April 23, 2025 • 5 mins
Fonterra’s chief executive took a break from his Central Otago Rail Trail experience (and cheese roll tasting) to join Rowena Duncum in the Dunedin studio. He talks about the current “pretty good” dairy season, which has a month left, and what is happening globally for the sector.
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Episode Transcript
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Speaker 1 (00:00):
Joining me in studio today is Myles hurrele CEO of Fontierra.
Good afternoon, Miles, very well. Thank you. Of course you
are the one responsible for our first song of the day.
You said, look, we're in Dneda and choose something six sixty.
I've chosen the greatest. I'm not saying you're the greatest,
You're all right, but it's the only song I consider
of the is to have a bit of beat.
Speaker 2 (00:21):
Yeah. We've just come down here with some friends for
the last few days on the rail trail. Been a
wonderful few days actually, and the sunshine and need and
can't be better than that. So you've been great to you, hear.
Speaker 1 (00:30):
Yeah, and of course the rail trail. Something I said
when I moved down to Dunedin eight years ago, I
was going to have a crack at still on the
bucket list? How good like? How good out of ten
would you rate it?
Speaker 2 (00:41):
It's right up there. I mean, this is something pretty
special for New Zealand. And you know ten out of
ten and plenty of our cheese rolls to boot plain,
opportunity to see some farmers on the way and great
week you.
Speaker 1 (00:52):
Had me at cheese rolls. That's been one of my
favorite discoveries of moving down south, and of course with
Fontira cheese of course has to be has to be
to me. What were some of the highlights for you though?
Was there any part of the trail that really stood.
Speaker 2 (01:05):
Out well, just to see these small towns that you
probably don't normally stop and them. We started in Clyde
and finish up in middle March, so about four or
five days through there. But but you know, just the
different country, pubs, the people you meet along the way,
but also just the time to sort of get out,
look at the scenery, take your time. Got a bit
wet along the way, so plany the rains through there,
but as I say, overall blood bloody good week.
Speaker 1 (01:26):
Yeah, yeah, indeed, And I was in the same area
while you were there over Easter, but chasing deer around
and the paddocks. Did you see many deer from the
rail trail?
Speaker 2 (01:34):
There was quite a few, actually, I must says, more
more deer here than you would see in the North Island,
that's for sure. So no, it was. It was a great,
great scenery.
Speaker 1 (01:42):
And just considering that I hadn't actually thought if you're
doing the rail trail and the raw. Yeah, you're obviously
going to have a few.
Speaker 2 (01:48):
Yeah, yeah, yeah he was, but no weapons with us
this time, so just just letting Yeah.
Speaker 1 (01:54):
You went through Wedderburn. Did you manage to catch up
with our made up there, stew Duncan?
Speaker 2 (01:58):
We did, indeed a fantastic of coming there, and the
wind have been pub put on a decent feed for
us as well, so now it's excellent. He's got a
great set up there, I must say. I think he's
running about twelve thousand stock units at the moment, so
it's a decent size operation. But his shellais that he's
got there for the for the punters is excellent. Yeah.
Speaker 1 (02:14):
Yeah, we do give him a lot of stick on
the show, old Stewie, but who does a damn good job. Hey,
look a month left and the dairy season. How are
things looking coming to a close?
Speaker 2 (02:25):
Yeah, I mean it's been a pretty good season milk wise,
despite obviously being being quite wet more more recently. But
you know, we're sitting out there with our midpoint of
ten dollars. That the gdt's sort of been around that
number for a while now, but we've seen that, you know,
the US economy sort of fall off a little bit,
which means that the dollars come back a little bit.
So as a result of that, you know, the increase
(02:45):
you've seen in GDT won't play through to any increases
i'd say at this point. But we're sitting at ten
dollars as a midpoint, quite happy with that. And when
you looked forward to the season, and he had also
things are looking quite good, not we sending some of
the macroeconomic challenges that we see out there.
Speaker 1 (02:57):
When you walked into the studio, Miles you looked at
the board on the wall there that obviously I'd put
an update months if not years ago, saying from Terra
a milk price ranger between seven dollars twenty five and
eight dollars seventy five and ben point eight dollars. We've
come a long way since then.
Speaker 2 (03:15):
We have come a long way, and I think we've seen,
you know, that Chinese market sort of come back, not
quite to what it was sort of a couple of
years ago, but certainly you're starting to see some signs
of life out of that market. We've seen some signs
of life out of the Middle East as well, which
is a good market for US. Southeast Asia, So overall
demands in a good position in supply, you just not
see the supply to the US or not seeing supply
to Europe as we would have seen when you get
(03:36):
to these sort of price level. So you know, it
is a pretty good time I think to be a
dairy farmer and out there at the moment.
Speaker 1 (03:41):
Absolutely Now you walked down here and gave me a coffee.
I should have been the one buying you a coffee
to try and butter you up. You know I'm looking
at you in the eyes. You're not on the phone
this time. Any hint of an opening milk price.
Speaker 2 (03:53):
Well, we're about a month away from that opening position.
And as I say that, the supply demand dynamics are
quite helpful where we sit here. But you know, some
of those clouds that are emerging, will it be you
know what's happening with out of the US in terms
of the tariff wall that's underway. How does that play
out long term? Who knows? But I do see that
the global economy slow down somewhat. Does it have an
impact throughout next season? Not too sure. But the supply
(04:15):
demand position is very helpful for us to put a
decent number out I think in a month's time as.
Speaker 1 (04:21):
A company like Fonterra or a come up blake Fonterra,
whether the way things are emerging globally, how do you
keep an eye on that? Like I imagine you've got entire
teams who are devoted to finding out what's happening overseas
and feeding that information through. But there's just so much
happening at the moment to keep an eye on hea.
Speaker 2 (04:39):
There is so much happening. But it's also the pace
of change as well, and so you know, you wake
up the morning, you see things on the on the media,
and that's that's almost as fast as you're getting it
from you guys in market now as well, because things
are moving so fast. So it is hard to try
and manage. But you know, we've got good people around
the world. We're in most of the corners of the
world to understand what's what's happening. And you know, at
the same time, you don't have an influence over that.
(05:00):
We've just got to play it, play it as we
see it.
Speaker 1 (05:02):
Now, You've got a whole entourage in the studio with you.
There's six of you and one of me. We've also
got six segments in the show. So I've said to
everyone in the ad break throw me a song was
started with you with six sixty miles. I'm a bit
nervous about what's to come from some of these.
Speaker 2 (05:17):
Well, well me too. When you got your twelve year
old son who's listened to stuff that I don't usually
listen to, I'm actually worried for the listener, right, So Seeah.
Speaker 1 (05:24):
Plays absolutely, I'm just absolving myself of any any responsibility
for music choices for the rest of the show. Myles
harrel Fonterra Ceo, thank you so much for coming and
then calling in on your way through Dunedin. You've definitely
added that rail trial to the list of my musteros
in the next few years. But appreciate your time.
Speaker 2 (05:43):
Go well no Worri's great for having us. Thanks very much.
Joining me in studio today is Myles hurrele CEO of Fontierra.
Good afternoon, Miles, very well. Thank you. Of course you
are the one responsible for our first song of the day.
You said, look, we're in Dneda and choose something six sixty.
I've chosen the greatest. I'm not saying you're the greatest,
You're all right, but it's the only song I consider
of the is to have a bit of beat.
Speaker 2 (00:21):
Yeah. We've just come down here with some friends for
the last few days on the rail trail. Been a
wonderful few days actually, and the sunshine and need and
can't be better than that. So you've been great to you, hear.
Speaker 1 (00:30):
Yeah, and of course the rail trail. Something I said
when I moved down to Dunedin eight years ago, I
was going to have a crack at still on the
bucket list? How good like? How good out of ten
would you rate it?
Speaker 2 (00:41):
It's right up there. I mean, this is something pretty
special for New Zealand. And you know ten out of
ten and plenty of our cheese rolls to boot plain,
opportunity to see some farmers on the way and great
week you.
Speaker 1 (00:52):
Had me at cheese rolls. That's been one of my
favorite discoveries of moving down south, and of course with
Fontira cheese of course has to be has to be
to me. What were some of the highlights for you though?
Was there any part of the trail that really stood.
Speaker 2 (01:05):
Out well, just to see these small towns that you
probably don't normally stop and them. We started in Clyde
and finish up in middle March, so about four or
five days through there. But but you know, just the
different country, pubs, the people you meet along the way,
but also just the time to sort of get out,
look at the scenery, take your time. Got a bit
wet along the way, so plany the rains through there,
but as I say, overall blood bloody good week.
Speaker 1 (01:26):
Yeah, yeah, indeed, And I was in the same area
while you were there over Easter, but chasing deer around
and the paddocks. Did you see many deer from the
rail trail?
Speaker 2 (01:34):
There was quite a few, actually, I must says, more
more deer here than you would see in the North Island,
that's for sure. So no, it was. It was a great,
great scenery.
Speaker 1 (01:42):
And just considering that I hadn't actually thought if you're
doing the rail trail and the raw. Yeah, you're obviously
going to have a few.
Speaker 2 (01:48):
Yeah, yeah, yeah he was, but no weapons with us
this time, so just just letting Yeah.
Speaker 1 (01:54):
You went through Wedderburn. Did you manage to catch up
with our made up there, stew Duncan?
Speaker 2 (01:58):
We did, indeed a fantastic of coming there, and the
wind have been pub put on a decent feed for
us as well, so now it's excellent. He's got a
great set up there, I must say. I think he's
running about twelve thousand stock units at the moment, so
it's a decent size operation. But his shellais that he's
got there for the for the punters is excellent. Yeah.
Speaker 1 (02:14):
Yeah, we do give him a lot of stick on
the show, old Stewie, but who does a damn good job. Hey,
look a month left and the dairy season. How are
things looking coming to a close?
Speaker 2 (02:25):
Yeah, I mean it's been a pretty good season milk wise,
despite obviously being being quite wet more more recently. But
you know, we're sitting out there with our midpoint of
ten dollars. That the gdt's sort of been around that
number for a while now, but we've seen that, you know,
the US economy sort of fall off a little bit,
which means that the dollars come back a little bit.
So as a result of that, you know, the increase
(02:45):
you've seen in GDT won't play through to any increases
i'd say at this point. But we're sitting at ten
dollars as a midpoint, quite happy with that. And when
you looked forward to the season, and he had also
things are looking quite good, not we sending some of
the macroeconomic challenges that we see out there.
Speaker 1 (02:57):
When you walked into the studio, Miles you looked at
the board on the wall there that obviously I'd put
an update months if not years ago, saying from Terra
a milk price ranger between seven dollars twenty five and
eight dollars seventy five and ben point eight dollars. We've
come a long way since then.
Speaker 2 (03:15):
We have come a long way, and I think we've seen,
you know, that Chinese market sort of come back, not
quite to what it was sort of a couple of
years ago, but certainly you're starting to see some signs
of life out of that market. We've seen some signs
of life out of the Middle East as well, which
is a good market for US. Southeast Asia, So overall
demands in a good position in supply, you just not
see the supply to the US or not seeing supply
to Europe as we would have seen when you get
(03:36):
to these sort of price level. So you know, it
is a pretty good time I think to be a
dairy farmer and out there at the moment.
Speaker 1 (03:41):
Absolutely Now you walked down here and gave me a coffee.
I should have been the one buying you a coffee
to try and butter you up. You know I'm looking
at you in the eyes. You're not on the phone
this time. Any hint of an opening milk price.
Speaker 2 (03:53):
Well, we're about a month away from that opening position.
And as I say that, the supply demand dynamics are
quite helpful where we sit here. But you know, some
of those clouds that are emerging, will it be you
know what's happening with out of the US in terms
of the tariff wall that's underway. How does that play
out long term? Who knows? But I do see that
the global economy slow down somewhat. Does it have an
impact throughout next season? Not too sure. But the supply
(04:15):
demand position is very helpful for us to put a
decent number out I think in a month's time as.
Speaker 1 (04:21):
A company like Fonterra or a come up blake Fonterra,
whether the way things are emerging globally, how do you
keep an eye on that? Like I imagine you've got entire
teams who are devoted to finding out what's happening overseas
and feeding that information through. But there's just so much
happening at the moment to keep an eye on hea.
Speaker 2 (04:39):
There is so much happening. But it's also the pace
of change as well, and so you know, you wake
up the morning, you see things on the on the media,
and that's that's almost as fast as you're getting it
from you guys in market now as well, because things
are moving so fast. So it is hard to try
and manage. But you know, we've got good people around
the world. We're in most of the corners of the
world to understand what's what's happening. And you know, at
the same time, you don't have an influence over that.
(05:00):
We've just got to play it, play it as we
see it.
Speaker 1 (05:02):
Now, You've got a whole entourage in the studio with you.
There's six of you and one of me. We've also
got six segments in the show. So I've said to
everyone in the ad break throw me a song was
started with you with six sixty miles. I'm a bit
nervous about what's to come from some of these.
Speaker 2 (05:17):
Well, well me too. When you got your twelve year
old son who's listened to stuff that I don't usually
listen to, I'm actually worried for the listener, right, So Seeah.
Speaker 1 (05:24):
Plays absolutely, I'm just absolving myself of any any responsibility
for music choices for the rest of the show. Myles
harrel Fonterra Ceo, thank you so much for coming and
then calling in on your way through Dunedin. You've definitely
added that rail trial to the list of my musteros
in the next few years. But appreciate your time.
Speaker 2 (05:43):
Go well no Worri's great for having us. Thanks very much.
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