September 1, 2026 • 42 mins
Andy Muir talks to James Edgar, Shane Gerken, Terry Collins, Nicola Blair, Riley Kennedy and Mark Calder.
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Speaker 1 (00:07):
Good afternoon and welcome to the muster on Hokunui. My
name is Andy Muir. The show is brought to you
by Peters Genetics. Thanks to your company. On an overcast
afternoon here in Gore, currently sitting on 15 degrees, which
is a far cry of what we've experienced over the
past 48 hours or so, but nonetheless, we'll take it, right?
And it is a bit warmer tomorrow. We'll look at
(00:28):
the weather very shortly, but we're just going to crank
straight into things this afternoon. The Clash. Good old UK
sound is the tunes for a hub day. I'm a
radiator grill.
Speaker 2 (00:40):
Show me.
Speaker 3 (00:44):
Well, this afternoon.
Speaker 1 (00:52):
They're looking at showers with breezy to brisk northwesterlies and
a high of 15, which we've reached already. Thursday, sunshine
with breezy north-northwesterlies, 7 and 18. That's better. Friday, a
bit cooler yet again. Thunderstorms with breezy northwesterlies, 6 and 10. Saturday,
cloudy with breezy northwesterlies, 6 and 13. And on Sunday,
(01:14):
a bit of rain forecast with nor'easterlies as well, 4
and 12. Soil temperatures, northern Southland 7.2, Riverton 8.5, Te
Anau and Titaroa both 7, Winton 5.9 and Woodlands at 6.4.
We're away to Mawa Flat to start the must of
this afternoon with James Ekka. A lot of snow up there.
James says it's probably as heavy a snowfall as what
(01:36):
he's seen for a number of years, so not ideal
for the start of September, but he just puts it
into a little bit of context as to what the
situation is there at the moment. Terry Collins of the
AA talking fuel excise taxes, the fuel situation, a lot
of talk about election bribes regarding fuel excise, et cetera,
and just delaying the tax being implemented. And Terry thinks, hmm,
(02:00):
is this such a good thing? We catch up as
we do every couple of months with Terry. Nicola Blair
of Dairy NZ's on the show. Shane Gerrickon of PGG Wrightson.
He is the South Island livestock manager for PGG Wrightson.
On the back of this lamb yesterday going for a
record $ 506 at Lawnville. And Shane talks about the situation
(02:20):
with the lamb market at the moment, why this was
a once offer, but just what the outlook looks like
as well in the lead up to the warmer seasons,
supposedly warmer seasons. And Riley Kennedy of Business Desk wraps
up the GDT auction that was held last night. A
solid wee rise there, actually. Mark Calder of PDG writes in,
(02:40):
gives us a rundown on the Barclufa stock sale, and
then we'll carry on with James Egger. This is The Muster,
and it's brought to you by Peters Genetics. Seven after one.
This interview is brought to you by Agri Centre South.
Branches in Lawnville, Gore, Cromwell, Milton and Ranfurly. Drop by
your local Agri Centre South branch today. James Edgar is
(03:05):
based at Muller Flat and joins us once again after
a trying couple of days with the weather down here
in the south. James, good afternoon. You've had quite a
bit of snow.
Speaker 4 (03:15):
Yeah, we've had a big snowfall up here. We're probably...
I know the great Wilson there, he's got a beer
bottle that he uses on his table to measure the snow,
and you usually get the obligatory Snapchat afterwards, so it
did cover the whole beer bottle on the table this time,
so yeah, we probably had a good foot, and it
(03:36):
was pretty windy with it too, so we've sort of
drifted to probably a metre up here. Yeah, so it was,
she's been a bit of a battle, I know, that
much for free, but yeah, hopefully, we're not lambing up
here just yet, but we're lambing in Tapanui and Yeah,
that wasn't too flashed. That was a pretty trying couple
of days. But anyway, we sort of got tidied up
(03:57):
yesterday and we'll finish off tidying up today and start
moving forward again, which is sort of the thing you've
got to do. But I've found over the years, if
you can just get tidied up and try and do
your best, then you really can't ask for too much
more than that.
Speaker 1 (04:11):
I suppose a great thing about a beer bottle and
as well a red band in particular is that it's
a good gauge. Well, the red band's a good gauge
for grass growth, but as well when it's outside, how
much inclement weather there has been as such.
Speaker 4 (04:24):
That's right. You've got to have a standard measure. I
know the Americans use inches and feet, don't they, instead
of an electric system. Up here we use beer bottles
of snow.
Speaker 1 (04:37):
Wilson's an intelligent man. He knows what he's doing.
Speaker 4 (04:40):
Yeah, that's right. Yeah, that's what we deal with up
here sometimes. But the good news is we're not lambing
up here just yet. So we do sort of expect
a little bit of this stuff here. But, you know,
that was a big one. It's probably you get a
little bit disappointed, I guess, because we've probably had about
three average springs in a row, shall we say. So
you sort of every year at lambing time, you sort
(05:02):
of have high hopes. You've spent all the year picking
your rams and getting your ewes up and Doing all
the job there, and yeah, there's always hopes and dreams,
and yeah, there's nothing like a big snow to bring
you back down to earth, but however, that is farming,
I guess.
Speaker 1 (05:16):
How wet is it underfoot there? Obviously, yes, you've had
snow in the logs, but before the snow, what was
it like?
Speaker 4 (05:22):
We weren't too bad. We're quite wet up here at
the moment because there's a big melt on, which is good,
so at least it's not hanging around. Tapanui, it was
amazing how much it dried up overnight with that bit
of wind, so we're back there. We had, yeah... big
flooding all through our flats there. I was reasonably trying,
shall we say, Andy, but anyway, we brung a lot in.
(05:45):
It was quite good. My father was in the shed there,
so I was just catching sheep and dropping them in,
and he would feed them. It's amazing how you can
save animals on flat country. We don't have the same
ability up on the hill. You just end up pushing
sheep out of shelter and wrecking things. Down there, we've
got the ability to work hard, so I know when
(06:06):
I rolled out of bed this morning, I sort of
felt like I was back playing rugby, actually. I was
a bit stiff, but yeah, anyway, you always feel a
lot better when you can actually do something. I know
some of the hardest times mentally is that mile flat
when it's trying at lambing time and you've just got
to stay inside because anything you do is only making
things worse. So yeah, so we've worked hard and gone
(06:28):
through our set stocking plan, which is always, you always
wish you had less sheep at that time of the year,
I guess, so. we'll fill them up and, yeah, the
grass covers actually aren't too bad around the place, so
I feel like we've had, yeah, we've done everything we
can over the winter and done our best, so, yeah. Overall,
not terrible, but, yeah, always a little bit disappointing getting.
Speaker 3 (06:50):
One of those.
Speaker 1 (06:50):
Bearings or anything been a problem so far?
Speaker 4 (06:54):
No, we've had no bearings so far up the hill,
down the flats. We've had the old one, but not
too many. We've had a few die-cast, which has been
a wee bit frustrating and We've probably had a little
bit more milk fever than we've had in past seasons.
So I'm not entirely sure.
Speaker 1 (07:12):
Why that is.
Speaker 4 (07:13):
I know some schools have thought that on the dull
days it makes it worse. So, yeah, we've had a
wee bit of milk fever and there's sort of been
rivers running through the paddocks and a few other bits
and pieces. So it has been a little bit trying. But, yeah,
fingers crossed that that weather looks all right for the
next week, 10 days. And, yeah, you put it behind you,
don't you? And move on.
Speaker 1 (07:32):
That's a big thing to remember when you've got the
ewes and undercover and all of a sudden these ailments
can come to the fore, so it's about finding that
balance as well.
Speaker 4 (07:41):
Yeah, absolutely. And it's always nice, so we bring a
lot into the wool shed, so we were dropping them
in there and sometimes, and the lambing motels down the
flat there, so it's always nice just to slow down
and look into your lambing motel the next morning, do
all your hard work. I think I had one lambing
motel there where you'd five or six ewes in there
(08:02):
and they're all twins and there was only one died, which, yeah,
makes you feel good because you've worked hard and you've
got them in there, but the sheep are happy and
the lambs are happy and put them back on grass and,
you know, you feel like you've actually done something. So, no,
it hasn't all been disastrous, but, yeah, it's certainly been
trying times. It was sort of a funny storm. I
think that was probably the worst one we've had for
(08:23):
the last, you know, sort of five or six years,
to be honest, because it was so wet early on
and then it got wet and then the snow come last,
not first, if that makes sense. Like sometimes you get
the big snow and it happens when it's still dry
and then it's sort of slowly getting better from there
and I find the lambs are okay. But when you've
had a lot of rain and they've sort of softened
(08:44):
them up a little bit and then you get the snow,
that's when you can, yeah, the lambs just sort of
have enough. But, yeah, anyway, it is amazing sometimes when
you bring them in the shed too. It exacerbates some
underlying issues sometimes, like if they've got a semi-hard side
on an udder or, you know, their udder conformation isn't
perfect so the lambs haven't got up for a drink
(09:05):
straight away. And, yeah, definitely shows all those things to
be fair. So, yeah, you do lose the odd lamb
even on a nice day. So, yeah, it just goes
to show for me too. And it's probably another... thing
I've sort of go on about a little bit that
you know there's a lot of guys that are scanning
(09:26):
well over 200% and you get weathered like that and
trips aren't that much use to be honest Andy you
know it's good it's good to scout about at the
pub I suppose when you're have a massive scanning but
you don't get paid very much for that so yeah
over all and above we've managed our way through it
(09:47):
and everyone's worked hard and yeah we'll Pleased with where
we're sitting, to be fair.
Speaker 1 (09:51):
Good on you, James. Chin up, mate. And you guys
keep doing the good work you're doing out there. The
weather will pick up, but it's always a bugger when
Mother Nature does a thing, unfortunately. But, look, we always
appreciate you coming on, being up front about the situation.
And out on the trenches this afternoon, all the best.
Speaker 4 (10:07):
Absolutely. Cheers, Andy.
Speaker 1 (10:10):
James Edgar, based in Mawa Flat. Good old Mother Nature, eh?
Up next, Terry Collins of EAA. You're listening to The Muster.
This is the muster on Hokonui. We're heading up north
(10:31):
now to catch up with Derry Collins. He's a spokesman
for the AA. A lot of things happening regarding roading infrastructure,
fuel and the likes as we get closer to the election. Terry,
welcome to the muster. Good to catch up once again.
Speaker 5 (10:42):
Thanks, Andy. Always a pleasure to be here.
Speaker 1 (10:46):
Right, so straight off the cuff, we're hearing about this
fuel excise tax. Electioneering's come into play, but the argument's
there that it shouldn't be.
Speaker 5 (10:54):
Yeah, exactly right. Look, we have something called the National
Transport Fund. It funds the maintenance of our road, and
the AA always wants that, the number one pick of
where we spend our money. Let's just maintain what we've
got now. The second thing that we're always after is, hey,
let's not have this stop-and-go thing where we announce that
we're going to do some building projects, we make a
whole lot of plans to do them, we spend money
(11:14):
on developing and doing all the drawings, and then we
don't go ahead with them, which costs us a fortune
and gets us nothing. And this is what the risk
around that fund is doing. The government announced that it
wouldn't be increasing the fuel excise duty on petrol. Currently,
that fund gets its revenue from a couple of places.
One's from fuel excise duty, one's from road user charges,
(11:35):
the other is crown loans, when the money is lent
by the crown, and the other is top-up by general taxation.
So what the government announced was they were going to
do a $ 0. 12 a litre increase on the 1st of January,
and they've now wiped that for about a year. And
they've got to turn it into a $ 0. 05 increase on
the 1st of June, 2028, followed by six months later,
(11:57):
another $ 0. 05, then wait a year and put some more
$ 0. 05 on, and then slowly just add it up so
that fund gets the money that it needs.
Speaker 1 (12:08):
Are they aware of the pressures that people are facing
at the pump? Is it purely what this is about?
Speaker 5 (12:13):
Well, look, it's purely under-engineering. Labour went and announced that
they weren't going to do anything for three years and
put the excise up, which was absolutely fiscal stupidity. No,
it just kind of, I think to myself, well, we
got into debt hugely over COVID and now all you
want to do is spend money we haven't got. No,
exercise some fiscal restraint. The whole purpose around roading is
(12:34):
user pays. The users of the road contribute to the
maintenance and building of these roads and sometimes we need
a little bit of a top-up. What they've done is going, well,
times are tough. We've announced this thing. Now we're not
going to do it. One of the things they could
have done is just gone, hey, instead of 12 cents,
it's going to be 5 cents. Because what we've found
(12:55):
is small and frequent increases in anything are hardly noticeable.
In areas in New Zealand, in between areas, we see
price fluctuations on, say, a litre of 91, ranging from
about 20 to 50 cents, depending on what region. 5
cents gets lost in the background noises from the week-to-week fluctuations,
and most motorists wouldn't notice it. 12 cents, you kind
(13:17):
of do. And so if they'd even done that, the
hole that they've made, which would cause about a billion
dollars of taxation to top it up, would have been
much smaller. So it's just a silly idea.
Speaker 1 (13:29):
So just how underfunded is the New Zealand roading system then?
Speaker 5 (13:34):
If you look at all the charts, the other thing
I mentioned about how we get crown loans, so many
of the roads that were built in the past didn't
have the money, so we borrowed to build them. Well,
a chunk of that fund in the land transport fund
is now going off to paying those loans off. It's
like getting an income and your mortgage keeps going up
because you've got to pay for the house that you live,
(13:54):
kind of thing, the debt that you've already acquired. And
so then somebody says you've got to take a pay cut. No,
it just squeezes everything up with that remaining money you've
got to spend on maintenance and building new roads.
Speaker 1 (14:06):
Should toll roads become the norm in a lot of places?
Speaker 5 (14:08):
I don't know about the norm, but they may be
the only alternative we get. I mean, however, I look
at places like New South Wales where they've got, like,
billions of dollars owing for tolls, and it's just a
huge revenue flow for motorists into these private companies, and
I wouldn't want to see something like that. Our kind
of public-private partnership Partnerships haven't been the success that previous
(14:32):
governments have touted them to be. Maybe we just need
to do it because we need the money to build them.
Speaker 1 (14:40):
Well, likes of the Harbour Bridge, the arguments there, that
would be a prime example if you could get something
up and running in that way. Not a big amount,
but an amount nonetheless.
Speaker 5 (14:48):
Well, that's what we did in the 50s when we
built it. We built the bridge, we put a toll
on it, we paid it off, we kept collecting the
toll and then we stopped it. Oh, nothing wrong with that, no.
If people are prepared to do it and the expense
of going the alternative. Our only policy at the AA
is if you're going to have a toll, you've got
to have another road that people can have a choice about.
So you either decide to use the expressway that's going
(15:09):
to speed up, you pay a bit of a toll,
or you're going to take the longer way and not
pay a toll. But as long as you've got an alternative,
we accept that there is a place for tolls.
Speaker 1 (15:18):
Terry, the South Island's only got an allocation of 12%
funding regarding their network roading system. Why is this so
disproportionate compared to the North?
Speaker 5 (15:29):
I think what they're doing is spending a lot, except
for a couple of major areas. Obviously, we know around
Christchurch there's been a lot of changes going on down
the Wollaston area and the development down there. Also, Lake Districts, Queenstown,
obviously with the demand for population increase, tourism and other
things in the roading down there, is getting probably the
bulk of that money. The rest of it is just
on maintenance. We've got a lot of remote roads that
(15:51):
were built. They're not actually economically viable, but they're absolutely
necessary for the social cohesion and the other factors that
we need in this country. And so we need them,
but they're often very costly to maintain. So I think
what's happening down there is most of those roads that aren't,
I'll call it uneconomic, but just for easy terms, that
(16:13):
is maintaining those. a bit of spending on new roads
and around those areas I mentioned, and then most of
it because of the population density and the pressure going
on around the growth of Auckland, that triangle of Hamilton,
you know, a big chunk of the roadings going.
Speaker 2 (16:32):
Up in there.
Speaker 1 (16:33):
Well, the arguments here in the Deep South of the
amount of GDP that's produced and the vehicles that are
on the road, we've got potholes here on State Highway
1 that are pretty much looking like meteors have hit them.
Speaker 5 (16:44):
Yeah. And look, you remember a year ago when the
government was talking about, hey, we've got to, well, three
years ago, we've got to get these potholes fixed. We
thoroughly agree that some of the roading needs to be done.
Which is why I'll mention again, your number one call
from the AA is that the first preference for all
roading is to fix what we've got. If you've got
a house, you've got a car, you do whatever, you
don't worry about getting it. You've got to fix it
(17:05):
to make sure it goes. Well, the same principle applies.
We just can't let the thing be unmaintained, get worse,
and just cause damage and delays and other things. So
if we've first got the money, let's look after what
we've got before we decide building new things.
Speaker 1 (17:19):
Regarding the fuel situation, we caught up with you last
time and you said we'll have the fuel, it's just
a matter of having to pay a little bit more.
I looked at a highlight before on my socials and
Gatsby was saying it was $ 1. 10 cheaper for a litre
of diesel than what it is two years later. Is
this just going to be the norm for the next 6, 12,
18 months?
Speaker 5 (17:39):
Yeah, look, we've got all that uncertainty. They've been attacking
each other over Iran, again, the US and the kind
of the combatants that basically shut the Strait of Hormuz down.
There's very little traffic going through it. But what we've
found with all our previous geopolitical interruptions like this, people
come up with a plan B. No, they reroute. There's
more pipelines being built. They're trying to minimize the impact
(18:01):
that the Strait.
Speaker 2 (18:02):
Of Hormuz will have in the future.
Speaker 5 (18:04):
Things are just adjusting. At the same time, Ukrainians are
determinedly attacking Russian oil infrastructure to try and remove that
from the global market. and their customers were the primary, sorry,
China and India, and they'll go looking elsewhere to get
their fuel. So look, supply's tight. That means that it'll
be a bit more expensive for a while because it's
(18:24):
that law of supply and demand. But will we run
out of it?
Speaker 4 (18:28):
No.
Speaker 5 (18:29):
We're a rich enough country to afford to pay what
we have to pay, so we'll always get it.
Speaker 1 (18:34):
Was it more or less just an overreaction of what
we've seen three or four months ago then?
Speaker 5 (18:39):
Well, it's not an overreaction, but what it is, refiners
were fighting hard. It's still a cracking spread. We still
know today it was $ 92 US a barrel. Now that's
below the $ 100 mark, but it's the refining margins that
have been going up and the shipping margins. That kind
of pressure that's been going on, that's been keeping the
price up. We're just basically at the mercy of those
(19:01):
external factors. We have very little control over it. Those
four factors, the price of oil, the price of shipping
and the price of refining. Our only little benefit over
the last month or so is that our interest rates, sorry,
our exchange rate has improved. So that's helped soften the
blow a little bit.
Speaker 1 (19:20):
Good on you, Terry. Always appreciate your time on the muster.
Speaker 5 (19:23):
OK, thanks, Andy. You have a good day.
Speaker 1 (19:26):
Terry Collins, spokesperson for the AA regarding the fuel situation
and the issue around the roads as well. Certainly some
startling figures coming out around that. Shane Gerakin's up next
with PGG Rights and Livestock. Why on earth did someone
pay over 500 bucks for some lambs yesterday? London calling
to the faraway towns. Now war is declared. Welcome back
(19:52):
to the muster on Hockanui. Well, the stock prices that
came out of Longville yesterday, arguably one of the highest
you'll ever see. $ 506 for a fat prime lamb, and
we almost need a bit of context about why this
is happening. Is it sustainable and the like? So on
the line is Shane Gerakin. He is South Island Livestock
Manager for PDG Wrightson, and he's going to give us
(20:14):
an understanding about what these prices are like and how
long are we going to see them for. Shane, good afternoon.
Thanks for joining us.
Speaker 2 (20:21):
Thanks, Andy.
Speaker 6 (20:22):
Pleased to be here to talk to you, to the listeners,
no problem. So I'll just guess, probably, on Ruanval, I've
done a bit of homework, but yes, you're right, it
was only for one sheep. Apparently, that sheep or lamb
was 45 to 50 kilos. deadweight so it was a
monster and I think to be fair there was a
bit of probably fun between a couple of buyers just
(20:42):
where they could take it to and you're right that
$ 506 did achieve that but certainly we're not seeing that
as the norm that's certainly an extraordinary through the sale yards.
Yeah so that's a bit of context around that Andy.
Speaker 1 (20:58):
So that was almost like a joke between a couple
of buyers like oh we've gone this high what can
we get to create a bit of a storm?
Speaker 2 (21:04):
A bit of that, yeah, exactly.
Speaker 6 (21:06):
So on one sheep it wasn't going to really matter
too much, but it certainly got the bloody media and
social media gossiping around the tracks, no doubt about that.
Speaker 1 (21:20):
Well, we're still seeing an average price for a few
pens of lambs in the $ 400 bracket nonetheless, Shane, especially
at Lawnville over the last couple of weeks.
Speaker 6 (21:28):
Yeah, and they'll be probably, again, they'll be heavy, heavy lambs.
probably studs that have been culled, Andy. So hence, if
you multiply that by $ 12, $ 12 and a bit, it
doesn't take much, say, for a 30-kilo lamb or a
35-kilo deadweight lamb to make that over that $ 400 for that.
(21:48):
But as I say, that's very extraordinary rather than being normal. Normally,
if you're seeing through the sale yards, you can get
anywhere sort of between that sort of 20 to 30-kilo lamb.
Speaker 1 (22:00):
And.
Speaker 6 (22:01):
and they're just not one or two, you're probably talking
penfuls of them, so that'll probably give you a true
reflection of where that pricing is around here.
Speaker 1 (22:09):
So who's paying that money for a lamb? Is it butchers?
Is it third party? What is it?
Speaker 6 (22:14):
Butcher, yeah, butchers, third parties are buying, so on behalf
of third parties, so yeah, probably the main two, that's
happening there, and a few going direct into processes, but certainly...
that's where the market's been around the sale yards through
the South Island.
Speaker 1 (22:33):
Well, sale yards up north and especially around your neck
of the woods there at Colgate, I think a pen
of lambs going $ 460 over the past fortnight. So it's
just not the one area we're seeing these prices. It
certainly seems to be up and down the island.
Speaker 7 (22:48):
Yeah, yeah.
Speaker 6 (22:49):
And again, look, it's probably earlier comment, Andy, it's heavy
lambs and hence, you know, they can pay that. But
as I say, it's, As I say, that's not the
run-of-the-mill lambs that are coming through the system around that.
But saying that, we're seeing lambs, as I said earlier,
$ 12 a kilo plus. And certainly, if you looked on
(23:10):
last year, we're probably a good couple of bucks a
kilo ahead of that, which is good. And this year, particularly,
there hasn't been the volumes of lamb coming through. And
that's normal, but we're just probably seeing, just looking, if
you look on the weekly kill, those numbers have definitely
dropped back off from this time last year. And we
probably won't see an uptake or an increase in lamb
(23:33):
numbers for the next two to three weeks. Normally July, August,
because of the cold and wet, can be really challenging.
And so once we see the weather improve, get spring,
we'll see these lambs starting to move and hence the
numbers will increase going forward. So, yeah, so I would think,
(23:54):
you know, they're sort of talking main season. It'll have
a 10 in front of it, which I think is
still outstanding money. But obviously the next few months there
will be premiums paid for winter lambs to obviously meet
markets for overseas. So, and that's always been my time
in the business. That's always been the way.
Speaker 1 (24:14):
Shane, probably a good chance to give a little bit
of context around the sale yard's And as well, in
regards to how the selling process works, because it all
depends on buyers on the day, forward orders, you hear
about possibly Easter or Christmas contracts and things like that
all comes into the equation. I suppose just briefly, just
describe to those that aren't aware of it, how the
sale yards actually operates and we see these fluctuations.
Speaker 6 (24:37):
Yeah, it's a good question, Andy. A lot of it's
around supply and demand. And I think, you know, if
you've got stuff going through the sale yards and if
there is a special order, which we do get now
and again, comes through or there's a surplus of feed,
you'll see that demand for livestock through the yards. And
I guess the good thing about it isn't even playing field. So,
(24:58):
you know, you have got buyers that will line up,
they'll prepare to bid to what they think the value
is of those animals. And then it's a true and
fair contest, I guess, for each of those guys that
purchase that livestock. So, yeah, that's generally how that works.
But As you say, it can fluctuate, and a lot
of that probably is around its feed conditions, especially for store.
(25:22):
It feeds tight. Obviously, we haven't got that demand coming
through the yards. But to be fair, the yards are
used as a benchmark for on-farm sales as well, and
private sales, we call it. And so, yeah, the sale
yards has a big bearing on what's paid around the place.
Speaker 1 (25:43):
Shane, we look at the beef market. It's looking pretty
positive heading into spring.
Speaker 6 (25:48):
Yeah, it is. You know, we've seen probably a big
increase from last year. You know, if you looked at, say,
bull and steer, you're probably looking at $ 1. 50, what we
were getting this last year, and cow a buck. But
what's probably just dampening things a wee bit, Andy, is
that the states, you know, they have just released 300,000
(26:08):
tonne of quota this to South America, Argentina, or sorry, Brazil.
And so that's 100,000 tonnes they're going to export into
the US tariff-free each month. And hence, you know, that
has put a bit of pressure on our grinder beef,
that's our bull and cow. And we've seen schedules come
(26:30):
back in the last week, two weeks, by 20 or
30 cents a kilo. So that will have an impact. Now,
What we don't know is just how much impact that
will have going forward. But certainly, if you look at
the states, and probably what's the driver behind that is
that their beef herd is the lowest since the late 1940s.
(26:53):
And hence, that's why they have been very active in
the beef market. So they want to reduce that pricing.
Speaker 2 (26:59):
So hence, that's.
Speaker 6 (27:00):
Why South America has got that $ 300, 000 tonne quota for
the next three months.
Speaker 1 (27:07):
Just finally, Shane, it's fair to say the positives are
outweighing the negatives as we head into springtime, especially down
here in the Deep South, weather aside. I don't know,
how long can we see these highs stay up for
in the red meat industry?
Speaker 6 (27:22):
Well, I'd like to, personally, I'd like to see it forever.
The boom and bust cycle we just cannot work on,
whereas you see prices go up and then they come
down sharply. I still think You know, if you look
at your sheep meats, the whole sheep meats, I'm talking
world scene here, is the lowest we've ever seen. So
that supply and demand is working well, and that will continue.
(27:45):
It's a very good product, and New Zealand is recognised.
Speaker 2 (27:49):
Of producing a very good product.
Speaker 6 (27:50):
So I think going forward, I'd like to see that
you know, both beef and sheep meats will stay up
reasonably strong and hence, you know, very positive that going
forward we're going to see some good results on pricing.
Speaker 1 (28:09):
Good on you, Shane. Thanks for your time on the
muster this afternoon. Thanks, Andy.
Speaker 6 (28:14):
Great to speak to you. Cheers.
Speaker 1 (28:18):
South Island Livestock Manager for PGG Rights, and putting it
into perspective, that price around that $ 506 lamb, singular yesterday
at Longville, but hey, hell of a price, isn't it?
Some expensive little lamb chops going there. Up next from
Dairy NZ, Nicola Blair. Should I stay or should I
go now? Should I stay or should I go now?
(28:45):
The Clash is the music for a Wednesday. You're listening
to the Masarau and Hokanui. Nicola Blair of Dairy NZ
joins us on this Wednesday afternoon. Nicola, good afternoon. How
are you?
Speaker 8 (28:56):
Yeah, good, Andy. How are you getting on?
Speaker 1 (28:59):
Oh, let's be honest. I'm sitting in here overlooking the hills.
The snow's disappeared from the tops after what we've seen yesterday,
but it's been a hell of a week.
Speaker 3 (29:08):
Yeah, no, it's a much better day today, that's for sure.
I've actually got a Nice warm wind, get a bit
of drying, because, yeah, gosh, it's been pretty horrendous, really,
hasn't it?
Speaker 1 (29:21):
Well, the one positive is tomorrow, get out the sunscreen,
it's going to be 18. Yeah, room is going. You
can go aquaplaning with your sunnies on, perhaps, in some
of the paddocks. Hey, look, we're talking about a bit
of messaging this today, too, based on what we've seen
over the past. couple of days. It might sound repetitive,
(29:42):
but we just get the information out there, right?
Speaker 3 (29:45):
Yeah, yeah, definitely. Like, yeah, I'm just going to keep
it really short and sweet this week, Andy. As we know,
our farmers have had a really rough one this week
with what Mother Nature's been dishing out to us. So, yeah,
I was just going to make a few key points
around cold stress for cows. And, yeah, I just want
(30:08):
to highlight before I do say these points that, you know,
there's never one size fits all silver bullet when it
comes to farming.
Speaker 8 (30:16):
So I realise, you.
Speaker 3 (30:17):
Know, everyone's systems are different and some can't achieve these things.
And a lot of this will seem very basic too,
but sometimes when the stress comes on, it's just good
to highlight some of these things. So, yeah, the first
message I've got is just sort of, you.
Speaker 8 (30:34):
Know, watch for the combination of weather conditions.
Speaker 3 (30:39):
You know, when we think about cold stress in our stock,
we shouldn't just focus on the temperature alone. You know,
the real risk comes when the cold hits. Temperatures combine
with the wind and the rain, and it's wet underfoot
as well, which most of us have obviously experienced this week.
You know, those conditions make it much harder for the cows.
Speaker 8 (31:01):
To maintain their body temperature.
Speaker 3 (31:04):
Yeah, it just increases their energy requirements in.
Speaker 8 (31:08):
A huge way.
Speaker 3 (31:10):
You know, even a well-fed cow, she'll still struggle more
if she's wet and exposed, standing in the mud. So yeah,
just sort of keep an eye on that. Your feed requirements,
your cows are obviously going to need more fuel in
their tank just simply to stay warm. And again, every
(31:32):
system's different, but it's highly likely for your herds to
have a decrease in feed utilisation in these weather conditions.
Speaker 8 (31:41):
Especially out in the paddock. They'll most likely.
Speaker 3 (31:46):
come into the paddock, have a quick nibble and then
huddle up in the corner with the rest of the
herd to try and stay warm. So, you know, if
you can plug some feed into them elsewhere before they
even hit the paddock, it's going to help them out
a lot. You know, whether it's getting the palm kernel
trailers out or feeding out some silage or baleage, you know,
turning the dial up in the shed if you've got
(32:07):
that option up your sleeve. Yeah, and a good thing
also is just to assess your situation. Have you got
enough feed if this weather continues? So yeah, I guess
my key message overall there is just, yeah, don't just
watch the thermometer. You know, watch the combination of the
weather and your feed levels and your body condition and
(32:31):
if you've got shelter.
Speaker 8 (32:32):
You know, if it's available.
Speaker 3 (32:35):
You know, good planning now can make such a huge
difference to your cow welfare and calving outcomes and overall
herd performance for the season ahead. You know, we can't
control the weather, but we can, you know, we can
control how prepared our stock are for it. So, yeah, please,
(32:56):
if we can help in any way as well, give
any of us at Dairy and Dead a call. Like,
we're always here to support and help farmers. You know,
it's pretty rough out there when it behaves the way
it has this past few days. So, yeah, just look
after yourself and your team. And lastly, to end on
a positive note, the Rural Support Trust, they're holding their
(33:18):
Branch On Us events currently. with their first one kicking
off today, actually, at Gorge Road Country Club.
Speaker 1 (33:27):
Yep, that's just finished up, but they've... Sorry, I've just
got a bit in there, Nicola. I've got the list
here right in front of me and amping at the
bit to get this out. Tomorrow's at Wyndham. Mabel Bush, Drummond, Clifton, Mosburn, Willowbank, Waikai, Adipton,
all happening in the next few weeks or through the month.
Speaker 3 (33:42):
Yes, yeah, yeah. So, I mean, like, yeah, awesome opportunity
to just get off and have some yummy warm food.
And even just have a catch up with the people
in your district. Yeah, all the dates and details are
on the Rural Support Trust website, just under the events tab.
If you're keen to get along to any of them,
or just again, yeah, ring any of us at Dairy
(34:05):
NZ and we can point you in the right direction
for them. Yeah, sometimes it's nice at this time of
the year, you're juggling a lot of balls, if you can, yeah,
get yourself a weller and break and head along to them.
That would be really cool to support them as well.
Speaker 8 (34:22):
So, yeah.
Speaker 1 (34:24):
Never a better word spoken, Nicola Blair. Thanks for your
time as always.
Speaker 3 (34:28):
Awesome.
Speaker 8 (34:28):
Thanks, Andy.
Speaker 1 (34:31):
Nicola Blair of Dairy NZ. And look, here's the South
Rural Support Trust number as well, the Rural Helpline, 0800
787 254. If you do need help, Reach out to
these guys. This is what they want to do. They
want to help out. So like Nicola talked about too,
the Brunch On Us events tomorrow at Wyndham at the
(34:51):
rugby club there starting at 11am. You're listening to The Master.
Before we wrap up, Riley Kennedy of Business Desk. Welcome
back to the muster. Riley Kennedy joins us next out
(35:12):
of Business Desk. He is the 2026 Rural Communicator of
the Year. Riley, good afternoon. We catch you at a
ball sale in the middle of Auckland, of all places.
Speaker 7 (35:21):
Yes, Kia ora, good afternoon. I have left the office,
and I've gone to a ball sale. And if you
know anything, our office is right in the CBD under
the Sky Tower, and I've gone approximately 10 minutes in
an Uber to this ball sale at Cornwall Park. Hormel
Park is a farm, like right, basically right in the
middle of Auckland. I didn't even really know it existed.
(35:43):
I've been here once, but it was news to me
last week that they were actually having a bull sale here.
So it's about to kick off very shortly. They've got
20 Simmental yearling bulls, and there is... Quite a lot
of people here. Quite a lot of interest.
Speaker 1 (35:57):
Well, you just bridged the rural and urban gaps in
that one statement because you talked about getting in an
Uber in the middle of Auckland and then talking about
a bull sale about 10 minutes away.
Speaker 7 (36:07):
Yeah, I've Ubered to a bull sale. I mean, that's...
It's the first of everything, mate. I don't think anyone's
ever Ubered to a bull sale, is it?
Speaker 1 (36:16):
Quite possibly the case. But look, we're talking about the
GDT last night. This was a good result, up 0.9%.
Speaker 5 (36:24):
Yes, it is.
Speaker 7 (36:26):
I think you could almost call them steady as she goes,
I suppose. We sort of hit a bit of a
bottom there after Fonterra came out with their milk price.
The quantity price took a bit of a turn, but
it seems as though we've hit a bottom. I mean,
the whole milk powder was basically steady, but the real
jump was in skim milk powder.
Speaker 2 (36:44):
It was up something like 5.3%.
Speaker 7 (36:45):
And it's actually the first time since 2022 that skim
has outpriced whole milk powder. So that was quite interesting.
But I think we've really hit a bottom. And, of course,
we're coming into that period now where a lot of
buyers are buying for the season. So you've got, you know,
(37:08):
I know it's September, but Christmas is actually only just
around the corner if you think about it. And so
you've got a lot of buyers buying for that. Chinese
New Year is about, you know, a month after Christmas.
So we're heading into the busy season. And, of course,
our production is starting to ramp up September, big month
next month, so the milk will really start.
Speaker 2 (37:26):
To flow too.
Speaker 1 (37:28):
That was interesting. Skid milk powder, like you said, went
up 5.3%. Whole milk powder, the big one though, back 0.1%.
Yet it still evened itself out.
Speaker 7 (37:38):
Yeah, yeah. Whole milk powder basically will have an impact.
If whole milk powder goes up generally, the auction will
go up. But because it was flat, skid milk powder,
just by the volume, dragged it dragged it high, although
it was only up just under 1%, but it's 1%
in the right direction, of course. You wouldn't want it
to go the other way.
Speaker 1 (37:59):
Fonterra Dividend is looking pretty good as well. News out
this morning.
Speaker 7 (38:03):
Yes, Richard Allen, he's been at the helm of the
co-op for, do you want to say three months now?
Came out this morning and said that their earnings will
be in the top end of the range of between
$ 0. 60 and $ 0.
Speaker 1 (38:17):
80, and.
Speaker 7 (38:19):
Of course, when they sold Mainland Group to the French,
they said they wanted to return to the 2025 earnings
of about $ 1. 5 billion in operating profit by 2028. Well,
on that number, they're probably going to do it two
years early, and that will flow through to a nice
dividend for Fonterra shareholders. And their dividend policy is between 60%
(38:39):
and 80% of their earnings. Another strong dividend is on
the table, and of course it had a good dividend
at the half, and then there was the special dividend.
Speaker 3 (38:48):
Of $ 0.
Speaker 7 (38:48):
16 as well, plus the capital return of $ 2, and
I think it was that in April. So everything is
looking pretty good if you're a Fonterra shareholder.
Speaker 1 (39:00):
Now, Fonterra's selling their commercial arm to Lactalis. What was it,
$ 4. 2 billion just over? It was not until it went
to the Pacific Islands and realising just how strong and
how big a brand Anker actually is. It was everywhere.
Speaker 7 (39:14):
Yeah, it's a very strong brand. It's very strong obviously
here in New Zealand, but it's strong particularly in the Pacific.
Not so much in Australia, but quite a big part
of that business was in Australia. They picked quite a
bit of milk up from Australia, but mainland particularly is strong. Actually,
Anchor's quite strong in Sri Lanka too, funnily enough. They
(39:34):
picked quite a lot of milk up in Sri Lanka.
Speaker 1 (39:37):
Hey, so you were at the bull sale this afternoon.
Did your Uber driver jump out with curiosity to go
and look at this sale?
Speaker 7 (39:45):
He sort of took a bit of a turn and went,
what's going on here? And he said, ball sale. And
he said, what's that? And I said, well, you should
come in and watch. And he said, no, no, I've
got to keep working. But yeah, I'm just watching a
whole lot of people walk past, going there to walk
through Cornwall Park. And you can sort of see them
all sort of turning and going, oh, what's going on here?
Speaker 1 (40:03):
You should have took half the office with you to
show them what it's like on the farm.
Speaker 7 (40:07):
Yeah, well, I did offer, but they politely declined.
Speaker 1 (40:10):
Hey, good on you, Riley. Always appreciate your time on
the muster.
Speaker 5 (40:14):
Thank you.
Speaker 1 (40:19):
Laugh out loud with Ag Proud, cos life on the
land can be a laughing matter. Brought to us by
Shearwell Data, working to help the livestock farmer. Why don't
North Koreans listen to funk? Because they've got no soul.
MUSIC PLAYS Alrighty, that's us over and done with for
the afternoon. The podcast will be up shortly. Thanks to iHeartRadio.
(40:42):
I'm Andy Muir. The show's brought to you by Peters Genetics.
Enjoy the afternoon. It's a bit warmer than what it's
been over the past couple of days. See you tomorrow,
one o'clock. Stock selling action comes courtesy of PGG Wrightson.
Mark Coulter's on the line to give a rundown on
prices from Balclutha. Good afternoon, Mark. It was a record
(41:03):
day yesterday at Lawnville. Things today, while not the same prices,
still pretty hot.
Speaker 2 (41:09):
Yes, no, nothing compared to Lawnville, but still very good,
strong demand, and the price is right up there still
here at Balclutha. Smaller yarding in here today, but it was...
It didn't reflect the prices. Getting into the prime lambs,
your nice big heavy prime lambs are anywhere from $ 320
to $ 350, and your good mediums are still great money
around that $ 250 to $ 300 plus. Getting into the store lambs,
(41:31):
there wasn't too many store lambs in today, but they
still went well at $ 150 to $ 180. That was sort
of the average throughout the store. There was maybe 250
store lambs in Nexman there today. The ewe numbers are
still back at the moment just light. Small, light numbers there,
but they're still selling well at $ 260 to $ 300 for
your big heavies. Your good mediums are $ 220 to $ 250.
(41:52):
And your lighter NUs that have done it a bit
tough through the winter are $ 100 to $ 170. A handful
of rams in today, they're still around that same for us,
$ 100 to $ 110. Yeah, a small yard in here again
in Balcutta, but it was nice to feel a bit
of warmth on the backs, and the stock were definitely
enjoying a bit of sun on their backs too. Next
spring cattle sale will be on Thursday, the 17th of
September here at Balcutta, so get in touch with your
(42:15):
Local agents, do you want to put any kettle in
or are you looking to buy some? Thank you very much.
Good afternoon and welcome to the muster on Hokunui. My
name is Andy Muir. The show is brought to you
by Peters Genetics. Thanks to your company. On an overcast
afternoon here in Gore, currently sitting on 15 degrees, which
is a far cry of what we've experienced over the
past 48 hours or so, but nonetheless, we'll take it, right?
And it is a bit warmer tomorrow. We'll look at
(00:28):
the weather very shortly, but we're just going to crank
straight into things this afternoon. The Clash. Good old UK
sound is the tunes for a hub day. I'm a
radiator grill.
Speaker 2 (00:40):
Show me.
Speaker 3 (00:44):
Well, this afternoon.
Speaker 1 (00:52):
They're looking at showers with breezy to brisk northwesterlies and
a high of 15, which we've reached already. Thursday, sunshine
with breezy north-northwesterlies, 7 and 18. That's better. Friday, a
bit cooler yet again. Thunderstorms with breezy northwesterlies, 6 and 10. Saturday,
cloudy with breezy northwesterlies, 6 and 13. And on Sunday,
(01:14):
a bit of rain forecast with nor'easterlies as well, 4
and 12. Soil temperatures, northern Southland 7.2, Riverton 8.5, Te
Anau and Titaroa both 7, Winton 5.9 and Woodlands at 6.4.
We're away to Mawa Flat to start the must of
this afternoon with James Ekka. A lot of snow up there.
James says it's probably as heavy a snowfall as what
(01:36):
he's seen for a number of years, so not ideal
for the start of September, but he just puts it
into a little bit of context as to what the
situation is there at the moment. Terry Collins of the
AA talking fuel excise taxes, the fuel situation, a lot
of talk about election bribes regarding fuel excise, et cetera,
and just delaying the tax being implemented. And Terry thinks, hmm,
(02:00):
is this such a good thing? We catch up as
we do every couple of months with Terry. Nicola Blair
of Dairy NZ's on the show. Shane Gerrickon of PGG Wrightson.
He is the South Island livestock manager for PGG Wrightson.
On the back of this lamb yesterday going for a
record $ 506 at Lawnville. And Shane talks about the situation
(02:20):
with the lamb market at the moment, why this was
a once offer, but just what the outlook looks like
as well in the lead up to the warmer seasons,
supposedly warmer seasons. And Riley Kennedy of Business Desk wraps
up the GDT auction that was held last night. A
solid wee rise there, actually. Mark Calder of PDG writes in,
(02:40):
gives us a rundown on the Barclufa stock sale, and
then we'll carry on with James Egger. This is The Muster,
and it's brought to you by Peters Genetics. Seven after one.
This interview is brought to you by Agri Centre South.
Branches in Lawnville, Gore, Cromwell, Milton and Ranfurly. Drop by
your local Agri Centre South branch today. James Edgar is
(03:05):
based at Muller Flat and joins us once again after
a trying couple of days with the weather down here
in the south. James, good afternoon. You've had quite a
bit of snow.
Speaker 4 (03:15):
Yeah, we've had a big snowfall up here. We're probably...
I know the great Wilson there, he's got a beer
bottle that he uses on his table to measure the snow,
and you usually get the obligatory Snapchat afterwards, so it
did cover the whole beer bottle on the table this time,
so yeah, we probably had a good foot, and it
(03:36):
was pretty windy with it too, so we've sort of
drifted to probably a metre up here. Yeah, so it was,
she's been a bit of a battle, I know, that
much for free, but yeah, hopefully, we're not lambing up
here just yet, but we're lambing in Tapanui and Yeah,
that wasn't too flashed. That was a pretty trying couple
of days. But anyway, we sort of got tidied up
(03:57):
yesterday and we'll finish off tidying up today and start
moving forward again, which is sort of the thing you've
got to do. But I've found over the years, if
you can just get tidied up and try and do
your best, then you really can't ask for too much
more than that.
Speaker 1 (04:11):
I suppose a great thing about a beer bottle and
as well a red band in particular is that it's
a good gauge. Well, the red band's a good gauge
for grass growth, but as well when it's outside, how
much inclement weather there has been as such.
Speaker 4 (04:24):
That's right. You've got to have a standard measure. I
know the Americans use inches and feet, don't they, instead
of an electric system. Up here we use beer bottles
of snow.
Speaker 1 (04:37):
Wilson's an intelligent man. He knows what he's doing.
Speaker 4 (04:40):
Yeah, that's right. Yeah, that's what we deal with up
here sometimes. But the good news is we're not lambing
up here just yet. So we do sort of expect
a little bit of this stuff here. But, you know,
that was a big one. It's probably you get a
little bit disappointed, I guess, because we've probably had about
three average springs in a row, shall we say. So
you sort of every year at lambing time, you sort
(05:02):
of have high hopes. You've spent all the year picking
your rams and getting your ewes up and Doing all
the job there, and yeah, there's always hopes and dreams,
and yeah, there's nothing like a big snow to bring
you back down to earth, but however, that is farming,
I guess.
Speaker 1 (05:16):
How wet is it underfoot there? Obviously, yes, you've had
snow in the logs, but before the snow, what was
it like?
Speaker 4 (05:22):
We weren't too bad. We're quite wet up here at
the moment because there's a big melt on, which is good,
so at least it's not hanging around. Tapanui, it was
amazing how much it dried up overnight with that bit
of wind, so we're back there. We had, yeah... big
flooding all through our flats there. I was reasonably trying,
shall we say, Andy, but anyway, we brung a lot in.
(05:45):
It was quite good. My father was in the shed there,
so I was just catching sheep and dropping them in,
and he would feed them. It's amazing how you can
save animals on flat country. We don't have the same
ability up on the hill. You just end up pushing
sheep out of shelter and wrecking things. Down there, we've
got the ability to work hard, so I know when
(06:06):
I rolled out of bed this morning, I sort of
felt like I was back playing rugby, actually. I was
a bit stiff, but yeah, anyway, you always feel a
lot better when you can actually do something. I know
some of the hardest times mentally is that mile flat
when it's trying at lambing time and you've just got
to stay inside because anything you do is only making
things worse. So yeah, so we've worked hard and gone
(06:28):
through our set stocking plan, which is always, you always
wish you had less sheep at that time of the year,
I guess, so. we'll fill them up and, yeah, the
grass covers actually aren't too bad around the place, so
I feel like we've had, yeah, we've done everything we
can over the winter and done our best, so, yeah. Overall,
not terrible, but, yeah, always a little bit disappointing getting.
Speaker 3 (06:50):
One of those.
Speaker 1 (06:50):
Bearings or anything been a problem so far?
Speaker 4 (06:54):
No, we've had no bearings so far up the hill,
down the flats. We've had the old one, but not
too many. We've had a few die-cast, which has been
a wee bit frustrating and We've probably had a little
bit more milk fever than we've had in past seasons.
So I'm not entirely sure.
Speaker 1 (07:12):
Why that is.
Speaker 4 (07:13):
I know some schools have thought that on the dull
days it makes it worse. So, yeah, we've had a
wee bit of milk fever and there's sort of been
rivers running through the paddocks and a few other bits
and pieces. So it has been a little bit trying. But, yeah,
fingers crossed that that weather looks all right for the
next week, 10 days. And, yeah, you put it behind you,
don't you? And move on.
Speaker 1 (07:32):
That's a big thing to remember when you've got the
ewes and undercover and all of a sudden these ailments
can come to the fore, so it's about finding that
balance as well.
Speaker 4 (07:41):
Yeah, absolutely. And it's always nice, so we bring a
lot into the wool shed, so we were dropping them
in there and sometimes, and the lambing motels down the
flat there, so it's always nice just to slow down
and look into your lambing motel the next morning, do
all your hard work. I think I had one lambing
motel there where you'd five or six ewes in there
(08:02):
and they're all twins and there was only one died, which, yeah,
makes you feel good because you've worked hard and you've
got them in there, but the sheep are happy and
the lambs are happy and put them back on grass and,
you know, you feel like you've actually done something. So, no,
it hasn't all been disastrous, but, yeah, it's certainly been
trying times. It was sort of a funny storm. I
think that was probably the worst one we've had for
(08:23):
the last, you know, sort of five or six years,
to be honest, because it was so wet early on
and then it got wet and then the snow come last,
not first, if that makes sense. Like sometimes you get
the big snow and it happens when it's still dry
and then it's sort of slowly getting better from there
and I find the lambs are okay. But when you've
had a lot of rain and they've sort of softened
(08:44):
them up a little bit and then you get the snow,
that's when you can, yeah, the lambs just sort of
have enough. But, yeah, anyway, it is amazing sometimes when
you bring them in the shed too. It exacerbates some
underlying issues sometimes, like if they've got a semi-hard side
on an udder or, you know, their udder conformation isn't
perfect so the lambs haven't got up for a drink
(09:05):
straight away. And, yeah, definitely shows all those things to
be fair. So, yeah, you do lose the odd lamb
even on a nice day. So, yeah, it just goes
to show for me too. And it's probably another... thing
I've sort of go on about a little bit that
you know there's a lot of guys that are scanning
(09:26):
well over 200% and you get weathered like that and
trips aren't that much use to be honest Andy you
know it's good it's good to scout about at the
pub I suppose when you're have a massive scanning but
you don't get paid very much for that so yeah
over all and above we've managed our way through it
(09:47):
and everyone's worked hard and yeah we'll Pleased with where
we're sitting, to be fair.
Speaker 1 (09:51):
Good on you, James. Chin up, mate. And you guys
keep doing the good work you're doing out there. The
weather will pick up, but it's always a bugger when
Mother Nature does a thing, unfortunately. But, look, we always
appreciate you coming on, being up front about the situation.
And out on the trenches this afternoon, all the best.
Speaker 4 (10:07):
Absolutely. Cheers, Andy.
Speaker 1 (10:10):
James Edgar, based in Mawa Flat. Good old Mother Nature, eh?
Up next, Terry Collins of EAA. You're listening to The Muster.
This is the muster on Hokonui. We're heading up north
(10:31):
now to catch up with Derry Collins. He's a spokesman
for the AA. A lot of things happening regarding roading infrastructure,
fuel and the likes as we get closer to the election. Terry,
welcome to the muster. Good to catch up once again.
Speaker 5 (10:42):
Thanks, Andy. Always a pleasure to be here.
Speaker 1 (10:46):
Right, so straight off the cuff, we're hearing about this
fuel excise tax. Electioneering's come into play, but the argument's
there that it shouldn't be.
Speaker 5 (10:54):
Yeah, exactly right. Look, we have something called the National
Transport Fund. It funds the maintenance of our road, and
the AA always wants that, the number one pick of
where we spend our money. Let's just maintain what we've
got now. The second thing that we're always after is, hey,
let's not have this stop-and-go thing where we announce that
we're going to do some building projects, we make a
whole lot of plans to do them, we spend money
(11:14):
on developing and doing all the drawings, and then we
don't go ahead with them, which costs us a fortune
and gets us nothing. And this is what the risk
around that fund is doing. The government announced that it
wouldn't be increasing the fuel excise duty on petrol. Currently,
that fund gets its revenue from a couple of places.
One's from fuel excise duty, one's from road user charges,
(11:35):
the other is crown loans, when the money is lent
by the crown, and the other is top-up by general taxation.
So what the government announced was they were going to
do a $ 0. 12 a litre increase on the 1st of January,
and they've now wiped that for about a year. And
they've got to turn it into a $ 0. 05 increase on
the 1st of June, 2028, followed by six months later,
(11:57):
another $ 0. 05, then wait a year and put some more
$ 0. 05 on, and then slowly just add it up so
that fund gets the money that it needs.
Speaker 1 (12:08):
Are they aware of the pressures that people are facing
at the pump? Is it purely what this is about?
Speaker 5 (12:13):
Well, look, it's purely under-engineering. Labour went and announced that
they weren't going to do anything for three years and
put the excise up, which was absolutely fiscal stupidity. No,
it just kind of, I think to myself, well, we
got into debt hugely over COVID and now all you
want to do is spend money we haven't got. No,
exercise some fiscal restraint. The whole purpose around roading is
(12:34):
user pays. The users of the road contribute to the
maintenance and building of these roads and sometimes we need
a little bit of a top-up. What they've done is going, well,
times are tough. We've announced this thing. Now we're not
going to do it. One of the things they could
have done is just gone, hey, instead of 12 cents,
it's going to be 5 cents. Because what we've found
(12:55):
is small and frequent increases in anything are hardly noticeable.
In areas in New Zealand, in between areas, we see
price fluctuations on, say, a litre of 91, ranging from
about 20 to 50 cents, depending on what region. 5
cents gets lost in the background noises from the week-to-week fluctuations,
and most motorists wouldn't notice it. 12 cents, you kind
(13:17):
of do. And so if they'd even done that, the
hole that they've made, which would cause about a billion
dollars of taxation to top it up, would have been
much smaller. So it's just a silly idea.
Speaker 1 (13:29):
So just how underfunded is the New Zealand roading system then?
Speaker 5 (13:34):
If you look at all the charts, the other thing
I mentioned about how we get crown loans, so many
of the roads that were built in the past didn't
have the money, so we borrowed to build them. Well,
a chunk of that fund in the land transport fund
is now going off to paying those loans off. It's
like getting an income and your mortgage keeps going up
because you've got to pay for the house that you live,
(13:54):
kind of thing, the debt that you've already acquired. And
so then somebody says you've got to take a pay cut. No,
it just squeezes everything up with that remaining money you've
got to spend on maintenance and building new roads.
Speaker 1 (14:06):
Should toll roads become the norm in a lot of places?
Speaker 5 (14:08):
I don't know about the norm, but they may be
the only alternative we get. I mean, however, I look
at places like New South Wales where they've got, like,
billions of dollars owing for tolls, and it's just a
huge revenue flow for motorists into these private companies, and
I wouldn't want to see something like that. Our kind
of public-private partnership Partnerships haven't been the success that previous
(14:32):
governments have touted them to be. Maybe we just need
to do it because we need the money to build them.
Speaker 1 (14:40):
Well, likes of the Harbour Bridge, the arguments there, that
would be a prime example if you could get something
up and running in that way. Not a big amount,
but an amount nonetheless.
Speaker 5 (14:48):
Well, that's what we did in the 50s when we
built it. We built the bridge, we put a toll
on it, we paid it off, we kept collecting the
toll and then we stopped it. Oh, nothing wrong with that, no.
If people are prepared to do it and the expense
of going the alternative. Our only policy at the AA
is if you're going to have a toll, you've got
to have another road that people can have a choice about.
So you either decide to use the expressway that's going
(15:09):
to speed up, you pay a bit of a toll,
or you're going to take the longer way and not
pay a toll. But as long as you've got an alternative,
we accept that there is a place for tolls.
Speaker 1 (15:18):
Terry, the South Island's only got an allocation of 12%
funding regarding their network roading system. Why is this so
disproportionate compared to the North?
Speaker 5 (15:29):
I think what they're doing is spending a lot, except
for a couple of major areas. Obviously, we know around
Christchurch there's been a lot of changes going on down
the Wollaston area and the development down there. Also, Lake Districts, Queenstown,
obviously with the demand for population increase, tourism and other
things in the roading down there, is getting probably the
bulk of that money. The rest of it is just
on maintenance. We've got a lot of remote roads that
(15:51):
were built. They're not actually economically viable, but they're absolutely
necessary for the social cohesion and the other factors that
we need in this country. And so we need them,
but they're often very costly to maintain. So I think
what's happening down there is most of those roads that aren't,
I'll call it uneconomic, but just for easy terms, that
(16:13):
is maintaining those. a bit of spending on new roads
and around those areas I mentioned, and then most of
it because of the population density and the pressure going
on around the growth of Auckland, that triangle of Hamilton,
you know, a big chunk of the roadings going.
Speaker 2 (16:32):
Up in there.
Speaker 1 (16:33):
Well, the arguments here in the Deep South of the
amount of GDP that's produced and the vehicles that are
on the road, we've got potholes here on State Highway
1 that are pretty much looking like meteors have hit them.
Speaker 5 (16:44):
Yeah. And look, you remember a year ago when the
government was talking about, hey, we've got to, well, three
years ago, we've got to get these potholes fixed. We
thoroughly agree that some of the roading needs to be done.
Which is why I'll mention again, your number one call
from the AA is that the first preference for all
roading is to fix what we've got. If you've got
a house, you've got a car, you do whatever, you
don't worry about getting it. You've got to fix it
(17:05):
to make sure it goes. Well, the same principle applies.
We just can't let the thing be unmaintained, get worse,
and just cause damage and delays and other things. So
if we've first got the money, let's look after what
we've got before we decide building new things.
Speaker 1 (17:19):
Regarding the fuel situation, we caught up with you last
time and you said we'll have the fuel, it's just
a matter of having to pay a little bit more.
I looked at a highlight before on my socials and
Gatsby was saying it was $ 1. 10 cheaper for a litre
of diesel than what it is two years later. Is
this just going to be the norm for the next 6, 12,
18 months?
Speaker 5 (17:39):
Yeah, look, we've got all that uncertainty. They've been attacking
each other over Iran, again, the US and the kind
of the combatants that basically shut the Strait of Hormuz down.
There's very little traffic going through it. But what we've
found with all our previous geopolitical interruptions like this, people
come up with a plan B. No, they reroute. There's
more pipelines being built. They're trying to minimize the impact
(18:01):
that the Strait.
Speaker 2 (18:02):
Of Hormuz will have in the future.
Speaker 5 (18:04):
Things are just adjusting. At the same time, Ukrainians are
determinedly attacking Russian oil infrastructure to try and remove that
from the global market. and their customers were the primary, sorry,
China and India, and they'll go looking elsewhere to get
their fuel. So look, supply's tight. That means that it'll
be a bit more expensive for a while because it's
(18:24):
that law of supply and demand. But will we run
out of it?
Speaker 4 (18:28):
No.
Speaker 5 (18:29):
We're a rich enough country to afford to pay what
we have to pay, so we'll always get it.
Speaker 1 (18:34):
Was it more or less just an overreaction of what
we've seen three or four months ago then?
Speaker 5 (18:39):
Well, it's not an overreaction, but what it is, refiners
were fighting hard. It's still a cracking spread. We still
know today it was $ 92 US a barrel. Now that's
below the $ 100 mark, but it's the refining margins that
have been going up and the shipping margins. That kind
of pressure that's been going on, that's been keeping the
price up. We're just basically at the mercy of those
(19:01):
external factors. We have very little control over it. Those
four factors, the price of oil, the price of shipping
and the price of refining. Our only little benefit over
the last month or so is that our interest rates, sorry,
our exchange rate has improved. So that's helped soften the
blow a little bit.
Speaker 1 (19:20):
Good on you, Terry. Always appreciate your time on the muster.
Speaker 5 (19:23):
OK, thanks, Andy. You have a good day.
Speaker 1 (19:26):
Terry Collins, spokesperson for the AA regarding the fuel situation
and the issue around the roads as well. Certainly some
startling figures coming out around that. Shane Gerakin's up next
with PGG Rights and Livestock. Why on earth did someone
pay over 500 bucks for some lambs yesterday? London calling
to the faraway towns. Now war is declared. Welcome back
(19:52):
to the muster on Hockanui. Well, the stock prices that
came out of Longville yesterday, arguably one of the highest
you'll ever see. $ 506 for a fat prime lamb, and
we almost need a bit of context about why this
is happening. Is it sustainable and the like? So on
the line is Shane Gerakin. He is South Island Livestock
Manager for PDG Wrightson, and he's going to give us
(20:14):
an understanding about what these prices are like and how
long are we going to see them for. Shane, good afternoon.
Thanks for joining us.
Speaker 2 (20:21):
Thanks, Andy.
Speaker 6 (20:22):
Pleased to be here to talk to you, to the listeners,
no problem. So I'll just guess, probably, on Ruanval, I've
done a bit of homework, but yes, you're right, it
was only for one sheep. Apparently, that sheep or lamb
was 45 to 50 kilos. deadweight so it was a
monster and I think to be fair there was a
bit of probably fun between a couple of buyers just
(20:42):
where they could take it to and you're right that
$ 506 did achieve that but certainly we're not seeing that
as the norm that's certainly an extraordinary through the sale yards.
Yeah so that's a bit of context around that Andy.
Speaker 1 (20:58):
So that was almost like a joke between a couple
of buyers like oh we've gone this high what can
we get to create a bit of a storm?
Speaker 2 (21:04):
A bit of that, yeah, exactly.
Speaker 6 (21:06):
So on one sheep it wasn't going to really matter
too much, but it certainly got the bloody media and
social media gossiping around the tracks, no doubt about that.
Speaker 1 (21:20):
Well, we're still seeing an average price for a few
pens of lambs in the $ 400 bracket nonetheless, Shane, especially
at Lawnville over the last couple of weeks.
Speaker 6 (21:28):
Yeah, and they'll be probably, again, they'll be heavy, heavy lambs.
probably studs that have been culled, Andy. So hence, if
you multiply that by $ 12, $ 12 and a bit, it
doesn't take much, say, for a 30-kilo lamb or a
35-kilo deadweight lamb to make that over that $ 400 for that.
(21:48):
But as I say, that's very extraordinary rather than being normal. Normally,
if you're seeing through the sale yards, you can get
anywhere sort of between that sort of 20 to 30-kilo lamb.
Speaker 1 (22:00):
And.
Speaker 6 (22:01):
and they're just not one or two, you're probably talking
penfuls of them, so that'll probably give you a true
reflection of where that pricing is around here.
Speaker 1 (22:09):
So who's paying that money for a lamb? Is it butchers?
Is it third party? What is it?
Speaker 6 (22:14):
Butcher, yeah, butchers, third parties are buying, so on behalf
of third parties, so yeah, probably the main two, that's
happening there, and a few going direct into processes, but certainly...
that's where the market's been around the sale yards through
the South Island.
Speaker 1 (22:33):
Well, sale yards up north and especially around your neck
of the woods there at Colgate, I think a pen
of lambs going $ 460 over the past fortnight. So it's
just not the one area we're seeing these prices. It
certainly seems to be up and down the island.
Speaker 7 (22:48):
Yeah, yeah.
Speaker 6 (22:49):
And again, look, it's probably earlier comment, Andy, it's heavy
lambs and hence, you know, they can pay that. But
as I say, it's, As I say, that's not the
run-of-the-mill lambs that are coming through the system around that.
But saying that, we're seeing lambs, as I said earlier,
$ 12 a kilo plus. And certainly, if you looked on
(23:10):
last year, we're probably a good couple of bucks a
kilo ahead of that, which is good. And this year, particularly,
there hasn't been the volumes of lamb coming through. And
that's normal, but we're just probably seeing, just looking, if
you look on the weekly kill, those numbers have definitely
dropped back off from this time last year. And we
probably won't see an uptake or an increase in lamb
(23:33):
numbers for the next two to three weeks. Normally July, August,
because of the cold and wet, can be really challenging.
And so once we see the weather improve, get spring,
we'll see these lambs starting to move and hence the
numbers will increase going forward. So, yeah, so I would think,
(23:54):
you know, they're sort of talking main season. It'll have
a 10 in front of it, which I think is
still outstanding money. But obviously the next few months there
will be premiums paid for winter lambs to obviously meet
markets for overseas. So, and that's always been my time
in the business. That's always been the way.
Speaker 1 (24:14):
Shane, probably a good chance to give a little bit
of context around the sale yard's And as well, in
regards to how the selling process works, because it all
depends on buyers on the day, forward orders, you hear
about possibly Easter or Christmas contracts and things like that
all comes into the equation. I suppose just briefly, just
describe to those that aren't aware of it, how the
sale yards actually operates and we see these fluctuations.
Speaker 6 (24:37):
Yeah, it's a good question, Andy. A lot of it's
around supply and demand. And I think, you know, if
you've got stuff going through the sale yards and if
there is a special order, which we do get now
and again, comes through or there's a surplus of feed,
you'll see that demand for livestock through the yards. And
I guess the good thing about it isn't even playing field. So,
(24:58):
you know, you have got buyers that will line up,
they'll prepare to bid to what they think the value
is of those animals. And then it's a true and
fair contest, I guess, for each of those guys that
purchase that livestock. So, yeah, that's generally how that works.
But As you say, it can fluctuate, and a lot
of that probably is around its feed conditions, especially for store.
(25:22):
It feeds tight. Obviously, we haven't got that demand coming
through the yards. But to be fair, the yards are
used as a benchmark for on-farm sales as well, and
private sales, we call it. And so, yeah, the sale
yards has a big bearing on what's paid around the place.
Speaker 1 (25:43):
Shane, we look at the beef market. It's looking pretty
positive heading into spring.
Speaker 6 (25:48):
Yeah, it is. You know, we've seen probably a big
increase from last year. You know, if you looked at, say,
bull and steer, you're probably looking at $ 1. 50, what we
were getting this last year, and cow a buck. But
what's probably just dampening things a wee bit, Andy, is
that the states, you know, they have just released 300,000
(26:08):
tonne of quota this to South America, Argentina, or sorry, Brazil.
And so that's 100,000 tonnes they're going to export into
the US tariff-free each month. And hence, you know, that
has put a bit of pressure on our grinder beef,
that's our bull and cow. And we've seen schedules come
(26:30):
back in the last week, two weeks, by 20 or
30 cents a kilo. So that will have an impact. Now,
What we don't know is just how much impact that
will have going forward. But certainly, if you look at
the states, and probably what's the driver behind that is
that their beef herd is the lowest since the late 1940s.
(26:53):
And hence, that's why they have been very active in
the beef market. So they want to reduce that pricing.
Speaker 2 (26:59):
So hence, that's.
Speaker 6 (27:00):
Why South America has got that $ 300, 000 tonne quota for
the next three months.
Speaker 1 (27:07):
Just finally, Shane, it's fair to say the positives are
outweighing the negatives as we head into springtime, especially down
here in the Deep South, weather aside. I don't know,
how long can we see these highs stay up for
in the red meat industry?
Speaker 6 (27:22):
Well, I'd like to, personally, I'd like to see it forever.
The boom and bust cycle we just cannot work on,
whereas you see prices go up and then they come
down sharply. I still think You know, if you look
at your sheep meats, the whole sheep meats, I'm talking
world scene here, is the lowest we've ever seen. So
that supply and demand is working well, and that will continue.
(27:45):
It's a very good product, and New Zealand is recognised.
Speaker 2 (27:49):
Of producing a very good product.
Speaker 6 (27:50):
So I think going forward, I'd like to see that
you know, both beef and sheep meats will stay up
reasonably strong and hence, you know, very positive that going
forward we're going to see some good results on pricing.
Speaker 1 (28:09):
Good on you, Shane. Thanks for your time on the
muster this afternoon. Thanks, Andy.
Speaker 6 (28:14):
Great to speak to you. Cheers.
Speaker 1 (28:18):
South Island Livestock Manager for PGG Rights, and putting it
into perspective, that price around that $ 506 lamb, singular yesterday
at Longville, but hey, hell of a price, isn't it?
Some expensive little lamb chops going there. Up next from
Dairy NZ, Nicola Blair. Should I stay or should I
go now? Should I stay or should I go now?
(28:45):
The Clash is the music for a Wednesday. You're listening
to the Masarau and Hokanui. Nicola Blair of Dairy NZ
joins us on this Wednesday afternoon. Nicola, good afternoon. How
are you?
Speaker 8 (28:56):
Yeah, good, Andy. How are you getting on?
Speaker 1 (28:59):
Oh, let's be honest. I'm sitting in here overlooking the hills.
The snow's disappeared from the tops after what we've seen yesterday,
but it's been a hell of a week.
Speaker 3 (29:08):
Yeah, no, it's a much better day today, that's for sure.
I've actually got a Nice warm wind, get a bit
of drying, because, yeah, gosh, it's been pretty horrendous, really,
hasn't it?
Speaker 1 (29:21):
Well, the one positive is tomorrow, get out the sunscreen,
it's going to be 18. Yeah, room is going. You
can go aquaplaning with your sunnies on, perhaps, in some
of the paddocks. Hey, look, we're talking about a bit
of messaging this today, too, based on what we've seen
over the past. couple of days. It might sound repetitive,
(29:42):
but we just get the information out there, right?
Speaker 3 (29:45):
Yeah, yeah, definitely. Like, yeah, I'm just going to keep
it really short and sweet this week, Andy. As we know,
our farmers have had a really rough one this week
with what Mother Nature's been dishing out to us. So, yeah,
I was just going to make a few key points
around cold stress for cows. And, yeah, I just want
(30:08):
to highlight before I do say these points that, you know,
there's never one size fits all silver bullet when it
comes to farming.
Speaker 8 (30:16):
So I realise, you.
Speaker 3 (30:17):
Know, everyone's systems are different and some can't achieve these things.
And a lot of this will seem very basic too,
but sometimes when the stress comes on, it's just good
to highlight some of these things. So, yeah, the first
message I've got is just sort of, you.
Speaker 8 (30:34):
Know, watch for the combination of weather conditions.
Speaker 3 (30:39):
You know, when we think about cold stress in our stock,
we shouldn't just focus on the temperature alone. You know,
the real risk comes when the cold hits. Temperatures combine
with the wind and the rain, and it's wet underfoot
as well, which most of us have obviously experienced this week.
You know, those conditions make it much harder for the cows.
Speaker 8 (31:01):
To maintain their body temperature.
Speaker 3 (31:04):
Yeah, it just increases their energy requirements in.
Speaker 8 (31:08):
A huge way.
Speaker 3 (31:10):
You know, even a well-fed cow, she'll still struggle more
if she's wet and exposed, standing in the mud. So yeah,
just sort of keep an eye on that. Your feed requirements,
your cows are obviously going to need more fuel in
their tank just simply to stay warm. And again, every
(31:32):
system's different, but it's highly likely for your herds to
have a decrease in feed utilisation in these weather conditions.
Speaker 8 (31:41):
Especially out in the paddock. They'll most likely.
Speaker 3 (31:46):
come into the paddock, have a quick nibble and then
huddle up in the corner with the rest of the
herd to try and stay warm. So, you know, if
you can plug some feed into them elsewhere before they
even hit the paddock, it's going to help them out
a lot. You know, whether it's getting the palm kernel
trailers out or feeding out some silage or baleage, you know,
turning the dial up in the shed if you've got
(32:07):
that option up your sleeve. Yeah, and a good thing
also is just to assess your situation. Have you got
enough feed if this weather continues? So yeah, I guess
my key message overall there is just, yeah, don't just
watch the thermometer. You know, watch the combination of the
weather and your feed levels and your body condition and
(32:31):
if you've got shelter.
Speaker 8 (32:32):
You know, if it's available.
Speaker 3 (32:35):
You know, good planning now can make such a huge
difference to your cow welfare and calving outcomes and overall
herd performance for the season ahead. You know, we can't
control the weather, but we can, you know, we can
control how prepared our stock are for it. So, yeah, please,
(32:56):
if we can help in any way as well, give
any of us at Dairy and Dead a call. Like,
we're always here to support and help farmers. You know,
it's pretty rough out there when it behaves the way
it has this past few days. So, yeah, just look
after yourself and your team. And lastly, to end on
a positive note, the Rural Support Trust, they're holding their
(33:18):
Branch On Us events currently. with their first one kicking
off today, actually, at Gorge Road Country Club.
Speaker 1 (33:27):
Yep, that's just finished up, but they've... Sorry, I've just
got a bit in there, Nicola. I've got the list
here right in front of me and amping at the
bit to get this out. Tomorrow's at Wyndham. Mabel Bush, Drummond, Clifton, Mosburn, Willowbank, Waikai, Adipton,
all happening in the next few weeks or through the month.
Speaker 3 (33:42):
Yes, yeah, yeah. So, I mean, like, yeah, awesome opportunity
to just get off and have some yummy warm food.
And even just have a catch up with the people
in your district. Yeah, all the dates and details are
on the Rural Support Trust website, just under the events tab.
If you're keen to get along to any of them,
or just again, yeah, ring any of us at Dairy
(34:05):
NZ and we can point you in the right direction
for them. Yeah, sometimes it's nice at this time of
the year, you're juggling a lot of balls, if you can, yeah,
get yourself a weller and break and head along to them.
That would be really cool to support them as well.
Speaker 8 (34:22):
So, yeah.
Speaker 1 (34:24):
Never a better word spoken, Nicola Blair. Thanks for your
time as always.
Speaker 3 (34:28):
Awesome.
Speaker 8 (34:28):
Thanks, Andy.
Speaker 1 (34:31):
Nicola Blair of Dairy NZ. And look, here's the South
Rural Support Trust number as well, the Rural Helpline, 0800
787 254. If you do need help, Reach out to
these guys. This is what they want to do. They
want to help out. So like Nicola talked about too,
the Brunch On Us events tomorrow at Wyndham at the
(34:51):
rugby club there starting at 11am. You're listening to The Master.
Before we wrap up, Riley Kennedy of Business Desk. Welcome
back to the muster. Riley Kennedy joins us next out
(35:12):
of Business Desk. He is the 2026 Rural Communicator of
the Year. Riley, good afternoon. We catch you at a
ball sale in the middle of Auckland, of all places.
Speaker 7 (35:21):
Yes, Kia ora, good afternoon. I have left the office,
and I've gone to a ball sale. And if you
know anything, our office is right in the CBD under
the Sky Tower, and I've gone approximately 10 minutes in
an Uber to this ball sale at Cornwall Park. Hormel
Park is a farm, like right, basically right in the
middle of Auckland. I didn't even really know it existed.
(35:43):
I've been here once, but it was news to me
last week that they were actually having a bull sale here.
So it's about to kick off very shortly. They've got
20 Simmental yearling bulls, and there is... Quite a lot
of people here. Quite a lot of interest.
Speaker 1 (35:57):
Well, you just bridged the rural and urban gaps in
that one statement because you talked about getting in an
Uber in the middle of Auckland and then talking about
a bull sale about 10 minutes away.
Speaker 7 (36:07):
Yeah, I've Ubered to a bull sale. I mean, that's...
It's the first of everything, mate. I don't think anyone's
ever Ubered to a bull sale, is it?
Speaker 1 (36:16):
Quite possibly the case. But look, we're talking about the
GDT last night. This was a good result, up 0.9%.
Speaker 5 (36:24):
Yes, it is.
Speaker 7 (36:26):
I think you could almost call them steady as she goes,
I suppose. We sort of hit a bit of a
bottom there after Fonterra came out with their milk price.
The quantity price took a bit of a turn, but
it seems as though we've hit a bottom. I mean,
the whole milk powder was basically steady, but the real
jump was in skim milk powder.
Speaker 2 (36:44):
It was up something like 5.3%.
Speaker 7 (36:45):
And it's actually the first time since 2022 that skim
has outpriced whole milk powder. So that was quite interesting.
But I think we've really hit a bottom. And, of course,
we're coming into that period now where a lot of
buyers are buying for the season. So you've got, you know,
(37:08):
I know it's September, but Christmas is actually only just
around the corner if you think about it. And so
you've got a lot of buyers buying for that. Chinese
New Year is about, you know, a month after Christmas.
So we're heading into the busy season. And, of course,
our production is starting to ramp up September, big month
next month, so the milk will really start.
Speaker 2 (37:26):
To flow too.
Speaker 1 (37:28):
That was interesting. Skid milk powder, like you said, went
up 5.3%. Whole milk powder, the big one though, back 0.1%.
Yet it still evened itself out.
Speaker 7 (37:38):
Yeah, yeah. Whole milk powder basically will have an impact.
If whole milk powder goes up generally, the auction will
go up. But because it was flat, skid milk powder,
just by the volume, dragged it dragged it high, although
it was only up just under 1%, but it's 1%
in the right direction, of course. You wouldn't want it
to go the other way.
Speaker 1 (37:59):
Fonterra Dividend is looking pretty good as well. News out
this morning.
Speaker 7 (38:03):
Yes, Richard Allen, he's been at the helm of the
co-op for, do you want to say three months now?
Came out this morning and said that their earnings will
be in the top end of the range of between
$ 0. 60 and $ 0.
Speaker 1 (38:17):
80, and.
Speaker 7 (38:19):
Of course, when they sold Mainland Group to the French,
they said they wanted to return to the 2025 earnings
of about $ 1. 5 billion in operating profit by 2028. Well,
on that number, they're probably going to do it two
years early, and that will flow through to a nice
dividend for Fonterra shareholders. And their dividend policy is between 60%
(38:39):
and 80% of their earnings. Another strong dividend is on
the table, and of course it had a good dividend
at the half, and then there was the special dividend.
Speaker 3 (38:48):
Of $ 0.
Speaker 7 (38:48):
16 as well, plus the capital return of $ 2, and
I think it was that in April. So everything is
looking pretty good if you're a Fonterra shareholder.
Speaker 1 (39:00):
Now, Fonterra's selling their commercial arm to Lactalis. What was it,
$ 4. 2 billion just over? It was not until it went
to the Pacific Islands and realising just how strong and
how big a brand Anker actually is. It was everywhere.
Speaker 7 (39:14):
Yeah, it's a very strong brand. It's very strong obviously
here in New Zealand, but it's strong particularly in the Pacific.
Not so much in Australia, but quite a big part
of that business was in Australia. They picked quite a
bit of milk up from Australia, but mainland particularly is strong. Actually,
Anchor's quite strong in Sri Lanka too, funnily enough. They
(39:34):
picked quite a lot of milk up in Sri Lanka.
Speaker 1 (39:37):
Hey, so you were at the bull sale this afternoon.
Did your Uber driver jump out with curiosity to go
and look at this sale?
Speaker 7 (39:45):
He sort of took a bit of a turn and went,
what's going on here? And he said, ball sale. And
he said, what's that? And I said, well, you should
come in and watch. And he said, no, no, I've
got to keep working. But yeah, I'm just watching a
whole lot of people walk past, going there to walk
through Cornwall Park. And you can sort of see them
all sort of turning and going, oh, what's going on here?
Speaker 1 (40:03):
You should have took half the office with you to
show them what it's like on the farm.
Speaker 7 (40:07):
Yeah, well, I did offer, but they politely declined.
Speaker 1 (40:10):
Hey, good on you, Riley. Always appreciate your time on
the muster.
Speaker 5 (40:14):
Thank you.
Speaker 1 (40:19):
Laugh out loud with Ag Proud, cos life on the
land can be a laughing matter. Brought to us by
Shearwell Data, working to help the livestock farmer. Why don't
North Koreans listen to funk? Because they've got no soul.
MUSIC PLAYS Alrighty, that's us over and done with for
the afternoon. The podcast will be up shortly. Thanks to iHeartRadio.
(40:42):
I'm Andy Muir. The show's brought to you by Peters Genetics.
Enjoy the afternoon. It's a bit warmer than what it's
been over the past couple of days. See you tomorrow,
one o'clock. Stock selling action comes courtesy of PGG Wrightson.
Mark Coulter's on the line to give a rundown on
prices from Balclutha. Good afternoon, Mark. It was a record
(41:03):
day yesterday at Lawnville. Things today, while not the same prices,
still pretty hot.
Speaker 2 (41:09):
Yes, no, nothing compared to Lawnville, but still very good,
strong demand, and the price is right up there still
here at Balclutha. Smaller yarding in here today, but it was...
It didn't reflect the prices. Getting into the prime lambs,
your nice big heavy prime lambs are anywhere from $ 320
to $ 350, and your good mediums are still great money
around that $ 250 to $ 300 plus. Getting into the store lambs,
(41:31):
there wasn't too many store lambs in today, but they
still went well at $ 150 to $ 180. That was sort
of the average throughout the store. There was maybe 250
store lambs in Nexman there today. The ewe numbers are
still back at the moment just light. Small, light numbers there,
but they're still selling well at $ 260 to $ 300 for
your big heavies. Your good mediums are $ 220 to $ 250.
(41:52):
And your lighter NUs that have done it a bit
tough through the winter are $ 100 to $ 170. A handful
of rams in today, they're still around that same for us,
$ 100 to $ 110. Yeah, a small yard in here again
in Balcutta, but it was nice to feel a bit
of warmth on the backs, and the stock were definitely
enjoying a bit of sun on their backs too. Next
spring cattle sale will be on Thursday, the 17th of
September here at Balcutta, so get in touch with your
(42:15):
Local agents, do you want to put any kettle in
or are you looking to buy some? Thank you very much.
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