Episode Transcript
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Speaker 1 (00:00):
Catch all the latest from the land. It's the Country
Podcast with Jamie McKay thanks to Brent starkest of the
leading agriculture brands.
Speaker 2 (00:27):
Girl.
Speaker 3 (00:34):
Get a New Zealand. Good afternoon. This is the Country,
brought to you by Brandt. I'm Jamie mckaye, the Prime Minister.
To kick off the show, Yesterday's big story X new
position on the Paris Agreement. What does he say about it?
Richard Allen, Fonterra's president of Global Ingredients, on last night's
global dairy trade auction. Wasn't too flash, was it? Four
(00:55):
point three percent across the board, whole milk powder down
five point three skim powder ouchdown five point eight percent.
To brighten up your day, Amber Carpenter this month's Farmstrong Farmer,
South Auckland dairy and beef Farmer, finalist in the twenty
twenty four Dairy Woman of the Year. She's going to
share her emotional story of overcoming adversity. So listen out
(01:18):
for this one. It's a nice story. Emma Higgins Rabobanks,
Senior ag Analyst. The September Agri Business Report is about
to be released. I think it hits the shelves tomorrow.
We'll preview it today and Mark Townsend wondering where you've
heard that name before. He was one of the founding
Fonterra directors way back in the early two thousands, large
(01:41):
scale dairy farmer. He wants us to upscale dairy production
by fifty percent within the next decade, and he's mentoring
some young industry leaders who says or who he says,
will lead the charge. It's all on the country and
it's all brought to you by Brant.
Speaker 1 (02:00):
The Ina, danel.
Speaker 3 (02:10):
Donna, take it round, Danzl, Kenny Loggins and danger Zone
(02:30):
the Prime Minister kicking off the country on a Wednesday.
Are you now in appalling danger zone? Christopher Luxelm Actually,
before you even answer that, let's get to the real
issue of the day. X new position on the Paris Agreement.
Is that going to put you in a danger zone?
Are you going to get sandwiched in a pincer movement
between Winston and Seymour. Good afternoon, well, good afternoon, Jamie.
Speaker 4 (02:53):
Good to be with you.
Speaker 5 (02:54):
You look, the first thing I'd say on Paris's look,
as I said before, we are going hard on economical
if it's in our national interests to do so, and
actually it's in our national interest to stay in Paris.
We're always going to put Kiys first, putting our farmers first.
You've seen that from our government. You've seen the National
Party and with the rural community right from the beginning
when I came to power an opposition and also now
(03:16):
in government. So you know it's pretty simple right come
out of Paris. When you export eighty percent of your goods,
you're going to have major problems with countries that we
compete with. You're going to have major problems with large
multinationals who often are of similar sites to New Zealand
as an economy. So you know they will replace our
products on a heartbeat. And just go ask Fonterra what
they think about that.
Speaker 3 (03:34):
So are you suggesting that your coalition partners using populist
politics here.
Speaker 5 (03:41):
Well, look again, I'm not getting into the policies of
what act On New Zealand First may be talking about
within their party context. I'm just saying as a coalition government,
we've all agreed that is a New Zealand's national interest
at this time that ripping up international agreements would mean
we're not a trusted partner on Trey, would mean that
New Zealand is fundamentally poorer. We're going to be pushing
our farmers. I'm not going to punish our farmers. I
(04:02):
think that would be not a smart move.
Speaker 3 (04:05):
Let's have a look at the relaxing of foreign investment rules.
Are farms next on the chopping block? Just remind me
what is your policy around foreign ownership of New Zealand farms.
Speaker 5 (04:16):
Yeah, so I'm land in sensitive Land is still protected
completely onto the Overseas Investment Act. So that's not what
we're talking about here. What we're saying is, if you're
an overseas investor and you've got what's called this active
investor visa the media, you've called it the Golden visa,
you've got to come into New Zealand and you can't
just just invest in housing and buy houses and.
Speaker 4 (04:34):
Do specative property stuff.
Speaker 5 (04:35):
You've actually got investment a proper business for five million
dollars or ten million dollars. Now, if you've put five
or ten million dollars in under that program, that doesn't
mean that you're going.
Speaker 4 (04:45):
To be here for over half the year typically, which is.
Speaker 5 (04:47):
The criteria by which you need to then, as an investor,
be able you can buy a house under the Act.
So in this case, what we're saying is, look, if
you GY's got five to ten million dollars into New
Zealand into a business, we're comfortable if you want to
buy a house of five million dollars or more, now.
Speaker 4 (05:01):
Just give me a feel for it.
Speaker 5 (05:02):
That's about half of one percent of all the home
sold in New Zealand. And you know there's about ten
thousand houses in New Zealand that are worth more than
five million dollars. So but here's the great story, Jamie,
this is incredible. I was at this place called Seaflux
earlier this week. They've just raised three million dollars. That
three million dollars has come from these active investor visas
(05:22):
that we put in place. Since April one, we've had
almost two billion dollars come into New Zealand, two billion
dollars that we didn't have before. They then put the
money into that company that three million dollars as investors,
and low and behold, what's the first thing that individual's
doing that runs that company is going off to hire
more staff another company. I saw they actually used the
same money then to go off of their investment money
(05:43):
to go off and actually expand their business in North
America filling cleaning products, and of course that creates export
growth and revenue for US as well. So that's the
whole point is that if you're going to come here
and make a serious, productive investment in a New Zealand
business or a startup and actually be prepared your money
where your mouth is, then we can get to a place.
Speaker 3 (06:03):
Now I get all that, but what differentiates a house
on a business from a farm.
Speaker 5 (06:08):
Well, it's got to be a dwelling. It's got to
be a house. It can't be a farm. It can't
be a apartment block, it can't be and all our
protections on farmland sensitively and all of that stuff remains.
Speaker 3 (06:19):
Final comment on a good news story that came out
this week, the Amazon deal. It is really good, But
are you guilty? And I know that you must get
sick of these sort of questions of cutting Jacinda and
Chippy's lunch because they're claiming glory for it.
Speaker 5 (06:32):
Yeah, I don't know why the media went funny about
all of that. Go back and look at I don't
know whether you've read the transcript of my interview with Hosking.
He's the only guy I talked to about it when
he asked me what I was doing at Amazon, and
I just said to him, it's great that you know,
the other company's later seven and a half billion dollar
investment into New Zealand that it opened yesterday. It's an
incredible set of technology and tools. It's a big investment
from an international company. We've had a similar billion dollar
(06:56):
investment from Brookfield working with Tai Nui on a.
Speaker 4 (06:59):
Rukur aup hub.
Speaker 5 (07:00):
We've got a number of big players that came out
of infrastructure investments something that want to invest in big
infrastructure projects here in New Zealand, which we're working our
way through.
Speaker 4 (07:08):
So all I'm just saying to you is, you know,
when you look at.
Speaker 5 (07:11):
It, we've got, you know, quite a lot of good
positive signs that that investment is creating jobs and creating
opportunity for News Islanders. And so yeah, I don't know
what the media is being on about.
Speaker 4 (07:20):
You say about that, because I just thought you actually,
hang on, come on, you know, we've actually got a
great set of a great story here.
Speaker 5 (07:27):
And yes, and it's fantastic, but it's here, and it's
actually been followed through and it's been delivered and it's
you know, they're feeling confident about investing in his zeland.
Speaker 4 (07:35):
It's fantastic, a great.
Speaker 3 (07:36):
A good story for end Zen and Prime Minister Chrystopher Luxon.
Thanks as always for your time on the country on
a Wednesday.
Speaker 4 (07:42):
Great to be with you, Jamie. You have a great week.
Speaker 3 (07:46):
Fifteen after twelve you're with the country up next to
Richard Allen on Terra's president Global Ingredients but ugly the
old Global Dairy Trade auction overnight will perhaps have some
good news for you. We'll see what sort of spin
he puts on that farmland not really protected by the oil.
(08:14):
Look at how many companies have purchased farms for carbon credits.
I'm not quite sure what the oil meant there, Hi, Jamie.
All the Paris Accord has achieved is higher food, electricity
and gas prices. Stupidity, says Pete, and another one says,
on the subject of climate change, you can text us
(08:36):
on five double O nine. On the subject of climate change,
I find myself wondering how much destructive carbon is expelled
into the air or the atmosphere by various wars around
the globe. That's a fair point not to mention how
much hydrocarbon is expelled when a spacecraft is sent off.
(08:56):
Let's blame elon musk. Interesting tech keeping coming five double
oh nine up next, we'll have a look at that
Global Dairy Trade auction before the end of the hour.
It's going to be fun chatting to Amber Carpenter. She's
our farmstrong farmer this month and she has got a
great story. Emma Higgins from Rabobank, Mark townsend a blast
from the past.
Speaker 6 (09:18):
I was well good.
Speaker 3 (09:30):
Richard Allen is Fonterra's president of Global market ingredients Global
Dairy Trade auction overnight. It wasn't good. The futures market
was picking a drop, I don't know two three four percent.
We ended up getting four point three percent across the board,
perhaps more of a worrying number as whole milk powder
down five point three percent. Second biggest ingredient in the
(09:52):
basket skim milk powder down five point eight percent. Richard,
should Fonterra farmers be worried about this auction or as
just what happens at this time of the year.
Speaker 7 (10:03):
Good Jamie, I think thanks for having me on.
Speaker 4 (10:05):
Look.
Speaker 7 (10:05):
Look, I think you know it was in line with
where the market was picking. And certainly if you look
look around the world right now, you know there is
a little bit of volatility. We've seen pretty good milk
supply out in New Zealand and that. But I think
where I kind of go to is, you know, we've
sold a lot of milk already in the season. We're
at pretty good prices still. You know, this time last
year sitting closer to the thirty four hundred. Last night
(10:28):
we cleared at thirty eight hundred, So you know, we
are heading into our biggest volume events and so you
know this in the next couple of events, we see
sort of judy volumes peaking out. So the combination of that,
I think we've seen buyers sort of sit back a
little bit, but overall not a bad result in line
with kind of expectations. And you know, we're still sitting
(10:49):
sitting pretty good, so.
Speaker 3 (10:50):
Don't panic a little volume. Traditionally at this time of
the year, obviously it does start to peak. I think
the last auction was thirty six thousand metric tons. This
one forty one and a half thousand metric tons, So
in percentage terms, that's quite a big increase in volume.
Speaker 4 (11:07):
Yeah, it is.
Speaker 7 (11:07):
And again we we we try to get the you know,
our dutyt curves as close to our you know, our
production curve as possible, you know, to get the get
the product out into market. We see a couple more
events where it steps up, and then we go back
into our sort of seasonal seasonal as it as sort
of declines over the shoulders.
Speaker 3 (11:25):
So the next couple of global dairy trade auction is
going to be a bit sticky.
Speaker 4 (11:29):
We'll see.
Speaker 7 (11:29):
You know, I gave up picking prices years ago, Jamie.
I'm not very good at it. But again, I think,
you know, there is still good demand out there. We're
still seeing good participation from the likes of Chinama was
a little bit quiet in this event, but I expect
to see them back in the market. Overall, I think
it's a little bit of a weight and see. And
again we're you know, visa V last year. We're still
(11:50):
sitting in a pretty good place.
Speaker 3 (11:51):
And I think back a couple of years we had
that big slump. Was it August twenty twenty three?
Speaker 4 (11:57):
Yep?
Speaker 3 (11:57):
Yeah, and we came right after that one.
Speaker 6 (12:00):
Yeah.
Speaker 7 (12:00):
It's a long season, Jesse, you know, so we're only
just sort of getting into it now. You know, a
lot can happen from here till thirty one July, and
so I think, you know, overall, we've sold a lot
of milk, another two hundred and seventy million dollars into
the New Zealand economy.
Speaker 4 (12:13):
Last night, we're.
Speaker 7 (12:14):
Still seeing goodbye participation.
Speaker 4 (12:16):
And yeah, I think you.
Speaker 7 (12:17):
Know, we'll continue to do what we do, which is
ensure that you know, we're putting our milk into the
best demand around the world.
Speaker 3 (12:23):
Richard Allen, President of Global market Ingredients for Fonterra, love
that americanized title. You know that, Richard, And I guess you,
being the ingredients guy, you're going to have a lot
to do over the next few years.
Speaker 7 (12:37):
Yeah, you know, well, first there was it was great
to see the announcement a couple of weeks back. I
think it's an excellent outcome. We'll be out there chatting
to our farmers around the devestment and they've got a
big decision to make as we as we head into
sort of October November. But we know we're really confident
in you know, what we have to offer as a
B to B specialist, both in terms of our ingredients
and our food service business. It's where we make the
(12:59):
best money for our farmers when we sort of deploy
their capital. And you know, generally when I'm out there
talking to customers right around the world, they're a strong
demand and a strong future in terms of, you know,
the partnerships we have in placed in some of the
innovation we're talking about.
Speaker 3 (13:13):
Richard All and thanks for your time.
Speaker 4 (13:15):
Thank you.
Speaker 3 (13:17):
Twenty three after twelve. Welcome to the country. Sorry losing
my voice yet again. Some people would say that's not
a bad thing. Glenn has texted me, and what has
Glenn said? There's lots of texts coming in. Just give
me a moment to focus my Oh here we go, Hi, Jamie.
I'll stay in COP please, I'm assuming Glenn you mean Paris.
(13:40):
What's COP that's the annual talk fest they have. In fact,
I think the annual COP conference is in November of
this year. COP thirty. We've had thirty of them. What
have they achieved anyhow? Glenn says, I'll stay in cop pleeces.
I actually want to make some money. I don't want
a three dollar discount talking about that's how much some
(14:02):
people are saying it all costas if we pull out
of Paris. I don't want a three dollar discount, so
a foaming boomer from Harriet can feel important. I think, Glen,
that's a rather cruel reference to Rys Mackenzie, who was
on the show yesterday from Harriet in West Otago. Someone
else who was on the show yesterday or contributed to
(14:23):
the show from West Otaga was Graham Parnell. Edgar unofficial
Highlanders selector knows the pedigree of every rugby player in
New Zealand. He came up with the great rugby trivia
around the nineteen thirty seven Springbok Ebbo Bastard that was
his real name, and he got shot. Ebbo did it
(14:43):
was a bastard of a thing for him. He was
shot by his wife's sex husband of nineteen forty nine.
And Hayden says, any chance of some more rugby trivia,
I plagiarized you trivia from yesterday about the box with
my rugby following mates through WhatsApp, through our WhatsApp group
and may were suitably impressed, particularly the Ebbo Bastard stuff.
(15:04):
Had a couple of them even verifying my facts on Google.
There you go, so thank you for listening in Hayden.
We'll see if we can come up with some more
rugby trivia for you on tomorrow's show. Got Beaver on, Yes,
he's an ambassador for Toyota and he'll be on the
show tomorrow talking about the most important rugby test, maybe
(15:25):
the most important event in New Zealand this year, Spring
Block Test at Eden Park on Saturday. Righty, I've got it,
kesh I forgot the Shield challenge and Amber Cargo up next,
Amber Carpenter. You're going to love her story. Monthly here
(15:49):
on the Country we catch up with the farm strong farmer.
They've always got a great story to tell. Today's guest
there's no exception. Her name is Amber Carpenter, along with
a husband, Fraser, the dairy and beef farmers in South Auckland. Amber,
I want to start with your story. But pre your
farming days, you had a career in fashion.
Speaker 8 (16:10):
I did, yees. I used to be a buyer in
the fashion industry before becoming a full time dairy farmer.
I used to do both fashion and part time dairy farming.
I guess when we started sharemiking, so I got the
best of both worlds.
Speaker 3 (16:23):
How did you turn up on the fashion catwalk? If
you smelt a wee bit of the dairy shed. I'm
only joking there, Amber, but you obviously were good at
switching between codes.
Speaker 2 (16:34):
Yeah, I was.
Speaker 8 (16:35):
I think definitely. The people in my fashion life didn't
quite understand my farming life, so there was a lot
of interesting conversation. But yeah, we lived and farmed in Auckland,
so I was able to have a corporate career in
the city that took me overseas, and then on my
weekends or whenever I was home, I was able to
hurt Phraser on the farm as well. So yeah, it
was definitely a juggle, but that was also pre kids,
(16:57):
so it wasn't too bad.
Speaker 3 (16:58):
Tell me about your farming operation with your husband Fraser.
Speaker 8 (17:02):
He's always fifty fifty sharemolkers here and Papa moved south
Auckland borders North like it. Oh, we're on a three
hundred and twenty hectare farm two hundred effective hectares. We
milk just under five hundred cows and we split calve
and we've got two beef blocks as well that are
separate from our dairy operation.
Speaker 3 (17:20):
Looked up your story on the farm Strong website and
they had some great stories there, but your one was
quite emotional. Really, you went through hell like a lot
of farmers did in twenty twenty three, but you went
one step further. Tell us about your Annis Horribilus. Was
that what the old queen said? I think it was.
Speaker 8 (17:39):
Yeah, it was definitely one for the books and we
laugh about it now, but at the time it was.
It was quite challenging, but I think being able to
use the farm strong five waist wellbeing and really having
a strong farm strong mindset it really did help us
get through. So we started off the year with a
burglary that, yeah, it was quite It was a lot.
(18:01):
They took pretty much everything that wasn't nailed down and
wasn't a big item of furniture, so they took absolutely
everything else sentimental value, any value. And then just I
think three days after that fact when Gabriel hit and
Auckland floods, and then I think it rained for the
rest of the year, so we're basically underwater for most
(18:22):
of twenty twenty three, which then puts pressure on the
farm having was really intense. Feed was hard to come by,
and we were just in knee deep mud for I
don't even remember how long. It's bit of a blur
so anything past that when it starts to rain, we're
quite happy that it wasn't. Twenty twenty three version Amber.
Speaker 3 (18:42):
I'm reading once again from the farm Strong story on
the website, and I encourage everyone to read it. You
talk about the burglary, you say they took everything right
down to my shoes, all our computers and hard drives.
They took our wet weather gear, all of our torches,
every piece of warm clothing possible. So when the Auckland
floods hit two days later, we were out moving stock
(19:04):
and t shirts and jandles. How soul destroying, Yeah, it.
Speaker 8 (19:09):
Was we caut well, yeah, we were. I think we
were laughing at the time because what else could you do.
Our kids were out and were they were cold, and
We're like, look, just run, that's all we can do.
We can just run to keep warm. We Yeah, we
just had nothing. And because the cyclone and the floods
hit so quickly, we didn't really have a chance to
(19:30):
go out and regroup and get gear and get sheets
and towels. Our community rallied around us and dropped us
so much stuff food because I'd taken everything from the
freezers and the fridges and yeah, the community support was amazing,
but you don't have time to stop. We had to
keep going. The farm is important, our animals well being
(19:54):
is most important. So we just had to get out
there and do it. And we just made a game
out of it for the kids and for.
Speaker 3 (19:59):
Ours and yeah, you're right. We were emotionally exhausted, physically exhausted.
And then just after that I did my backing.
Speaker 8 (20:08):
Yeah yeah, yeah, that definitely was one that might have
possibly tipped my husband over the edge a little bit.
Speaker 6 (20:19):
He's very very.
Speaker 8 (20:21):
Understanding of my situations. But it was Easter weekend, how
the team were on leave. I was meant to be
feeding calves and milking. We had really no support staff,
and all of a sudden I was bedridden. I had
done my back. I actually couldn't walk for a good
two weeks.
Speaker 4 (20:39):
Yeah.
Speaker 8 (20:39):
I don't recommend it at all, So that resilience and
just being able to get through. I felt terrible, but
I couldn't. I couldn't do anything. So it was making
a plan, regrouping and just what do we do and
how can we how do we get through this?
Speaker 3 (20:54):
And I guess at this time of the very stressful
time on a dairy farm, with carving, you won't be
the only one out there who's done their back. And
let's just finish on this one. If you could picture
just one farm strong skill to use on a daily
basis and the carpenter, what would.
Speaker 2 (21:09):
It be.
Speaker 7 (21:11):
For me?
Speaker 8 (21:12):
It's definitely connection, especially through carving. So during carving it
can be really easy to just kind of put head down,
bum up. But if you're not having that connection on
a regular basis, and it may not be every day,
we prioritize getting out to the rugby club and getting
our kids to the sport and playing our own sport
(21:32):
during carving because that gives us a connection to the
outside world. When you're having a really bad day, just
sitting down and having a chat to people about maybe
something different or even just Mulley night thoughts been going
on can make everything seem so much better and can
get you you out of whatever kind of maybe slump
you might be in, or give your perspective about what's
(21:52):
going on. So connection for us is really important during carving.
Speaker 4 (21:56):
And as much as.
Speaker 8 (21:57):
It is really easy to just and repeat every day,
go home, go to bed, get up, see calves, milk oows,
sometimes it's not good for the soul as well. You
need to get out cheted people.
Speaker 3 (22:09):
Variety is the spice of life. And b Carpander, I've
loved talking to you and I've loved your life story
and I'm glad things have come right for you and Fraser,
thanks for being the farm strong farmer this month. Great story, awesome,
thank you.
Speaker 4 (22:21):
Good to chat to you.
Speaker 3 (22:23):
Yeah, what a great story. Tough times. Indeed, we're going
to take a break. Michelle's wandered and how we're going
to have rural news, sports news, some good feedback coming
in as well before the end of the hour. Emma
Higgins from Rabobank Mark townsend to blasts from the past,
(22:44):
all apologies for the wee bit of dead air. I
don't know what happened to Kenny Loggins. Then Michelle Watson
here gonna have rural news in a moment, but is
she going to step into a danger zone hot gossip
fresh off the press. But dunk and humsy me a text.
He of course runs the NZ Farming Facebook page and
(23:04):
Duncan says, how does Glenn, I hope you don't mind
me reading this out, Glenn. I guess it's for I
mean Duncan. I guess it's for public consumption. How does
Glenn get the idea of that leaving Paris or coppers?
He put up means a three dollar discount and we're
talking about a three dollar discount on a kilogram of
milk solids there by the way, a bit like National,
they can't back up their ideas and spin with actual numbers.
(23:26):
And he says, wasn't it Grant mcnational that plucked the
three dollars from the co two soap? There not a
bad shot there, duncan Hello, Grant mcnational, if you're listening,
here's Michelle the latest and gossip. Is it gossip or
is it truth? From Federated Farmers?
Speaker 1 (23:42):
Let's find out what the country's world us with Cob Cadet,
New Zealand's leading right on lawn Bower brand. Visit Steelford
dot co dot nz for your local stockers.
Speaker 3 (23:51):
This might be something for us to talk to Wayne
Langford about tomorrow. What do you got?
Speaker 9 (23:55):
Okay? So, Federated Farmers is raising serious concerns about some
comments that were made by prominent at Victoria University of
Wellington academic Dr Mike Joy.
Speaker 3 (24:05):
He didn't tell me that. Well, that's no surprise good
on the feds. The guy's anti farming to his toe nails.
Speaker 9 (24:12):
Yeah, so he's made a suggestion that dairy industry leadershiuld
be hanged. Joy made a public the public comments on
linked in last months and Federated Farmer's Dairy check. Hal
Dean has written to Victoria University demanding a response and
says those kind of extreme, violent, dangerous views are totally
unacceptable from a well known senior academic. So that's hot
off the press. There's not even a Meteora release out
(24:34):
about this yet, Jamie. So I feel like my big moment.
Speaker 3 (24:37):
It is your big moment. You didn't tell me it
was Dr Mike Joy, though I would have said, can
the story. He's not worth it. There you go. Here's
sport sport with AFCO.
Speaker 1 (24:47):
Visit them online at a FCO, dot co dot nzed.
Speaker 3 (24:50):
Okay, let's see what's happening in sport. Let me get
the screen up here. A Netple star Amelia an Echinazio
has revealed family reasons are the key fa in her
return to the Pulse from the Magic for next year's
A and Z Premiership. The fifty three Tests. Silver Fern
Shooter is based in Wellington and is keen to be
closer to a support systems as a month to two
(25:12):
young kids and defending US Tennis Open champion. As we
get down to the business end of this tournament, Arena,
Sablenka has been served up a semi final spot by
walk over. That means default with a knee injury forcing marketa.
Let me see if I can get this right, Michelle
(25:33):
von Drushkiva. Not a bad effort. That's pretty good. Yeah,
to withdraw pre match. That's your sports news. Up next
to Emma Higgins from Rabobank. It is hot off the press,
so hot it's burning my fingers and so hot. I
haven't even had time to read it thoroughly, but I'll
(25:55):
wing it because that's what you have to do with
live radio. It is the Rabobank September Agribusiness Report. One
of the authors is Emma Higgins, senior AG analyst, and Emma,
I just want to start before we talk about that,
and we've already talked to Richard Allen obviously from Fonterra.
Are you surprised by that big drop overnight?
Speaker 6 (26:16):
Not particularly, just in the sense that right now, Jamie,
we're in a really critical part of the season, as
every farmer will know out there, whether it's theory or
whether it's actually what's happening in the sheep and beef
space where you know we're starting to hit our straps
when it comes to milk production, or we're starting to
see lambs drop on the ground, and whether it is
(26:37):
such a critical situation. But also as part of that,
overall supply volumes are really critical for the GDT right now.
So what we've seen is volumes start to lift as
what normally happens at this stage, and it's testing demand
a little bit as we speak, So not super surprised.
I think that we're likely to see record production volumes year.
(27:00):
I've been talking about this for a while. I think
we're likely to see growth of about two percent and
we're likely to have new records. So we'll just see
how things go in the short term. And going back
to my earlier weather comment, a lot of that two
percent forecast will be underpinned by the weather that may
or may not happen in the next sort of six
weeks or so.
Speaker 3 (27:19):
Yes, And that's like trying to pick your nose, isn't
it very difficult? Well, actually not picking your nose is
easier than picking the weather radio. When we look at
the commodity outlooks, we've kind of covered off dry. It's
not unusual, as we discussed with Richard Allen, to have
seasonal drops at this time of the year, one thing
or one segment or sector that seems to be defying gravity,
(27:40):
as beef.
Speaker 6 (27:41):
Sawing to new heights. Really is the scene there for beef,
and look, it's actually a similar situation for sheep. We
can get to that soon. But look what we're seeing
record prices for this time.
Speaker 1 (27:53):
Of the year.
Speaker 6 (27:53):
It is great news for our beef farmers. A lot
of it comes down to a supply story along with
the demand story that we've been talking about for a
long time now our of the US, but locally we've
got less kettle around and then globally it's a similar
story as well. So excellent news. And you know, the
chances of elevated prices continuing to hold are certainly quite
(28:18):
sound in the short term. Again, we're waiting to see
what happens in the short term when it comes to weather,
but things are looking good on that front.
Speaker 3 (28:26):
Is it detto for sheep?
Speaker 7 (28:27):
Mate?
Speaker 4 (28:29):
Yeah?
Speaker 6 (28:29):
She made is very interesting because we've seen the average
farm gate prices hit ten bucks for the first time
in August that is forty percent higher than this time
last year. Similar around the drivers right, so we've got
tight supply of lambs, particularly with the challenges that Southland
had this time last year, which has resulted in a
(28:51):
decline of over a million head of lamb, like one
point two million head of lamb short when it comes
to processing. So ultimately China are paying more over the
last quarter, which is great news, but it really is
at northern hemisphest three around strong demand coming from the
EU also the UK mixed with that type of play.
Speaker 3 (29:12):
People can read your September agribusiness report on the website
rabobank dot co dot and said, but I just want
to touch on one more of your commodity outlooks, and
that is interested in exchange rates, particularly interest rates. I
was interested to hear Stephan Vogel out of your Australia
office last week saying or suggesting that Rabobank thinks there's
(29:33):
only one more cut coming to the ocr That's not
what the Reserve Bank signaled, Emma, No.
Speaker 6 (29:40):
It is a little bit different. But you know what
we've always marched to our own beat. In terms of
our forecast, We've for a long time talked about perhaps
the terminal rates sitting around that three percent mark for
a very long time. We're there now. We've had multiple
cuts already, and that's the reason that we have revised
our forecast to expect one more cut at the November meeting.
(30:02):
We've potentially got a lot of stimulus to wash through
the economy thanks to those rate cups that we've had
so far, and then on top of that, there's a
lot of homeowners out there that are going to be refixing,
resetting their mortgages and the next six months from July,
so you know, hopefully consumers out there New Zealand people
(30:23):
out there will have slightly more cash flow then maybe
what's been suggested out there. So let's hope that's the
case that we're picking one more cut in November.
Speaker 3 (30:34):
Well, Emma Higgins, I hate to say this to your face,
but I hope you're wrong. I think the economy needs
an OCR at two and a half percent.
Speaker 6 (30:43):
And look, it's not the first time that I might
have been wrong as well. So look, we'll see when
we next catch up.
Speaker 3 (30:48):
Emma Higgins always got the chat on the country. Thanks
so much, Jamie twelve away from on up next farming legend.
I hope he doesn't mind me calling them Matt mark Town.
So we're going to finish with some of Mike Joy's comments.
Good too. Welcome old friends back to the country or
(31:10):
back onto the country radio show. The Guy and I
were co hosts of a farming and footy tour to
South America in twenty twelve, watching the All Black Speet
the Pumas Bonaseri Mark Townshend joins us. Mark. You've got
a storied history when it comes especially to the dairy industry.
You were a founding director of Fonterra back in the
(31:32):
early days. What was it, two thousand and one? Do
you reckon? They're heading in the right direction? Good afternoon, Oh.
Speaker 2 (31:38):
I think they're going well. They've tidied quite a few
things up. I'd just like to see them be more vicious,
Jamie and I guess we're heading into probably a milk
procurement war in Kenterbury South and waite Ketto and Open
Country certainly seem to have some bullets on their guns,
(31:59):
don't they.
Speaker 3 (32:00):
Are you going to be voting yes for the sale
of the consumer brands business. Yes, I am simple as that.
I want to move on. How do we get agriculture
the primary sector to do the heavy lifting to double
exports in the next decade. It's a lofty goal from
the government, and I know there's plenty of potential with horticulture,
but how do we do it with dairy farming and
(32:22):
stay within the environmental boundaries that have been set or
should we just not worry about those.
Speaker 2 (32:29):
No, we've got to worry about them, Jamie. But I
guess the key question is if you want first world
how first? Will social services?
Speaker 4 (32:38):
First? Will infrastructure? You've got to have the money for it.
Speaker 2 (32:41):
And there's similarities between tourism, mining, dairy. If you grow
tourism or mining or dairy, is it one hundred percent good?
Speaker 4 (32:51):
No?
Speaker 2 (32:52):
No, there's always a few problems that come with it.
But I would sayly five percent good and fifteen percent
that you just need to tidy up. That's what you
can do.
Speaker 3 (33:03):
So you're saying it's not the environment at all costs.
Speaker 2 (33:07):
No, absolutely not. I mean I think the group of
young people that I'm working with, and I hope you
get to meet some of them, you know, they're working
away on all the things we need to comply and
make sure that we're doing all the responsible things for
an environment. But every time New Zealand's got into financial
trouble in the last few decades Asian Crisis, DFC, post
(33:31):
COVID blues, it's actually dairy that tends to be a
key plan to lead New Zealand's economic recovery. And that's
what we're seeing at the moment.
Speaker 3 (33:41):
No surprise there. It's our biggest export industry. Tell me
about these young group, the next generation of agg and
dairy farming leaders you've got coming through. I know you're
sort of an a mentoring position with them, and there's
some well known family farms, so this is an intergenerational
sort of thing.
Speaker 2 (33:59):
Well, I think that I think we've got something of
a vacuum and leadership right across agri in New Zealand And.
But there's a group of really talented twenty thirty forty
year olds that you know, I hope these people come
through and take on leadership positions. It's not that hard
(34:22):
to find the odd farm that's negative. It's not that
it's pretty frustrating dealing with some of the agrey bureaucracies,
and you get down three or four levels from the
CEO and it's like down to the dentist. But the
people I'm working with, Colin Glass, is pretty well known
to the industry. Colin and I are just working with
these young guys and are working away on what's the
(34:44):
size of the prize of growing it their industry. What
are the things we need to do to comply around
environmental and methane type things, an what are the barriers
to make it happen.
Speaker 3 (34:57):
You have been working, as you said, with several bureaucratic organizations.
You've listed four of them. I don't know if this
is for public comment, Mark Townsend, you can go down
this road if you want to. You've been dealing with
the government, MPI, Fonterra, and Derry and Z. Some have
been more useful than others.
Speaker 2 (35:15):
Yeah, you're trying to put me in the whole.
Speaker 3 (35:18):
I'm just trying to improve ratings. Come on, Mark, give
me something.
Speaker 2 (35:22):
Now, Okay, But I'll say some have been more positive
than others, and some I think have been beaten up
by some of the anti dairy sentiments. But somewhere we
need to look after that the environment. We need to
look after all those things like animal welfare. But comes back,
(35:47):
do you want to first world economy or don't you?
Speaker 3 (35:49):
We are in a financial hole, aren't we, And we
need to pay for health, education and infrastructure especially. We're
going to pay for it somehow, and I don't think
we can borrow to the cows come home. No dairy
farming pun intended there, Mark, And the only way we
can pay our way in the world, as I say,
it is not necessarily through tourism. That's a two way straight.
(36:09):
It's got to be the primary sector.
Speaker 4 (36:11):
Well, yes, yes it does.
Speaker 2 (36:13):
And if you started with a starting point and said
New Zealanders maybe twenty billion a year short it's a
run first, wortal health first, with education, first world social services.
If we could grow the dairy production over the next
decade by fifty percent, that will provide more than half
(36:35):
that shortball.
Speaker 3 (36:36):
There is the economic recipe a Mark Townsend amount of time.
Thank you very much for yours great to catch up again.
I still have happy memories of our farming tour to
South America in twenty twelve. Are you heading up the
road because you're farming at Nazia? Are you heading up
the road? This weekend to watch the spring Box against
the All Blacks at Eton Park.
Speaker 2 (36:55):
No, I'm getting old and it's by the Fire's pretty comfy.
Speaker 3 (36:59):
Well, you enjoy your Saturday in front of the fire
on the Lazy Boy. You got the Southland Stags beat
in Canterbury and then hopefully the All Black's doing the
business over the spring Box and keeping that wonderful record
at Eden Park. Intact, Mark Townsend, thanks for your time
going to try and catch up with some of these
young dairy leaders that you're working with. Appreciate it.
Speaker 2 (37:18):
Thanks, Jamie.
Speaker 3 (37:19):
Good on you, Mark Hey. Here's Dr Mike Joy's comments.
Minnie Dean was hung for killing babies in Southland, but
our dairy industry is currently putting babies and adults at
risk with nitrate contamination of drinking groundwater. How about we
bring back hanging for industry CEOs. I'll leave you with
this thought. Just imagine the outcry if Mark de Latour
(37:43):
or Miles Hurrel said that about woke academic, lefty farming
haters like Dr Mike Joy. Well discuss that one on
the show tomorrow with the Wayne Langford, president of Federated Farmers,
was on the show as well, talk about Toyota High
Likexes and the footy this weekend. We'll catch you tomorrow you.
Speaker 1 (38:10):
Catch all the latest from the land. It's the Country
Podcast with Jamie McKay. Thanks to Brent, you're specialist in
John Deere machinery.