October 31, 2025 • 40 mins
Jamie Mackay talks to Katie Milne, Cameron Bagrie, Damien O'Connor, Hunter McGregor, Miles Hurrell, and Chris Russell.
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Speaker 1 (00:00):
The best of the country with Rubbobank. Choose the bank
with one hundred and twenty years global acribusiness experience. Grow
with Rubbobank.
Speaker 2 (00:27):
Gida In Good Morning, New Zealand. I'm Jamie Mackay. This
is the best of the country. It's brought to you
by Rabobank. We're growing a better New Zealand together. Ah,
the song's in my head because I played it yesterday
as a musical theme for Halloween. That's behind us, but
we're going to hear a bit of this song. I
would imagine at Soldier Field tomorrow morning when the All
Blacks take on Ireland. How good is that game going
(00:51):
to be? Seems to be the unofficial anthem of the
Irish rugby side. Now this week, it's been a week
absolutely dominated by the weather woes and the recovery from
a brutal storm. Labor also proposed a capital gains tax.
Trump and Luxon had some awkward moments. Could you say
that at Apec and Fonterra farmers voted for a three
(01:14):
point two billion dollar early Christmas present and good on them,
they deserve it. So on the show today, we're going
to kick it off with Katie Melm, first female president
of Federated Farmers Good West Coaster, shared her thoughts on
the country's were the woes and Labour's proposed capital gains tax.
Cameron Bagri on the c GT the ocr Yes, we've
(01:37):
got one of those coming next month. And our exchange
trate Damian O'Connor, my old mate. The gloves came off
as we debated capital gains tax with Labour's trade spokesperson.
We're going to chat to Hunter McGregor in Shanghai. Miles Hurrah,
the Chief Executive, joined us on Thursday's show with the
Big News they got an overwhelming yes vote to how
(02:00):
the consumer brands to French dairy giant Luctalise and Chris
Russell's Rosie correspondent, why net zero is an ideology not
a policy. It's all on the best of the country.
Speaker 1 (02:16):
The best of the country with Rabobank. Choose the bank
with a huge network of progressive farming clients Rabobank.
Speaker 2 (02:24):
Well, as we know, things are none too flash in
the Deep South at the moment, but the rest of
the country's born the brunt of this weather as well.
On the West coast, they tell me, Katie Melon former
president of Federated Farmers, the woman who broke the grass
ceiling becoming the first president. You're on day sixty five
of rain in a row. That must be wearing you down.
Speaker 3 (02:46):
Yeah it is, Jamie. It's now into the second round
of wet grazing on the farm, so it's certainly tagging
its toll. And a few farms have got water that's
on paddocks like permanently now, just not away because all
the water tables are so full, rivers fall up, high,
lakes are high. So there's no reprieve unless we get
(03:08):
ten days of fine weather, I think right at the moment.
So yes, she's time to be very proactive on what
you're doing on farm. And I noticed some guys that
are moving some cattle off to those who've got copious
amounts of grass, and Canterbury those that do and things
like that, early couling once a day or sixteen hours,
all those things that we know we should be doing.
And it's all about making those decisions early so that
(03:30):
you try and limit the damage to this season. And
one thing someone an old pharma said to me years ago,
when you're having a crap season, you'd better be having
a good payout and fingers crossed that still holds up.
Speaker 2 (03:43):
We know there's some serious animal welfare issues around the
power being off, animals not being able to be milked, masstitis,
you name it. But adrenaline drives people through the first
two or three days of a storm or an emergency.
But people are just dog tired. There's a real human
welfare element to this as well.
Speaker 3 (04:06):
Yeah, there is. And that's always the worry when these
events are so big that they go on for so
long in the clean up phase or whatever it is,
or you or you just can't do anything in some cases,
but you're still in overdrive in your system, even though
you may not feel like you are. So that's about
communicating with people trying and I notice sounds it's all corny,
(04:27):
and it sounds stupid. But if you can get away
for an evening meal somewhere else, or join up with someone,
get them to come around, you'll have a pot luck
whatever with a few neighbors to try and just have
someone else to talk to about it, because sometimes you
find actually it just raises your spirits or weather and
it is difficult when you're under the pump. But it's
(04:48):
the little things that make a difference to make you think, well, okay,
I can get through this. We know the sun's going
to shine again, or the wind's going to stop blowing,
or the snow's going to stop falling, and at least
things will be on a rising plane. Probably got a
bit of firewood around that I'm going to get for
free that I didn't intend on having. But yeah, it's
keeping communicating and reaching out to the odd person, even
(05:09):
just a phone call when you're driving home to wherever
the other part of the farm. Just pick it up
and heavy y act to someone. There's been a bit
of that going on over here and it's been really
good just to have someone ring up and go, see,
I see you're in a bit of shit situation. Yeah,
how's it going? What do you need a hand or whatever?
Even if you don't need a hand and say nah,
(05:29):
it's still nice to know that people realize that we're
on the same boat, or you might be the worst
one off and people are willing to reach out. So
ring an aver have a chat.
Speaker 2 (05:38):
Yeah, fair enough. Hey, have you had a chant? Quick chance.
The other big story today is to look at our
Labour's proposed capital gains tax I'm calling it the Clayton's CGT,
the capital gains tax you have when you're not really
having one. I think this is just an exercise in
dipping your toe into the water of seeing how a
capital gains tax will go. But the fact that they're
(06:00):
going to use the money for free doctor visits fine
for those who need it, But there's a lot of
people a bit like the winter energy payments Katie, who
don't need a free doctor's visit.
Speaker 3 (06:12):
Exactly a lot. When I do need a doctor's visit
in the future, I'm happy to take it, but actually
I'm happy to pay for it. I can afford it,
and there'll be different people at different levels. But so
offering it up to everybody three free visits is just stupid.
There's lots of people who don't go at all because
they don't need to and we know it's there and
we need it. The other side to that is you
(06:33):
don't want to overload the system just putting it in
there that I can go down there for fifteen minutes
or half an hour or whatever and have a chat
to a doctor, just when there's people who need it.
You're just cluttering up the books too. What is that
going to do to stats. I don't know what the
ulterior motive really is apart from that everybody should be
even under socialist policies. But it just doesn't make any
(06:55):
sense and it does show you the same old, same mold.
But sorry to say it that government departments are not
the best or governments in general are not great at
spending other people's money. They really don't put it to
the best productive use, which is what we need right
now more than anything, because the country needs expert dollars
and money coming in that's not borrowed or printed, and
(07:18):
this sort of policy isn't going to do it.
Speaker 2 (07:20):
Well, you talk a lot of sense. Have you ever
thought of going to Wellington? Hold that thought, Katie Meln
you have too valuable on the farm. Hey, thanks for
some of your time and I hope you get a
bit of a break in the weather. We'll talk to
Phil Duncan about that. See if we can do something
for you.
Speaker 3 (07:36):
Yeah, you order it up for us, that'd be great.
Speaker 1 (07:38):
The best of the country with Rubbo Bang the bank
with local agribanking experts passionate about the future of rural communities.
Speaker 2 (07:46):
Rubbobang he has one of the sharpest minds economic minds
in the country, Cameron Bagri independs on economists. What did
you make of as I'm describing at Cameron, the Clayton's CGT,
the capital gains tax when you're not really having one.
Speaker 4 (08:02):
Well, yeah, glass are full. They turn the doal slightly
towards broadening the tax base, and it's in the form
of a capital gains tax, not a wealth tax. I
think that it's a positive side. But I guess of
your glass up entre. But they haven't turned the dial
too much. And this is easy call it the Clayton's tax.
It's not going to bring in too much money. I
(08:23):
think the Yes, that's I've seen as it might bring
in two point four to two point five bnion over
a ten year period. So it's going to help to
broaden the tax base. But I guess what's notable is it? Yeah?
What's out as opposed to what's in?
Speaker 2 (08:34):
Absolutely everything's out. There's hardly anything in. This is just
having a crack at people who are investing in residential
property or commercial property. But the different and Batchers, Yeah,
of course quite rightly. The family home is exempt, but
the farmers would have to be pleased with this one.
It's not applying to farms, it's not applying to keyw
(08:56):
saver shares, business assets, inheritance, even your items like cars, boat's,
art and furniture. So I just reckon it's an exercise
in flying a kite or dipping your toe into broadening
the tax base. That's kind of it. Electorally, it's palatable,
but it's a nonsense. It's a nonsense that people like
(09:18):
you and me are going to get three three doctors
visits a year out of this.
Speaker 4 (09:23):
Well, I think that's the real nuts side of this.
In regard to lock you. They've raised a little bit
of money where they're going to get spend that money.
Are they're going to spend that money towards healthcare which
is edible? Well, but everybody's going to get the benefit. Yeah,
I'm not a believer in that sort of stuff, Jamie.
There's no reason people like you, people like me should
(09:44):
get more subsidized healthcare. If you're going to take money
off people in the form of a capful against tax,
let's make sure that we read put that money into
those areas of the economy or those areas of society
that really need it.
Speaker 2 (09:55):
Hey, let's talk about the official cash rate. We've got
a another review coming up. I think late November were
sitting at two and a half. It looked odds on
until those inflation numbers came out that we would get
down to maybe two percent. But now the markets or
the jury's out, isn't it. Is it going to be
two point twenty five the end spot or is it
(10:16):
going to be two because inflation is still running at three.
Speaker 4 (10:20):
Yeah, headline inflation is so dark. If they strip out
the likes of administrative charges, which is local authorities, central
government sort of charges, inflation is a lot more contained.
The core inflation measures look like they're running around two
and a half, So the markets that are hedging its
bets and the OCI might go to two, might go
to two point two five. So we're at two point
(10:41):
five at the moment, So we're within spitting distances where
the market thinks the troft is going to be. So
we're getting towards what's called the glide path or monetary
policy near the endpoint, and the Reserve Bank just needs
to be a little bit careful here because this economy,
I still think has got a lot of latent underlying
inflationary pressure out there, and it looks like there's a
(11:04):
big bow wave of inflation or cost increases that people
want to pass on into price increases soon as we
start to see things pick up. So what's the space
you have? The reserve banks obviously decided to go big
with the fifty that they need to go fifty in
mine mind know they've done it, will take it. Maybe
we get one more, and we get one more. I
(11:25):
think it might be one and Dow.
Speaker 2 (11:27):
Is there exchange rate getting too soft? Or is it?
And if it is, is there anything we can do
about it? The answer is probably no. To the second question, well,
I guess.
Speaker 4 (11:39):
We'll obviously definition are too soft because the currency is
just a relative price variable.
Speaker 5 (11:44):
Yeah, Jamie.
Speaker 4 (11:45):
That shifts the playing field from exporters to imports. You know,
when the currency is low, exporters win, importers lose. When
the current is high, exporters lose and importers win. If
you look at fair venue for the New Zealand dollar
against the Green Bay, I think it's around sixty five cents.
We're around fifty seven to fifty eight. So we're in
that export friendly zone and we need that export friendly
(12:08):
sort of number at the moment because we had a
horrific current account and deficit. We had a completely unbalanced economy.
That lower currency in combination with higher currency with high
commodity prices is engineering what we cause a quality upturn
as oppose the one led by inferior quality in the
form of an runaway Aukan property market. So it's not
(12:29):
great if you want a holiday overseas, but we need
that currency at the moment and an export friendly zone.
And it's been interesting to see if Lake just we're
starting the nudge down against the Australian dollar as well.
We spent an awful lot of time up there around
ninety five cents, and now we'll that down below ninety.
That's still probably a little bit on the expensive side
to me, but it's starting to move towards being a
(12:51):
more export friendly number if you're pushing products into the
Australian market.
Speaker 2 (12:56):
Yes, no question. To finish on going back to where
we start. Does New Zealand need to broaden the tax
space with a capital gains tax?
Speaker 4 (13:06):
Yes, on right far. Rather it came through the capital
gains tax regime as opposed to some of the nutty
stuff on the former Wealth taxes.
Speaker 2 (13:15):
Cameron Vagrie, thanks as always for your time on the country.
Speaker 1 (13:18):
Appreciate it all the rest the best of the country
with Rubbobank. Choose the bank with one hundred and twenty
years global agribusiness experience. Grow with Rubbobank.
Speaker 2 (13:28):
You've already heard from Katie Millon on the Coast. We're
going there again. Yes, he's making a rare appearance in
his old electorate, Damien O'Connor list MP for the Coast
these days, Domicilde and Dunedin. Damien, I know I'm going
to get a bite from you, but your capital gains
tax is, let's face it, are Clayton's capital gains tax,
the tax you have when you're not really having one.
(13:49):
What a week last effort that was.
Speaker 4 (13:51):
Cure it, Jamie, I do you want more? I mean,
I know it's an interesting line to take from you.
I guess if you have invested, and no doubt you
have in four or five properties, it is really unproductive. Yes,
we need houses in our country, but actually it's not
a productive part of our economy. And so if you
(14:11):
make a capital gain then you should pay some tax
on that because if you go out and work hard
day to day you pay tax on that. So this
is about rebalancing where we should invest into the future.
And it's not retrospective. You know, we're people who have
buy to buy the you know, the rules of the
day and the paradigm that we've had around property. But
that should change to create a more productive economy. That's
(14:34):
what we need to do.
Speaker 2 (14:35):
The trouble is you're only dipping your toes in there.
This is this is just a token effort, and to
make things worse, Damian O'Connor, you're going to spend the
money giving people like me and you a free doctors visit.
We don't need it. What a waste of money. Why
don't you target the health spending.
Speaker 4 (14:53):
Back to the tax issue. If we'd done more, you
would have criticized us. This is a sensible step to
send a message that we need to encourage people to
invest in productive assets, and you know farming. For the
most part, farm assets are productive yused. There has been
speculation on capital gains, but mostly the price you pay
(15:14):
for a farm should be based on its productive returns.
That's certainly what I got told in the nineteen eighties
when we took the subsidies off I think we've seen
a shift from that. But if we can get back
to that, that will be good invest in businesses where
we get some real returns. So I think we've got
the capital gains tax proposal about right at this point,
given that no one has been brave enough to do this.
Speaker 2 (15:35):
Yeah, and I get that, Damien, but you're going to
generate next to nothing, ogerall the boomers. The boomers have
already captured and banked all the capital gains.
Speaker 4 (15:46):
Maybe, so you're saying we should have done a long
time ago. Is that right?
Speaker 2 (15:49):
Let's cut to the chase here. You're just softening us up. Okay,
this is a very mild entry into a capital gains tax.
It might be enough not to put people off politically,
maybe get your voter. Didn't God help us? Then party
and marrying the Greens are running the country with you.
This is just a forerunner of a much harder capital
gains tax, or worse, a wealth tax.
Speaker 4 (16:10):
If there's any any change, people will get the chance
to vote on it, I'm sure, and I'm sure that
my boss will have told the country that let's come
back to Under this government, we've basically got a country
that is unfair right, it's unsustainable, unproductive, and we've got
to change it. And tax is the way that we
(16:32):
can make some adjustments there to head us in the
right direction.
Speaker 2 (16:36):
Didn't the housing bubble rarely take off under you lot,
under COVID when you gave exactly the wrong incentives and
messages to the economy.
Speaker 4 (16:47):
So, Jamie, will you and all people across business had
their handout asking for more in the national opposition, crying
out for more to be given to business or wage subsidence,
for business assistance. All of those billions of dollars that
people were quite happy to take and put in their pockets,
some of whom didn't need it, and now complain about
(17:09):
the fact that that money went around in the economy
and because there was a shortage of houses, it pushed
up prices. Yes, we know that that pushed it up.
That hasn't helped. But actually a lot of that money
was demanded and called for by people who had their
hands out, sometimes did not needing it. Look, COVID was
a terrible situation. I don't think anyone would have wished
(17:29):
it upon the world or upon our economy. We're moving
on from that and making some changes to ensure that
actually we do get investment in the right areas. We
don't get the speculation that we've seen particular cross housing
and that we make houses more affordable for young Kiwis Damien.
Speaker 2 (17:46):
I wake up in the middle of the night in
a cold sweat, worrying about what New Zealand and the
economy will be like if it's a party Marie and
the Greens get anywhere near the treasury benches. What can
you say to soothe my worries.
Speaker 4 (18:00):
That's a ridiculous thing. We'll stay awake, Jamie and worry
about other things. I'd suggest to you it might be
more about the at List group and its effect through
the Act Party and some of it coming through New
Zealand First as well. New Zealand First seems to have
now made New Zealand last. It's happy to see things
sold off to anyone who wants to come in with
a big, fat checkbook. We run the risk of selling
(18:23):
off our economy under the Coalition government at the moment
and all the components in it. And you had I
went to the EU thing there you had Minister, what's saying,
come in invest in our economy. We've got some companies
here than a monopolistic He used that word monopolistic because
and it's a great place to invest. We've got to
(18:44):
change that to make sure that it's actually a more
affordable country for most people. And so we've got to
deal with the supermarkets, we've got to deal with the
electricity companies. We've got to deal with those monopoly players
to bring prices in the cost of living down.
Speaker 2 (18:58):
At least I'll get a sum and adelaide if you
do win, Damien, because that's where I'll be spending the
next three years. Thank you very much, Thank you very
much for your time, Jamie.
Speaker 4 (19:07):
If that's what you want to do, then good riddance
to you. There's certainly a lot thousands and thousands of
kiwi's leaving now because of their coalition government. So if
you're the only one that goes when we get in,
then we'll get off.
Speaker 2 (19:20):
Thanks for your time. Has always enjoyed the argument.
Speaker 5 (19:23):
Thank Jamien.
Speaker 2 (19:27):
Damian O'Connor on Tuesday Show, Good Morning, my name's Jamie McKay.
This is the best of the country. It's brought to
you by ra Bo Bank. Believe it or not, we
get along famously socially, just can't agree on politics. I
could be crawling segue from Damien to Zombie by the cranberries,
but I'm a bigger man than that. Besides, I enjoy
(19:47):
the arguments with them. Up next Hunter McGregor, Shanghai based correspondent.
We're also heading to Australia to catch up with our
Elsie correspondent Chris Russell. Some great news stories from him
this week. But the big story cer at the tail
end of the week was Fonterra getting an overwhelming yes
vote from their farmer shareholders to sell the consumer brand's
(20:07):
business to Luck Talise. We'll talk to Myles Hurrell, chief
executive about that one shortly now. Beef and Lamb Awards
are coming up. Entries are now open for the Beef
and Lamb Awards, which will take place in May next
year in christ Church. Rabobanks sponsors the People Development Award,
which celebrates individuals, teams or businesses who are committed to
(20:27):
training and helping others grow. Do you know someone in
the red meat industry who's all about growing and shaping
the future? Will nominate them for the Beef and Lamb Awards.
And another excellent initiative that Rabobank gets behind is Surfing
for Farmers. It's run in several locations around New Zealand
over the summer months. Surfing for Farmers and Courage encourages
(20:49):
farmers to take a couple of hours each off during
the week. Does that make sense to surf to help
better manage stress and improve mental health? Follow the Surfing
for Farmers Facebook page to stay updated on the upcoming seasons,
dates and venues. Up next, Hunter McGregor in Shanghai.
Speaker 1 (21:11):
The best of the country with rabobank. Choose the bank
for a huge network of progressive farming clients Rabobank.
Speaker 2 (21:19):
We have been talking about Chicago, the windy City, one
of the great cities of the world. Let's go to
another great city of the world, Shanghai, where we find
a boy from Roxburgh. His name is Hunter McGregor, selling
red meat and venison to the Chinese. Hey, Hunter, is
it a big deal in China at the moment? The
fact that I think tomorrow our time, Trump will meet
(21:41):
Jijingping for this pull a side meeting or whatever you
want to call it, ahead of the APEC meetings.
Speaker 5 (21:48):
Good afternoon, Jamie, Yeah, sure, it's an important meeting. It's
too big trading powers meeting so it's going to be
interesting to see what actually comes out of it, because
your guess is as good as the miner is what
actually happens with that, You know, you never know what's
going to happen with Trump.
Speaker 2 (22:04):
Well, I think one thing there, Hunter, you can put
the house on Trump trying to get them with a
dominant handshake. Look, the American farmers are going to be
really interested in the outcome of this meeting because the
biggest export market for them for their sayer beans was China.
They've been getting nothing in there at all.
Speaker 5 (22:20):
Yeah, it's been fascinating that the sayerbean market, you know,
China has been replaced by Brazil, Argentina and Russia. You know,
half nearly half of all soyer beans in the US
used to come into China, so it's billions of dollars
and this year the Chinese haven't brought anything. So that
will be high on the agenda, I would assume, and
(22:40):
probably an easy one to fix. But you know, you
just think there's more soyer beans in the American system.
So that's probably why the Americans able to produce a
lot more milk at the moment because feed prices are
probably a lot a lot cheaper than what they usually are,
so that affects the New zealandairy farmer as well in
the long term.
Speaker 2 (23:00):
Talk to me about the Chinese pork price at the
moment and what's the side effects for us here in
New Zealand as a meat exporting nation.
Speaker 5 (23:09):
Well, yeah, it's interesting. It's currently down ten percent year
on year, mainly because production has been up a little
bit more and demand side is quite weak. But what
usually happens with protein prices meat, with pork, chicken, beef,
lamb everything in China is that the pork price usually
(23:29):
sets the sort of floor price.
Speaker 4 (23:30):
So if the pork.
Speaker 5 (23:31):
Price goes up, everything goes up, and if the pork
price goes down, everything goes down. So it's going to
be interesting to see what happened. You know, there's a
week we could demand at the moment. Now, usually demand
picks up at the end of the last half of
the last quarter of each year. We're not really seeing
that at the moment, So I'll be interested to see
what actually happens with the price in the next few
(23:52):
months because it will affect other protein prices.
Speaker 2 (23:55):
So no signs of recovery in the Chinese economy domestically.
Speaker 5 (23:59):
Oh, it's just alongs as it has all year. And
I was talking to another person that's been it's involved
in in a New Zealand agricultural company, and you know
they're finding it tough as well, and they don't see
there's no light at the end of the tunnel. It's
just sticking along. There'll be a bit of a pick
up with events and things like that heading into the
(24:20):
end of the year Christmas parties and then into Chinese
New Year events. But you know, it's tough. It's really
tough out there.
Speaker 2 (24:27):
It would certainly be helpful if Trump could do some
sort of deal with she while he was at Apec.
Let's just finish on direct flights between India and China.
I'm surprised that these have been off the table for
about five years. There's a bit of a niggle between India,
a growing superpower, and China that wants to be the
ultimate superpower.
Speaker 5 (24:48):
Yeah, well, there's always been a bit of a niggle.
There's a there's a contested sort of border area and
you know up in the hills and in their Cashmere,
which is somewhere you know, around between in China and India.
But you know, prior to COVID, there was about four
hundred flights daily I'm sorry weekly between China and India,
and then after COVID they stopped, and you know, with
(25:10):
with tensions sort of ramping up, they haven't returned until
you know, Trump's sort of pushed India and China a
bit closer together through his his maneuvers or whatever he
wants to call them. And you know, so that the
first flight started again after five years yesterday actually, and
they'll they'll, they'll, they'll, they'll be a lot more. So,
(25:31):
you know, it's interesting. You've got two you know, very
large populations, two very large markets, and they haven't really
been communicating with each other. That's starting to thaw and
we'll see how that that that that develops.
Speaker 2 (25:43):
Only Trump can serve us. Hey, Hunda McGregor and Shanghai,
thanks for your time.
Speaker 1 (25:47):
Cheers, Thanks you, Amy, the best of the country with
rubber Bank, the bank with local agri banking experts passionate
about the future of rural communities.
Speaker 2 (25:57):
Rubber Bank, Welcome on to the show. The Chief Things
of Fonterra, Miles Hurrell. No surprise in the outcome of
this vote, Miles Hurrell and no surprise in the reaction
from Winston Peters.
Speaker 4 (26:09):
Good afternoon, good eyesnon Jamie.
Speaker 6 (26:11):
Yeah, a look an overwhelming result that's come through from
our shielders this morning. And when you say no surprise,
I mean see if the work's gone to that, what
was he been out there talking to to farmers for
a few months on this now and a range of
rame of farmer meetings, shared meetings, webinars and so you
know we've cleared for all the questions I've gotten. So
the number of eighty eight percent in support, you know,
(26:35):
gives us the thumbs up.
Speaker 2 (26:36):
Well, you're selling yourself short. Eighty eight and a half
percent there, Miles Hurrell. It's an overwhelming Yes, no surprise.
This will put three point two billion dollars into the
New Zealand economy. That's that's how much is going back
to the farmers shareholders two dollars per share tax free.
This talk of that lifting New Zealand's GDP by zero
point seven percent. This could be a huge kick in
(26:58):
the backside in the right way for our economy.
Speaker 4 (27:02):
Well did you.
Speaker 6 (27:03):
Say, I mean the New zeal economies not has them
in in great shape. And so the rural set is
certainly doing the heavy lifting. So you know three point
two billion dollars by way of tax free capital term
will certainly help.
Speaker 4 (27:13):
I think.
Speaker 6 (27:14):
But but lest all loose sight. You know we sold
this business for four point two billion, so you know
there's another sort of seven hundred to a million by
the time you remove the costs that also go into
the news on the economy. I suspect over time when
you start thinking about these things that will continue to
invest in that support our ongo ingredients and food service business.
Speaker 2 (27:32):
I see Nick Tuffley from ASB said there will be
three point two billion going to your eight thousand shareholder
farms in New Zealand. That average is just under four
hundred thousand dollars per farm. Around sixty percent of shareholding
farms could receive at least two hundred thousand. Obviously some
of the bigger ones are going to get quite a
windfall on this one. What is the time frame when
(27:54):
do Fonterra farmers get this money and their hot little hands.
Speaker 6 (27:59):
Yes, I certainly today's she hold A meeting was one
of the big milestones which obviously passed.
Speaker 4 (28:05):
Now then we go.
Speaker 6 (28:06):
Into sort of the regulatory peace around the world and
so each market will a number of markets have their
own regulatory approvals required, and they're coming through sort of
as we speak, on a day by day basis, and
then we need to go through the sort of the separation,
and by that I mean you know, physical office separation,
IT systems and those sort of things. So we're still
talking calendar year twenty twenty six. You know, I'd like
(28:28):
to think early part of that calendar year sort of
quarter one, quarter two. But we're going to come out
sometime in early December with a bit of an update
as to.
Speaker 4 (28:35):
How that looks.
Speaker 6 (28:36):
But certainly in that first half of twenty six is
what I'm naming for.
Speaker 2 (28:40):
Well, let me just quote Winston Peter's back at you,
because there's always two sides to an argument, he said
very recently on Facebook. Fonterra shareholders have decided to sell
iconic dairy brands Mainland Anchor, Carpitty and others to the
French firm Luck to Lease. This is ut of madness,
it's economic self sabotage. It's an outrageous, short sighted sugar hit.
(29:05):
What do you say in your defense?
Speaker 6 (29:07):
Yeah, well, of course, the big question that farmers have asked,
right the way through this process. What does the cop
look like long term? And we've always said that this
consumer business is about seven or eight percent of our
milk so it's important part, but it's not the biggest
chunk of our business. And where we've always made the
return to the ingredients in our food service business. And
so you know, painting that long term picture, yes, is
(29:29):
that there's a whole lot of cash that will go
back to our shielders in the short term. But at
the same time, how do we reinvest more of their
capital into projects that offer a greater return. So you know,
I totally disagree with this you as you so surprised
me quite frankly though.
Speaker 2 (29:43):
He says luck to lease can three years into the
steal decide to terminate the milk supply to these brands.
So he thinks it's short term gain for long term pain.
And also, I don't know whether you want to go
down this track. He's kind of having a shot at
you and the board and you're owners and centers forgetting
the steal through.
Speaker 6 (30:03):
Yeah, or so, firstly, the milk supply agreement, it's a
ten year deal. I think we're being very clear in
the notice of meeting and all the conversation with farmers.
Their ingredients business is a three year deal with a
three year notice period. But the owners comes back on
us as an organization to say, you know, how we
how do we work with our key ingredients or key
B to B customers And so you know, they could
(30:24):
take their milk away and buy it from someone else,
but at the same time you so could necessarily soa
could others. And it's our job to make sure that
they remain remain with us by treating them respectfully, treating
them as a key ongoing customer of ours. And of
course they're wanting to buy these brands, not just for
the brand, just for the people. They wanted to buy
it for the new Zim province also, so you know,
(30:45):
I'm confident in the long term position here.
Speaker 2 (30:48):
If I was a fun Tear a farmer shareholder, and
I'm not Miles Hurrah, I'd be pretty pleased with the
way you and Peter McBride are running the show. Instance
saying where will you be in a few years time.
You'll be out of here with your bone. He's really
having a crack at you.
Speaker 6 (31:02):
Yeah, but we've also been very clear there are no
executive bonuses linked to the sale process and so you
know we're not even going to entertained that conversation.
Speaker 4 (31:11):
Who knows where will be continued time here.
Speaker 6 (31:13):
It's a lot, it's a long time down the line,
but I'm focused on the here and now. I'm loving
the job and loving what I'm doing. And you know,
Farmer is a supporter of the direction of travel, as
you've seen with an eighty eight and a half percent
vote that came through this morning.
Speaker 2 (31:25):
Hey Miles Hurrell to you and the team at font Tira, congratulations,
this is a good result and it's a good result
for New Zealand in and our economy.
Speaker 6 (31:33):
Yeah, thanks so much, Amy, the best of.
Speaker 1 (31:36):
The country with Rubbobank. Choose the bank with one hundred
and twenty years global agri business experience grow with Rubbobank is.
Speaker 2 (31:43):
Our guy in Australia. Chris Russell and Chris we have
been breaking bread Australia and New Zealand with Trump.
Speaker 7 (31:50):
Yeah, we have been. And it looks as though you know,
ours Trump's new best friend says he's a great bloke.
He's doing great job. Minds me of Harold Holtz all
the way with LBJ. You know, and so we're all
roses at the moment. We've got our first Virginia class
atomic submarine has now come into Sterling Submarine Base in Perth,
(32:13):
which has been rejeeped for the first time a submarine
from America like that has been fully serviced for six months.
Outside of America, we've got, of course, the new arrangements
over the rare earth. That's all going to be worth
eight billion dollars a year, and everyone's happy about that.
And no one cares about the ten percent tariffs on
(32:33):
beef because the Americans can't get enough of our beef
and they'll keep buying it and happy to pay the
extra money. So everything is very raisy from that department.
Speaker 2 (32:41):
Jamie, let's talk about meat. Red meat will come back
to beef lamb. I can't believe this, Chris Russell. You're
suggesting lamb prices are likely to hit thirteen dollars fifty
per kilogram. Next one to that's Ossie dollars. That's about
fifteen dollars a kilo here, huge money.
Speaker 7 (32:58):
Well, this is not Chris Russell saying. This is global
trends analyst Simon Quilty saying that the heat in his
prediction seasonal supply meant that the market is going to
be currently down a bit at the moment, but next
year price are lucky to go to thirteen dollars fifty Akila.
Now he's not suggesting that sustainable, and he thinks that
(33:21):
once our flock starts to respond to that sort of money,
we'll go back to about nine dollars fifty for twenty
twenty seven and it will be sustainable as that level.
But when you think we've gone, you know, from ten
dollars fifty this year to thirteen dollars fifty next year,
you know, that's a massive increase. Its going to be
a lot of people breeding a lot of lambs if
(33:42):
they possibly can for that sort of money, Jamie.
Speaker 2 (33:44):
Well, bodes well for New Zealand sheep farmers to bring
it on. You mentioned the sheer volume of beef hitting
into the US. That seems Trump and his mates just
can't get enough of our hamburgers or our meat and
their hamburgers.
Speaker 7 (33:57):
Now, well, that said, and of course it's not just
about the amount of meat. It's also about the type
of meat. It wouldn't matter if their beef herd was
well up, and of course it's currently I think it's
nineteen fifty eight levels in terms of their total herd.
But even if it was higher that meat, the offcut
meat they use their hamburgers is largely out of feed lots,
(34:18):
which means it's got too high a level of fat
in it. So they need our lean, grass fed offcuts
and meat to actually get that to the level they
want for the hamburger meat. So it's just insatiable. It's
unbelievable how much they're taking. Forget about ten percent tariffs.
People winging about Argentina getting a ninety thousand ton permit
(34:40):
to send their Argentina meat in just to drop in
the bucket compared to Australia. They're not even thinking about
it here because we just can't produce enough meat. Kick
up at at the moment.
Speaker 2 (34:49):
Jomie Scott Morrison, your former PM has Seid and I
think I'm with them on this one. NET zero is
an ideology, not a policy.
Speaker 7 (34:59):
Yes, well, I think I agree with you. I think
it's an aspiration and it's a great aspiration. But as
I've said for a long time, you know, just Darwinian
theory would tell you that those populations that survive are
the ones that adapt, not the ones that change. So
survival of fitness doesn't mean changing the environment to fit us.
That means changing ourselves to fit the environment. And I
(35:22):
think we will get these increases in global temperatures and
ocean temperatures regardless of what we're doing, especially seeing the
biggest contributors to emissions aren't even on board with this.
So we need to really put our exit back into
the basket of adapting. And I think that's the message
that's coming out clearly from some of the more realistic
politicians who are not trying to necessarily suck up to
(35:44):
some sort of climate change god at the moment. That's
not to say getting rid of emissions isn't a good thing,
but what it's saying is it's not the sole answer,
and to do it at any cost. And the cost
to Australia is massive in terms of our cost to
our industry costs. We should have the cheapest energy in
the world and we've got some of the dearest energy
in the world and that's just not sustainable. And so
(36:07):
therefore we've just got to make sure that the ideology
doesn't overwhelm the reality of living and being an economy, Jamie.
Speaker 2 (36:13):
I just want to finish on a good news story.
Agriculture tops the Australian University Students Satisfaction survey. Kids are
happier or young people are happy are doing agriculture than
any other course.
Speaker 4 (36:25):
Yeah.
Speaker 7 (36:25):
Absolutely. Agriculture and forestry rated an eighty four point eight
percent positive rating for overall education experience months undergraduates. That's
a fantastic result. It's a student experience survey conducted by
an Australian government, a program called Quilt Quality Indicators for
Learning and Teaching. Now, when you look at the positive ratings,
(36:48):
vetory science was high as well eighty two point five percent,
dentistry seventy two, engineering seventy one, and it's all the
way down from there. Computing only sixty seven percent. So
agriculture is the most popular. There are statistically four jobs
for every graduate in Australia. We all need to encourage
our children and grandchildren to consider that career if that's
(37:09):
what they love. And I do that every day if
I have that opportunity.
Speaker 2 (37:13):
Indeed you do. Chris Russell, thanks for your time, Catch
you next week.
Speaker 7 (37:16):
No worries.
Speaker 1 (37:18):
The best of the country with Rabobank choose the bank
with a huge network of progressive farming clients.
Speaker 2 (37:24):
Rabobank Chris Russell our regular Thursday Australian correspondent on the country,
wrapping of our best of the Country. Good morning, my
name's Jamie McKay. The show was brought to you by Rabobank.
We're growing a better New Zealand together and wasn't it
good to hear Chris Russell say that agriculture tops the
(37:46):
UNI student satisfaction survey. Right, I'm going to love you
and leave you. Good luck to all you farmers out
there who are still tidying up after one of the
most brutal storms I can remember. This will be weeks
and my rather than days. I hope you can get
a bit of a break tomorrow morning to watch the
All Blacks against Ireland at Soldier Field and Chicago. You're
(38:09):
probably gonna hear a bit of the song from the Cranberries.
We'll leave you with zombiezes.
Speaker 8 (38:38):
Break hearts over carses s islands. We must be stay again.
It's the same, Oh Dess nineteen sixteen. Any yards in
(39:04):
yards they're.
Speaker 1 (39:05):
Still fighting.
Speaker 2 (39:07):
With their tags and their bombs and their bombs, and
they're bums.
Speaker 3 (39:13):
Are yards they diet.
Speaker 7 (39:19):
Ei yar.
Speaker 2 (39:22):
Yim yard
Speaker 7 (39:34):
Beyond f
The best of the country with Rubbobank. Choose the bank
with one hundred and twenty years global acribusiness experience. Grow
with Rubbobank.
Speaker 2 (00:27):
Gida In Good Morning, New Zealand. I'm Jamie Mackay. This
is the best of the country. It's brought to you
by Rabobank. We're growing a better New Zealand together. Ah,
the song's in my head because I played it yesterday
as a musical theme for Halloween. That's behind us, but
we're going to hear a bit of this song. I
would imagine at Soldier Field tomorrow morning when the All
Blacks take on Ireland. How good is that game going
(00:51):
to be? Seems to be the unofficial anthem of the
Irish rugby side. Now this week, it's been a week
absolutely dominated by the weather woes and the recovery from
a brutal storm. Labor also proposed a capital gains tax.
Trump and Luxon had some awkward moments. Could you say
that at Apec and Fonterra farmers voted for a three
(01:14):
point two billion dollar early Christmas present and good on them,
they deserve it. So on the show today, we're going
to kick it off with Katie Melm, first female president
of Federated Farmers Good West Coaster, shared her thoughts on
the country's were the woes and Labour's proposed capital gains tax.
Cameron Bagri on the c GT the ocr Yes, we've
(01:37):
got one of those coming next month. And our exchange
trate Damian O'Connor, my old mate. The gloves came off
as we debated capital gains tax with Labour's trade spokesperson.
We're going to chat to Hunter McGregor in Shanghai. Miles Hurrah,
the Chief Executive, joined us on Thursday's show with the
Big News they got an overwhelming yes vote to how
(02:00):
the consumer brands to French dairy giant Luctalise and Chris
Russell's Rosie correspondent, why net zero is an ideology not
a policy. It's all on the best of the country.
Speaker 1 (02:16):
The best of the country with Rabobank. Choose the bank
with a huge network of progressive farming clients Rabobank.
Speaker 2 (02:24):
Well, as we know, things are none too flash in
the Deep South at the moment, but the rest of
the country's born the brunt of this weather as well.
On the West coast, they tell me, Katie Melon former
president of Federated Farmers, the woman who broke the grass
ceiling becoming the first president. You're on day sixty five
of rain in a row. That must be wearing you down.
Speaker 3 (02:46):
Yeah it is, Jamie. It's now into the second round
of wet grazing on the farm, so it's certainly tagging
its toll. And a few farms have got water that's
on paddocks like permanently now, just not away because all
the water tables are so full, rivers fall up, high,
lakes are high. So there's no reprieve unless we get
(03:08):
ten days of fine weather, I think right at the moment.
So yes, she's time to be very proactive on what
you're doing on farm. And I noticed some guys that
are moving some cattle off to those who've got copious
amounts of grass, and Canterbury those that do and things
like that, early couling once a day or sixteen hours,
all those things that we know we should be doing.
And it's all about making those decisions early so that
(03:30):
you try and limit the damage to this season. And
one thing someone an old pharma said to me years ago,
when you're having a crap season, you'd better be having
a good payout and fingers crossed that still holds up.
Speaker 2 (03:43):
We know there's some serious animal welfare issues around the
power being off, animals not being able to be milked, masstitis,
you name it. But adrenaline drives people through the first
two or three days of a storm or an emergency.
But people are just dog tired. There's a real human
welfare element to this as well.
Speaker 3 (04:06):
Yeah, there is. And that's always the worry when these
events are so big that they go on for so
long in the clean up phase or whatever it is,
or you or you just can't do anything in some cases,
but you're still in overdrive in your system, even though
you may not feel like you are. So that's about
communicating with people trying and I notice sounds it's all corny,
(04:27):
and it sounds stupid. But if you can get away
for an evening meal somewhere else, or join up with someone,
get them to come around, you'll have a pot luck
whatever with a few neighbors to try and just have
someone else to talk to about it, because sometimes you
find actually it just raises your spirits or weather and
it is difficult when you're under the pump. But it's
(04:48):
the little things that make a difference to make you think, well, okay,
I can get through this. We know the sun's going
to shine again, or the wind's going to stop blowing,
or the snow's going to stop falling, and at least
things will be on a rising plane. Probably got a
bit of firewood around that I'm going to get for
free that I didn't intend on having. But yeah, it's
keeping communicating and reaching out to the odd person, even
(05:09):
just a phone call when you're driving home to wherever
the other part of the farm. Just pick it up
and heavy y act to someone. There's been a bit
of that going on over here and it's been really
good just to have someone ring up and go, see,
I see you're in a bit of shit situation. Yeah,
how's it going? What do you need a hand or whatever?
Even if you don't need a hand and say nah,
(05:29):
it's still nice to know that people realize that we're
on the same boat, or you might be the worst
one off and people are willing to reach out. So
ring an aver have a chat.
Speaker 2 (05:38):
Yeah, fair enough. Hey, have you had a chant? Quick chance.
The other big story today is to look at our
Labour's proposed capital gains tax I'm calling it the Clayton's CGT,
the capital gains tax you have when you're not really
having one. I think this is just an exercise in
dipping your toe into the water of seeing how a
capital gains tax will go. But the fact that they're
(06:00):
going to use the money for free doctor visits fine
for those who need it, But there's a lot of
people a bit like the winter energy payments Katie, who
don't need a free doctor's visit.
Speaker 3 (06:12):
Exactly a lot. When I do need a doctor's visit
in the future, I'm happy to take it, but actually
I'm happy to pay for it. I can afford it,
and there'll be different people at different levels. But so
offering it up to everybody three free visits is just stupid.
There's lots of people who don't go at all because
they don't need to and we know it's there and
we need it. The other side to that is you
(06:33):
don't want to overload the system just putting it in
there that I can go down there for fifteen minutes
or half an hour or whatever and have a chat
to a doctor, just when there's people who need it.
You're just cluttering up the books too. What is that
going to do to stats. I don't know what the
ulterior motive really is apart from that everybody should be
even under socialist policies. But it just doesn't make any
(06:55):
sense and it does show you the same old, same mold.
But sorry to say it that government departments are not
the best or governments in general are not great at
spending other people's money. They really don't put it to
the best productive use, which is what we need right
now more than anything, because the country needs expert dollars
and money coming in that's not borrowed or printed, and
(07:18):
this sort of policy isn't going to do it.
Speaker 2 (07:20):
Well, you talk a lot of sense. Have you ever
thought of going to Wellington? Hold that thought, Katie Meln
you have too valuable on the farm. Hey, thanks for
some of your time and I hope you get a
bit of a break in the weather. We'll talk to
Phil Duncan about that. See if we can do something
for you.
Speaker 3 (07:36):
Yeah, you order it up for us, that'd be great.
Speaker 1 (07:38):
The best of the country with Rubbo Bang the bank
with local agribanking experts passionate about the future of rural communities.
Speaker 2 (07:46):
Rubbobang he has one of the sharpest minds economic minds
in the country, Cameron Bagri independs on economists. What did
you make of as I'm describing at Cameron, the Clayton's CGT,
the capital gains tax when you're not really having one.
Speaker 4 (08:02):
Well, yeah, glass are full. They turn the doal slightly
towards broadening the tax base, and it's in the form
of a capital gains tax, not a wealth tax. I
think that it's a positive side. But I guess of
your glass up entre. But they haven't turned the dial
too much. And this is easy call it the Clayton's tax.
It's not going to bring in too much money. I
(08:23):
think the Yes, that's I've seen as it might bring
in two point four to two point five bnion over
a ten year period. So it's going to help to
broaden the tax base. But I guess what's notable is it? Yeah?
What's out as opposed to what's in?
Speaker 2 (08:34):
Absolutely everything's out. There's hardly anything in. This is just
having a crack at people who are investing in residential
property or commercial property. But the different and Batchers, Yeah,
of course quite rightly. The family home is exempt, but
the farmers would have to be pleased with this one.
It's not applying to farms, it's not applying to keyw
(08:56):
saver shares, business assets, inheritance, even your items like cars, boat's,
art and furniture. So I just reckon it's an exercise
in flying a kite or dipping your toe into broadening
the tax base. That's kind of it. Electorally, it's palatable,
but it's a nonsense. It's a nonsense that people like
(09:18):
you and me are going to get three three doctors
visits a year out of this.
Speaker 4 (09:23):
Well, I think that's the real nuts side of this.
In regard to lock you. They've raised a little bit
of money where they're going to get spend that money.
Are they're going to spend that money towards healthcare which
is edible? Well, but everybody's going to get the benefit. Yeah,
I'm not a believer in that sort of stuff, Jamie.
There's no reason people like you, people like me should
(09:44):
get more subsidized healthcare. If you're going to take money
off people in the form of a capful against tax,
let's make sure that we read put that money into
those areas of the economy or those areas of society
that really need it.
Speaker 2 (09:55):
Hey, let's talk about the official cash rate. We've got
a another review coming up. I think late November were
sitting at two and a half. It looked odds on
until those inflation numbers came out that we would get
down to maybe two percent. But now the markets or
the jury's out, isn't it. Is it going to be
two point twenty five the end spot or is it
(10:16):
going to be two because inflation is still running at three.
Speaker 4 (10:20):
Yeah, headline inflation is so dark. If they strip out
the likes of administrative charges, which is local authorities, central
government sort of charges, inflation is a lot more contained.
The core inflation measures look like they're running around two
and a half, So the markets that are hedging its
bets and the OCI might go to two, might go
to two point two five. So we're at two point
(10:41):
five at the moment, So we're within spitting distances where
the market thinks the troft is going to be. So
we're getting towards what's called the glide path or monetary
policy near the endpoint, and the Reserve Bank just needs
to be a little bit careful here because this economy,
I still think has got a lot of latent underlying
inflationary pressure out there, and it looks like there's a
(11:04):
big bow wave of inflation or cost increases that people
want to pass on into price increases soon as we
start to see things pick up. So what's the space
you have? The reserve banks obviously decided to go big
with the fifty that they need to go fifty in
mine mind know they've done it, will take it. Maybe
we get one more, and we get one more. I
(11:25):
think it might be one and Dow.
Speaker 2 (11:27):
Is there exchange rate getting too soft? Or is it?
And if it is, is there anything we can do
about it? The answer is probably no. To the second question, well,
I guess.
Speaker 4 (11:39):
We'll obviously definition are too soft because the currency is
just a relative price variable.
Speaker 5 (11:44):
Yeah, Jamie.
Speaker 4 (11:45):
That shifts the playing field from exporters to imports. You know,
when the currency is low, exporters win, importers lose. When
the current is high, exporters lose and importers win. If
you look at fair venue for the New Zealand dollar
against the Green Bay, I think it's around sixty five cents.
We're around fifty seven to fifty eight. So we're in
that export friendly zone and we need that export friendly
(12:08):
sort of number at the moment because we had a
horrific current account and deficit. We had a completely unbalanced economy.
That lower currency in combination with higher currency with high
commodity prices is engineering what we cause a quality upturn
as oppose the one led by inferior quality in the
form of an runaway Aukan property market. So it's not
(12:29):
great if you want a holiday overseas, but we need
that currency at the moment and an export friendly zone.
And it's been interesting to see if Lake just we're
starting the nudge down against the Australian dollar as well.
We spent an awful lot of time up there around
ninety five cents, and now we'll that down below ninety.
That's still probably a little bit on the expensive side
to me, but it's starting to move towards being a
(12:51):
more export friendly number if you're pushing products into the
Australian market.
Speaker 2 (12:56):
Yes, no question. To finish on going back to where
we start. Does New Zealand need to broaden the tax
space with a capital gains tax?
Speaker 4 (13:06):
Yes, on right far. Rather it came through the capital
gains tax regime as opposed to some of the nutty
stuff on the former Wealth taxes.
Speaker 2 (13:15):
Cameron Vagrie, thanks as always for your time on the country.
Speaker 1 (13:18):
Appreciate it all the rest the best of the country
with Rubbobank. Choose the bank with one hundred and twenty
years global agribusiness experience. Grow with Rubbobank.
Speaker 2 (13:28):
You've already heard from Katie Millon on the Coast. We're
going there again. Yes, he's making a rare appearance in
his old electorate, Damien O'Connor list MP for the Coast
these days, Domicilde and Dunedin. Damien, I know I'm going
to get a bite from you, but your capital gains
tax is, let's face it, are Clayton's capital gains tax,
the tax you have when you're not really having one.
(13:49):
What a week last effort that was.
Speaker 4 (13:51):
Cure it, Jamie, I do you want more? I mean,
I know it's an interesting line to take from you.
I guess if you have invested, and no doubt you
have in four or five properties, it is really unproductive. Yes,
we need houses in our country, but actually it's not
a productive part of our economy. And so if you
(14:11):
make a capital gain then you should pay some tax
on that because if you go out and work hard
day to day you pay tax on that. So this
is about rebalancing where we should invest into the future.
And it's not retrospective. You know, we're people who have
buy to buy the you know, the rules of the
day and the paradigm that we've had around property. But
that should change to create a more productive economy. That's
(14:34):
what we need to do.
Speaker 2 (14:35):
The trouble is you're only dipping your toes in there.
This is this is just a token effort, and to
make things worse, Damian O'Connor, you're going to spend the
money giving people like me and you a free doctors visit.
We don't need it. What a waste of money. Why
don't you target the health spending.
Speaker 4 (14:53):
Back to the tax issue. If we'd done more, you
would have criticized us. This is a sensible step to
send a message that we need to encourage people to
invest in productive assets, and you know farming. For the
most part, farm assets are productive yused. There has been
speculation on capital gains, but mostly the price you pay
(15:14):
for a farm should be based on its productive returns.
That's certainly what I got told in the nineteen eighties
when we took the subsidies off I think we've seen
a shift from that. But if we can get back
to that, that will be good invest in businesses where
we get some real returns. So I think we've got
the capital gains tax proposal about right at this point,
given that no one has been brave enough to do this.
Speaker 2 (15:35):
Yeah, and I get that, Damien, but you're going to
generate next to nothing, ogerall the boomers. The boomers have
already captured and banked all the capital gains.
Speaker 4 (15:46):
Maybe, so you're saying we should have done a long
time ago. Is that right?
Speaker 2 (15:49):
Let's cut to the chase here. You're just softening us up. Okay,
this is a very mild entry into a capital gains tax.
It might be enough not to put people off politically,
maybe get your voter. Didn't God help us? Then party
and marrying the Greens are running the country with you.
This is just a forerunner of a much harder capital
gains tax, or worse, a wealth tax.
Speaker 4 (16:10):
If there's any any change, people will get the chance
to vote on it, I'm sure, and I'm sure that
my boss will have told the country that let's come
back to Under this government, we've basically got a country
that is unfair right, it's unsustainable, unproductive, and we've got
to change it. And tax is the way that we
(16:32):
can make some adjustments there to head us in the
right direction.
Speaker 2 (16:36):
Didn't the housing bubble rarely take off under you lot,
under COVID when you gave exactly the wrong incentives and
messages to the economy.
Speaker 4 (16:47):
So, Jamie, will you and all people across business had
their handout asking for more in the national opposition, crying
out for more to be given to business or wage subsidence,
for business assistance. All of those billions of dollars that
people were quite happy to take and put in their pockets,
some of whom didn't need it, and now complain about
(17:09):
the fact that that money went around in the economy
and because there was a shortage of houses, it pushed
up prices. Yes, we know that that pushed it up.
That hasn't helped. But actually a lot of that money
was demanded and called for by people who had their
hands out, sometimes did not needing it. Look, COVID was
a terrible situation. I don't think anyone would have wished
(17:29):
it upon the world or upon our economy. We're moving
on from that and making some changes to ensure that
actually we do get investment in the right areas. We
don't get the speculation that we've seen particular cross housing
and that we make houses more affordable for young Kiwis Damien.
Speaker 2 (17:46):
I wake up in the middle of the night in
a cold sweat, worrying about what New Zealand and the
economy will be like if it's a party Marie and
the Greens get anywhere near the treasury benches. What can
you say to soothe my worries.
Speaker 4 (18:00):
That's a ridiculous thing. We'll stay awake, Jamie and worry
about other things. I'd suggest to you it might be
more about the at List group and its effect through
the Act Party and some of it coming through New
Zealand First as well. New Zealand First seems to have
now made New Zealand last. It's happy to see things
sold off to anyone who wants to come in with
a big, fat checkbook. We run the risk of selling
(18:23):
off our economy under the Coalition government at the moment
and all the components in it. And you had I
went to the EU thing there you had Minister, what's saying,
come in invest in our economy. We've got some companies
here than a monopolistic He used that word monopolistic because
and it's a great place to invest. We've got to
(18:44):
change that to make sure that it's actually a more
affordable country for most people. And so we've got to
deal with the supermarkets, we've got to deal with the
electricity companies. We've got to deal with those monopoly players
to bring prices in the cost of living down.
Speaker 2 (18:58):
At least I'll get a sum and adelaide if you
do win, Damien, because that's where I'll be spending the
next three years. Thank you very much, Thank you very
much for your time, Jamie.
Speaker 4 (19:07):
If that's what you want to do, then good riddance
to you. There's certainly a lot thousands and thousands of
kiwi's leaving now because of their coalition government. So if
you're the only one that goes when we get in,
then we'll get off.
Speaker 2 (19:20):
Thanks for your time. Has always enjoyed the argument.
Speaker 5 (19:23):
Thank Jamien.
Speaker 2 (19:27):
Damian O'Connor on Tuesday Show, Good Morning, my name's Jamie McKay.
This is the best of the country. It's brought to
you by ra Bo Bank. Believe it or not, we
get along famously socially, just can't agree on politics. I
could be crawling segue from Damien to Zombie by the cranberries,
but I'm a bigger man than that. Besides, I enjoy
(19:47):
the arguments with them. Up next Hunter McGregor, Shanghai based correspondent.
We're also heading to Australia to catch up with our
Elsie correspondent Chris Russell. Some great news stories from him
this week. But the big story cer at the tail
end of the week was Fonterra getting an overwhelming yes
vote from their farmer shareholders to sell the consumer brand's
(20:07):
business to Luck Talise. We'll talk to Myles Hurrell, chief
executive about that one shortly now. Beef and Lamb Awards
are coming up. Entries are now open for the Beef
and Lamb Awards, which will take place in May next
year in christ Church. Rabobanks sponsors the People Development Award,
which celebrates individuals, teams or businesses who are committed to
(20:27):
training and helping others grow. Do you know someone in
the red meat industry who's all about growing and shaping
the future? Will nominate them for the Beef and Lamb Awards.
And another excellent initiative that Rabobank gets behind is Surfing
for Farmers. It's run in several locations around New Zealand
over the summer months. Surfing for Farmers and Courage encourages
(20:49):
farmers to take a couple of hours each off during
the week. Does that make sense to surf to help
better manage stress and improve mental health? Follow the Surfing
for Farmers Facebook page to stay updated on the upcoming seasons,
dates and venues. Up next, Hunter McGregor in Shanghai.
Speaker 1 (21:11):
The best of the country with rabobank. Choose the bank
for a huge network of progressive farming clients Rabobank.
Speaker 2 (21:19):
We have been talking about Chicago, the windy City, one
of the great cities of the world. Let's go to
another great city of the world, Shanghai, where we find
a boy from Roxburgh. His name is Hunter McGregor, selling
red meat and venison to the Chinese. Hey, Hunter, is
it a big deal in China at the moment? The
fact that I think tomorrow our time, Trump will meet
(21:41):
Jijingping for this pull a side meeting or whatever you
want to call it, ahead of the APEC meetings.
Speaker 5 (21:48):
Good afternoon, Jamie, Yeah, sure, it's an important meeting. It's
too big trading powers meeting so it's going to be
interesting to see what actually comes out of it, because
your guess is as good as the miner is what
actually happens with that, You know, you never know what's
going to happen with Trump.
Speaker 2 (22:04):
Well, I think one thing there, Hunter, you can put
the house on Trump trying to get them with a
dominant handshake. Look, the American farmers are going to be
really interested in the outcome of this meeting because the
biggest export market for them for their sayer beans was China.
They've been getting nothing in there at all.
Speaker 5 (22:20):
Yeah, it's been fascinating that the sayerbean market, you know,
China has been replaced by Brazil, Argentina and Russia. You know,
half nearly half of all soyer beans in the US
used to come into China, so it's billions of dollars
and this year the Chinese haven't brought anything. So that
will be high on the agenda, I would assume, and
(22:40):
probably an easy one to fix. But you know, you
just think there's more soyer beans in the American system.
So that's probably why the Americans able to produce a
lot more milk at the moment because feed prices are
probably a lot a lot cheaper than what they usually are,
so that affects the New zealandairy farmer as well in
the long term.
Speaker 2 (23:00):
Talk to me about the Chinese pork price at the
moment and what's the side effects for us here in
New Zealand as a meat exporting nation.
Speaker 5 (23:09):
Well, yeah, it's interesting. It's currently down ten percent year
on year, mainly because production has been up a little
bit more and demand side is quite weak. But what
usually happens with protein prices meat, with pork, chicken, beef,
lamb everything in China is that the pork price usually
(23:29):
sets the sort of floor price.
Speaker 4 (23:30):
So if the pork.
Speaker 5 (23:31):
Price goes up, everything goes up, and if the pork
price goes down, everything goes down. So it's going to
be interesting to see what happened. You know, there's a
week we could demand at the moment. Now, usually demand
picks up at the end of the last half of
the last quarter of each year. We're not really seeing
that at the moment, So I'll be interested to see
what actually happens with the price in the next few
(23:52):
months because it will affect other protein prices.
Speaker 2 (23:55):
So no signs of recovery in the Chinese economy domestically.
Speaker 5 (23:59):
Oh, it's just alongs as it has all year. And
I was talking to another person that's been it's involved
in in a New Zealand agricultural company, and you know
they're finding it tough as well, and they don't see
there's no light at the end of the tunnel. It's
just sticking along. There'll be a bit of a pick
up with events and things like that heading into the
(24:20):
end of the year Christmas parties and then into Chinese
New Year events. But you know, it's tough. It's really
tough out there.
Speaker 2 (24:27):
It would certainly be helpful if Trump could do some
sort of deal with she while he was at Apec.
Let's just finish on direct flights between India and China.
I'm surprised that these have been off the table for
about five years. There's a bit of a niggle between India,
a growing superpower, and China that wants to be the
ultimate superpower.
Speaker 5 (24:48):
Yeah, well, there's always been a bit of a niggle.
There's a there's a contested sort of border area and
you know up in the hills and in their Cashmere,
which is somewhere you know, around between in China and India.
But you know, prior to COVID, there was about four
hundred flights daily I'm sorry weekly between China and India,
and then after COVID they stopped, and you know, with
(25:10):
with tensions sort of ramping up, they haven't returned until
you know, Trump's sort of pushed India and China a
bit closer together through his his maneuvers or whatever he
wants to call them. And you know, so that the
first flight started again after five years yesterday actually, and
they'll they'll, they'll, they'll, they'll be a lot more. So,
(25:31):
you know, it's interesting. You've got two you know, very
large populations, two very large markets, and they haven't really
been communicating with each other. That's starting to thaw and
we'll see how that that that that develops.
Speaker 2 (25:43):
Only Trump can serve us. Hey, Hunda McGregor and Shanghai,
thanks for your time.
Speaker 1 (25:47):
Cheers, Thanks you, Amy, the best of the country with
rubber Bank, the bank with local agri banking experts passionate
about the future of rural communities.
Speaker 2 (25:57):
Rubber Bank, Welcome on to the show. The Chief Things
of Fonterra, Miles Hurrell. No surprise in the outcome of
this vote, Miles Hurrell and no surprise in the reaction
from Winston Peters.
Speaker 4 (26:09):
Good afternoon, good eyesnon Jamie.
Speaker 6 (26:11):
Yeah, a look an overwhelming result that's come through from
our shielders this morning. And when you say no surprise,
I mean see if the work's gone to that, what
was he been out there talking to to farmers for
a few months on this now and a range of
rame of farmer meetings, shared meetings, webinars and so you
know we've cleared for all the questions I've gotten. So
the number of eighty eight percent in support, you know,
(26:35):
gives us the thumbs up.
Speaker 2 (26:36):
Well, you're selling yourself short. Eighty eight and a half
percent there, Miles Hurrell. It's an overwhelming Yes, no surprise.
This will put three point two billion dollars into the
New Zealand economy. That's that's how much is going back
to the farmers shareholders two dollars per share tax free.
This talk of that lifting New Zealand's GDP by zero
point seven percent. This could be a huge kick in
(26:58):
the backside in the right way for our economy.
Speaker 4 (27:02):
Well did you.
Speaker 6 (27:03):
Say, I mean the New zeal economies not has them
in in great shape. And so the rural set is
certainly doing the heavy lifting. So you know three point
two billion dollars by way of tax free capital term
will certainly help.
Speaker 4 (27:13):
I think.
Speaker 6 (27:14):
But but lest all loose sight. You know we sold
this business for four point two billion, so you know
there's another sort of seven hundred to a million by
the time you remove the costs that also go into
the news on the economy. I suspect over time when
you start thinking about these things that will continue to
invest in that support our ongo ingredients and food service business.
Speaker 2 (27:32):
I see Nick Tuffley from ASB said there will be
three point two billion going to your eight thousand shareholder
farms in New Zealand. That average is just under four
hundred thousand dollars per farm. Around sixty percent of shareholding
farms could receive at least two hundred thousand. Obviously some
of the bigger ones are going to get quite a
windfall on this one. What is the time frame when
(27:54):
do Fonterra farmers get this money and their hot little hands.
Speaker 6 (27:59):
Yes, I certainly today's she hold A meeting was one
of the big milestones which obviously passed.
Speaker 4 (28:05):
Now then we go.
Speaker 6 (28:06):
Into sort of the regulatory peace around the world and
so each market will a number of markets have their
own regulatory approvals required, and they're coming through sort of
as we speak, on a day by day basis, and
then we need to go through the sort of the separation,
and by that I mean you know, physical office separation,
IT systems and those sort of things. So we're still
talking calendar year twenty twenty six. You know, I'd like
(28:28):
to think early part of that calendar year sort of
quarter one, quarter two. But we're going to come out
sometime in early December with a bit of an update
as to.
Speaker 4 (28:35):
How that looks.
Speaker 6 (28:36):
But certainly in that first half of twenty six is
what I'm naming for.
Speaker 2 (28:40):
Well, let me just quote Winston Peter's back at you,
because there's always two sides to an argument, he said
very recently on Facebook. Fonterra shareholders have decided to sell
iconic dairy brands Mainland Anchor, Carpitty and others to the
French firm Luck to Lease. This is ut of madness,
it's economic self sabotage. It's an outrageous, short sighted sugar hit.
(29:05):
What do you say in your defense?
Speaker 6 (29:07):
Yeah, well, of course, the big question that farmers have asked,
right the way through this process. What does the cop
look like long term? And we've always said that this
consumer business is about seven or eight percent of our
milk so it's important part, but it's not the biggest
chunk of our business. And where we've always made the
return to the ingredients in our food service business. And
so you know, painting that long term picture, yes, is
(29:29):
that there's a whole lot of cash that will go
back to our shielders in the short term. But at
the same time, how do we reinvest more of their
capital into projects that offer a greater return. So you know,
I totally disagree with this you as you so surprised
me quite frankly though.
Speaker 2 (29:43):
He says luck to lease can three years into the
steal decide to terminate the milk supply to these brands.
So he thinks it's short term gain for long term pain.
And also, I don't know whether you want to go
down this track. He's kind of having a shot at
you and the board and you're owners and centers forgetting
the steal through.
Speaker 6 (30:03):
Yeah, or so, firstly, the milk supply agreement, it's a
ten year deal. I think we're being very clear in
the notice of meeting and all the conversation with farmers.
Their ingredients business is a three year deal with a
three year notice period. But the owners comes back on
us as an organization to say, you know, how we
how do we work with our key ingredients or key
B to B customers And so you know, they could
(30:24):
take their milk away and buy it from someone else,
but at the same time you so could necessarily soa
could others. And it's our job to make sure that
they remain remain with us by treating them respectfully, treating
them as a key ongoing customer of ours. And of
course they're wanting to buy these brands, not just for
the brand, just for the people. They wanted to buy
it for the new Zim province also, so you know,
(30:45):
I'm confident in the long term position here.
Speaker 2 (30:48):
If I was a fun Tear a farmer shareholder, and
I'm not Miles Hurrah, I'd be pretty pleased with the
way you and Peter McBride are running the show. Instance
saying where will you be in a few years time.
You'll be out of here with your bone. He's really
having a crack at you.
Speaker 6 (31:02):
Yeah, but we've also been very clear there are no
executive bonuses linked to the sale process and so you
know we're not even going to entertained that conversation.
Speaker 4 (31:11):
Who knows where will be continued time here.
Speaker 6 (31:13):
It's a lot, it's a long time down the line,
but I'm focused on the here and now. I'm loving
the job and loving what I'm doing. And you know,
Farmer is a supporter of the direction of travel, as
you've seen with an eighty eight and a half percent
vote that came through this morning.
Speaker 2 (31:25):
Hey Miles Hurrell to you and the team at font Tira, congratulations,
this is a good result and it's a good result
for New Zealand in and our economy.
Speaker 6 (31:33):
Yeah, thanks so much, Amy, the best of.
Speaker 1 (31:36):
The country with Rubbobank. Choose the bank with one hundred
and twenty years global agri business experience grow with Rubbobank is.
Speaker 2 (31:43):
Our guy in Australia. Chris Russell and Chris we have
been breaking bread Australia and New Zealand with Trump.
Speaker 7 (31:50):
Yeah, we have been. And it looks as though you know,
ours Trump's new best friend says he's a great bloke.
He's doing great job. Minds me of Harold Holtz all
the way with LBJ. You know, and so we're all
roses at the moment. We've got our first Virginia class
atomic submarine has now come into Sterling Submarine Base in Perth,
(32:13):
which has been rejeeped for the first time a submarine
from America like that has been fully serviced for six months.
Outside of America, we've got, of course, the new arrangements
over the rare earth. That's all going to be worth
eight billion dollars a year, and everyone's happy about that.
And no one cares about the ten percent tariffs on
(32:33):
beef because the Americans can't get enough of our beef
and they'll keep buying it and happy to pay the
extra money. So everything is very raisy from that department.
Speaker 2 (32:41):
Jamie, let's talk about meat. Red meat will come back
to beef lamb. I can't believe this, Chris Russell. You're
suggesting lamb prices are likely to hit thirteen dollars fifty
per kilogram. Next one to that's Ossie dollars. That's about
fifteen dollars a kilo here, huge money.
Speaker 7 (32:58):
Well, this is not Chris Russell saying. This is global
trends analyst Simon Quilty saying that the heat in his
prediction seasonal supply meant that the market is going to
be currently down a bit at the moment, but next
year price are lucky to go to thirteen dollars fifty Akila.
Now he's not suggesting that sustainable, and he thinks that
(33:21):
once our flock starts to respond to that sort of money,
we'll go back to about nine dollars fifty for twenty
twenty seven and it will be sustainable as that level.
But when you think we've gone, you know, from ten
dollars fifty this year to thirteen dollars fifty next year,
you know, that's a massive increase. Its going to be
a lot of people breeding a lot of lambs if
(33:42):
they possibly can for that sort of money, Jamie.
Speaker 2 (33:44):
Well, bodes well for New Zealand sheep farmers to bring
it on. You mentioned the sheer volume of beef hitting
into the US. That seems Trump and his mates just
can't get enough of our hamburgers or our meat and
their hamburgers.
Speaker 7 (33:57):
Now, well, that said, and of course it's not just
about the amount of meat. It's also about the type
of meat. It wouldn't matter if their beef herd was
well up, and of course it's currently I think it's
nineteen fifty eight levels in terms of their total herd.
But even if it was higher that meat, the offcut
meat they use their hamburgers is largely out of feed lots,
(34:18):
which means it's got too high a level of fat
in it. So they need our lean, grass fed offcuts
and meat to actually get that to the level they
want for the hamburger meat. So it's just insatiable. It's
unbelievable how much they're taking. Forget about ten percent tariffs.
People winging about Argentina getting a ninety thousand ton permit
(34:40):
to send their Argentina meat in just to drop in
the bucket compared to Australia. They're not even thinking about
it here because we just can't produce enough meat. Kick
up at at the moment.
Speaker 2 (34:49):
Jomie Scott Morrison, your former PM has Seid and I
think I'm with them on this one. NET zero is
an ideology, not a policy.
Speaker 7 (34:59):
Yes, well, I think I agree with you. I think
it's an aspiration and it's a great aspiration. But as
I've said for a long time, you know, just Darwinian
theory would tell you that those populations that survive are
the ones that adapt, not the ones that change. So
survival of fitness doesn't mean changing the environment to fit us.
That means changing ourselves to fit the environment. And I
(35:22):
think we will get these increases in global temperatures and
ocean temperatures regardless of what we're doing, especially seeing the
biggest contributors to emissions aren't even on board with this.
So we need to really put our exit back into
the basket of adapting. And I think that's the message
that's coming out clearly from some of the more realistic
politicians who are not trying to necessarily suck up to
(35:44):
some sort of climate change god at the moment. That's
not to say getting rid of emissions isn't a good thing,
but what it's saying is it's not the sole answer,
and to do it at any cost. And the cost
to Australia is massive in terms of our cost to
our industry costs. We should have the cheapest energy in
the world and we've got some of the dearest energy
in the world and that's just not sustainable. And so
(36:07):
therefore we've just got to make sure that the ideology
doesn't overwhelm the reality of living and being an economy, Jamie.
Speaker 2 (36:13):
I just want to finish on a good news story.
Agriculture tops the Australian University Students Satisfaction survey. Kids are
happier or young people are happy are doing agriculture than
any other course.
Speaker 4 (36:25):
Yeah.
Speaker 7 (36:25):
Absolutely. Agriculture and forestry rated an eighty four point eight
percent positive rating for overall education experience months undergraduates. That's
a fantastic result. It's a student experience survey conducted by
an Australian government, a program called Quilt Quality Indicators for
Learning and Teaching. Now, when you look at the positive ratings,
(36:48):
vetory science was high as well eighty two point five percent,
dentistry seventy two, engineering seventy one, and it's all the
way down from there. Computing only sixty seven percent. So
agriculture is the most popular. There are statistically four jobs
for every graduate in Australia. We all need to encourage
our children and grandchildren to consider that career if that's
(37:09):
what they love. And I do that every day if
I have that opportunity.
Speaker 2 (37:13):
Indeed you do. Chris Russell, thanks for your time, Catch
you next week.
Speaker 7 (37:16):
No worries.
Speaker 1 (37:18):
The best of the country with Rabobank choose the bank
with a huge network of progressive farming clients.
Speaker 2 (37:24):
Rabobank Chris Russell our regular Thursday Australian correspondent on the country,
wrapping of our best of the Country. Good morning, my
name's Jamie McKay. The show was brought to you by Rabobank.
We're growing a better New Zealand together and wasn't it
good to hear Chris Russell say that agriculture tops the
(37:46):
UNI student satisfaction survey. Right, I'm going to love you
and leave you. Good luck to all you farmers out
there who are still tidying up after one of the
most brutal storms I can remember. This will be weeks
and my rather than days. I hope you can get
a bit of a break tomorrow morning to watch the
All Blacks against Ireland at Soldier Field and Chicago. You're
(38:09):
probably gonna hear a bit of the song from the Cranberries.
We'll leave you with zombiezes.
Speaker 8 (38:38):
Break hearts over carses s islands. We must be stay again.
It's the same, Oh Dess nineteen sixteen. Any yards in
(39:04):
yards they're.
Speaker 1 (39:05):
Still fighting.
Speaker 2 (39:07):
With their tags and their bombs and their bombs, and
they're bums.
Speaker 3 (39:13):
Are yards they diet.
Speaker 7 (39:19):
Ei yar.
Speaker 2 (39:22):
Yim yard
Speaker 7 (39:34):
Beyond f
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