October 13, 2025 • 7 mins
Mark de Lautour says milk flows around the country are looking excellent around the country despite the cool Spring.
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Speaker 1 (00:09):
Mark Delatoya as Chief Executive of Open Country and joins
us this afternoon on the Muster as you catch up
with the team, Mark, good afternoon, Welcome once again.
Speaker 2 (00:19):
Yeah, good afternoon, Andy. There was a very summary chirpy
song and I'm looking at the window here and that
it's not as sunny as that song make you feel.
Speaker 1 (00:28):
Down here in the south has been weat, but in
general in the North Island, how's the situation been.
Speaker 2 (00:32):
Mark's pretty wet, same again, you know, it hasn't been
too bad, but there's certainly a bit more sunshine, you know,
it would have been ideal. But that said, there's lots
of feed around. It's warmed up nicely and you know,
to be honest, right through the country, milk flows are
very very strong. So it's been a great start of
(00:53):
the season.
Speaker 1 (00:54):
How are they compared to say, twelve months ago with
the big wead as we called it.
Speaker 2 (00:59):
Yeah, for Southland, you know, we're up two or three
percent on we're at the same time last year, so
certainly not as bad as last year. It's like, you know,
it would be nice to see, like I see it
a bit more sunshine coming now, a bit warmer temperatures.
Speaker 3 (01:16):
But we are up.
Speaker 2 (01:17):
Up in the North Island here, we're we're well up.
It's you know, seven eight percent for most of the farmers.
We're in the middle of our farmer supply meeting Rochow
at the moment, and then we've completed by Kadow down
in Taranaki Manaua two this week and then south from
the following week. So certainly up comes with see some
really good productivity.
Speaker 1 (01:40):
So farmer sentiment at the moment, how would you read it?
Speaker 3 (01:43):
Pretty positive? Pretty positive?
Speaker 2 (01:45):
Yeah, I think you know. I was explaining that, you know,
without being the profit of doom, and in no way
am I doing that, But I have suggested that product
prices are probably high now for the season, and our
forecast show that they're going to tick back a little
bit through the season. So it's great to have the
(02:07):
production right now so strong because prices are high, so
it looks good for an overall return.
Speaker 3 (02:13):
For the season.
Speaker 2 (02:15):
But it's you know what, we would be ashamed to
see some of these prices being missed out of volumes
we went there. So I start for the season and
farm pretty happy.
Speaker 1 (02:23):
When are you expecting peak milk flow?
Speaker 2 (02:26):
Well, why Kato, Why kadow it is right now as
we speak, it's it's peaked, and this rain might actually
slow it down a little bit. So I would say,
you know, probably over the weekend why Kato hit its
peak central all time turnickyment on two. If we're not
there now, it certainly will be in the next couple
of days.
Speaker 3 (02:48):
Probably still a good two to three weeks away. Now.
Speaker 1 (02:51):
The g DT auctions, we've seen a few, well, lets
be on us for slight declines over the last six
or eight weeks. Mark you concerned if we see too
many more of these that it's going to change the situation.
As you alluded to briefly before.
Speaker 2 (03:05):
Yeah, I guess you know a lot of that is
pig milk, you know buyers around the world. No, but
New Zealand's got a lot of milk at this time
of the year and salespeople need to keep it moving.
But I wouldn't say concerned. Like I said, we're forecasting
the prices to come off.
Speaker 3 (03:21):
A little little bit.
Speaker 2 (03:22):
Just globally, there is a lot of production around and
whilst demand is steady, I don't see any anything that's
going to trigger a crash. But you know, with this
volume increasing, I think we'll just see a slow softening
of the of the prices through the season, but it'll
still be a.
Speaker 1 (03:42):
Great a slow softening of prices though it is still
pretty good compared to what we could have.
Speaker 3 (03:47):
Right, Yeah, that's right, that's right.
Speaker 2 (03:49):
I mean, that's that's the thing about commodity, isn't it
any I mean, when they're they're high, like down now,
and no one can give to see a good justification
for them coming down and get a couple of years
to go. If you look at seven eight bucks, no
one could see the prices ever returning. So there's a
strong human mentality aspect of commodity a process. What we
(04:10):
do know is that they do lift up and drop
down with supply and demand, and and most people can
deal with with a slow movement. It's it's when it
drops off a cliff that that erone gets caught out.
So I don't think there's anything to suggest that's going
to happen.
Speaker 1 (04:26):
Open Countries purchase and Matara Valley milk. It happened well
a couple of months ago. Now we've talked, I've talked
to you since then. But of course the actor resistion
as well as of Maracas, so a couple of prudent investments,
is fair to say.
Speaker 2 (04:39):
Yeah, And I spent a bit of time talking for
the farmers and and you know, for all your listeners,
you know, not not this week, but next week when
we're down in southern Otago on come along and we
will explain those a little bit more, but that we're
very very happy with them, that they're they certainly the
Matara Valley purchase that that is doesn't complete till the
(05:01):
end of this month, so you know where she haven't
done anything there yet, but we're very much looking forward
to having the Matara Valley team join us, so that'll
happen at the ends. But meat Aca where we're in
the mister getting arms around that business now and and
they're very very full and very very busy. So that's
that's a that's a really good addition to the to
(05:24):
the group already. So lots of milk collection efficiencies to
be had, and you know, I think once we can
take a breath, as when we got off peak, then
it'll be good to really start tweaking tweaking the dolls.
Speaker 1 (05:39):
How suppliers reacted to the news of those two acquisitions very.
Speaker 3 (05:43):
Positive, very positive.
Speaker 2 (05:44):
In general, I don't think that we've had any great
need sent most most people understand this industry. You know
this industry, you just have to have scale. The scale
allows you to have your scotts, your own heads spread
and competitive, and it also is a risk play.
Speaker 3 (06:04):
So if you look at meat.
Speaker 2 (06:05):
Acre, for example, you know, we've we've got two sites
and what the cato We now have meat Acre and
Talbot and then more Manilli a bit further south.
Speaker 3 (06:12):
So what it does.
Speaker 2 (06:13):
Allow to do is, you know, if one of our
plants have a bit of a whoopsie, or certainly on
the shoulders of the season the milk flows are coming
up and dropping down, you do get to keep some
of the sites fully optimized. And so from a point
of view, with some comfort, that scale gives you efficiency
(06:34):
and it also gives you risk mitigation. So when things
happen as they always do, you've got some options.
Speaker 1 (06:41):
So you're still on the lookout for new supplies down
here in the South given the acquisition of MBM.
Speaker 2 (06:46):
Yeah absolutely, we are, absolutely are. So where you know,
like I said, come end of this month, completion will
be done on that deal, and we're definitely on the
lookout for a new milk We're excited about what we
can do with that site. You know, we think there's
a there's an opportunity to upscale there. We're going to
throw some more capital down south and you know, extending
(07:10):
our product mix a little bit down there. So I'm
always looking to.
Speaker 3 (07:15):
To get some more supply.
Speaker 2 (07:17):
And like I always say, even even if even if
a farmer hasn't made up their mind and they just
want to have a chat, have have.
Speaker 3 (07:23):
A cup of tea and look at options, We're happy
to do that as well.
Speaker 2 (07:27):
So just just meeting with us and having a chat
doesn't mean you have to come over, but always happy
to have that chat.
Speaker 1 (07:34):
Mark Deller to a chief executive of Open Country. Always
appreciate your time on the Master, No problem, any go well,
Mark Delatoya as Chief Executive of Open Country and joins
us this afternoon on the Muster as you catch up
with the team, Mark, good afternoon, Welcome once again.
Speaker 2 (00:19):
Yeah, good afternoon, Andy. There was a very summary chirpy
song and I'm looking at the window here and that
it's not as sunny as that song make you feel.
Speaker 1 (00:28):
Down here in the south has been weat, but in
general in the North Island, how's the situation been.
Speaker 2 (00:32):
Mark's pretty wet, same again, you know, it hasn't been
too bad, but there's certainly a bit more sunshine, you know,
it would have been ideal. But that said, there's lots
of feed around. It's warmed up nicely and you know,
to be honest, right through the country, milk flows are
very very strong. So it's been a great start of
(00:53):
the season.
Speaker 1 (00:54):
How are they compared to say, twelve months ago with
the big wead as we called it.
Speaker 2 (00:59):
Yeah, for Southland, you know, we're up two or three
percent on we're at the same time last year, so
certainly not as bad as last year. It's like, you know,
it would be nice to see, like I see it
a bit more sunshine coming now, a bit warmer temperatures.
Speaker 3 (01:16):
But we are up.
Speaker 2 (01:17):
Up in the North Island here, we're we're well up.
It's you know, seven eight percent for most of the farmers.
We're in the middle of our farmer supply meeting Rochow
at the moment, and then we've completed by Kadow down
in Taranaki Manaua two this week and then south from
the following week. So certainly up comes with see some
really good productivity.
Speaker 1 (01:40):
So farmer sentiment at the moment, how would you read it?
Speaker 3 (01:43):
Pretty positive? Pretty positive?
Speaker 2 (01:45):
Yeah, I think you know. I was explaining that, you know,
without being the profit of doom, and in no way
am I doing that, But I have suggested that product
prices are probably high now for the season, and our
forecast show that they're going to tick back a little
bit through the season. So it's great to have the
(02:07):
production right now so strong because prices are high, so
it looks good for an overall return.
Speaker 3 (02:13):
For the season.
Speaker 2 (02:15):
But it's you know what, we would be ashamed to
see some of these prices being missed out of volumes
we went there. So I start for the season and
farm pretty happy.
Speaker 1 (02:23):
When are you expecting peak milk flow?
Speaker 2 (02:26):
Well, why Kato, Why kadow it is right now as
we speak, it's it's peaked, and this rain might actually
slow it down a little bit. So I would say,
you know, probably over the weekend why Kato hit its
peak central all time turnickyment on two. If we're not
there now, it certainly will be in the next couple
of days.
Speaker 3 (02:48):
Probably still a good two to three weeks away. Now.
Speaker 1 (02:51):
The g DT auctions, we've seen a few, well, lets
be on us for slight declines over the last six
or eight weeks. Mark you concerned if we see too
many more of these that it's going to change the situation.
As you alluded to briefly before.
Speaker 2 (03:05):
Yeah, I guess you know a lot of that is
pig milk, you know buyers around the world. No, but
New Zealand's got a lot of milk at this time
of the year and salespeople need to keep it moving.
But I wouldn't say concerned. Like I said, we're forecasting
the prices to come off.
Speaker 3 (03:21):
A little little bit.
Speaker 2 (03:22):
Just globally, there is a lot of production around and
whilst demand is steady, I don't see any anything that's
going to trigger a crash. But you know, with this
volume increasing, I think we'll just see a slow softening
of the of the prices through the season, but it'll
still be a.
Speaker 1 (03:42):
Great a slow softening of prices though it is still
pretty good compared to what we could have.
Speaker 3 (03:47):
Right, Yeah, that's right, that's right.
Speaker 2 (03:49):
I mean, that's that's the thing about commodity, isn't it
any I mean, when they're they're high, like down now,
and no one can give to see a good justification
for them coming down and get a couple of years
to go. If you look at seven eight bucks, no
one could see the prices ever returning. So there's a
strong human mentality aspect of commodity a process. What we
(04:10):
do know is that they do lift up and drop
down with supply and demand, and and most people can
deal with with a slow movement. It's it's when it
drops off a cliff that that erone gets caught out.
So I don't think there's anything to suggest that's going
to happen.
Speaker 1 (04:26):
Open Countries purchase and Matara Valley milk. It happened well
a couple of months ago. Now we've talked, I've talked
to you since then. But of course the actor resistion
as well as of Maracas, so a couple of prudent investments,
is fair to say.
Speaker 2 (04:39):
Yeah, And I spent a bit of time talking for
the farmers and and you know, for all your listeners,
you know, not not this week, but next week when
we're down in southern Otago on come along and we
will explain those a little bit more, but that we're
very very happy with them, that they're they certainly the
Matara Valley purchase that that is doesn't complete till the
(05:01):
end of this month, so you know where she haven't
done anything there yet, but we're very much looking forward
to having the Matara Valley team join us, so that'll
happen at the ends. But meat Aca where we're in
the mister getting arms around that business now and and
they're very very full and very very busy. So that's
that's a that's a really good addition to the to
(05:24):
the group already. So lots of milk collection efficiencies to
be had, and you know, I think once we can
take a breath, as when we got off peak, then
it'll be good to really start tweaking tweaking the dolls.
Speaker 1 (05:39):
How suppliers reacted to the news of those two acquisitions very.
Speaker 3 (05:43):
Positive, very positive.
Speaker 2 (05:44):
In general, I don't think that we've had any great
need sent most most people understand this industry. You know
this industry, you just have to have scale. The scale
allows you to have your scotts, your own heads spread
and competitive, and it also is a risk play.
Speaker 3 (06:04):
So if you look at meat.
Speaker 2 (06:05):
Acre, for example, you know, we've we've got two sites
and what the cato We now have meat Acre and
Talbot and then more Manilli a bit further south.
Speaker 3 (06:12):
So what it does.
Speaker 2 (06:13):
Allow to do is, you know, if one of our
plants have a bit of a whoopsie, or certainly on
the shoulders of the season the milk flows are coming
up and dropping down, you do get to keep some
of the sites fully optimized. And so from a point
of view, with some comfort, that scale gives you efficiency
(06:34):
and it also gives you risk mitigation. So when things
happen as they always do, you've got some options.
Speaker 1 (06:41):
So you're still on the lookout for new supplies down
here in the South given the acquisition of MBM.
Speaker 2 (06:46):
Yeah absolutely, we are, absolutely are. So where you know,
like I said, come end of this month, completion will
be done on that deal, and we're definitely on the
lookout for a new milk We're excited about what we
can do with that site. You know, we think there's
a there's an opportunity to upscale there. We're going to
throw some more capital down south and you know, extending
(07:10):
our product mix a little bit down there. So I'm
always looking to.
Speaker 3 (07:15):
To get some more supply.
Speaker 2 (07:17):
And like I always say, even even if even if
a farmer hasn't made up their mind and they just
want to have a chat, have have.
Speaker 3 (07:23):
A cup of tea and look at options, We're happy
to do that as well.
Speaker 2 (07:27):
So just just meeting with us and having a chat
doesn't mean you have to come over, but always happy
to have that chat.
Speaker 1 (07:34):
Mark Deller to a chief executive of Open Country. Always
appreciate your time on the Master, No problem, any go well,
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