Jamie Mackay: The Country host on Nathan Guy being appointed as New Zealand’s special agricultural trade envoy

Dairy farmer and agribusiness leader Nathan Guy is New Zealand’s new special agricultural trade envoy.

Todd McClay, Minister for Trade and Investment and Minister of Agriculture, announced Guy’s appointment today.

The Country's Jamie Mackay explains further.

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Episode Transcript

Speaker 1 (00:00):
Jamie McKay is with us from the country. Jamie, good evening.

Speaker 2 (00:03):
Gooday, Ryan.

Speaker 1 (00:04):
Now we've got the Fonterra, you know, the downgrading, lowering
the fore cast farmgate milk price for the second time
this season.

Speaker 2 (00:13):
Yeah. Yeah, Like, Well, to take you back a wee
bit in time, they started the season off with the
forecast range of eight to eleven dollars. Strangely, I mean,
logic would suggest the midpoints nine to fifty, but they
went with a ten dollar midpoint. They've had to subsequently
reduce that to nine fifty, and today they've changed that

(00:34):
midpoint from nine to fifty to nine dollars, so that
range is now eight point fifty to nine fifty. There's
quite a bit of talk in the industry about maybe
the milk price starting with an eight, which wouldn't be
so flash, but it's not a surprise. This follows yesterday's
and we talked about this one on Tuesday Evening, Ryan.
It follows yesterday's four point four percent drop on the

(00:55):
GDT auction down a whole milk powder down far five
point seven percent, the ninth drop in a row since
mid August. The record is ten. It looks like we
could well beat that when the first auction comes back.
In early January. Chief executive Miles Hurrell said, strong milk
flows in both New Zealand and globally, particularly out of

(01:17):
the United States and Europe, continues to put downward pressure
on global commodity prices. And the other factor that's slightly
coming into play is the stronger New Zealand dollar. It's
now training at fifty eight or US fifty eight cents.
It was at fifty six or fifty seven. But I'm
imagining the hedging department at Fonterra Ryan has probably got

(01:39):
to lock a lot of their currency locked in for
this season, so that may even be a next season story.
So Bucklin, I don't think we're over the drops yet.
But the good news is because it is Christmas and
I don't want to be a grinch. The good news
Ryan is as we look out further, we are expecting
this thing to come back and still very good future

(02:00):
for protein.

Speaker 1 (02:01):
And that you know everyone talks about the break even price, Jamie,
eight dollars fifty is that I think the average four
farmers for dairy farmers that sounds like it's getting quite close.
Is you know that must be worrying or is there
more to that?

Speaker 2 (02:16):
No, I think it's worrying. It's interesting the eight that's
the from the E contractor tracker at dairy and Z
eight fifty. I know a lot of dairy farmers, and
I know a lot of them whose cost of production
is considerably below eight dollars fifty. Maybe it's a few
of the big players with high debt that is dragging
that average up. But you're dead right, Like, at a

(02:37):
cost of eight to fifty a ten dollars payout, it
is a good business to be if that payout is
beginning with an eight and the cost of production is
eight fifty, not so flash. But there are things that
are mitigating this. I mean, lower interest rates are really
going to help farmers in the coming season or the
rest of this season. That has of course been factored

(02:59):
into the eight fifty. But yeah, watch this space a
bit of the shine coming off dairy prices.

Speaker 1 (03:05):
I see Nathan Guyn has got a new role for himself.

Speaker 2 (03:08):
Yes, he has the former Minister of Primary Industries under
the well he was under the Key and I think
the English government. I'll have to check my do my
homework on that one. Yeah, he is named as the
new Special Agricultural Trade Envoy. We've had some good ones
of these over the years. Mike Peterson for instance, comes
to mind. Nathan guy replaces hamishmah, a mid Canterbury arable

(03:32):
farmer who's held the role since twenty twenty three. Nathan
will take over on the first of January, which is
only a couple of weeks ago. Look, he's going to
with his background not only in politics, treading the corridors
of power, but also in farming. He's a practicing farmer.
He's a horror FANU a dairy farmer. He's an agribusiness leader.

(03:54):
He's the chairman of the Meat Industry Association at the moment,
he's also the independent chair for Appiculture. His Ellen, He's
got a finger and a lot of pies. He's very
well connected and he will do a very good job. Now.
Minister Maclay has said he wants Nathan to concentrate with
a particular focus on India. Obviously they're looking for the
FTA there and the GCC markets. Now. I don't know

(04:18):
about you, Ryan, but I know what a GC is.
I don't know what a GCC market is, but whatever
it is, Nathan's concentrating on it.

Speaker 1 (04:28):
You're driving with the GC. Yes, no, quite right. Well,
he's he's quite adept, he used to. I've been on
a few trade missions with Nathan Guy in the years
gone by, Like we went to Brazil, we went to Argentina,
I remember going to Mexico. I mean, he knows his stuff.
He'll be out there pushing the business, doing the good
thing for New Zealand. So that's great. Jamie, appreciate it.

(04:49):
Jamie mckaiy, Host of the Country. For more from Heather
Duplessy Allen Drave, listen live to News Talks. It'd be
from four pm weekdays, or follow the podcast on iHeartRadio.