The Country 07/11/25: Peter McBride talks to Jamie Mackay

We catch up with Fonterra’s Chairman at the China International Import Expo in Shanghai. The Expo sees four million people through its doors. But what is the state of the Chinese economy?

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Episode Transcript

Speaker 1 (00:00):
We head all over the show on the country. The
artist formerly known as the Farming Show got two shows
in there. This man is the big show when it
comes to Fonterra. He is the chairman, Peter McBride. He
is in Shanghai for the China International Import Expo known
as C DOUBLEE. Hey, Peter, before I talk about what's

(00:22):
happening in Shanghai, this huge expo, I want to talk
about Winston Peters. You probably don't, but I do because
he was on the show yesterday and he was getting
stuck into you and Miles Hrrell effectively saying you're on
the take. You're getting a backhand, or you will get
a backhand if for getting the steel across the line.
Does that annoy you? Not?

Speaker 2 (00:41):
Really? I think it's a bit misguided. Clearly there are
no steals or backhanders or bonuses related to any part
of the steel, Jamie, So just don't accept that.

Speaker 1 (00:53):
Yeah, well, fair enough. Eighty eight and a half percent
of your Farmer shareholders voted in favor of this steal.
I would have thought it's a pretty good result for Fonterra.
You must have been absolutely pleased or wrapped yourself in
Miles and the team, executive team and the directors are
with the mandate you got.

Speaker 2 (01:12):
Yeah, we were in obviously a huge effort when in
over the last eighteen months and secularly in the last
sort of six weeks leading into the conversations with farmers.
You know, farmer the commercial people or they make commercial
decisions and I think there for them. You know, we
made that as clear as possible, that pathway you wanted
to go down. So we still fundingly believe this is

(01:34):
in the best long term interests of Fontira shareholders but
also New Zealans.

Speaker 1 (01:40):
I'd agree with you and disagree with Winston as I have.
You've taken many trips to China over the years. In fact,
I first met you in China in twenty nineteen around
our farming and footy tour to the Rugby World Cup
in Japan. But you know, wearing your not only your
dairy hat but also formally your Zestpury hat. But this
is your first time at the China International Import Expo.

(02:04):
How big a deal is this event?

Speaker 2 (02:07):
That's a huge deeah sessially my third time. I was
here a couple of times a espree and this is
the first time with Fontier, So it is a big deal.
It's very important obviously to the Chinese stage this event
from a trade perspective, and obviously trade at in front
of your one's mind at the moment, so it is
really critically important.

Speaker 1 (02:27):
As a part of your display, you've got a full
sized milk tanker.

Speaker 2 (02:31):
Yeah, yeah, it's pretty cool that it is. The scene
looks great. We've got a lot of our food service
bakery products on displayed, so it's quite cool.

Speaker 1 (02:42):
So four million visitors through the doors during the period
of this expo, how much traction does Fonterra get. I mean,
is it one of these events where you can't afford
not to be at it?

Speaker 2 (02:55):
Yeah, we it's a critical event for us to be here.
You know, after four decades of investment in growth in
China and being one of our most important strategic markets,
you know, it's really important that we are here. But
we also get valuable insights into the Chinese market from

(03:16):
an event like this, So you know, I'm don't unders
of how of the relationships that you build through these events.

Speaker 1 (03:23):
Talk to me about your take on the Chinese economy
at the moment. My guy over there is a fellow
by the name of Hunter McGregor. You may have come
across them in your travels. He reckons the Chinese economy
is sort of stuck in neutral orwe but what are
you hearing? Because I know, for instance, at this week's
Global Deary Trade event, the Chinese were very active.

Speaker 2 (03:43):
Yeah. I think, well, it's a huge economy, James, So
you know, it's can I have its own sort of momentum.
It doesn't feel like it's sucking neutral from how perspective.
What's interesting was Jenny two, is that while we're observing
China in particular, is that our customers are really short
on inventry. So that's a really positive thing. I guess,

(04:07):
you know, when Winger's risk and town around trade and
tariff and all that sort of thing, people tend to say,
but short and they really look after their working capital.
So you know, I just think, you know, it's just
a slight reflection of a bit of understaincy.

Speaker 1 (04:21):
Do you think ten dollars a ten dollars milk price
is under threat for this season twenty five twenty six
or is it too early to say.

Speaker 2 (04:29):
I think it's a bit early to say. I think
it is under a little bit of pressure. But like
I said, with those inventories being really short as our
volumes come upenetic and tend pretty quickly as well, so
you know there's a bit of a share to play
out yet.

Speaker 1 (04:41):
So you know, seceely go just a final one for you.
I know it's a huge event, this expo, over many areas,
over many days. Do you get a chance probably not
to go and have a look around yourself.

Speaker 2 (04:55):
Yeah, I had a bit of a lot yesterday. I
particularly wanted to go and meet some of the form
of Vistory customers store, have a look around the fruit
fection and mainly focused on the agricultural part of it.
I'm not a czecho sort of a guy, so I'm
teen to meet people from you know, they've had relationships
within the past, and just have a look at, you know,
the other New Zealand companies that are on displays, you know,

(05:16):
and they look great. It's for good I mean, go on, Hi.

Speaker 1 (05:20):
Peter McBride, chair of FONTIRA, thanks for some of your
time from the China International Import Expo. Safe travel home.

Speaker 2 (05:26):
Thanks Jamie