Jamie Mackay: The Country host on what Donald Trump's return to the Oval Office means for Kiwi farmers

It's been a big week for the US, with Donald Trump returning to the Oval Office for his second term as US President.

His plan for tariffs has sparked concern among many key industries, with Kiwi farmers wondering what this means for one of New Zealand's biggest red meat markets.

The Country's Jamie Mackay explains further.

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Episode Transcript

Speaker 1 (00:00):
Absolutely.

Speaker 2 (00:00):
Now.

Speaker 1 (00:01):
Of course, Donald Trump is in power, and I see
at the beginning of the program, and that editorial is
on our website, News Talks, Big Dot Co. Door insid
I'm worried about only one thing, and that is tariff's.
So here is what Donald Trump said about tariffs today.

Speaker 3 (00:15):
I may, yeah, but we're not ready for that yet.
We may, we may put it rapid because essentially, all
countries take advantage of the US. We don't make any
good deals in the US. It's amazing in a way
that we exist. We don't make good deals, we don't
have any good deals.

Speaker 1 (00:34):
All countries take advantage of the United States. That means
New Zealand. So what does it mean for New Zealand farmers?
And Jamie McKay joins me right now from the country. Hello, Jamie.

Speaker 2 (00:43):
Yeah, good Andrew and the new Year. Yeah, what does
it mean for New Zealand farmers. Well, I had Todd
McClay Trade Minister on the show today, and you know
he's still hoping that we can do some deal, maybe
a sweetheart deal with the US. We know he's going
to get stuck into China. We know is going to
get stuck into Mexico. And Canada or threatening to do so.

(01:03):
But maybe because they really want what we've got. I
are manufacturing beef for the burgers. We might be able
to do something else. So what does a Trump presidency
mean for New Zealand farmers? Well, lower dollars good tariffs
are obviously bad. A cold war with China wouldn't play
out well for US. As I said, the US is

(01:26):
rapidly becoming our biggest red meat market, especially with beef,
so a stronger US economy Minister Economy under Trump could
be good for US. And finally, Andrew, if he drills
baby drills, that could lower world oil prices. So we're
all holding our breath and waiting and seeing.

Speaker 1 (01:45):
Really yeah, but you know, how do we really affect
the great global economy that is America, the huge economy.
I mean, we're just a drop in the ocean. So please,
as friends, do us a favor. Open Country Dairy has
paid ten ten dollars four milk peculiar two farmers for
P two. What's up with that? What do you make

(02:06):
of it?

Speaker 2 (02:08):
Well, it's good news, I guess, well it is good news.
Remembering that Fonterra is set it was four cast milk
prices at ten dollars, so Open Country Dairy does it
a wee bit different Differently. It pays out in milk
and four periods during the year, so P two is
for October November milk, which is sort of peak period milk.
There's a lot in that period. P one incidentally was

(02:32):
Dune through to September. The beginning of the season, it
was only eight eighty so on a weighted basis up
till now, we've still got two periods to go. Open
countries sitting in the in the mid nine so it's
a wee bit behind Fonterra, so we'll have a look
at that one. There is another, by the way Andrew
Global Dairy Trade Action overnight whole milk powder and skim

(02:54):
milk powder are typtarized by maybe two percent off the
back of Fonterra, removing a bit of value from the platform.
Of course we're passed those seasonal peaks, but a good
pulse auction last week, that's the auction we run between
the GDT auctions. Strying out on the North Island might
have an effect on production. And of course the sphares

(03:14):
around foot and mouth disease in Germany after it was
found in some water buffalo near Berlin. So fingers crossed,
we get a good GDT auction tonight, Andrew, and that
ten dollars holds for the dairy farmers of this country.

Speaker 1 (03:29):
They always are made. And finally, Federated Farmers want New
Zealand banks to withdraw from a UN backed banking alliance.
So tell me about that.

Speaker 2 (03:38):
Yeah, well talking about America. Yeah, Federated Farmers is saying
our banks need to follow the lead of the six
biggest banks in America JP, Morgan City Group, Bank of America,
Morgan Stanley, Wells Fargo, and Goldman Sachs. They've all exited
the UN backed banking alliance and they're leaving because of
the lawsuits potential lawsuits for end he competitive behavior within

(04:01):
the banking sector, and obviously growing political pressure under a
Trump regime. Now, this net zero banking alliance has been
set up to align with lending policies with everyone being
carbon zero by twenty fifty. B and Zena is a
direct member the others in New Zealand, the other five

(04:23):
big banks West Paca and ZASB and Ravo Bank are
affiliated with their alliance through their offshore parent companies look.
Richard McIntire, the Banking Guy banking spokesperson from Federated Farmers,
said he's increasingly concerned that I'm with them on this
one about what will happen to farmers if they're not
able to meet the bank's missions reduction targets by twenty thirty.

(04:46):
He's asking this question, Andrew, will we be effectively de
banked and able to unable to access capital we need
to run our business? Is a bit like we're starting
to see with some of the petrol stations or maybe Andrew,
under Trump, the world is changing and it's the end
of woke as we know it.

Speaker 1 (05:05):
Jamie mackay from the Country, and I thank you for
your time today.

Speaker 2 (05:08):
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