October 17, 2025 • 39 mins
Featured on today's episode - Mark Cameron, Winston Peters, Mark Wynne, Peter Newbold, and Chris Russell.
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Speaker 1 (00:00):
The Best of the Country with Rabobank.
Speaker 2 (00:02):
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agribusiness experience.
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Speaker 3 (00:16):
Good ay and good morning New Zealand. My name's Jamie mckaye.
This is the best of the Country and it's brought
to you by Rabobank. We are growing a better New
Zealand together and it's great to be back in the
country after a couple of weeks and ours including the
All Blacks Test in Perth and quality family time with
two very rowdy grandchildren and Adelaide on the way home.
(00:38):
In my absence, Hamish mckaye has been doing a great
job holding the fort to McKay's for the price of one.
So this week's Best of the Country is a bit
of a mishmash between Hamish and myself. We're going to
kick off the show with Hamish catching up with Mark Cameron,
ACTMP and Northland dairy farmer on the government's new methane
reduction targets. Very sensible too, I might add. On Thursday show,
(01:01):
I caught up with Winston Peters so in a past
life he's been a Deputy Prime Minister three times. First
time was under Jim Bolger, and of course it was
with much sadness. We noted the passing of our thirty
fifth Prime Minister this week, so Winston Peter's on that.
He also weighed in with his nationalistic views on Fonterra
(01:22):
and the Alliance Group. Also his upcoming appearance in the
Oxford Union debate, following in the footsteps of David Longi
Mark win the Alliance Group chair ahead of Monday's big
vote on the Dawn meat steal. Peter Newbold GM of
PGG writs and his monthly look at the state of
the rural market and things are pretty buoyant out there,
(01:43):
and we're going to wrap it with our Australian correspondent
Chris Rossell. We talked about the lucky state, yes Western Australia,
where I did spend some time ge there's some money
over there off the back of mining. We'll also talk
about surging wall prices and FTA with the UAE. There
you go. There's some acronyms for your happy days at
(02:05):
the moment for Australian sheep farmers. It's all on the
best of the country and it is brought to you
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Speaker 2 (02:31):
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Speaker 4 (02:38):
Well, of course it is the big news, the big
news out of the weekend into the week the government
cutting the methane reduction target fourteen to twenty four percent.
Is the new aim below levels by twenty fifty. Of
course we talked now to act MPTE Northland farmer Mark Cameron.
He's a busy man on the Lambert Mark. Does this
(02:59):
reduction You'll be please about it? But does it go
far enough?
Speaker 5 (03:02):
Well, the first part of the question, yes, I am
from superstiked. I sort of campaigned on this right back
in twenty twenty Hamers, so I was, you know, super
enthusiastic to see it, you know, finally be debated. Second
part of the question, I'd love to go further, to
be quite frank, I mean, how is it so that
we found ourselves in a modern society with all the
(03:24):
problems that we now have, geopolitical tensions around the world,
not a lot of money in the economy that we
were going to tax a natural biological function of a bovine,
or a rumor for that matter. In New Zealand. Well,
this is the story. We were and we are and
I just maintained a couple of logical points with all
(03:45):
the difficulties that we had, Haymoss, we wanted to be
bloody clear about it, and I don't think we were
had to be small, it had to be slight. It
created an environment where we saw farmers.
Speaker 6 (03:56):
Want to.
Speaker 5 (03:59):
Increase tech the logical input, but you know, throughputs to
try and alleviate. Sorry, mate, I've just got a silence
righton going fast to alleviate all of the difficulties with
me thane. But one final remark from me Hamers, I
just want to add before we carry on. New Zealand
is in a real pickle at the moment. There's no
(04:20):
bloody money there really isn't. I mean, in a space
of six years we see a sixty billion dollar increase
to our core crown, get accumulation of what basically what
keeps to keep the country operating Now is the is
the question around methane a clever one? I don't know.
With all the difficulties we are as a country now
(04:43):
currently dealing with whatever we do and do has to
be smart and take practical scientific you know acknowledgments going forward,
otherwise we're going backwards.
Speaker 4 (04:57):
Look and one of the reasons it really gets my
you know what and a twist make is we were
the laughing stock because some other country were just simply
have picked up our production slack and continue to pollute
at a far greater rate than New Zealand.
Speaker 5 (05:13):
I always I found it fascinating to that very point,
amous that piety had a price and it was running around,
running out around the world.
Speaker 7 (05:22):
We saw Missouri.
Speaker 5 (05:23):
Banking Alliance and all that closed up after all manner
of criticism by me and others, saw the writing on
the wall, and now Nestli. So the real question is
in the in the world of all things climate change
and methane and carbon emissions around the world, countries are
pulling out for all the all the obvious things that
(05:45):
we know, and that is a lack of money. There's
certainly the Western democracies around the world that had signed
up to all this malarkey, as.
Speaker 7 (05:54):
I call it.
Speaker 5 (05:56):
It's all very well doing all these wonderful things, but
if you've got no money and you are hurting your constituents,
that is really really dumb. And you know, the average
conversation I have with everyday New Zealanders as everything is
too expensive and life is difficult. Well, I just make
a couple of points. There's no point investing in all
(06:18):
this climate change stuff when kiwis are grappling with the
cost of milk mins and data so and onwards. We've
just we've got to put common sense back in the room.
Speaker 8 (06:27):
Yep.
Speaker 4 (06:28):
Now at one point I will make Devil's advocates slightly.
It's still not a green light, is it? This reduction
to go all red neck and back off our best
but reasonable? If it's to reduce methane?
Speaker 5 (06:39):
I think that will always be the case. But what
is Chames. The real question here is what is the
role government? And I think it is a very limited one.
Markets sends signals. They always have through you know, the
very existence of man and its entirety, and in any
business relationship we've ever had, over over the over the
over the multiple generations, we always respond to a market
(07:02):
signal when there was when we responded to it. Consumers
tell the story. Now, if there's this growing narrative of
that thou need to do because the market signal is such,
then the likes of Fonterra in Nesle and you know,
and and all manner of corporate investment will follow that signal,
(07:23):
and so will have consumers well currently and they're all
just trying to make ends meet. And I don't think
that market signal is as grand or as great as
people have inferred. And I think for the people that
all around the western the world have now seen are
pulling back of economic activity as hardly a market signal.
Speaker 9 (07:44):
We will we as.
Speaker 5 (07:45):
Politicians need to be overly worried about. I think about
our poor job is listening to our constituents and ups
it to me and certainly in my colleagues everything see
bloody is here.
Speaker 4 (07:57):
Yeah, very good. Mark will let you get back and
keep keep out of the way. That's silas wagon. And
then you've got to get your seat and tie on
later and get to the capital, so we won't keep you.
Thank you very much for your time.
Speaker 5 (08:09):
From one farm to another farm.
Speaker 2 (08:13):
Exactly the best of the country with Rabobank. Choose the
bank with a huge network of progressive farming clients.
Speaker 1 (08:20):
Rabobank.
Speaker 3 (08:21):
Once, can I start with perhaps a nice and I'm
sure you've got a nice tribute to your old mate
Jim Bolger.
Speaker 6 (08:29):
Well, look, it's simmy a sad day out for Joan
and Trolan and the minivan troll and at the end
of the day it was inevitable, but it's always unexpected.
And I suppose you could say that he's a great
triumph as a person or difficultly politics, it's a very
(08:50):
difficult business. Was to be a Marvel's family man, and
that's something he was.
Speaker 3 (08:56):
Very liberal for a king country farmer, a bloke who
lefts all at fifteen years of age.
Speaker 6 (09:03):
Oh no, I would not say he was liberal. He
was London North's pressure the moment he became Prime minister,
because it recalled then Labor Party had a eighty nine
million dollar service in the ninety budget, but it turned
out to be three point two billion dollars in the
red and that was a very very awful time. And
(09:24):
at the same time he had a very difficult caucus
to operate in and it showed within three years of
Pusher hung Parliament, so it wasn't easy to survive all that.
Speaker 3 (09:36):
Well, he had to preside over Ruth Richardson's Mother of
all budgets and I know that you weren't a fan
of it.
Speaker 6 (09:45):
Well, I could see that this was just a repeasion,
repetition of Roger Douglas which the public had rejected, that
she was going to pursue it, but only be better
at it, and consequently we went for to a recession.
Remember that I can, I can with great clarity, and
so this is awfully difficult. He had a cartus were
(10:07):
learning enough job, so to speak. It was never going
to be easy for him. But he survived it just
and then survived the nine ninety sixty to be a
three term prime minister. Not bad.
Speaker 3 (10:20):
Yeah, he didn't survive that entire third term though. He
got rolled by Jenny Shipley while he was off shore,
and that in the end spelled the end for you
as a deputy prime minister for the first time.
Speaker 6 (10:33):
It's been still the end for me at all. I
mean I was still a deputy prime minister. But my
enormous son discussed at the time was that had been
known that there was going to be a spill on
in the National Day, that they were going to take
the benefit of the College of nine ninety six and
(10:56):
then get rid of the person who shook hands with
That was very, very very seminal moment for us and
the rest is history. She took as a national party
to the worst election results since it's formation in nineteen
thirty six.
Speaker 3 (11:12):
Let's move on from Jim Bolgia and may he rest
in peace. Should I say, I want to get your
views on a couple of big farming issues, in fact,
a couple of big farming votes that are coming up.
Fonterra on the divestment of their consumer brand business and
of course the Alliance Group deal, which will be decided
by Monday. Well, well, I think we'll know the results
(11:35):
on Tuesday regarding the takeover bid from Dawn Meats. You
are a diet in the wall nationalist. I take it
that you're against both of these deals.
Speaker 6 (11:47):
Yes, then for very good reasons. This is the same
example of what happened under Silver Ferns Farms, where the
directors manufactured the debt up, hugely, manufactured the earnings down massively,
gave the farmers one quarter of information they gave the
(12:07):
Chinese and the rest of history. And also they ended
up getting the benefit of seven to eight million dollars
by way of what's set aside for the directors who
bought that about this is an absolute disgrace about to
take place again, and the farming community needs to understand
that we're never ever going to make it as a
(12:28):
country if the added value of brilliant production in this country,
which is world leading, goes to some other economies, some
of the workforce and some other government.
Speaker 3 (12:40):
Mind you, if you're a Fonterierra farmer shareholder, it's difficult
to look a four point two billion off the top
of my head. I've been out of the country for
a while. Winstone gift horse in the mouth.
Speaker 6 (12:52):
Really, yes, children, you've got grand children, You've got others
who would want to get onto the farming industry in
the same way as you did. As the person is
going to make this sale, how long is this going
to last? Three years? Four years? And then what?
Speaker 1 (13:09):
Well?
Speaker 3 (13:09):
I think in Fonterra's case, I think in Fonterra's case,
Fonterra will continue on. Can I go to the alliance?
Speaker 5 (13:16):
No?
Speaker 6 (13:16):
No, no, no, no answer. This question is horrible. And
people who are running Fonterra right now, are they going
to be there when this is all over, after they've
taken their bonus from the sale. Please answer that question.
Everybody listen to this program on the Farming Show needs
to know what the answer that is, and here we are.
(13:36):
I've made the challenge for them. They refuse to come
out public in answer. They were asked to come before
the Select Committee two times on this matter. Refuse to
And here we got this disaster happening all over again,
but under our nose.
Speaker 3 (13:49):
Well, at least Fonterra, to be fair, has some options.
I'm not sure the Alliance Group has those options. We're
going to hear shortly from Mark Win, the Alliance scroup chair,
saying it's take the deal or the banks might call
a halt to proceedings. What do you think about that? Commentry?
Speaker 6 (14:07):
And what's the government doing? What we should be doing
this stepping and saying oh no, sorry, you Aussie banks,
you're not pulling the plug on us. This way, we'll
find a way out of that and you will hold tight.
In the meantime, we're not going to have our country
run economic strategy.
Speaker 3 (14:20):
Yeah, but surely it's not the government's role to run
private meat companies or farm around cooperatives.
Speaker 6 (14:26):
Of course, there's not the government roles to do that.
But the government's role is to step in when things
go to look like they're going wrong, and when they're
going down the drain. As a consequence, Dawn is an
Irish company, they tell us, as a French company. What
they over here for? They're not over here to help us.
This is not John the Baptist coming to save us. No, no,
this is a disaster in our face. And what alarms
(14:48):
me is how many people in the rural and provincial
industry can't see what's going to happen here. Will become
a price taker, will not longer be what we want,
what we're we were sitting in the case of agricultural
production in the eighteen eighties, a long time before you
and I have parents were alive setting out to make
(15:10):
this country great in agriculture. Where will leaders the Irish
are very people have learned the lesson to Barners themselves
in the one of the years later than that with
the Irish tiger. If here in the case of Dawn
buying out and they've got all these politicians and dare
I say mediate people excusing it as the heads of
an option.
Speaker 3 (15:29):
Oh yes, we have a final question for you. Are
you going to argue with a similar amount of vigor
because we all know you love an argument when it
comes to the hang on I haven't finished the question yet.
Speaker 6 (15:40):
It's a lesson. It's a lesson and a mistake. I
don't want us to go on repeating over and over again.
Speaker 3 (15:45):
Will you argue with such figure at the Oxford Union debate?
You're following in the footsteps of David LONGI, Ah.
Speaker 6 (15:54):
Well, of course I am going to argue with such
a figure, because it's about democracy and how it's constructed
and why it's important.
Speaker 3 (16:03):
You are on a trip not only to the UK
but also to Scandinavia. You're a big fan of Scandinavia's economies.
Speaker 6 (16:12):
Oh, I most certainly am. I'm going to go and
look at Nordic e comis when it comes to primary
and auculture production. They get all the added value, all
the top class added value out of their primary products
like milk. Go to the Scandinavians. See what I mean?
Why we learned this lesson? Look you remember civil firms fans,
What a disaster that was. Here we go again, lack
(16:35):
tell us first when it comes to milk, and dorn
when it comes to meat. When will we ever learn?
Speaker 3 (16:42):
Winston Peters, thanks is always for your time on the country.
Safe travels, and we'll await those farmer votes over the
next couple of weeks with much interest. There we go
Winston Peter's on the country, The.
Speaker 2 (16:55):
Best of the Country with robber Bank the Bank, with
local ACRI banking experts. It's passionate about the future of
rural communities.
Speaker 3 (17:02):
Rubbobank, gooday and good morning New Zealand. You are listening
to the Best of the Country. The show's brought to
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ZB by Rabobank. We are growing a better New Zealand together.
Speaker 6 (17:22):
Right.
Speaker 3 (17:23):
You've heard from Mark Cameron talking to my offsider to
McKay's for the price of one this week Hamish McKay
about the government's new methane reduction targets. Very sensible, I
think anyhow. You've heard from Winston Peters up after the break,
Mark win the Alliance Group chair ahead of Monday's big
vote on the Dawn meat steal. Winston, as you heard,
(17:45):
is no fan of that. We're going to talk to
Peter Newbold, the GM of PGG Wrightson. He'll take his
monthly look at the state of a very buoyant rural
market and we wrap it with our Ossie correspondent Chris
Russell talking about the lucky state Western Australia, where I
recently spent some time just on the subject of rabobank.
(18:06):
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(18:30):
go and have a look at the stats around the
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(18:51):
our food we were wasting and twenty twenty three. You
can look at the results of that very interesting survey
at the website rabobank co dot Nz. Up next, markwin
this health everything.
Speaker 1 (19:07):
Fison don't.
Speaker 3 (19:16):
Have the love for you, for you.
Speaker 1 (19:28):
The best of the country with Rubbobank.
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Speaker 3 (19:36):
It's the big story at the moment in the meat industry.
Will or won't the Alliance Group be sold to Irish
company Dawn Meats. The chair is Mark One, of course,
former chief executive of Balance Agrenutrients. Mark, You've got a
lot on your plate trying to get this deal past
the goalie. I've been out of the country, so I'm
not up to speed on this, but I put it
(19:57):
to you your biggest enemy in this process may be apathy.
Speaker 8 (20:03):
Yeah, Hi, Jamie, that's exactly right. Epathy is the big
challenge for us simply to get a change that is proposed.
There are a very very high there's two hurdles and
they're both very very high. So we need more than
fifty percent of all shares on a ssue to vote yes.
(20:25):
That's the first hurdle. So we've got one hundred and
six million shares on issue, so that's fifty three million
yes votes. And then there's a second hurdle that says, okay,
forgetting those people that now don't vote, we count up
the yes votes and versus the no votes, and the
yeses must be seventy five percent or more of the total.
(20:46):
So those are two very high hurdles, which makes sense.
It's set by the takeover panels in under New Zealand law.
But this is a significant change for shiholders, so very
high hurdles.
Speaker 3 (20:56):
Now, I note that Dawn Meats will stump up with
an extra twenty to twenty five million dollars for its
sixty five percent stake in the Alliance group. It had
agreed to pay two hundred and fifty million, so this
is going to be on top of that.
Speaker 1 (21:09):
Does this kind of.
Speaker 3 (21:09):
Mark when an eleventh hour sweetener from you guys, No,
it's it's not.
Speaker 8 (21:16):
Actually, it's all been very very transparent and highlighted deeply
all the details in the Northington Report, the Independent Devisors
Report for shareholders. So what happens is that we had
to strike a price for the shareholding as part of
our negotiation in late June early July. But as everyone knows,
you know, July, August, September, which is the last quarter
(21:39):
of our school year in the winter months, is very
very volatile. So we set up a mechanism that said, look,
if we underperform, then Alliance will over a period of
time have to pay back some money to Dawn, and
that's all in the in the mechanism, and if we
(21:59):
over deliver, then Dawn will have to pay more money
to Alliance shareholders. And so we're pleased to announce that
we announced our profit range. We've still got the auditors
all over us at the moment, but our profit range
is between eighteen and twenty four million, and that's over
and above the forecast we had landed with Dawn, and
(22:19):
so under the mechanism, the auditors are all going through
it at the moment, but Dawn will make a further
contribution between twenty and twenty five million, and the exact
number we finalized the next week or so two weeks
because we over delivered the EBITDA target that we had
collectedly agreed.
Speaker 3 (22:37):
Well, I guess that's a good outcome. Well that that
is a good news story. You've got a group of
high powered farmers who are wanting to recapitalize the Alliance
group themselves. I'm not sure that that enthusiasm is shared
by all Alliance suppliers.
Speaker 8 (22:53):
No, it's look it's not. And we saw that last
year when we did our capital rays off. Kelsey reductions,
and admittedly that was a terrible time of the year,
but farmers voted with their feet and took their livestock
to other processes. So that was the first signal. The
second signal is in April this year, we got Craig's
Investment Partners to do a survey across roughly thirty five
(23:16):
percent of the shares on issue and just get a sentiment,
and it was almost unanimous that farmers have no appetite
to put more capital into Alliance. They get a better
return investing that capital on farm and these days they
also have process of choice. So it was the second one.
And the last data point for US is we've just
(23:37):
completed twenty two roto meetings across the country and that's
probably around one thousand shareholders have turned up, those that support,
those that don't support, and those that are just still undecided.
And I would say, reading the room, it's quite difficult,
but I would say ninety to ninety five percent have
(24:00):
indicated absolutely no appetite to put them.
Speaker 3 (24:02):
Okay, let's just quickly finish on the mechanics of this vote.
How many farmers have already voted, because we're going to
announce you've got a special meeting and in the cargo
on Monday. I think you announced the result on Tuesday.
How many farmers have voted already?
Speaker 8 (24:18):
So we've got a vote of just over twelve hundred
out of our four thy three hundred shareholders. But this
is more about shares voting, So one share is one
vote and so on. On shares. We've got one hundred
and six million shares and at the moment we've had
about sixty five million shares vote. Obviously we don't know
(24:39):
whether they're voted use or no. We'll find out. We'll
find out on Tuesday next week after the special general meeting.
But you know, our key request is to all shareholders
please vote. It's your company, it's your decision. But yeah,
we'll vote. Is about outcomeing, Okay.
Speaker 3 (24:55):
I just want to finish on that no vote. If
there is a no vote or apathy takes over, you
don't get enough votes to get past the threshold, will
the banks call in their outstanding debts? When's that going
to happen?
Speaker 8 (25:07):
Well, I would say the very the very next day
after the announcement. If it is a no vote, we'll
be back up in front of the banking syndicate with
a please explain no doubt they'll still call their one
hundred and eighty eight million overdue debt, which is due
on the nineteenth of December. And then we go into
completely uncharted territory.
Speaker 3 (25:28):
We will fooly well, we will follow this one with
great interest. In fact, I'm hoping to get a hold
of Mark Gunton, one of those large farmer shareholders, to
get their side of the story up next Mark when
thanks for your time. We'll eagerly await next week's final vote.
Speaker 2 (25:42):
All good, thanks Jamie, the best of the country with Rabobank.
Choose the bank with a huge network of progressive farming clients.
Speaker 3 (25:50):
Rabobank monthly here on the country. We tell you how
much your farm's worth, and I can tell you this
for nothing. Your farm's worth a bit more than it
was this time a month ago. Peter Bold heads the
real estate division for PGG Rights, and interestingly he also
heads the livestock division. Just before we get to rural
real estate, Peter, what are your thoughts on this alliance
(26:12):
group Dawn meets deal. What are you hearing from your
stock agents and your farmers.
Speaker 9 (26:19):
Well, I guess my personal opinion is I hope it
goes through again, because you know, if it doesn't, there's
a lot of things that could happen which could then
disadvantage not only the shareholders, but the industry at large.
So I think, personally, and a lot of the guys
that work for me and operate in the industry, think
(26:39):
it'd be a good thing to take place. I know
there's groups out there that have different views, but that's
our view, well, my view and the team that work
for me.
Speaker 3 (26:49):
Let's have a look at the state of the rural
real estate market. This is an interesting comment from you.
You say, it will be hard to think we'll have
any dairy farm listings on the market at the end
of the selling seat, and such is the demand.
Speaker 9 (27:03):
Yeah, look, it's incredible, really. I think there's a couple
of things at play. One, there's not a lot on
the market, and then those that are coming to the market,
there's a huge amount of interest. You know, when we
have open days, there's large numbers attending, and then just
the traffic to the websites and I'm sure that's the
same with our competitors as well is massive. So yeah,
look it's moving along really well. There is a small
(27:27):
upward increase in value, which I think is healthy, but
there is a point. You know, we're at guest a
certain level and those buyers aren't going to move beyond that.
But look, it's a really healthy space to be in,
and I think it's only going to continue on. And
when you look at the future of fairy why wouldn't
it So Yeah, good time for dairy farmers. And I
think it's also good for those coming into the industry
(27:49):
because they can see a good future ahead of themselves.
Speaker 3 (27:52):
Should I be buying a Kiwi fruit farm and the
buyer plenty or of I missed that boat?
Speaker 9 (27:59):
I think you should. And I say that when you
look at that the industry as such, well it's well managed.
What they're looking ahead at is really positive. You know,
if you look at that whole healthy food space in Asia,
I think everything looks fantastic for hewing fruit. I think
from a value point of view, we've seen some upward
(28:21):
movement and then probably a month or two away to
see any a lot of sales activity. But I think
hewy fruit has a magnificent future looking out. So yes, Jamie,
if you've got a few, bob, you should invest that
way well.
Speaker 3 (28:34):
I don't know if I have actually, to be perfectly honest,
just been over visiting family that've spent it all on
me in Australia. Hey, Peter, let's finish on sheep and beef.
Plenty of listings unlike dairy, plenty of listings on the
market at the moment.
Speaker 9 (28:49):
Yeah, there are a lot, and there's a couple of
things happening there too. There's still a large number to
come to the market and a lot of larger property,
so I think that's an interesting piece. You're probably a
little bit slower out of the blocks then I thought.
But then you've also got to look in the South Island.
You know, carving's just finished. There's probably still a bit
(29:10):
of landing taking place. A few issues in the North
Island with weather, but I think that their menum is growing.
And I was speaking to the North Island team this
morning and definitely we're just starting to see a bit
of activity there. I think the South Island will follow.
But you know, one thing's for sure, there are some
magnificent properties out there for people to get in. And
again a bit like the dairy, the future for red
(29:33):
meats looks really strong. So yeah, a little bit slower
out of the blocks, but I think we'll gain the
mentum as we head into Christmas and.
Speaker 3 (29:40):
Falling Intostrate's a good time to buy a farm, Oh definitely.
Speaker 9 (29:44):
And I think you know, we've often mentioned it before,
but if you look at you know, inflation is sort
of under control. You know, interest rates have dropped again,
they may even drop in the future, and then you've
got good returns. You know, we're seeing that, I think
start to filter through to provincial New Zealand, and you
know when you drive around you can just see a
spring in people's step and I think things are looking
(30:06):
good and I think the country should be proud of
our rural community, backbone.
Speaker 3 (30:11):
Of the economy, as we say here on the Country.
Peter Nubold, thanks for your time.
Speaker 9 (30:17):
Yeah, thanks, Jomie, and go the Highlanders on Friday Night.
Speaker 3 (30:20):
Highlanders. Hey, hey, hey, hey, let's just go with Otago.
Speaker 9 (30:25):
Sorry, I mean me, good on you mate.
Speaker 2 (30:28):
See you later years The Best of the Country with
Rubber Bank, the Bank with local agri banking experts passionate
about the future of rural communities.
Speaker 3 (30:38):
Rubber Bank ELSI correspondent Chris Russell and Chris, I've just
come back from a couple of weeks in Perth and Adelaide,
and I must say, if Australia is the lucky country,
then surely Western Australia is the lucky state. Gee there's
some money over there.
Speaker 7 (30:54):
Yeah, there certainly is. I mean when you look at
the amount. They've been very smart too in many ways,
been a big admirer for some of the leadership over there.
But the fact that they've kept a reserve of things
like gas available for Western Australians rather than selling everything
off overseas, means their energy price the less. They ship
(31:14):
about ten billion dollars worth of iron ore globally. They're
the biggest iron ore supplier in the world out of
port Headland and Karratha up in the Northern up in
the north of Western Australia every month. That's amazing. All
the royalties from that. You just dry go down that
Swan River and look at the sheer opulence on the
sides of the river. It is a very rich state.
(31:36):
The crazy thing, Jamie, is that under the arrangements for
the GST money beings handed out to the states here
West Australia, under a very old arrangement done under John
Howard gets a disproportionate amount of GST based on their
population still, and yet they're the probably the state that
needs at the least they're running in surplus now. They
(31:57):
have nothing like the financial concern of Victoria, New South Wales.
Speaker 3 (32:01):
What's behind the recent wall of price rise, because that's
the story I've been following in my absence from being
on air. Wall is suddenly worth something again.
Speaker 7 (32:12):
Yes, well, I've talked about it with Hamish while you've
been away. It's gone up two dollars in two weeks
a kilo, which we haven't seen that sort of price
rise for a long time now. My initial thoughts were
that it was a combination of a very low flock here,
of course, down below seventy million, and of course going
down lower as the federal government bans live sheep exports
(32:34):
out of the West, which will affect their ability to
get rid of cast rage us and means that a
lot of people are going to go out of sheep.
But nonetheless, you know, I also thought it was due
to the extra demand for uniforms in China, they've suddenly
put a massive order for both their government worker uniforms
and the army. But in fact, it looks like it
(32:56):
might be also a coincidence maybe, but certainly coincides with
a kind of secret meeting between Australian Wool Innovation and
the Chinese ball buyers to say, look, you guys are
complaining about the fact you're struggling to get enough wool
to keep your woolen mills going, and yet you're not
(33:16):
paying enough money. And the week later the price went
up a dollar, and the week later that it went
up another dollar. Now you might say that's coincidence, and
it doesn't sound like something the Chinese would do because
they're always trying to screw another dollar out of everyone.
But nonetheless, that certainly happened, and maybe they've seen the
fact that if they want to have a supply of
high quality wall reliably produced in Australia, they've got to
(33:39):
pay producers, you know, at least their cost of production
and some to get them to stay in that given
that they can make a lot more money out of
lamb and beef.
Speaker 3 (33:47):
Jamie, Happy days for ossie sheep farmers. Your new free
trade agreement with the UAE will bring an extra billions
for them.
Speaker 7 (33:57):
Yes, well, UA's already our largest trade and investment partner
in the Middle East, and we've got rid of tariffs
now on things like frozen beef and sheep meat. Alban
Easy stopped off in the UAE on one of his
overseas trips and it's been now signed and more than
(34:19):
ninety nine percent of Australian exports will now go into
the UE duty free, and that's going to boost our
income from there by about one hundred and eighty five
million in its first year alone. UAE is our twelfth
biggest market by volume, but it sits in fifth spot
for chilled beef and six for grain fed beef. For
(34:41):
lamb it's our third largest market and it certainly means
that we have about sixty eight percent of the UAE
market currently for sheep meat and we're certainly going to
make a lot more money out of that and have
continued benefits in dealing with them. And of course their
credit's always pretty good there, Zomi.
Speaker 3 (35:00):
Hey, And just on a lighter note to finish, Steve
Irwin's son, young Bob Robert looks like he could be
dancing to victory in the US Dancing with the Stars program.
Speaker 7 (35:12):
Yes, well, and you know, of course, you remember two
thousand and six. I think it was when Steve Irwin
was killed by a stingray barb stuck right through his heart.
But Bindy went on and she won Dancing with the
Stars some years ago, and he's now dancing in there,
and he's apparently had to do a dance this week
(35:36):
with a tribute to the person he loves most. Unlike
Bendy who chose Steve, he chose his mother and Terry
took America's hearts away and absolutely romped home with winning
that they're predicting that it's likely that he's going to
win the whole competition. And he certainly knows how to
play for an audience, no doubt about that.
Speaker 3 (35:54):
Jomie, Hi, Chris Russell. Great to be back on here,
especially chatting to you. Enjoyed my time in the Lucky Country.
Speaker 7 (36:01):
Lovely to have you over here, Jamie. See you next week.
Speaker 1 (36:04):
The Best of the Country with Rabobank.
Speaker 2 (36:07):
Choose the bank with one hundred and twenty years global
agribusiness experience Grow with Rubbobank.
Speaker 3 (36:22):
I've been.
Speaker 10 (36:24):
For a little too long.
Speaker 11 (36:27):
I've been when on a drama to kick off a.
Speaker 3 (36:30):
Comeback, and that is Chris Russell. Our Australian correspondent wrapping
the best of the country for another week. Good morning,
my name is Jamie McKay. This show's brought to you
each and every Saturday morning by Rabobank. We're growing a
better New Zealand together. A big shout out to Hamish McKay,
who's done a wonderful job holding the fort in my absence.
(36:51):
Today has been a bit of a mishmash between Hamish
and myself. Next week I'm back on deck full time
and I'll catch the same time, same place next Saturday
morning for the bast of the country. Take care. I'm
out of here.
Speaker 10 (37:15):
I've been gone for a little too long.
Speaker 11 (37:20):
I've been waiting on a drummer to kick off and
come back. So I've been winning in no way like
a dog on a change, I can steal this time.
I've been leveling a while and when checked the way,
(37:43):
sure enough. It's living trying.
Speaker 10 (37:47):
To stop it, but I can't. It's calling line man,
because I'm back in the saddle some more. Cattle boy
who dug his way out of his grain, all of
(38:09):
his boots, bought his pistol horn, his hair timed up
in the tip colder rain, don't hurry where I been.
I'm back in the saddle again. This time I'm taking
(38:31):
with mine.
Speaker 11 (38:33):
Like a long ostap with stamp long out of his mind.
Speaker 10 (38:39):
I'm ding enough town or turning back now, because I'm
back in the saddle like some more cow boy who
dug his way out of his grain, of his boots,
(39:02):
bud this pistol, hod his hell, pile them up into
the coat of the rains. Don't worrywhere I'm back in
the sund
The Best of the Country with Rabobank.
Speaker 2 (00:02):
Choose the bank with one hundred and twenty years global
agribusiness experience.
Speaker 1 (00:06):
Grow with Rabobank.
Speaker 3 (00:16):
Good ay and good morning New Zealand. My name's Jamie mckaye.
This is the best of the Country and it's brought
to you by Rabobank. We are growing a better New
Zealand together and it's great to be back in the
country after a couple of weeks and ours including the
All Blacks Test in Perth and quality family time with
two very rowdy grandchildren and Adelaide on the way home.
(00:38):
In my absence, Hamish mckaye has been doing a great
job holding the fort to McKay's for the price of one.
So this week's Best of the Country is a bit
of a mishmash between Hamish and myself. We're going to
kick off the show with Hamish catching up with Mark Cameron,
ACTMP and Northland dairy farmer on the government's new methane
reduction targets. Very sensible too, I might add. On Thursday show,
(01:01):
I caught up with Winston Peters so in a past
life he's been a Deputy Prime Minister three times. First
time was under Jim Bolger, and of course it was
with much sadness. We noted the passing of our thirty
fifth Prime Minister this week, so Winston Peter's on that.
He also weighed in with his nationalistic views on Fonterra
(01:22):
and the Alliance Group. Also his upcoming appearance in the
Oxford Union debate, following in the footsteps of David Longi
Mark win the Alliance Group chair ahead of Monday's big
vote on the Dawn meat steal. Peter Newbold GM of
PGG writs and his monthly look at the state of
the rural market and things are pretty buoyant out there,
(01:43):
and we're going to wrap it with our Australian correspondent
Chris Rossell. We talked about the lucky state, yes Western Australia,
where I did spend some time ge there's some money
over there off the back of mining. We'll also talk
about surging wall prices and FTA with the UAE. There
you go. There's some acronyms for your happy days at
(02:05):
the moment for Australian sheep farmers. It's all on the
best of the country and it is brought to you
by Rabobank.
Speaker 2 (02:31):
The best of the country with Rabobank. Choose the bank
with a huge network of progressive farming clients, Ravo Bank.
Speaker 4 (02:38):
Well, of course it is the big news, the big
news out of the weekend into the week the government
cutting the methane reduction target fourteen to twenty four percent.
Is the new aim below levels by twenty fifty. Of
course we talked now to act MPTE Northland farmer Mark Cameron.
He's a busy man on the Lambert Mark. Does this
(02:59):
reduction You'll be please about it? But does it go
far enough?
Speaker 5 (03:02):
Well, the first part of the question, yes, I am
from superstiked. I sort of campaigned on this right back
in twenty twenty Hamers, so I was, you know, super
enthusiastic to see it, you know, finally be debated. Second
part of the question, I'd love to go further, to
be quite frank, I mean, how is it so that
we found ourselves in a modern society with all the
(03:24):
problems that we now have, geopolitical tensions around the world,
not a lot of money in the economy that we
were going to tax a natural biological function of a bovine,
or a rumor for that matter. In New Zealand. Well,
this is the story. We were and we are and
I just maintained a couple of logical points with all
(03:45):
the difficulties that we had, Haymoss, we wanted to be
bloody clear about it, and I don't think we were
had to be small, it had to be slight. It
created an environment where we saw farmers.
Speaker 6 (03:56):
Want to.
Speaker 5 (03:59):
Increase tech the logical input, but you know, throughputs to
try and alleviate. Sorry, mate, I've just got a silence
righton going fast to alleviate all of the difficulties with
me thane. But one final remark from me Hamers, I
just want to add before we carry on. New Zealand
is in a real pickle at the moment. There's no
(04:20):
bloody money there really isn't. I mean, in a space
of six years we see a sixty billion dollar increase
to our core crown, get accumulation of what basically what
keeps to keep the country operating Now is the is
the question around methane a clever one? I don't know.
With all the difficulties we are as a country now
(04:43):
currently dealing with whatever we do and do has to
be smart and take practical scientific you know acknowledgments going forward,
otherwise we're going backwards.
Speaker 4 (04:57):
Look and one of the reasons it really gets my
you know what and a twist make is we were
the laughing stock because some other country were just simply
have picked up our production slack and continue to pollute
at a far greater rate than New Zealand.
Speaker 5 (05:13):
I always I found it fascinating to that very point,
amous that piety had a price and it was running around,
running out around the world.
Speaker 7 (05:22):
We saw Missouri.
Speaker 5 (05:23):
Banking Alliance and all that closed up after all manner
of criticism by me and others, saw the writing on
the wall, and now Nestli. So the real question is
in the in the world of all things climate change
and methane and carbon emissions around the world, countries are
pulling out for all the all the obvious things that
(05:45):
we know, and that is a lack of money. There's
certainly the Western democracies around the world that had signed
up to all this malarkey, as.
Speaker 7 (05:54):
I call it.
Speaker 5 (05:56):
It's all very well doing all these wonderful things, but
if you've got no money and you are hurting your constituents,
that is really really dumb. And you know, the average
conversation I have with everyday New Zealanders as everything is
too expensive and life is difficult. Well, I just make
a couple of points. There's no point investing in all
(06:18):
this climate change stuff when kiwis are grappling with the
cost of milk mins and data so and onwards. We've
just we've got to put common sense back in the room.
Speaker 8 (06:27):
Yep.
Speaker 4 (06:28):
Now at one point I will make Devil's advocates slightly.
It's still not a green light, is it? This reduction
to go all red neck and back off our best
but reasonable? If it's to reduce methane?
Speaker 5 (06:39):
I think that will always be the case. But what
is Chames. The real question here is what is the
role government? And I think it is a very limited one.
Markets sends signals. They always have through you know, the
very existence of man and its entirety, and in any
business relationship we've ever had, over over the over the
over the multiple generations, we always respond to a market
(07:02):
signal when there was when we responded to it. Consumers
tell the story. Now, if there's this growing narrative of
that thou need to do because the market signal is such,
then the likes of Fonterra in Nesle and you know,
and and all manner of corporate investment will follow that signal,
(07:23):
and so will have consumers well currently and they're all
just trying to make ends meet. And I don't think
that market signal is as grand or as great as
people have inferred. And I think for the people that
all around the western the world have now seen are
pulling back of economic activity as hardly a market signal.
Speaker 9 (07:44):
We will we as.
Speaker 5 (07:45):
Politicians need to be overly worried about. I think about
our poor job is listening to our constituents and ups
it to me and certainly in my colleagues everything see
bloody is here.
Speaker 4 (07:57):
Yeah, very good. Mark will let you get back and
keep keep out of the way. That's silas wagon. And
then you've got to get your seat and tie on
later and get to the capital, so we won't keep you.
Thank you very much for your time.
Speaker 5 (08:09):
From one farm to another farm.
Speaker 2 (08:13):
Exactly the best of the country with Rabobank. Choose the
bank with a huge network of progressive farming clients.
Speaker 1 (08:20):
Rabobank.
Speaker 3 (08:21):
Once, can I start with perhaps a nice and I'm
sure you've got a nice tribute to your old mate
Jim Bolger.
Speaker 6 (08:29):
Well, look, it's simmy a sad day out for Joan
and Trolan and the minivan troll and at the end
of the day it was inevitable, but it's always unexpected.
And I suppose you could say that he's a great
triumph as a person or difficultly politics, it's a very
(08:50):
difficult business. Was to be a Marvel's family man, and
that's something he was.
Speaker 3 (08:56):
Very liberal for a king country farmer, a bloke who
lefts all at fifteen years of age.
Speaker 6 (09:03):
Oh no, I would not say he was liberal. He
was London North's pressure the moment he became Prime minister,
because it recalled then Labor Party had a eighty nine
million dollar service in the ninety budget, but it turned
out to be three point two billion dollars in the
red and that was a very very awful time. And
(09:24):
at the same time he had a very difficult caucus
to operate in and it showed within three years of
Pusher hung Parliament, so it wasn't easy to survive all that.
Speaker 3 (09:36):
Well, he had to preside over Ruth Richardson's Mother of
all budgets and I know that you weren't a fan
of it.
Speaker 6 (09:45):
Well, I could see that this was just a repeasion,
repetition of Roger Douglas which the public had rejected, that
she was going to pursue it, but only be better
at it, and consequently we went for to a recession.
Remember that I can, I can with great clarity, and
so this is awfully difficult. He had a cartus were
(10:07):
learning enough job, so to speak. It was never going
to be easy for him. But he survived it just
and then survived the nine ninety sixty to be a
three term prime minister. Not bad.
Speaker 3 (10:20):
Yeah, he didn't survive that entire third term though. He
got rolled by Jenny Shipley while he was off shore,
and that in the end spelled the end for you
as a deputy prime minister for the first time.
Speaker 6 (10:33):
It's been still the end for me at all. I
mean I was still a deputy prime minister. But my
enormous son discussed at the time was that had been
known that there was going to be a spill on
in the National Day, that they were going to take
the benefit of the College of nine ninety six and
(10:56):
then get rid of the person who shook hands with
That was very, very very seminal moment for us and
the rest is history. She took as a national party
to the worst election results since it's formation in nineteen
thirty six.
Speaker 3 (11:12):
Let's move on from Jim Bolgia and may he rest
in peace. Should I say, I want to get your
views on a couple of big farming issues, in fact,
a couple of big farming votes that are coming up.
Fonterra on the divestment of their consumer brand business and
of course the Alliance Group deal, which will be decided
by Monday. Well, well, I think we'll know the results
(11:35):
on Tuesday regarding the takeover bid from Dawn Meats. You
are a diet in the wall nationalist. I take it
that you're against both of these deals.
Speaker 6 (11:47):
Yes, then for very good reasons. This is the same
example of what happened under Silver Ferns Farms, where the
directors manufactured the debt up, hugely, manufactured the earnings down massively,
gave the farmers one quarter of information they gave the
(12:07):
Chinese and the rest of history. And also they ended
up getting the benefit of seven to eight million dollars
by way of what's set aside for the directors who
bought that about this is an absolute disgrace about to
take place again, and the farming community needs to understand
that we're never ever going to make it as a
(12:28):
country if the added value of brilliant production in this country,
which is world leading, goes to some other economies, some
of the workforce and some other government.
Speaker 3 (12:40):
Mind you, if you're a Fonterierra farmer shareholder, it's difficult
to look a four point two billion off the top
of my head. I've been out of the country for
a while. Winstone gift horse in the mouth.
Speaker 6 (12:52):
Really, yes, children, you've got grand children, You've got others
who would want to get onto the farming industry in
the same way as you did. As the person is
going to make this sale, how long is this going
to last? Three years? Four years? And then what?
Speaker 1 (13:09):
Well?
Speaker 3 (13:09):
I think in Fonterra's case, I think in Fonterra's case,
Fonterra will continue on. Can I go to the alliance?
Speaker 5 (13:16):
No?
Speaker 6 (13:16):
No, no, no, no answer. This question is horrible. And
people who are running Fonterra right now, are they going
to be there when this is all over, after they've
taken their bonus from the sale. Please answer that question.
Everybody listen to this program on the Farming Show needs
to know what the answer that is, and here we are.
(13:36):
I've made the challenge for them. They refuse to come
out public in answer. They were asked to come before
the Select Committee two times on this matter. Refuse to
And here we got this disaster happening all over again,
but under our nose.
Speaker 3 (13:49):
Well, at least Fonterra, to be fair, has some options.
I'm not sure the Alliance Group has those options. We're
going to hear shortly from Mark Win, the Alliance scroup chair,
saying it's take the deal or the banks might call
a halt to proceedings. What do you think about that? Commentry?
Speaker 6 (14:07):
And what's the government doing? What we should be doing
this stepping and saying oh no, sorry, you Aussie banks,
you're not pulling the plug on us. This way, we'll
find a way out of that and you will hold tight.
In the meantime, we're not going to have our country
run economic strategy.
Speaker 3 (14:20):
Yeah, but surely it's not the government's role to run
private meat companies or farm around cooperatives.
Speaker 6 (14:26):
Of course, there's not the government roles to do that.
But the government's role is to step in when things
go to look like they're going wrong, and when they're
going down the drain. As a consequence, Dawn is an
Irish company, they tell us, as a French company. What
they over here for? They're not over here to help us.
This is not John the Baptist coming to save us. No, no,
this is a disaster in our face. And what alarms
(14:48):
me is how many people in the rural and provincial
industry can't see what's going to happen here. Will become
a price taker, will not longer be what we want,
what we're we were sitting in the case of agricultural
production in the eighteen eighties, a long time before you
and I have parents were alive setting out to make
(15:10):
this country great in agriculture. Where will leaders the Irish
are very people have learned the lesson to Barners themselves
in the one of the years later than that with
the Irish tiger. If here in the case of Dawn
buying out and they've got all these politicians and dare
I say mediate people excusing it as the heads of
an option.
Speaker 3 (15:29):
Oh yes, we have a final question for you. Are
you going to argue with a similar amount of vigor
because we all know you love an argument when it
comes to the hang on I haven't finished the question yet.
Speaker 6 (15:40):
It's a lesson. It's a lesson and a mistake. I
don't want us to go on repeating over and over again.
Speaker 3 (15:45):
Will you argue with such figure at the Oxford Union debate?
You're following in the footsteps of David LONGI, Ah.
Speaker 6 (15:54):
Well, of course I am going to argue with such
a figure, because it's about democracy and how it's constructed
and why it's important.
Speaker 3 (16:03):
You are on a trip not only to the UK
but also to Scandinavia. You're a big fan of Scandinavia's economies.
Speaker 6 (16:12):
Oh, I most certainly am. I'm going to go and
look at Nordic e comis when it comes to primary
and auculture production. They get all the added value, all
the top class added value out of their primary products
like milk. Go to the Scandinavians. See what I mean?
Why we learned this lesson? Look you remember civil firms fans,
What a disaster that was. Here we go again, lack
(16:35):
tell us first when it comes to milk, and dorn
when it comes to meat. When will we ever learn?
Speaker 3 (16:42):
Winston Peters, thanks is always for your time on the country.
Safe travels, and we'll await those farmer votes over the
next couple of weeks with much interest. There we go
Winston Peter's on the country, The.
Speaker 2 (16:55):
Best of the Country with robber Bank the Bank, with
local ACRI banking experts. It's passionate about the future of
rural communities.
Speaker 3 (17:02):
Rubbobank, gooday and good morning New Zealand. You are listening
to the Best of the Country. The show's brought to
you each and every Saturday morning here on News Talk
ZB by Rabobank. We are growing a better New Zealand together.
Speaker 6 (17:22):
Right.
Speaker 3 (17:23):
You've heard from Mark Cameron talking to my offsider to
McKay's for the price of one this week Hamish McKay
about the government's new methane reduction targets. Very sensible, I
think anyhow. You've heard from Winston Peters up after the break,
Mark win the Alliance Group chair ahead of Monday's big
vote on the Dawn meat steal. Winston, as you heard,
(17:45):
is no fan of that. We're going to talk to
Peter Newbold, the GM of PGG Wrightson. He'll take his
monthly look at the state of a very buoyant rural
market and we wrap it with our Ossie correspondent Chris
Russell talking about the lucky state Western Australia, where I
recently spent some time just on the subject of rabobank.
(18:06):
Would you like to better understand the process of passing
on control and ownership of your farming business. Rabobank's free
one day succession workshop will improve your understanding of business
transition and succession, giving you the confidence to start and
progress your farm succession plan. To find out more, visit
the rabobank website rabobank dot co dot nz. While you're there,
(18:30):
go and have a look at the stats around the
recently released Rabobank and key we Harvest survey on how
much food we waste in this country. We're getting better,
but we're still wasting ten point nine percent of our food.
How they figured that out on not quite sure, but
that's an improvement from the twelve point two percent of
(18:51):
our food we were wasting and twenty twenty three. You
can look at the results of that very interesting survey
at the website rabobank co dot Nz. Up next, markwin
this health everything.
Speaker 1 (19:07):
Fison don't.
Speaker 3 (19:16):
Have the love for you, for you.
Speaker 1 (19:28):
The best of the country with Rubbobank.
Speaker 2 (19:31):
Choose the bank with one hundred and twenty years global
agribusiness experience grow with Rubberbank.
Speaker 3 (19:36):
It's the big story at the moment in the meat industry.
Will or won't the Alliance Group be sold to Irish
company Dawn Meats. The chair is Mark One, of course,
former chief executive of Balance Agrenutrients. Mark, You've got a
lot on your plate trying to get this deal past
the goalie. I've been out of the country, so I'm
not up to speed on this, but I put it
(19:57):
to you your biggest enemy in this process may be apathy.
Speaker 8 (20:03):
Yeah, Hi, Jamie, that's exactly right. Epathy is the big
challenge for us simply to get a change that is proposed.
There are a very very high there's two hurdles and
they're both very very high. So we need more than
fifty percent of all shares on a ssue to vote yes.
(20:25):
That's the first hurdle. So we've got one hundred and
six million shares on issue, so that's fifty three million
yes votes. And then there's a second hurdle that says, okay,
forgetting those people that now don't vote, we count up
the yes votes and versus the no votes, and the
yeses must be seventy five percent or more of the total.
(20:46):
So those are two very high hurdles, which makes sense.
It's set by the takeover panels in under New Zealand law.
But this is a significant change for shiholders, so very
high hurdles.
Speaker 3 (20:56):
Now, I note that Dawn Meats will stump up with
an extra twenty to twenty five million dollars for its
sixty five percent stake in the Alliance group. It had
agreed to pay two hundred and fifty million, so this
is going to be on top of that.
Speaker 1 (21:09):
Does this kind of.
Speaker 3 (21:09):
Mark when an eleventh hour sweetener from you guys, No,
it's it's not.
Speaker 8 (21:16):
Actually, it's all been very very transparent and highlighted deeply
all the details in the Northington Report, the Independent Devisors
Report for shareholders. So what happens is that we had
to strike a price for the shareholding as part of
our negotiation in late June early July. But as everyone knows,
you know, July, August, September, which is the last quarter
(21:39):
of our school year in the winter months, is very
very volatile. So we set up a mechanism that said, look,
if we underperform, then Alliance will over a period of
time have to pay back some money to Dawn, and
that's all in the in the mechanism, and if we
(21:59):
over deliver, then Dawn will have to pay more money
to Alliance shareholders. And so we're pleased to announce that
we announced our profit range. We've still got the auditors
all over us at the moment, but our profit range
is between eighteen and twenty four million, and that's over
and above the forecast we had landed with Dawn, and
(22:19):
so under the mechanism, the auditors are all going through
it at the moment, but Dawn will make a further
contribution between twenty and twenty five million, and the exact
number we finalized the next week or so two weeks
because we over delivered the EBITDA target that we had
collectedly agreed.
Speaker 3 (22:37):
Well, I guess that's a good outcome. Well that that
is a good news story. You've got a group of
high powered farmers who are wanting to recapitalize the Alliance
group themselves. I'm not sure that that enthusiasm is shared
by all Alliance suppliers.
Speaker 8 (22:53):
No, it's look it's not. And we saw that last
year when we did our capital rays off. Kelsey reductions,
and admittedly that was a terrible time of the year,
but farmers voted with their feet and took their livestock
to other processes. So that was the first signal. The
second signal is in April this year, we got Craig's
Investment Partners to do a survey across roughly thirty five
(23:16):
percent of the shares on issue and just get a sentiment,
and it was almost unanimous that farmers have no appetite
to put more capital into Alliance. They get a better
return investing that capital on farm and these days they
also have process of choice. So it was the second one.
And the last data point for US is we've just
(23:37):
completed twenty two roto meetings across the country and that's
probably around one thousand shareholders have turned up, those that support,
those that don't support, and those that are just still undecided.
And I would say, reading the room, it's quite difficult,
but I would say ninety to ninety five percent have
(24:00):
indicated absolutely no appetite to put them.
Speaker 3 (24:02):
Okay, let's just quickly finish on the mechanics of this vote.
How many farmers have already voted, because we're going to
announce you've got a special meeting and in the cargo
on Monday. I think you announced the result on Tuesday.
How many farmers have voted already?
Speaker 8 (24:18):
So we've got a vote of just over twelve hundred
out of our four thy three hundred shareholders. But this
is more about shares voting, So one share is one
vote and so on. On shares. We've got one hundred
and six million shares and at the moment we've had
about sixty five million shares vote. Obviously we don't know
(24:39):
whether they're voted use or no. We'll find out. We'll
find out on Tuesday next week after the special general meeting.
But you know, our key request is to all shareholders
please vote. It's your company, it's your decision. But yeah,
we'll vote. Is about outcomeing, Okay.
Speaker 3 (24:55):
I just want to finish on that no vote. If
there is a no vote or apathy takes over, you
don't get enough votes to get past the threshold, will
the banks call in their outstanding debts? When's that going
to happen?
Speaker 8 (25:07):
Well, I would say the very the very next day
after the announcement. If it is a no vote, we'll
be back up in front of the banking syndicate with
a please explain no doubt they'll still call their one
hundred and eighty eight million overdue debt, which is due
on the nineteenth of December. And then we go into
completely uncharted territory.
Speaker 3 (25:28):
We will fooly well, we will follow this one with
great interest. In fact, I'm hoping to get a hold
of Mark Gunton, one of those large farmer shareholders, to
get their side of the story up next Mark when
thanks for your time. We'll eagerly await next week's final vote.
Speaker 2 (25:42):
All good, thanks Jamie, the best of the country with Rabobank.
Choose the bank with a huge network of progressive farming clients.
Speaker 3 (25:50):
Rabobank monthly here on the country. We tell you how
much your farm's worth, and I can tell you this
for nothing. Your farm's worth a bit more than it
was this time a month ago. Peter Bold heads the
real estate division for PGG Rights, and interestingly he also
heads the livestock division. Just before we get to rural
real estate, Peter, what are your thoughts on this alliance
(26:12):
group Dawn meets deal. What are you hearing from your
stock agents and your farmers.
Speaker 9 (26:19):
Well, I guess my personal opinion is I hope it
goes through again, because you know, if it doesn't, there's
a lot of things that could happen which could then
disadvantage not only the shareholders, but the industry at large.
So I think, personally, and a lot of the guys
that work for me and operate in the industry, think
(26:39):
it'd be a good thing to take place. I know
there's groups out there that have different views, but that's
our view, well, my view and the team that work
for me.
Speaker 3 (26:49):
Let's have a look at the state of the rural
real estate market. This is an interesting comment from you.
You say, it will be hard to think we'll have
any dairy farm listings on the market at the end
of the selling seat, and such is the demand.
Speaker 9 (27:03):
Yeah, look, it's incredible, really. I think there's a couple
of things at play. One, there's not a lot on
the market, and then those that are coming to the market,
there's a huge amount of interest. You know, when we
have open days, there's large numbers attending, and then just
the traffic to the websites and I'm sure that's the
same with our competitors as well is massive. So yeah,
look it's moving along really well. There is a small
(27:27):
upward increase in value, which I think is healthy, but
there is a point. You know, we're at guest a
certain level and those buyers aren't going to move beyond that.
But look, it's a really healthy space to be in,
and I think it's only going to continue on. And
when you look at the future of fairy why wouldn't
it So Yeah, good time for dairy farmers. And I
think it's also good for those coming into the industry
(27:49):
because they can see a good future ahead of themselves.
Speaker 3 (27:52):
Should I be buying a Kiwi fruit farm and the
buyer plenty or of I missed that boat?
Speaker 9 (27:59):
I think you should. And I say that when you
look at that the industry as such, well it's well managed.
What they're looking ahead at is really positive. You know,
if you look at that whole healthy food space in Asia,
I think everything looks fantastic for hewing fruit. I think
from a value point of view, we've seen some upward
(28:21):
movement and then probably a month or two away to
see any a lot of sales activity. But I think
hewy fruit has a magnificent future looking out. So yes, Jamie,
if you've got a few, bob, you should invest that
way well.
Speaker 3 (28:34):
I don't know if I have actually, to be perfectly honest,
just been over visiting family that've spent it all on
me in Australia. Hey, Peter, let's finish on sheep and beef.
Plenty of listings unlike dairy, plenty of listings on the
market at the moment.
Speaker 9 (28:49):
Yeah, there are a lot, and there's a couple of
things happening there too. There's still a large number to
come to the market and a lot of larger property,
so I think that's an interesting piece. You're probably a
little bit slower out of the blocks then I thought.
But then you've also got to look in the South Island.
You know, carving's just finished. There's probably still a bit
(29:10):
of landing taking place. A few issues in the North
Island with weather, but I think that their menum is growing.
And I was speaking to the North Island team this
morning and definitely we're just starting to see a bit
of activity there. I think the South Island will follow.
But you know, one thing's for sure, there are some
magnificent properties out there for people to get in. And
again a bit like the dairy, the future for red
(29:33):
meats looks really strong. So yeah, a little bit slower
out of the blocks, but I think we'll gain the
mentum as we head into Christmas and.
Speaker 3 (29:40):
Falling Intostrate's a good time to buy a farm, Oh definitely.
Speaker 9 (29:44):
And I think you know, we've often mentioned it before,
but if you look at you know, inflation is sort
of under control. You know, interest rates have dropped again,
they may even drop in the future, and then you've
got good returns. You know, we're seeing that, I think
start to filter through to provincial New Zealand, and you
know when you drive around you can just see a
spring in people's step and I think things are looking
(30:06):
good and I think the country should be proud of
our rural community, backbone.
Speaker 3 (30:11):
Of the economy, as we say here on the Country.
Peter Nubold, thanks for your time.
Speaker 9 (30:17):
Yeah, thanks, Jomie, and go the Highlanders on Friday Night.
Speaker 3 (30:20):
Highlanders. Hey, hey, hey, hey, let's just go with Otago.
Speaker 9 (30:25):
Sorry, I mean me, good on you mate.
Speaker 2 (30:28):
See you later years The Best of the Country with
Rubber Bank, the Bank with local agri banking experts passionate
about the future of rural communities.
Speaker 3 (30:38):
Rubber Bank ELSI correspondent Chris Russell and Chris, I've just
come back from a couple of weeks in Perth and Adelaide,
and I must say, if Australia is the lucky country,
then surely Western Australia is the lucky state. Gee there's
some money over there.
Speaker 7 (30:54):
Yeah, there certainly is. I mean when you look at
the amount. They've been very smart too in many ways,
been a big admirer for some of the leadership over there.
But the fact that they've kept a reserve of things
like gas available for Western Australians rather than selling everything
off overseas, means their energy price the less. They ship
(31:14):
about ten billion dollars worth of iron ore globally. They're
the biggest iron ore supplier in the world out of
port Headland and Karratha up in the Northern up in
the north of Western Australia every month. That's amazing. All
the royalties from that. You just dry go down that
Swan River and look at the sheer opulence on the
sides of the river. It is a very rich state.
(31:36):
The crazy thing, Jamie, is that under the arrangements for
the GST money beings handed out to the states here
West Australia, under a very old arrangement done under John
Howard gets a disproportionate amount of GST based on their
population still, and yet they're the probably the state that
needs at the least they're running in surplus now. They
(31:57):
have nothing like the financial concern of Victoria, New South Wales.
Speaker 3 (32:01):
What's behind the recent wall of price rise, because that's
the story I've been following in my absence from being
on air. Wall is suddenly worth something again.
Speaker 7 (32:12):
Yes, well, I've talked about it with Hamish while you've
been away. It's gone up two dollars in two weeks
a kilo, which we haven't seen that sort of price
rise for a long time now. My initial thoughts were
that it was a combination of a very low flock here,
of course, down below seventy million, and of course going
down lower as the federal government bans live sheep exports
(32:34):
out of the West, which will affect their ability to
get rid of cast rage us and means that a
lot of people are going to go out of sheep.
But nonetheless, you know, I also thought it was due
to the extra demand for uniforms in China, they've suddenly
put a massive order for both their government worker uniforms
and the army. But in fact, it looks like it
(32:56):
might be also a coincidence maybe, but certainly coincides with
a kind of secret meeting between Australian Wool Innovation and
the Chinese ball buyers to say, look, you guys are
complaining about the fact you're struggling to get enough wool
to keep your woolen mills going, and yet you're not
(33:16):
paying enough money. And the week later the price went
up a dollar, and the week later that it went
up another dollar. Now you might say that's coincidence, and
it doesn't sound like something the Chinese would do because
they're always trying to screw another dollar out of everyone.
But nonetheless, that certainly happened, and maybe they've seen the
fact that if they want to have a supply of
high quality wall reliably produced in Australia, they've got to
(33:39):
pay producers, you know, at least their cost of production
and some to get them to stay in that given
that they can make a lot more money out of
lamb and beef.
Speaker 3 (33:47):
Jamie, Happy days for ossie sheep farmers. Your new free
trade agreement with the UAE will bring an extra billions
for them.
Speaker 7 (33:57):
Yes, well, UA's already our largest trade and investment partner
in the Middle East, and we've got rid of tariffs
now on things like frozen beef and sheep meat. Alban
Easy stopped off in the UAE on one of his
overseas trips and it's been now signed and more than
(34:19):
ninety nine percent of Australian exports will now go into
the UE duty free, and that's going to boost our
income from there by about one hundred and eighty five
million in its first year alone. UAE is our twelfth
biggest market by volume, but it sits in fifth spot
for chilled beef and six for grain fed beef. For
(34:41):
lamb it's our third largest market and it certainly means
that we have about sixty eight percent of the UAE
market currently for sheep meat and we're certainly going to
make a lot more money out of that and have
continued benefits in dealing with them. And of course their
credit's always pretty good there, Zomi.
Speaker 3 (35:00):
Hey, And just on a lighter note to finish, Steve
Irwin's son, young Bob Robert looks like he could be
dancing to victory in the US Dancing with the Stars program.
Speaker 7 (35:12):
Yes, well, and you know, of course, you remember two
thousand and six. I think it was when Steve Irwin
was killed by a stingray barb stuck right through his heart.
But Bindy went on and she won Dancing with the
Stars some years ago, and he's now dancing in there,
and he's apparently had to do a dance this week
(35:36):
with a tribute to the person he loves most. Unlike
Bendy who chose Steve, he chose his mother and Terry
took America's hearts away and absolutely romped home with winning
that they're predicting that it's likely that he's going to
win the whole competition. And he certainly knows how to
play for an audience, no doubt about that.
Speaker 3 (35:54):
Jomie, Hi, Chris Russell. Great to be back on here,
especially chatting to you. Enjoyed my time in the Lucky Country.
Speaker 7 (36:01):
Lovely to have you over here, Jamie. See you next week.
Speaker 1 (36:04):
The Best of the Country with Rabobank.
Speaker 2 (36:07):
Choose the bank with one hundred and twenty years global
agribusiness experience Grow with Rubbobank.
Speaker 3 (36:22):
I've been.
Speaker 10 (36:24):
For a little too long.
Speaker 11 (36:27):
I've been when on a drama to kick off a.
Speaker 3 (36:30):
Comeback, and that is Chris Russell. Our Australian correspondent wrapping
the best of the country for another week. Good morning,
my name is Jamie McKay. This show's brought to you
each and every Saturday morning by Rabobank. We're growing a
better New Zealand together. A big shout out to Hamish McKay,
who's done a wonderful job holding the fort in my absence.
(36:51):
Today has been a bit of a mishmash between Hamish
and myself. Next week I'm back on deck full time
and I'll catch the same time, same place next Saturday
morning for the bast of the country. Take care. I'm
out of here.
Speaker 10 (37:15):
I've been gone for a little too long.
Speaker 11 (37:20):
I've been waiting on a drummer to kick off and
come back. So I've been winning in no way like
a dog on a change, I can steal this time.
I've been leveling a while and when checked the way,
(37:43):
sure enough. It's living trying.
Speaker 10 (37:47):
To stop it, but I can't. It's calling line man,
because I'm back in the saddle some more. Cattle boy
who dug his way out of his grain, all of
(38:09):
his boots, bought his pistol horn, his hair timed up
in the tip colder rain, don't hurry where I been.
I'm back in the saddle again. This time I'm taking
(38:31):
with mine.
Speaker 11 (38:33):
Like a long ostap with stamp long out of his mind.
Speaker 10 (38:39):
I'm ding enough town or turning back now, because I'm
back in the saddle like some more cow boy who
dug his way out of his grain, of his boots,
(39:02):
bud this pistol, hod his hell, pile them up into
the coat of the rains. Don't worrywhere I'm back in
the sund
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