The Country 02/04/25: Komal Mistry-Mehta talks to Jamie Mackay

Fonterra’s chief innovation and brand officer comments on last night’s GDT Auction (+1.1%), payout prospects, and Trump’s tariffs.

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Episode Transcript

Speaker 1 (00:00):
Well, I reckon it was a really good Global Dairy
Trade auction last night, up one point one percent. Whole
milk powder is still over four thousand dollars a ton.
Skim milk powder up nearly six percent. Tell us more
about it, and to tell us what's going to happen
tomorrow with Trump's liberation Day. I'm not sure about that one,
but we'll ask her anyhow. Com L Mystery Meta Fonterra's

(00:22):
Chief Innovation and Brand office. So let's start with the
GDT auction. Commal, I think it was a great result.

Speaker 2 (00:29):
It was absolutely a great result for New Zealand, great
results for our farmers and it was really pleasing to
see so a positive result overnight. And if you just
start with homework Potter, you know, we had a really
strong bid ratio for homework Potter, so really good to
see pricing still at the four thousand marked. People are active,

(00:50):
so that's a really good sign.

Speaker 1 (00:51):
And the Chinese were into it, boots and all.

Speaker 2 (00:53):
Apparently, Yeah, a great a great representation from from China,
but overall just really good representation and good ratios.

Speaker 1 (01:02):
So whole milk powder just down a tad, skim milk
powder up five point nine percent. This was off the
back of lower volumes on the platform by you guys.

Speaker 2 (01:12):
Right, Yeah, Look, I think the skim milk powder result.
I mean, if I zoom out a little bit, that's
the reason why we have the platform so we can
achieve price discovery. And you know what we saw play
out overnight. We're able to achieve the best result from
a pricing perspective for our farmers. So you're going to
have you know, these dynamics play out. It's the nature

(01:34):
of an option. So it was really really pleasing to
see you.

Speaker 1 (01:38):
Can't withhold product forever.

Speaker 2 (01:40):
Well, look, I think it's I know we've seen the
current dryness of the season and that's kind of yet
to yet to play through. But overall, you know, the
position held, so we should be pleased with that result.

Speaker 1 (01:54):
Okay, here's the sixty four thousand dollars question. Don't duck
for cover. I know you will. You're so it's above
your pay grade. Commal, I know you will. But I'm
quoting Mike McIntyre from jardin The Guy I use. He
says this result gives them plenty of hope of an
improved midpoint as we move into the last few actions
of the season, so we might be ten dollars plus.

Speaker 2 (02:18):
I love I love that you always try, Jamie, but look,
when we have more information around that will be you'll
be the first to know.

Speaker 1 (02:27):
Okay, only three auctions to go before the end of
the season, so you could take it from that that
the ten dollars is locked and loaded. Though throw me
a bone, no bones to be thrown.

Speaker 2 (02:39):
But look, overall, I think we were really pleased, and
I think you know, when you start thinking about the
overall Fonterra strategy and the focus on B to B
in particular, you know the strength and our ingredients business.
It was pleasing to see, and you know we continue
to focus on strengthening that channel as well as our

(03:01):
food service channel and return the maximum value back to
our shareholders.

Speaker 1 (03:06):
Actually, I need to correct myself. I said only three
more options to go before the end of the season.
Of course we're in only in early April, so I
was wrong. There are only three more options before we
see the opening milk price of next season. I'm not
even going to ask you about that, commel, but it
will be strong.

Speaker 2 (03:22):
Yeah, Look, I think you know we're happy with things
where things are at now.

Speaker 1 (03:27):
One more question for you to avoid before I bid
you farewell Liberation Day tomorrow. What's the think tank at
Fonterra saying about that?

Speaker 2 (03:36):
Well, I think we'll have to wait and see, you know,
what unfolds tomorrow. But I think that the beauty of
our business is that, you know, we're well diversified when
you kind of think about the markets that we operate,
and you know, the US continues to be an important
market for us, especially when we think about those high
value protein ingredients. So look, we'll wait to see what

(03:56):
Trump has in store. Got on.

Speaker 1 (03:58):
You're doing a great job at five Tira, thanks for
your time.

Speaker 2 (04:01):
Thank you very much.