September 16, 2025 • 3 mins
Fonterra’s CFO reviews last night’s better-than-expected GDT Auction (down 0.8%, WMP - 0.8%, SMP - 0.3%, Butter -0.8%, Cheese +2.2%).
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Episode Transcript
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Speaker 1 (00:00):
Another global dairy trade auction overnight, and all things considered,
including the futures market and the pulse auction, this was
not a bad result. To tell us a bit more
about it and preview next week's annual results meeting. CFO
Chief Financial Officer Andrew Murray. Do you concur with my
magnificent summary of the auction?
Speaker 2 (00:21):
It was certainly a magnificant summary, Jimmy. Yeah, Look, I
think that's fairy much what we think to certainly a
little better than the derivative markets were indicating. So not
a bad result all up.
Speaker 1 (00:31):
There was a worry that Butler was going to take
a bit of a tumble, but it hasn't.
Speaker 2 (00:36):
No, No, it actually said relatively relatively robust if you
think about it. A lot of strong bidding from China
last night. I think that really just helped to keep
this pray supported. But we've got to be clear though,
there's a lot of international surpor owned you look at
europe praises, No, they're actually treading below us, which is
a big reversal on the past couple of months. So
(00:57):
there's a lot of international sup So it was nice
to see it, but I think definitely some pressure on that.
Speaker 1 (01:02):
Why is there such a difference between our better price
and the spot price in the US.
Speaker 2 (01:07):
Yeah, the US is at a bit of a has
been at a bit of a discount. They've just got
a lot of suppliers there at the moment. They've had
quite a significant increase in production and that's been accelerating
over the sea the last few months, so they're starting
to produce a lot more and it's outstripping domestic consumption.
So you know that that basically makes it available for export.
Speaker 1 (01:27):
So zero point eight fall across the board on the
index whole mark powder down as zero point eight percent,
skim milk powder just zero point three percent, other small drops.
But cheese went against the tide up two point two percent.
Why is that?
Speaker 2 (01:44):
Yeah, it certainly did actually, so sort of you know,
I say, bucking the trend as we would say, really
strong demand from Middle East and again from China actually,
so you know, good robust demand kind of left that
pricing in lane this where the European pricing is us
A by obviously being a little bit less expensive than that. Again,
so images of building and I think we will see
(02:05):
a little bit more competition in this market, certainly in
the Neartown Big week.
Speaker 1 (02:08):
Next week on Monday, we get an insight into August
milk collections the Deacon's Reporter. This is all the dairy
companies reporting their collections, and August was pretty good, but
for a lot of the country's September has been a
bit of a slow and cold and wet and windy month.
Speaker 2 (02:26):
Yeah. Yeah, certainly seeing it's off and a little bit
a little bit. Obviously, July was sort of record production.
I think August held pretty well, but certainly seeing it
come off a little bit. No.
Speaker 1 (02:34):
Yeah, on Thursday, you've got your full year update. You'll
announce not only your annual results, but more interestingly for
someone like me anyhow, that final milk price. But it's
pretty much locked and loaded at ten dollars fifteen.
Speaker 2 (02:50):
Yeah. Look, I mean, we're really comfortable with what we
put out in terms of that milk place forecast. Obviously,
I can't tell you anything that I'm going to tell
you next Thursday, but you know, we're really happy with
with with where we're landing for the year and looking
forward actually to getting on the road with the farmers
the next week. You know, we've got the road show
starting the week at the twenty nice, so really good
opportunity to just talk about how the you know, how
(03:12):
the co op is performing, and of course I'm sure
there were a lot of questions about the devestment as well.
Speaker 1 (03:16):
So what's the farmer feedback you're getting that's far It
seems like it's going to be a done dale.
Speaker 2 (03:23):
Oh look, I mean I think it's I think it's
generally positive. Although you know, there is a lot of
requests for more information. People want to learn a little
bit more about it, and I think more about what
does the co op look like afterwards, and so that's
what we'll be spending a lot of our time on
when we're on the road, just having those conversations about,
you know, what's the strength of the co op when
you go forwards and we're pretty clear on that, but
(03:44):
you know, good to good to get that message out.
Speaker 1 (03:47):
Andrew Murray, good luck for next week. Thanks for your
tom Today on the Country.
Speaker 2 (03:50):
Cheers, Demi, thank you.
Another global dairy trade auction overnight, and all things considered,
including the futures market and the pulse auction, this was
not a bad result. To tell us a bit more
about it and preview next week's annual results meeting. CFO
Chief Financial Officer Andrew Murray. Do you concur with my
magnificent summary of the auction?
Speaker 2 (00:21):
It was certainly a magnificant summary, Jimmy. Yeah, Look, I
think that's fairy much what we think to certainly a
little better than the derivative markets were indicating. So not
a bad result all up.
Speaker 1 (00:31):
There was a worry that Butler was going to take
a bit of a tumble, but it hasn't.
Speaker 2 (00:36):
No, No, it actually said relatively relatively robust if you
think about it. A lot of strong bidding from China
last night. I think that really just helped to keep
this pray supported. But we've got to be clear though,
there's a lot of international surpor owned you look at
europe praises, No, they're actually treading below us, which is
a big reversal on the past couple of months. So
(00:57):
there's a lot of international sup So it was nice
to see it, but I think definitely some pressure on that.
Speaker 1 (01:02):
Why is there such a difference between our better price
and the spot price in the US.
Speaker 2 (01:07):
Yeah, the US is at a bit of a has
been at a bit of a discount. They've just got
a lot of suppliers there at the moment. They've had
quite a significant increase in production and that's been accelerating
over the sea the last few months, so they're starting
to produce a lot more and it's outstripping domestic consumption.
So you know that that basically makes it available for export.
Speaker 1 (01:27):
So zero point eight fall across the board on the
index whole mark powder down as zero point eight percent,
skim milk powder just zero point three percent, other small drops.
But cheese went against the tide up two point two percent.
Why is that?
Speaker 2 (01:44):
Yeah, it certainly did actually, so sort of you know,
I say, bucking the trend as we would say, really
strong demand from Middle East and again from China actually,
so you know, good robust demand kind of left that
pricing in lane this where the European pricing is us
A by obviously being a little bit less expensive than that. Again,
so images of building and I think we will see
(02:05):
a little bit more competition in this market, certainly in
the Neartown Big week.
Speaker 1 (02:08):
Next week on Monday, we get an insight into August
milk collections the Deacon's Reporter. This is all the dairy
companies reporting their collections, and August was pretty good, but
for a lot of the country's September has been a
bit of a slow and cold and wet and windy month.
Speaker 2 (02:26):
Yeah. Yeah, certainly seeing it's off and a little bit
a little bit. Obviously, July was sort of record production.
I think August held pretty well, but certainly seeing it
come off a little bit. No.
Speaker 1 (02:34):
Yeah, on Thursday, you've got your full year update. You'll
announce not only your annual results, but more interestingly for
someone like me anyhow, that final milk price. But it's
pretty much locked and loaded at ten dollars fifteen.
Speaker 2 (02:50):
Yeah. Look, I mean, we're really comfortable with what we
put out in terms of that milk place forecast. Obviously,
I can't tell you anything that I'm going to tell
you next Thursday, but you know, we're really happy with
with with where we're landing for the year and looking
forward actually to getting on the road with the farmers
the next week. You know, we've got the road show
starting the week at the twenty nice, so really good
opportunity to just talk about how the you know, how
(03:12):
the co op is performing, and of course I'm sure
there were a lot of questions about the devestment as well.
Speaker 1 (03:16):
So what's the farmer feedback you're getting that's far It
seems like it's going to be a done dale.
Speaker 2 (03:23):
Oh look, I mean I think it's I think it's
generally positive. Although you know, there is a lot of
requests for more information. People want to learn a little
bit more about it, and I think more about what
does the co op look like afterwards, and so that's
what we'll be spending a lot of our time on
when we're on the road, just having those conversations about,
you know, what's the strength of the co op when
you go forwards and we're pretty clear on that, but
(03:44):
you know, good to good to get that message out.
Speaker 1 (03:47):
Andrew Murray, good luck for next week. Thanks for your
tom Today on the Country.
Speaker 2 (03:50):
Cheers, Demi, thank you.
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