November 10, 2025 • 8 mins
Chairman of Open Country Laurie Margrain says the dairy sector continues to be a positive scene.
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Speaker 1 (00:13):
That says the Muster on Hakanui. Lorry Margraine is chair
of Open Country and catches up with us this afternoon.
Always good to have Open Country on the muster And
once again, Lorry, good afternoon. Down here in the Deep South.
We finally have some blue sky. It's a thing of beauty.
Speaker 2 (00:32):
Well, I guess that means you're not you're not inviting
any North Island provinces down to play rugby. I get
the impressure. You always died up the ship weather. I'm
pleased to hear it. I hear the same from your
farm as it Finally, finally, finally, we're going to get
a bit of a bit of relief.
Speaker 1 (00:50):
Well, as far as the rugby thing goes, it's called
home ground advantage, Lorry, but Albany obviously you've got your
pros and cons there as well. But let's talk about
Open Country. It's been a challenging months down here in
the Deep South. From your guys perspective, I suppose how
things be.
Speaker 2 (01:07):
Yeah, and it's been a very difficult month for the
for the suppliers down there. We've we've worked pretty aggressively
on making making assistance available transporting generators, getting trucks out
there to deliver deliver produce which they need to have.
I mean, we've done the best we possibly can. I
(01:28):
don't think with the benefit hendsight, I don't think there's
more we could have done to prepare for what happened.
I was actually there on the Thursday and just got
out via Duneedin before the worst of the weather hit
for commitment, so I like, I'd like to think I
(01:48):
have some idea of how how bad it was, and
but we're through it. I mean, you know what farmers
are like, this has happened before to some extent, it
will happen again, and they just get on with the
job and we're always there to do whatever we can
do to assist. Milk flows have bound to bounce back
very strong. But I look at the graphs now for
the supplies into Matara Valley and into our own planet
(02:13):
at Awarua, and are strong bounced back really really well.
So fingers crossed, fingers cross, you're going to get some
blue skies for a week or two.
Speaker 1 (02:22):
Yet, so peak milk's been and gone.
Speaker 2 (02:26):
Yes, well, either Ben and gone Andy or we're at
it and you don't get much of a plateau. Strange enough,
down in the deep South. We get more of a
plateau in White Kato and Taranaki Metal or two where
the milk hits a peak plateaus off for a few weeks,
but matings been and done for many of the regions.
(02:48):
That takes a bit of the edge off it. But yeah,
we're not still growing, but the supply is really really good.
Speaker 1 (02:54):
Now I'm a Tara Valley milk of course, Open Country
acquired this company not that long. Where we go. How's
that been? Yeah? All good.
Speaker 2 (03:04):
We're very proud of the asset we've managed to require.
We please, We've We've got the asset, got the business
of the company at what we consider to be a
good fair value, but a good value for us. It's
got some attributes that we don't have at Avarua, and
as we get our head around how we maximize the
value from a bucket of milk by using those attributes
(03:26):
at Mataro Valley get a few more synergies in terms
of milk collection and milk delivery. There will be some
changes to the staffing and management structure at Patara Valley,
but it's all softly, softly, do the right thing by
the business, Andy and do the right thing in terms
of being fair to anybody's affected by it. We're very,
(03:48):
very pleased. In thirty days, but we're very pleased.
Speaker 1 (03:51):
So the acquisition has been well received by suppliers to
open country.
Speaker 2 (03:55):
Yes, one of the best of my knowledge. I've been
down and attended supply meetings own South. I don't detect
any negativity. I mean, there are some supplies the Matara
Valley that have supplied ourselves historically, so they're well known
to us, and we're well known to them. I think
our reputation and such these days that if they have
(04:16):
any uncertainties, they could lean across the fence and talk
to a neighbor and they get reassured. So so far
it's all positivity. And I must say the management and
staff at Mataria Valley have always have also been very supportive,
very understanding. I can't fault them at all. We're very
impressed with the people.
Speaker 1 (04:36):
Now the supply of meetings you head down on the
South not that long ago, Laurie. How was the feelings?
How was the feeling at the meetings?
Speaker 2 (04:43):
Oh, I mean extremely positive. I don't think there's any
negativity at all. There were questions about why this came
to pass a little bit, but I think they knew inherently.
The answer to that is that Mattaria Valley wasn't performing
financial and if you don't perform financially, then there's going
to be changed. But don't I don't detect any negativity. Well,
(05:06):
I mean, we're not going to rock the boat. All
the contractional obligations that they had, any supply I had
or has, the the TWA Valley will be will be honored,
every one of them, and in due course they have
the opportunity to transfer over to our contracts and or
will be approaching them to have to do the same.
Speaker 1 (05:27):
GEDDT results haven't been very positive over the past couple
of months, though. Does that mean we're going to see
a correction in the payout?
Speaker 2 (05:35):
That depends on if you refer to a correction. I mean,
I regard corrections as something that are really significant and substantial.
When you get a correction in the market, you know
you get a significant change. Certainly, the current trend is
trending downwards, it's not crashing downwards, so I don't call
(05:55):
it a major correction, but I do think I do
think that is logic in our periodic payment system we've
paid ten to thirty eight on average for the milk
from first to Journe to the end of September. I
suspect that that may be the highest price milk for
any of our four payment periods. So the the tendency
(06:18):
is the GDT is taking the price, the milk price
slightly down. Whereas you might have been looking at just
north of ten or just north of ten, now we're
probably looking in the high nines. I mean, if we
get another year in the mid to high nines following
a ten dollar a year just passed, that would your
course for celebration. I mean, the market is the market
(06:40):
andy and it varies. There are all sorts of factors
that go into the zs and the zags in terms
of where the auction goes. But the overall international inventories
are not particularly high. Demand is a bit more sluggish
perhaps that we would like. There's a bit more hesitancy
in the buying front. Maybe one of the factors is
(07:01):
that they think these on milk curve is so strong
this year. But the fact is the world wants what
our farmers produce, and I think that the trend will
be the tent. The trend over the longer term is
nothing but positive.
Speaker 1 (07:14):
Yeah, well, that's just a trend for the rural sector
in general, I suppose, Laurie, especially though from a daring perspective.
Speaker 2 (07:20):
Oh for sure, I'm believing on the even on the
cold Cow front where you you know as well as Ioway,
maybe even better than I. Every front that our dairy
farmers look at the moment is positive and that can
only be good for this young economy. What we need,
of course is the need to get more more conversions
back underway. We need regional council's local government to follow
(07:44):
central government's mantra of cutting red day tape, acting quicker,
acting more positively. If we can get we can get
more arable land and being used for the most economically
positive outcome whilst having an eye of course on the
environmental aspects. We can get that happening, then we've got
nothing but good news coming.
Speaker 1 (08:06):
Good on your Laurie. Always appreciate your time on the
muster and by the way, congratulations on your North Harbor
getting the one at the end of the NPC. It
was well deserved. Dare I say it?
Speaker 2 (08:14):
Thank you? It took a long time to get to
that piece I appreciate it.
Speaker 1 (08:17):
Thank you, Laurie Margraine, Chairman of Open Country. Great to
catch up with the team as we do on a
regular basis. You're listening to the muster on Hock and
now you're up next. Fun consultant Grand Butcher
That says the Muster on Hakanui. Lorry Margraine is chair
of Open Country and catches up with us this afternoon.
Always good to have Open Country on the muster And
once again, Lorry, good afternoon. Down here in the Deep South.
We finally have some blue sky. It's a thing of beauty.
Speaker 2 (00:32):
Well, I guess that means you're not you're not inviting
any North Island provinces down to play rugby. I get
the impressure. You always died up the ship weather. I'm
pleased to hear it. I hear the same from your
farm as it Finally, finally, finally, we're going to get
a bit of a bit of relief.
Speaker 1 (00:50):
Well, as far as the rugby thing goes, it's called
home ground advantage, Lorry, but Albany obviously you've got your
pros and cons there as well. But let's talk about
Open Country. It's been a challenging months down here in
the Deep South. From your guys perspective, I suppose how
things be.
Speaker 2 (01:07):
Yeah, and it's been a very difficult month for the
for the suppliers down there. We've we've worked pretty aggressively
on making making assistance available transporting generators, getting trucks out
there to deliver deliver produce which they need to have.
I mean, we've done the best we possibly can. I
(01:28):
don't think with the benefit hendsight, I don't think there's
more we could have done to prepare for what happened.
I was actually there on the Thursday and just got
out via Duneedin before the worst of the weather hit
for commitment, so I like, I'd like to think I
(01:48):
have some idea of how how bad it was, and
but we're through it. I mean, you know what farmers
are like, this has happened before to some extent, it
will happen again, and they just get on with the
job and we're always there to do whatever we can
do to assist. Milk flows have bound to bounce back
very strong. But I look at the graphs now for
the supplies into Matara Valley and into our own planet
(02:13):
at Awarua, and are strong bounced back really really well.
So fingers crossed, fingers cross, you're going to get some
blue skies for a week or two.
Speaker 1 (02:22):
Yet, so peak milk's been and gone.
Speaker 2 (02:26):
Yes, well, either Ben and gone Andy or we're at
it and you don't get much of a plateau. Strange enough,
down in the deep South. We get more of a
plateau in White Kato and Taranaki Metal or two where
the milk hits a peak plateaus off for a few weeks,
but matings been and done for many of the regions.
(02:48):
That takes a bit of the edge off it. But yeah,
we're not still growing, but the supply is really really good.
Speaker 1 (02:54):
Now I'm a Tara Valley milk of course, Open Country
acquired this company not that long. Where we go. How's
that been? Yeah? All good.
Speaker 2 (03:04):
We're very proud of the asset we've managed to require.
We please, We've We've got the asset, got the business
of the company at what we consider to be a
good fair value, but a good value for us. It's
got some attributes that we don't have at Avarua, and
as we get our head around how we maximize the
value from a bucket of milk by using those attributes
(03:26):
at Mataro Valley get a few more synergies in terms
of milk collection and milk delivery. There will be some
changes to the staffing and management structure at Patara Valley,
but it's all softly, softly, do the right thing by
the business, Andy and do the right thing in terms
of being fair to anybody's affected by it. We're very,
(03:48):
very pleased. In thirty days, but we're very pleased.
Speaker 1 (03:51):
So the acquisition has been well received by suppliers to
open country.
Speaker 2 (03:55):
Yes, one of the best of my knowledge. I've been
down and attended supply meetings own South. I don't detect
any negativity. I mean, there are some supplies the Matara
Valley that have supplied ourselves historically, so they're well known
to us, and we're well known to them. I think
our reputation and such these days that if they have
(04:16):
any uncertainties, they could lean across the fence and talk
to a neighbor and they get reassured. So so far
it's all positivity. And I must say the management and
staff at Mataria Valley have always have also been very supportive,
very understanding. I can't fault them at all. We're very
impressed with the people.
Speaker 1 (04:36):
Now the supply of meetings you head down on the
South not that long ago, Laurie. How was the feelings?
How was the feeling at the meetings?
Speaker 2 (04:43):
Oh, I mean extremely positive. I don't think there's any
negativity at all. There were questions about why this came
to pass a little bit, but I think they knew inherently.
The answer to that is that Mattaria Valley wasn't performing
financial and if you don't perform financially, then there's going
to be changed. But don't I don't detect any negativity. Well,
(05:06):
I mean, we're not going to rock the boat. All
the contractional obligations that they had, any supply I had
or has, the the TWA Valley will be will be honored,
every one of them, and in due course they have
the opportunity to transfer over to our contracts and or
will be approaching them to have to do the same.
Speaker 1 (05:27):
GEDDT results haven't been very positive over the past couple
of months, though. Does that mean we're going to see
a correction in the payout?
Speaker 2 (05:35):
That depends on if you refer to a correction. I mean,
I regard corrections as something that are really significant and substantial.
When you get a correction in the market, you know
you get a significant change. Certainly, the current trend is
trending downwards, it's not crashing downwards, so I don't call
(05:55):
it a major correction, but I do think I do
think that is logic in our periodic payment system we've
paid ten to thirty eight on average for the milk
from first to Journe to the end of September. I
suspect that that may be the highest price milk for
any of our four payment periods. So the the tendency
(06:18):
is the GDT is taking the price, the milk price
slightly down. Whereas you might have been looking at just
north of ten or just north of ten, now we're
probably looking in the high nines. I mean, if we
get another year in the mid to high nines following
a ten dollar a year just passed, that would your
course for celebration. I mean, the market is the market
(06:40):
andy and it varies. There are all sorts of factors
that go into the zs and the zags in terms
of where the auction goes. But the overall international inventories
are not particularly high. Demand is a bit more sluggish
perhaps that we would like. There's a bit more hesitancy
in the buying front. Maybe one of the factors is
(07:01):
that they think these on milk curve is so strong
this year. But the fact is the world wants what
our farmers produce, and I think that the trend will
be the tent. The trend over the longer term is
nothing but positive.
Speaker 1 (07:14):
Yeah, well, that's just a trend for the rural sector
in general, I suppose, Laurie, especially though from a daring perspective.
Speaker 2 (07:20):
Oh for sure, I'm believing on the even on the
cold Cow front where you you know as well as Ioway,
maybe even better than I. Every front that our dairy
farmers look at the moment is positive and that can
only be good for this young economy. What we need,
of course is the need to get more more conversions
back underway. We need regional council's local government to follow
(07:44):
central government's mantra of cutting red day tape, acting quicker,
acting more positively. If we can get we can get
more arable land and being used for the most economically
positive outcome whilst having an eye of course on the
environmental aspects. We can get that happening, then we've got
nothing but good news coming.
Speaker 1 (08:06):
Good on your Laurie. Always appreciate your time on the
muster and by the way, congratulations on your North Harbor
getting the one at the end of the NPC. It
was well deserved. Dare I say it?
Speaker 2 (08:14):
Thank you? It took a long time to get to
that piece I appreciate it.
Speaker 1 (08:17):
Thank you, Laurie Margraine, Chairman of Open Country. Great to
catch up with the team as we do on a
regular basis. You're listening to the muster on Hock and
now you're up next. Fun consultant Grand Butcher
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