December 8, 2025 • 7 mins
Mark Smith of Open Country says the dairy sector is still in a strong place despite the recent GDT corrections.
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Speaker 1 (00:09):
Mark Smith as general manager of Open Country and joins
us on the muster this afternoon.
Speaker 2 (00:15):
Mark, how are you excellent?
Speaker 3 (00:17):
Andy excellent? Thanks for calling mate.
Speaker 1 (00:20):
You're always good to catch up with yourself and the
team from Open Country. Look, we look back on the
season to date so far, peak milk and the likes
that's been in god not too long ago, mind you.
It's been a challenging season down here in the south
yet again, although we are starting to see a correction
on the weather, touch one and the likes. How's it
been up in your neck of the woods here of
course based in the way Gado Oh.
Speaker 3 (00:40):
Look, it's been a challenging season both in the Wanganui
sites anyway sites. But the challenge was was milk volumes.
Like we we've had a very very good peak. Last
year was a pretty good peak, but this year was
even better. So look at keep the site managers pretty busy.
But we processed all the milk and we're on downward
slide now. So as we sort of come down the curve,
(01:03):
you know, that allows that allows the business to make
some some other other more fancy products that take a
little bit more time to burn through the through the drives.
So Look, there was a challenge, but we've got we've
we've got there.
Speaker 1 (01:15):
But it's a nice challenge to have, Andy, So how
would you compare it to say, twelve months ago, mate.
Speaker 3 (01:22):
In terms of how what grass is looking like in
the way and I look, I think we're in a
lot better spot than we have been sort of this
time twelve months ago. We're just starting to lose a
little bit of quality. It's just sort of going to
seed a little bit here. You can't get out on
the roads for for tractors on the roads at the moment.
So there's there's plenty of plenty of crops being made,
the maize crops at the moment. You know, there's that
(01:45):
old rule of fun where you need to be around
about fence height by Christmas. Yeah, I'm seeing crops are
all efense height now. So look, we're we're well positioned.
It's a it's a bit dry. There's not a hell
of rain on the forecast for the next few days,
so we'll see what see what happens as we head
into Christmas. But that's far We're looking good, mate.
Speaker 1 (02:03):
There's a very similar to say parts of South and
when you get to mid November, on where you don't
turn down any moisture.
Speaker 3 (02:08):
Oh, any rain sort of late November December will take
it one hundred percent. Even if you get you know,
those big sort of downfalls of sixty seventy mills. You
might get a little bit of flooding, but you've got
to take rain in November December. I said he wouldn't
turn it away.
Speaker 1 (02:23):
So we look at the market at the moment. It's
an interesting one, to say the least mark the GDT.
We've had eight declines in a row. We've seen the
payouts being adjusted as a result of this, the response
to the market, they will be interesting over the next month.
Speaker 2 (02:36):
Or two to see how they how they go about things.
Speaker 3 (02:39):
Yeah, look, so what we're saying, you're right, Andy, we've
had eight declines in the GDT. The buyers around the
world are nervous. When they're nervous, Look, they're not really buying.
They're probably buying a little bit on spot just to keep,
just to keep the inventory where they need it. But look,
the buyers are thinking prices are going to drop down,
(03:00):
so they're not buying a hell of a lot. We
see this to continue over the next sort of a
couple of months. You know, you know, we pay in
four periods, so our P two and P three. You know,
things are looking a little bit sad, but we see
a recovery towards the sort of end of this of
(03:20):
this dairy season sort of P four. So that's what
we're seeing at the moment. But hey, look things can change.
Speaker 1 (03:26):
So you wouldn't be surprised if the final GDT auction
of the year sees yet another another slight decline.
Speaker 3 (03:32):
I wouldn't be surprised at all. Andy, Yeah, but it's
looking like that. I don't think it's going to be
as big as the one we just had, but you're
sort of certainly just sort of easing off.
Speaker 1 (03:42):
But certainly regarding the mood and the dairying sector, you
can't deny it. It's still pretty buoyant all things considered.
I mean, two seasons in a row, you're looking in
the nine dollars range.
Speaker 3 (03:52):
Percent Like all the people you talk to in the
in the dairy industry and also in the primary industry,
where we're sort of we're in a little bit of
a bubble of sort of going through a purple patch
at the moment. It got some colleagues in the in
the in the construction and and sort of hospitality type industries,
and there's certainly feeling some pain. So the primary industry,
(04:15):
you know, dairy, cheat and beef, things are looking things
are looking pretty good now.
Speaker 1 (04:20):
Recently Open Country got the acquisitions of Medaka up north,
but down here Matara Valley Milk as well.
Speaker 2 (04:27):
How has that been received, Oh.
Speaker 3 (04:30):
Very well, very well Andy, So it's you know, it's
exciting to add these two two sites into into our mix.
You know, Matta Valley, we spent a lot of time
looking at that, that acquisition. It's it certainly certainly adds
to our to our ability to to process milk with
Terra Valleys a very very good site, a very very
(04:50):
fancy dry and allows us to make different types of products.
It also allows us to push a little bit further
north in terms of our collection region, you know, into
sort of south of Otago region. We're getting a we're
getting a bit of interest from that region, so get
lock Pate Materia velly very exciting for the business. And
(05:11):
then in terms of the Meetacker purchase, which is located
near Tapo, another exciting acquisition. You know that that sort
of suits our our our North Island strategy in terms
of you know we've got one at Hortu, one at
Waha and our Wanganu East site that sort of sits
in between those those those sites nicely. So exciting times
(05:32):
for the for the business.
Speaker 1 (05:34):
Dy are you seeing in that surge regarding new suppliers
with the acquisition of the Taro Valley milk.
Speaker 3 (05:40):
Look, we're certainly getting a number of phone calls, which
is which is always good in the team down there,
you know, going out and talking to some some new
potential supplies and look there's there's plenty of interest, which
is which is exciting. It's always nice to give farmers
a bit of choice and you know that's that's just
our catch phrase or our slogan and his partnership by
(06:02):
choice and you know we can it's nice to to
offer that to to the farmers and s the Seathland
seat Otago Regions.
Speaker 1 (06:10):
Yeah, the team they were down south last week obviously
with the Christmas party season in full swing, catching up
the suppliers and the likes. It will be no different
with your guys.
Speaker 3 (06:19):
Yeah, look we've we were down Yeah, we had we
had two Christmas functions for our Seatland farmers one and
sort of at Lockhel and one at the at the Croydon.
I think the Cordon is the place to be if
you're going to have a Christmas function in that region.
Very well received, good attendance and it's lovely just to
give something back to our farmers and say thank you
(06:39):
for their milk and thank you for their thank you
for the last twelve months. Yeah.
Speaker 1 (06:43):
So what was the feedback from the farmers you were
speaking to regarding just the current situation?
Speaker 2 (06:47):
Mark? Were they pretty content?
Speaker 3 (06:49):
Oh, they're they're in a they're in a pretty good position.
Look there, everyone's aware that things are softening and uh
there's a slight to tl but like the mood's pretty positive.
So you know the cows, The cows are looking good.
You know they've got they've been a couple of seasons
of of relatively good player. If there was one complaint
(07:10):
I'm hearing is the text bills are giving up a
little bit. But you know that's that's not a bad
problem to hear.
Speaker 2 (07:17):
I don't think Andy, what text means? You're making money? Right? Hey,
get on your mark. Smith. Always appreciate catching up with
the team from Open Country.
Speaker 1 (07:27):
Enjoy the festive season and we'll catch up again in
twenty twenty six.
Speaker 3 (07:32):
Wonderful mate. Yep, look after yourself, Andy, and ye're looking forward.
Speaker 1 (07:37):
Mark Smith, General manager of milk supply for Open Country.
Speaker 2 (07:40):
You're listening to the Muster Grand Disaster.
Speaker 1 (07:43):
MC Master's up next from the edges of closer In
Station near Lake Coockett, Tippy
Mark Smith as general manager of Open Country and joins
us on the muster this afternoon.
Speaker 2 (00:15):
Mark, how are you excellent?
Speaker 3 (00:17):
Andy excellent? Thanks for calling mate.
Speaker 1 (00:20):
You're always good to catch up with yourself and the
team from Open Country. Look, we look back on the
season to date so far, peak milk and the likes
that's been in god not too long ago, mind you.
It's been a challenging season down here in the south
yet again, although we are starting to see a correction
on the weather, touch one and the likes. How's it
been up in your neck of the woods here of
course based in the way Gado Oh.
Speaker 3 (00:40):
Look, it's been a challenging season both in the Wanganui
sites anyway sites. But the challenge was was milk volumes.
Like we we've had a very very good peak. Last
year was a pretty good peak, but this year was
even better. So look at keep the site managers pretty busy.
But we processed all the milk and we're on downward
slide now. So as we sort of come down the curve,
(01:03):
you know, that allows that allows the business to make
some some other other more fancy products that take a
little bit more time to burn through the through the drives.
So Look, there was a challenge, but we've got we've
we've got there.
Speaker 1 (01:15):
But it's a nice challenge to have, Andy, So how
would you compare it to say, twelve months ago, mate.
Speaker 3 (01:22):
In terms of how what grass is looking like in
the way and I look, I think we're in a
lot better spot than we have been sort of this
time twelve months ago. We're just starting to lose a
little bit of quality. It's just sort of going to
seed a little bit here. You can't get out on
the roads for for tractors on the roads at the moment.
So there's there's plenty of plenty of crops being made,
the maize crops at the moment. You know, there's that
(01:45):
old rule of fun where you need to be around
about fence height by Christmas. Yeah, I'm seeing crops are
all efense height now. So look, we're we're well positioned.
It's a it's a bit dry. There's not a hell
of rain on the forecast for the next few days,
so we'll see what see what happens as we head
into Christmas. But that's far We're looking good, mate.
Speaker 1 (02:03):
There's a very similar to say parts of South and
when you get to mid November, on where you don't
turn down any moisture.
Speaker 3 (02:08):
Oh, any rain sort of late November December will take
it one hundred percent. Even if you get you know,
those big sort of downfalls of sixty seventy mills. You
might get a little bit of flooding, but you've got
to take rain in November December. I said he wouldn't
turn it away.
Speaker 1 (02:23):
So we look at the market at the moment. It's
an interesting one, to say the least mark the GDT.
We've had eight declines in a row. We've seen the
payouts being adjusted as a result of this, the response
to the market, they will be interesting over the next month.
Speaker 2 (02:36):
Or two to see how they how they go about things.
Speaker 3 (02:39):
Yeah, look, so what we're saying, you're right, Andy, we've
had eight declines in the GDT. The buyers around the
world are nervous. When they're nervous, Look, they're not really buying.
They're probably buying a little bit on spot just to keep,
just to keep the inventory where they need it. But look,
the buyers are thinking prices are going to drop down,
(03:00):
so they're not buying a hell of a lot. We
see this to continue over the next sort of a
couple of months. You know, you know, we pay in
four periods, so our P two and P three. You know,
things are looking a little bit sad, but we see
a recovery towards the sort of end of this of
(03:20):
this dairy season sort of P four. So that's what
we're seeing at the moment. But hey, look things can change.
Speaker 1 (03:26):
So you wouldn't be surprised if the final GDT auction
of the year sees yet another another slight decline.
Speaker 3 (03:32):
I wouldn't be surprised at all. Andy, Yeah, but it's
looking like that. I don't think it's going to be
as big as the one we just had, but you're
sort of certainly just sort of easing off.
Speaker 1 (03:42):
But certainly regarding the mood and the dairying sector, you
can't deny it. It's still pretty buoyant all things considered.
I mean, two seasons in a row, you're looking in
the nine dollars range.
Speaker 3 (03:52):
Percent Like all the people you talk to in the
in the dairy industry and also in the primary industry,
where we're sort of we're in a little bit of
a bubble of sort of going through a purple patch
at the moment. It got some colleagues in the in
the in the construction and and sort of hospitality type industries,
and there's certainly feeling some pain. So the primary industry,
(04:15):
you know, dairy, cheat and beef, things are looking things
are looking pretty good now.
Speaker 1 (04:20):
Recently Open Country got the acquisitions of Medaka up north,
but down here Matara Valley Milk as well.
Speaker 2 (04:27):
How has that been received, Oh.
Speaker 3 (04:30):
Very well, very well Andy, So it's you know, it's
exciting to add these two two sites into into our mix.
You know, Matta Valley, we spent a lot of time
looking at that, that acquisition. It's it certainly certainly adds
to our to our ability to to process milk with
Terra Valleys a very very good site, a very very
(04:50):
fancy dry and allows us to make different types of products.
It also allows us to push a little bit further
north in terms of our collection region, you know, into
sort of south of Otago region. We're getting a we're
getting a bit of interest from that region, so get
lock Pate Materia velly very exciting for the business. And
(05:11):
then in terms of the Meetacker purchase, which is located
near Tapo, another exciting acquisition. You know that that sort
of suits our our our North Island strategy in terms
of you know we've got one at Hortu, one at
Waha and our Wanganu East site that sort of sits
in between those those those sites nicely. So exciting times
(05:32):
for the for the business.
Speaker 1 (05:34):
Dy are you seeing in that surge regarding new suppliers
with the acquisition of the Taro Valley milk.
Speaker 3 (05:40):
Look, we're certainly getting a number of phone calls, which
is which is always good in the team down there,
you know, going out and talking to some some new
potential supplies and look there's there's plenty of interest, which
is which is exciting. It's always nice to give farmers
a bit of choice and you know that's that's just
our catch phrase or our slogan and his partnership by
(06:02):
choice and you know we can it's nice to to
offer that to to the farmers and s the Seathland
seat Otago Regions.
Speaker 1 (06:10):
Yeah, the team they were down south last week obviously
with the Christmas party season in full swing, catching up
the suppliers and the likes. It will be no different
with your guys.
Speaker 3 (06:19):
Yeah, look we've we were down Yeah, we had we
had two Christmas functions for our Seatland farmers one and
sort of at Lockhel and one at the at the Croydon.
I think the Cordon is the place to be if
you're going to have a Christmas function in that region.
Very well received, good attendance and it's lovely just to
give something back to our farmers and say thank you
(06:39):
for their milk and thank you for their thank you
for the last twelve months. Yeah.
Speaker 1 (06:43):
So what was the feedback from the farmers you were
speaking to regarding just the current situation?
Speaker 2 (06:47):
Mark? Were they pretty content?
Speaker 3 (06:49):
Oh, they're they're in a they're in a pretty good position.
Look there, everyone's aware that things are softening and uh
there's a slight to tl but like the mood's pretty positive.
So you know the cows, The cows are looking good.
You know they've got they've been a couple of seasons
of of relatively good player. If there was one complaint
(07:10):
I'm hearing is the text bills are giving up a
little bit. But you know that's that's not a bad
problem to hear.
Speaker 2 (07:17):
I don't think Andy, what text means? You're making money? Right? Hey,
get on your mark. Smith. Always appreciate catching up with
the team from Open Country.
Speaker 1 (07:27):
Enjoy the festive season and we'll catch up again in
twenty twenty six.
Speaker 3 (07:32):
Wonderful mate. Yep, look after yourself, Andy, and ye're looking forward.
Speaker 1 (07:37):
Mark Smith, General manager of milk supply for Open Country.
Speaker 2 (07:40):
You're listening to the Muster Grand Disaster.
Speaker 1 (07:43):
MC Master's up next from the edges of closer In
Station near Lake Coockett, Tippy
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