Richard McIntyre: Federated Farmers Dairy Chairperson on the monthly trade surplus

The primary sector's going gangbusters, with a billion-dollar monthly trade surplus for the first time in five years. 

Stats NZ data reveals it sat on $1.4 billion in April, compared with a $12 million deficit for the same time last year. 

The dairy sector's been the big winner. 

Federated Farmers Dairy Chairperson Richard McIntyre told Ryan Bridge a lot of dairy farmers have smiles on their faces. 

He says they're proud of their contribution to the economy, and the wider standard of living they help Kiwis generate. 

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Episode Transcript

Speaker 1 (00:00):
The primary sector has helped drive an April trade surplus

(00:02):
of one point four billion dollars, first billion dollar surplus
in five years. For the month, it was a five
hundred sorry, a twelve million dollar deficit the same time
last year. Dairy the big winner, up six hundred million
dollars on last year to a total of two point
two billion. Milk powder alone brought in a billion bucks,
up thirty two percent on last year. Richard McIntyre Federated

(00:25):
Farmer's Dairy chairperson with me this morning, Richard, good morning,
Good morning Ron. So this is something worth celebrating, is it?
Can you put it into context? Everyone's saying our farmers
are creaming it. I'm paying too much for my butter.
What do you say, Well.

Speaker 2 (00:39):
Well, first, all right, there'll be a heap of dairy
farmers listening to your show this morning. With a smile
and the face he's just hearing it. You know, we're
so proud of our contribution to the economy and the
wider standing of the center of living that we help
New Zealand degenerate. Sorry, but look, yeah, there's a lot
going on in the space, you know. Definitely, milk is

(01:00):
a rising. The same way that everything else is rising
at the moment. But you know, dairy farmers aren't creamy it.
We are doing a right at the moment, but our
costs have gone up so much over the last few
years that you know, in all reality, all we're doing
is making a reasonable margin at the moment.

Speaker 1 (01:14):
Yeah, on farm inflation and just whacked you guys for sex,
didn't that? So does this? How long do you? I mean,
I saw the ASB numbers for predictions for next season.
It's looking like it could be which starts shortly, could
be a good one.

Speaker 2 (01:28):
Too, Yeah, definitely, you know, it's all innications are that
next season is going to be around the ten door
mark at the moment, but there's still a lot of
volatility out these internationally, so you never really know until
until you're told you've got it, you know, a year later.
But look, on farm costs are still sitting around the
eight dollar fifty marks, so you know, there's about a
dollar fifty margin for the average farmer at the moment.

(01:50):
So we're certainly not cream it, but it is certainly
a good time for the dear industry.

Speaker 1 (01:54):
How can it be cheaper to get butter from Australia?
You know, you see these stories of bakeries going to
Australia to get their better rather than buying it from here.

Speaker 2 (02:04):
Well, it's a good question. So you know New Zealand
dairy products attracted premium because they are grass fed, their safe,
they're nutritious, and they've also got the lowest greenhouse gas
emission footprint in the world, and so you know, international
customers are prepared to pay a premium for them, so
so often it is actually cheaper to import. I'll enjoy

(02:25):
saving this, but a fairy Australian product.

Speaker 1 (02:27):
Richard, Thank you a nice explanation. Richard McIntyre, dairy cheaperson
at fed Farmers.

Speaker 2 (02:32):
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