Jamie Mackay: The Country host on Fonterra posting a stronger-than-expected net profit

Kiwi dairy farmers can breathe a sigh of relief following Fonterra's successful results.

The dairy giant posted a $1.1 billion dollar net profit and confirmed a 55 cent total dividend for the past financial year.

The Country's Jamie Mackay explains what this news means for the wider dairy sector.

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Episode Transcript

Speaker 1 (00:00):
It's the nuts, Hayden, your metro, Heather, it's the nuts.
The bolt would be cast into the concrete. You're right,
Hither it's a high probability that they use cast in
bolts and only the nuts were removed. So there we go.
How about me, lady splain and that engineer into year
six twenty five and with me right now is Jamie McKay,
Host of the Country.

Speaker 2 (00:16):
Hello Jamie, goodday Heather, and congratulations on little Heather on
the way. Wonderful. You've got the complete seat. It's like
getting those rewards from the grocery store. You've got a
bang on.

Speaker 1 (00:27):
I'm taking so totally totally stuck for names, so I'm
taking advice on family names. My mum on my side
of the family has come up with Estelle apparently or Elizabeth,
and your side of the family has.

Speaker 2 (00:44):
Is it's a question for me or Barry.

Speaker 1 (00:46):
Well, you've got the same family. Ah, don't remember any
woman in the family right now.

Speaker 2 (00:57):
I'll just get a look. I think I'm giving people
of ice on baby names as like it's just it's
it's something you just can't want, isn't it. Well that's
a bit well, I guess it's please head of the blows.

(01:17):
You're raining the blows down upon me From a poor
southern semi farmer, I'm not really a farmer. I'm I'm
a I'm a I'm a George Street farmer. But I've
got a dairy farm meeting by zoom later on tonight.
I'm going to have to ponder how we can survive
the mud and the mare and the swamp and the
paddy paddy rice fields that is Southland at the moment.

Speaker 1 (01:38):
From trying to change the subject, don't you, I just
want to say, yeah, can I just apologize quickly for
all of those sound defects. It's not me, it's producer
and he's found the button and loves it. Carry on, Jamie.

Speaker 2 (01:49):
Well, apart from the weather down south, it's been a
good week for farmers here that I know. You just
talked to Todd McClay about the f t A with
the u A that that's a good deal. It's a
good I mean it's a bit of a one sided
trade deal. I think we do one point three billion
with them. They do something like one hundred and fifty
million or something, or yeah, one hundred and fifty million

(02:10):
with US. It's a good look. That's a really good
deal for us. I think the big story is and
I know you covered this one yesterday as well as
the Fonterra announcement, and I will temper that or qualify
it by saying I got my air chewed today by
a grumpy west Otago dairy farmer. I think in her
case it was just because it had been raining for
a month solid. But she said to me, stop talking

(02:31):
up the dairy price at nine dollars. Everyone's going to
be trying ripping off farmers and selling them stuff they
can't afford. And I said, look, that is a good
news story. But I did some sums just for you, Heather,
if you'd bought it, If you were a Fonterra farmer,
and you'd bought a Fonterra share, because to supply Fonterira,
to supply Fonterra, you need to have shares to equal

(02:53):
your production. You could have bought a share in early
February for two dollars and twelve cents with your final
divid announced Yes, at fifty five cents. That is a
yield on your share of twenty six percent. Try and
get that anywhere else in business even now. The shares
have jumped from jump thirty cents in the course of
this week since Myles Hurrald, a six million dollar man,
made the announcement on yesterday, They've gone from three fifty

(03:16):
to three eighty. It's still a fifteen percent yield, not
to be sniffed at at all. And one more to
ponder here. Today I had Mark Delator, chief executive of
Open Country Dairy, the second biggest player in the dairy
game behind Fonterra, and he was saying, if the government
doesn't have any hope at all of doubling export income
in the next decade, they're going to have to ramp

(03:37):
up dairy production. How do you do it? He's suggesting
dairy conversions back on the table. Can you believe that?

Speaker 1 (03:45):
Can you believe it? Jamie wa a blast from the past. Hey,
thank you appreciate it. Jamie McKay host to the Country.

Speaker 2 (03:51):
For more from Heather Duplassy Allen Drave, Listen live to
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