We've got a highlights offering across the whole range this
year as well as that, it'll be across some models
of the lankrus of seventy series. What that is for
us at the moment is two five hundred dollars worth
of accessories, or you could get a three point five
percent finance rate, which is pretty attractive in the market
at the moment. Obviously, all those usual lending criteria season
seas apply well.
Speaker 2 (36:30):
If you get two and a half grand of accessories, James,
you'd have to go with the bull bar, wouldn't you.
Speaker 9 (36:35):
Oh, there's plenty you can chuck on that, and I
think that's the whole point. You'll see a host of
things that you can chuck on those highlights when you
come on down to the side and check it out.
Speaker 2 (36:42):
Yeah, good stuff. Hey, looking forward to catching up with
you and the team from Toyota. I think Yolo, Wayne
Langford and myself are doing a week activation for you
one afternoon. I won't get a word in, but I'm
looking forward to spending some time with him at the
Toyota site. I'll look forward to meeting you in person then, James,
good luck on the dairy farm. Not you, but your
(37:02):
wife and the manor are two there. How's the season going.
Speaker 9 (37:05):
I believe it's going pretty good. Things are pretty desperate
if I ever have to get anywhere near the milk,
and said, that's for sure. But Na, it was a
dry summer. But it sounds like things attrack the pretty
well towards in the season for them at the moment.
Speaker 2 (37:14):
Good stuff. See at field days.
Speaker 5 (37:16):
We'll do.
Speaker 2 (37:17):
Look forward to Jamie, Yeah, look forward to it. James.
James Denham out of Toyota out of Parmy North, and
it is good that they base themselves in Palmi North
rather than Auckland. Regarding the emissions reductions, blah blah blah
blah blah. Customers may be demanding it, but not consumers
(37:39):
techs DR. They are simply greenwashing their own distribution systems
and making themselves look good. It's a real debate amongst
farming and farmers lower missions. And you know when we're
talking to lux and about the inability to do the
carbon capture and storage and chuck it underground at kap
(38:00):
any interesting times and as we said, what happens if
we don't meet the targets in twenty thirty? Guess what
at this stage? Nothing? Catch you tomorrow, Budget Day.
Speaker 1 (38:15):
Catch all the latest from the land. It's The Country
Podcast with Jamie McKay. Thanks to Brent, You're specialist in
John Deere construction equipment.
Popular Podcasts
Cold Case Files: Miami
Joyce Sapp, 76; Bryan Herrera, 16; and Laurance Webb, 32—three Miami residents whose lives were stolen in brutal, unsolved homicides.  Cold Case Files: Miami follows award‑winning radio host and City of Miami Police reserve officer  Enrique Santos as he partners with the department’s Cold Case Homicide Unit, determined family members, and the advocates who spend their lives fighting for justice for the victims who can no longer fight for themselves.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.