April 14, 2025 • 6 mins
Open Country Dairy’s chief executive is in Southland for supplier meetings. He comments on the potential for dairy conversions in the region, updates progress on a new butter factory in Waharoa and previews tonight’s Global Dairy Trade auction.
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Episode Transcript
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Speaker 1 (00:00):
Well, we're after God's Own Country now just down the
road here from the Country HQ and Dneed and we're
heading to Belcluther. There we find Mark Delatour, CEO of
Open Country Marks supplier meetings in Southend. At the moment,
you've just wrapped up the one in Bellcluther. How did
it go? Good afternoon?
Speaker 2 (00:18):
Yeah, good afternoon, Bro. Really nice to catch up with you.
A bit of a while since we've spoken. But gorgeous,
gorgeous morning down here. I got to say there was
a there was a little light frost and Bellcluther and
and Croydon when we started this morning, but it was
a beautiful drive drive through there. So and it's been great.
(00:38):
This will be week three. We started off with the
y Kaddow last week. We're doing Taranaki and Mahwatu and
South and Otaga this week. So it's been really good
to catch up with our supply base.
Speaker 1 (00:51):
Yeah. What were some of the messages coming through? Mark?
Speaker 2 (00:54):
Oh, you know, everyone's pretty happy. I mean you've just
got ten dollars fifty seven and pocket I guess, and
of course and true fashions. When are we going to
get to eleven? So it's the.
Speaker 1 (01:06):
Goal post always moves.
Speaker 2 (01:08):
Absolutely, but I think it's you know, that's a great
sign because it means that everyone's positive, everyone's looking forward,
and you know after the last sort of three or
four years, that's that's a really great place for the
industry to be and I think a lot of energy
and a little bit about the future. So it's been great.
It's been a really really positive three weeks.
Speaker 1 (01:27):
You touched on it justin Mark when you said it
was a beautiful drive through south and today you've gone
from Gore to bell Klutha. What are you seeing in
the paddocks out there?
Speaker 2 (01:36):
Ah, look, it's you know, it's again stunning, stunning day
through South and Otaga. I got to say, well, we're
talking in the car on the way through, and what
I will say I was, you know, we've really got
to start looking at ourselves again here and you know,
the context of doubling exports for New Zealand, we've got
to really question what appropriate land use here is in
(01:59):
New Zealand. You know, we're our farmers down here. We
beg turn out last night at standing room only, and
ninety five percent of open country supplies down on this
part of the world have completed farm environment plans, right,
So they're responsible owners, are good managers of land use
and water quality and driving through from Gord of bell Cliff,
Like you said, there's so much land there that really
(02:22):
should be a very very productive dairy country. And you know,
the days of dairy conversions being a swear word are gone.
We need to really start looking at that and saying,
you know, we're responsible land union's land owners and users,
and let's get real in New Zealand and start looking
at this because there's so much opportunity down in this
(02:43):
part of the world for a greater productivity.
Speaker 1 (02:46):
So do you think we're going to see more of
these dairy conversions moving forward if we can inch towards
that eleven dollar payout?
Speaker 2 (02:53):
Yeah, I hope. So I don't think it's just payout too.
I think it is legislation and sort of saying hey,
what is appropriate land use. You know my history, my
early career was in forestry, and there's nothing worse than
seeing farmland being planted up in trees. There's also, you know,
nothing worse than seeing steep forested land being clear feled.
(03:13):
So I think, you know, New Zealand does need to
look at appropriate land use, inces saying we may not
have done the best best work on that in the
last sort of fifty years, but now we need to
get practical. And so we've been through that. Productivity is good,
payouts good. How do we increase our exportings?
Speaker 1 (03:32):
You have got a new bunter factory going in at Wahurrah.
How's that going, Mark?
Speaker 2 (03:37):
Yeah, we're close now, so sort of at the end
of August, we'll be commissioning with the supplies of the
gear and putting the first cream through to see that
we're going to make how the butter is going to
be and then I would say not according to our schedule,
our first production of butter and anger will be in September,
so we're really looking forward to that getting off the ground.
Speaker 1 (03:59):
Will that be seen? Is that all for export or
will it be hitting some domestic supermarkets.
Speaker 2 (04:05):
No, the stage is, you know, our our target markets
are all export driven. That's where the best returns are,
and you know we're going to get the best returns.
Then that's all about milk payment to our supplies. So
this stage it's all export open country supplies. We'll get some,
but I like they do our cheese row so it
(04:27):
might be the odd block you can get a few
if you smile nicely.
Speaker 1 (04:29):
I will definitely be rating Jamie McKay's fridge. I tried
to buy butter in the supermarket yesterday here in Dunedin
and just about it felt like I was giving away
my unborn, firstborn child, you know, this figurative thing, because
my goodness, it was expensive. Anyway, I do agree.
Speaker 2 (04:46):
It is exciting. You know, it's really good that we
Open Country continue to expand its product lines, and we're
doing it very much in our style, you know, very simple,
nice clear sales strategies, production and just being very very
good at what we do. So we're really excited about that.
Recounting the weeks now, not the month.
Speaker 1 (05:07):
Yeah, yeah, it is exciting when you see a massive
project like that really kind of inching towards that finish
line quite quickly.
Speaker 2 (05:14):
Exactly.
Speaker 1 (05:14):
Look GDT tonight, the first one post all of this
tariff talk kicking off. What are you expecting to see?
Speaker 2 (05:22):
Yeah, I guess what we've been communicating to the suppliers
in the last three weeks. Rowers don't worry about what
you can't control, so the tariffs and what not, they're
there I think what we're starting to see.
Speaker 1 (05:36):
Is that the.
Speaker 2 (05:37):
Tariffs are really just being used as almost a bargaining
chip to get people to the table. You know that
the China tariff is harsh, but it's almost like it's
a tariff on everything apart from what America are going
to buy now with iPhones and whatnot. So it's a
changing field. So let's not worry about that. At the
end of the day, everyone needs to eat. The fundamental
(06:00):
are still there. Supply and demand globally is still there.
The balance is there, and we're actually expecting a positive
result this GDT certainly nothing coming off So you know,
we've just readone our milk price podcasts and they're saying
these thief prices are you know, all indications are they're
going to be holding through into the next season. So
we're not seeing expecting to see any great drop in prices.
Speaker 1 (06:23):
It's going to be an interesting one. All eyes on that.
Mark Delatore, CEO of Open Country, Nice to chat to
you from the Deep South as well. Enjoy the rest
of your day and your trip back home.
Speaker 2 (06:36):
Yeah, we'll do hitting too. Hitting your way to Duned
and now to jump on a plane. So it'll be
it'll be uh, it'll be good to have the three
weeks over, but it's it's been great to catch up.
Speaker 1 (06:46):
I bet it has. Hey, Travor well my friend.
Speaker 2 (06:48):
All right, thanks,
Well, we're after God's Own Country now just down the
road here from the Country HQ and Dneed and we're
heading to Belcluther. There we find Mark Delatour, CEO of
Open Country Marks supplier meetings in Southend. At the moment,
you've just wrapped up the one in Bellcluther. How did
it go? Good afternoon?
Speaker 2 (00:18):
Yeah, good afternoon, Bro. Really nice to catch up with you.
A bit of a while since we've spoken. But gorgeous,
gorgeous morning down here. I got to say there was
a there was a little light frost and Bellcluther and
and Croydon when we started this morning, but it was
a beautiful drive drive through there. So and it's been great.
(00:38):
This will be week three. We started off with the
y Kaddow last week. We're doing Taranaki and Mahwatu and
South and Otaga this week. So it's been really good
to catch up with our supply base.
Speaker 1 (00:51):
Yeah. What were some of the messages coming through? Mark?
Speaker 2 (00:54):
Oh, you know, everyone's pretty happy. I mean you've just
got ten dollars fifty seven and pocket I guess, and
of course and true fashions. When are we going to
get to eleven? So it's the.
Speaker 1 (01:06):
Goal post always moves.
Speaker 2 (01:08):
Absolutely, but I think it's you know, that's a great
sign because it means that everyone's positive, everyone's looking forward,
and you know after the last sort of three or
four years, that's that's a really great place for the
industry to be and I think a lot of energy
and a little bit about the future. So it's been great.
It's been a really really positive three weeks.
Speaker 1 (01:27):
You touched on it justin Mark when you said it
was a beautiful drive through south and today you've gone
from Gore to bell Klutha. What are you seeing in
the paddocks out there?
Speaker 2 (01:36):
Ah, look, it's you know, it's again stunning, stunning day
through South and Otaga. I got to say, well, we're
talking in the car on the way through, and what
I will say I was, you know, we've really got
to start looking at ourselves again here and you know,
the context of doubling exports for New Zealand, we've got
to really question what appropriate land use here is in
(01:59):
New Zealand. You know, we're our farmers down here. We
beg turn out last night at standing room only, and
ninety five percent of open country supplies down on this
part of the world have completed farm environment plans, right,
So they're responsible owners, are good managers of land use
and water quality and driving through from Gord of bell Cliff,
Like you said, there's so much land there that really
(02:22):
should be a very very productive dairy country. And you know,
the days of dairy conversions being a swear word are gone.
We need to really start looking at that and saying,
you know, we're responsible land union's land owners and users,
and let's get real in New Zealand and start looking
at this because there's so much opportunity down in this
(02:43):
part of the world for a greater productivity.
Speaker 1 (02:46):
So do you think we're going to see more of
these dairy conversions moving forward if we can inch towards
that eleven dollar payout?
Speaker 2 (02:53):
Yeah, I hope. So I don't think it's just payout too.
I think it is legislation and sort of saying hey,
what is appropriate land use. You know my history, my
early career was in forestry, and there's nothing worse than
seeing farmland being planted up in trees. There's also, you know,
nothing worse than seeing steep forested land being clear feled.
(03:13):
So I think, you know, New Zealand does need to
look at appropriate land use, inces saying we may not
have done the best best work on that in the
last sort of fifty years, but now we need to
get practical. And so we've been through that. Productivity is good,
payouts good. How do we increase our exportings?
Speaker 1 (03:32):
You have got a new bunter factory going in at Wahurrah.
How's that going, Mark?
Speaker 2 (03:37):
Yeah, we're close now, so sort of at the end
of August, we'll be commissioning with the supplies of the
gear and putting the first cream through to see that
we're going to make how the butter is going to
be and then I would say not according to our schedule,
our first production of butter and anger will be in September,
so we're really looking forward to that getting off the ground.
Speaker 1 (03:59):
Will that be seen? Is that all for export or
will it be hitting some domestic supermarkets.
Speaker 2 (04:05):
No, the stage is, you know, our our target markets
are all export driven. That's where the best returns are,
and you know we're going to get the best returns.
Then that's all about milk payment to our supplies. So
this stage it's all export open country supplies. We'll get some,
but I like they do our cheese row so it
(04:27):
might be the odd block you can get a few
if you smile nicely.
Speaker 1 (04:29):
I will definitely be rating Jamie McKay's fridge. I tried
to buy butter in the supermarket yesterday here in Dunedin
and just about it felt like I was giving away
my unborn, firstborn child, you know, this figurative thing, because
my goodness, it was expensive. Anyway, I do agree.
Speaker 2 (04:46):
It is exciting. You know, it's really good that we
Open Country continue to expand its product lines, and we're
doing it very much in our style, you know, very simple,
nice clear sales strategies, production and just being very very
good at what we do. So we're really excited about that.
Recounting the weeks now, not the month.
Speaker 1 (05:07):
Yeah, yeah, it is exciting when you see a massive
project like that really kind of inching towards that finish
line quite quickly.
Speaker 2 (05:14):
Exactly.
Speaker 1 (05:14):
Look GDT tonight, the first one post all of this
tariff talk kicking off. What are you expecting to see?
Speaker 2 (05:22):
Yeah, I guess what we've been communicating to the suppliers
in the last three weeks. Rowers don't worry about what
you can't control, so the tariffs and what not, they're
there I think what we're starting to see.
Speaker 1 (05:36):
Is that the.
Speaker 2 (05:37):
Tariffs are really just being used as almost a bargaining
chip to get people to the table. You know that
the China tariff is harsh, but it's almost like it's
a tariff on everything apart from what America are going
to buy now with iPhones and whatnot. So it's a
changing field. So let's not worry about that. At the
end of the day, everyone needs to eat. The fundamental
(06:00):
are still there. Supply and demand globally is still there.
The balance is there, and we're actually expecting a positive
result this GDT certainly nothing coming off So you know,
we've just readone our milk price podcasts and they're saying
these thief prices are you know, all indications are they're
going to be holding through into the next season. So
we're not seeing expecting to see any great drop in prices.
Speaker 1 (06:23):
It's going to be an interesting one. All eyes on that.
Mark Delatore, CEO of Open Country, Nice to chat to
you from the Deep South as well. Enjoy the rest
of your day and your trip back home.
Speaker 2 (06:36):
Yeah, we'll do hitting too. Hitting your way to Duned
and now to jump on a plane. So it'll be
it'll be uh, it'll be good to have the three
weeks over, but it's it's been great to catch up.
Speaker 1 (06:46):
I bet it has. Hey, Travor well my friend.
Speaker 2 (06:48):
All right, thanks,
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