September 30, 2025 • 4 mins
Fonterra's making the case to shareholders in a bid to sell off its iconic brands.
French dairy giant Lactalis has agreed to pay $4.2 billion for the consumer business.
The Country's Hamish McKay explained further.
LISTEN ABOVE
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):
And for Jamie mckaye, we have Hamish MacKaye, Hello, Hamish.
Speaker 2 (00:03):
Hello, here it's the bo duke. And for Lupchuke really yeah,
but it's a little bit no relation, a no relation
different spelling in Machais that we all got off the
same boat and has just claimed that they were smarter
and kept the spelling correct. Where his mind drop drop
the A after the M.
Speaker 1 (00:19):
So well, it's because you guys were smart and efficient,
he though, we don't need that A. Get rid of it.
Speaker 2 (00:23):
That's right, that's right, exactly, it's all about efficiency, that's right.
Speaker 1 (00:27):
All those a's over a lifetime, they really add up.
Now anyway, listen Frontierra, I see is doing the road
show to sell the big consumer brands stuff to the shareholders.
Are they liking what they're hearing?
Speaker 2 (00:37):
Yeah? I don't think there's going to be the first
of the road shows in Songiray. Last night it appears
that all were in favor. Some good questions coming from
the floor about the length of supply of fonterra and milk.
I guess you know the ingredients end of things, and
you know that's a that's a keen year contract and
it can't be broken. About a first six months notification
(01:01):
after seven years, so that's a fair bit of time
that lack. Carlos will take this milk without any question.
And at the end of the day, I think these
guys realize the consumer business, the mainland, the anchor, the capity,
the press and fruity, the perfect at Taliano and all
that was bringing about a three percent return on capital
these days, whereas your ingredients and your food service you're
(01:22):
straightforward more milk and powder and things eleven to thirteen
percent average for the last four or five years. So
there's not too much in the way of descent around US.
October seventh of vote happens. It'll be Q one next
year before it's all sort of finalized. But yeah, it
looks most even the smallest of farmers doing one hundred
thousand kilograms say of milk sides are going to thank
(01:44):
to three hundred k. So I think it's probably a
bit of a no brainer and will be well received,
certainly not pitching it well put it that way.
Speaker 1 (01:52):
Yeah, well it's quite enticing that level of money. Look,
on the subject of money, is the price of the
sheep in the beef land unsustainable?
Speaker 2 (01:59):
Oh? Look, I think so. There's been a wonderful article
written by the renowned Lincoln University professor Keith Woodward, and
he said in his excellent article on this topic, Houston,
we have a problem. It's a pretty big problem to
look it. It reflects the housing market a bit when
interest rates drop and everybody goes booga and goes crazy
and stupid. You know, some of these land prices now,
(02:19):
despite these great farm gate returns, there's very good returns,
you know, two hundred and ninety two dollars for lambs,
hoggets and things, you know, things that not that long
ago were seventy and ninety dollars. But at best, the
return on capital is still only one to two percent.
So who can afford to buy that? You're one of
four siblings wanting to buy out the other three. You
haven't got to open how the bank's not want to
(02:41):
give you the money to do that. It's just unsustainable really.
But we're going to have a bit of a crisis
here because the average age of sheep and beef farmers,
and I don't doubt this for a minute, it was
about fifty eight to sixty. So a lot of them
are going to be wanting to get the cash and
out of it. So it raises the question, you know,
what are you know, surely there's some excellent models out
there where you by your leave equity and yet young
(03:02):
people come in and take the land to the next level.
And there's all sorts of it. But it has got
a bit, you know, it has got a bit top
heavy in terms of those you know, twelve thy fifteen
thouers of the heck there, I mean, that's running away
with it.
Speaker 1 (03:16):
Sounds like any listen, you're going to go to that
sharing competition.
Speaker 2 (03:19):
Oh, I'll be the one I'll be lining up is
the World Champs at the Golden Shears in March. I'm
going to be there. Nobody's going to stop me from
being there. Alexandra starts this week, so that's Golden Cheers
Mastered and the first weekend of March World Champs. So
that's going to be fantastic. But it all kicks off
really this weekend because there's only two places in the
New Zealand team available to compete at the World Chance.
(03:41):
So they have a series of about five events through
to then and the one guy you can guarantee will
be the rating Golden Cheers Champ Victor Henderson. But the
rest of them, the likes of Jack Fagan and co.
They'll be competing for the other spot. So starting Alexander.
It's just got a nice ring about it, you know,
the Marino she is there and alex I like the
sound of that. There'll be you know, hundreds of people.
(04:03):
It's a great If people have never been to a
sharing event, they should go. You get you get quite captivated,
quite captured by it.
Speaker 1 (04:09):
So you had a lot of good arms on display.
Speaker 2 (04:12):
Yeah, oh yes, yes, there are some there. Yeah yeah, yeah,
look yeah, I look. I wouldn't dispute that one like
I might have had thirty years ago.
Speaker 1 (04:21):
Oh yeah, yeah, it will you know, life Dole's Hamish.
You can always get back here.
Speaker 2 (04:24):
You can't could get them back. You know. I've been
scammed as one of those things. I'm selling some weight
loss pills apparently on Facebook one and the body they
put me on the arms is quite good. I take
those arms. They're sharer's arms. Okay, well now we're.
Speaker 1 (04:38):
All going to go google that, aren't we, Hamish, Thanks
very much, Hamish MacKaye. Remember if you want to google
Hamish Mackay weight loss pills arms is without an eighth.
Speaker 2 (04:47):
For more from Hither Duplessy Allen Drave, listen live to
news talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio
And for Jamie mckaye, we have Hamish MacKaye, Hello, Hamish.
Speaker 2 (00:03):
Hello, here it's the bo duke. And for Lupchuke really yeah,
but it's a little bit no relation, a no relation
different spelling in Machais that we all got off the
same boat and has just claimed that they were smarter
and kept the spelling correct. Where his mind drop drop
the A after the M.
Speaker 1 (00:19):
So well, it's because you guys were smart and efficient,
he though, we don't need that A. Get rid of it.
Speaker 2 (00:23):
That's right, that's right, exactly, it's all about efficiency, that's right.
Speaker 1 (00:27):
All those a's over a lifetime, they really add up.
Now anyway, listen Frontierra, I see is doing the road
show to sell the big consumer brands stuff to the shareholders.
Are they liking what they're hearing?
Speaker 2 (00:37):
Yeah? I don't think there's going to be the first
of the road shows in Songiray. Last night it appears
that all were in favor. Some good questions coming from
the floor about the length of supply of fonterra and milk.
I guess you know the ingredients end of things, and
you know that's a that's a keen year contract and
it can't be broken. About a first six months notification
(01:01):
after seven years, so that's a fair bit of time
that lack. Carlos will take this milk without any question.
And at the end of the day, I think these
guys realize the consumer business, the mainland, the anchor, the capity,
the press and fruity, the perfect at Taliano and all
that was bringing about a three percent return on capital
these days, whereas your ingredients and your food service you're
(01:22):
straightforward more milk and powder and things eleven to thirteen
percent average for the last four or five years. So
there's not too much in the way of descent around US.
October seventh of vote happens. It'll be Q one next
year before it's all sort of finalized. But yeah, it
looks most even the smallest of farmers doing one hundred
thousand kilograms say of milk sides are going to thank
(01:44):
to three hundred k. So I think it's probably a
bit of a no brainer and will be well received,
certainly not pitching it well put it that way.
Speaker 1 (01:52):
Yeah, well it's quite enticing that level of money. Look,
on the subject of money, is the price of the
sheep in the beef land unsustainable?
Speaker 2 (01:59):
Oh? Look, I think so. There's been a wonderful article
written by the renowned Lincoln University professor Keith Woodward, and
he said in his excellent article on this topic, Houston,
we have a problem. It's a pretty big problem to
look it. It reflects the housing market a bit when
interest rates drop and everybody goes booga and goes crazy
and stupid. You know, some of these land prices now,
(02:19):
despite these great farm gate returns, there's very good returns,
you know, two hundred and ninety two dollars for lambs,
hoggets and things, you know, things that not that long
ago were seventy and ninety dollars. But at best, the
return on capital is still only one to two percent.
So who can afford to buy that? You're one of
four siblings wanting to buy out the other three. You
haven't got to open how the bank's not want to
(02:41):
give you the money to do that. It's just unsustainable really.
But we're going to have a bit of a crisis
here because the average age of sheep and beef farmers,
and I don't doubt this for a minute, it was
about fifty eight to sixty. So a lot of them
are going to be wanting to get the cash and
out of it. So it raises the question, you know,
what are you know, surely there's some excellent models out
there where you by your leave equity and yet young
(03:02):
people come in and take the land to the next level.
And there's all sorts of it. But it has got
a bit, you know, it has got a bit top
heavy in terms of those you know, twelve thy fifteen
thouers of the heck there, I mean, that's running away
with it.
Speaker 1 (03:16):
Sounds like any listen, you're going to go to that
sharing competition.
Speaker 2 (03:19):
Oh, I'll be the one I'll be lining up is
the World Champs at the Golden Shears in March. I'm
going to be there. Nobody's going to stop me from
being there. Alexandra starts this week, so that's Golden Cheers
Mastered and the first weekend of March World Champs. So
that's going to be fantastic. But it all kicks off
really this weekend because there's only two places in the
New Zealand team available to compete at the World Chance.
(03:41):
So they have a series of about five events through
to then and the one guy you can guarantee will
be the rating Golden Cheers Champ Victor Henderson. But the
rest of them, the likes of Jack Fagan and co.
They'll be competing for the other spot. So starting Alexander.
It's just got a nice ring about it, you know,
the Marino she is there and alex I like the
sound of that. There'll be you know, hundreds of people.
(04:03):
It's a great If people have never been to a
sharing event, they should go. You get you get quite captivated,
quite captured by it.
Speaker 1 (04:09):
So you had a lot of good arms on display.
Speaker 2 (04:12):
Yeah, oh yes, yes, there are some there. Yeah yeah, yeah,
look yeah, I look. I wouldn't dispute that one like
I might have had thirty years ago.
Speaker 1 (04:21):
Oh yeah, yeah, it will you know, life Dole's Hamish.
You can always get back here.
Speaker 2 (04:24):
You can't could get them back. You know. I've been
scammed as one of those things. I'm selling some weight
loss pills apparently on Facebook one and the body they
put me on the arms is quite good. I take
those arms. They're sharer's arms. Okay, well now we're.
Speaker 1 (04:38):
All going to go google that, aren't we, Hamish, Thanks
very much, Hamish MacKaye. Remember if you want to google
Hamish Mackay weight loss pills arms is without an eighth.
Speaker 2 (04:47):
For more from Hither Duplessy Allen Drave, listen live to
news talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio
Popular Podcasts
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
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.
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.