September 1, 2026 • 5 mins
Riley Kennedy of Business Desk looks at another positive GDT auction.
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Speaker 1 (00:08):
Welcome back to the muster. Riley Kennedy joins us next
out 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 2 (00:21):
Yes, sure, 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. formal park at the farm,
like right, basically right in the middle of Auckland. I
(00:41):
didn't even really know it existed. 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 (00:56):
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 2 (01:06):
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 (01:15):
Quite possibly the case. But look, we're talking about the
GDT last night. This was a good result, up 0.9%.
Speaker 2 (01:23):
Yes, it is. 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. It
(01:44):
was up something like 5.3%. And it's actually the first
time in 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
(02:04):
the season. So you've got, you know, 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
(02:25):
milk will really start to flow too. That was interesting.
Speaker 1 (02:28):
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 2 (02:37):
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 (02:58):
Fonterra Dividend is looking pretty good as well. News out
this morning.
Speaker 2 (03:02):
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 on the top end of the range of between
$ 0. 60 and $ 0. 80 and Of course, when they sold Mainland
Group to the French, they said they wanted to return
(03:23):
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% 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
(03:45):
there was a special dividend of $ 0. 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 (03:59):
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 2 (04:13):
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. uh, from Australia. Uh, but mainland
particularly is strong. Actually, Anchor's quite strong in Sri Lanka too.
Funnily enough, they put quite a lot of milk up
(04:34):
in Sri Lanka.
Speaker 1 (04:36):
Hey, um, so you were at the bull sale this afternoon.
Did we, did your Uber driver jump out with curiosity
to go and look at this sale?
Speaker 2 (04:43):
Uh, he, he sort of took a bit of a,
a bit of a turn and went, what's going on here?
And he said, bull sale. And he said, what's that?
And I said, we should come in and watch. And
he said, no, no, I've got to keep working. But, uh, Yeah,
I'm just watching a whole lot of people walk past,
going their walks through Cornwall Park. You can sort of
see them all sort of turning and going, what's going
on here?
Speaker 1 (05:02):
You should have took half the office with you to
show them what it's like on the farm.
Speaker 2 (05:06):
Yeah, well, I did offer, but they politely declined.
Speaker 1 (05:10):
Hey, good on you, Riley. Always appreciate your time on
the muster.
Speaker 2 (05:13):
Thank you.
Speaker 1 (05:14):
To the underworld, come out of the cover. Laugh out
loud with Ag Proud, because 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. Alrighty, that's
(05:36):
us over and done with for the afternoon. The podcast
will be up shortly. Thanks to iHeartRadio. 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.
Welcome back to the muster. Riley Kennedy joins us next
out 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 2 (00:21):
Yes, sure, 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. formal park at the farm,
like right, basically right in the middle of Auckland. I
(00:41):
didn't even really know it existed. 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 (00:56):
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 2 (01:06):
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 (01:15):
Quite possibly the case. But look, we're talking about the
GDT last night. This was a good result, up 0.9%.
Speaker 2 (01:23):
Yes, it is. 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. It
(01:44):
was up something like 5.3%. And it's actually the first
time in 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
(02:04):
the season. So you've got, you know, 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
(02:25):
milk will really start to flow too. That was interesting.
Speaker 1 (02:28):
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 2 (02:37):
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 (02:58):
Fonterra Dividend is looking pretty good as well. News out
this morning.
Speaker 2 (03:02):
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 on the top end of the range of between
$ 0. 60 and $ 0. 80 and Of course, when they sold Mainland
Group to the French, they said they wanted to return
(03:23):
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% 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
(03:45):
there was a special dividend of $ 0. 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 (03:59):
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 2 (04:13):
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. uh, from Australia. Uh, but mainland
particularly is strong. Actually, Anchor's quite strong in Sri Lanka too.
Funnily enough, they put quite a lot of milk up
(04:34):
in Sri Lanka.
Speaker 1 (04:36):
Hey, um, so you were at the bull sale this afternoon.
Did we, did your Uber driver jump out with curiosity
to go and look at this sale?
Speaker 2 (04:43):
Uh, he, he sort of took a bit of a,
a bit of a turn and went, what's going on here?
And he said, bull sale. And he said, what's that?
And I said, we should come in and watch. And
he said, no, no, I've got to keep working. But, uh, Yeah,
I'm just watching a whole lot of people walk past,
going their walks through Cornwall Park. You can sort of
see them all sort of turning and going, what's going
on here?
Speaker 1 (05:02):
You should have took half the office with you to
show them what it's like on the farm.
Speaker 2 (05:06):
Yeah, well, I did offer, but they politely declined.
Speaker 1 (05:10):
Hey, good on you, Riley. Always appreciate your time on
the muster.
Speaker 2 (05:13):
Thank you.
Speaker 1 (05:14):
To the underworld, come out of the cover. Laugh out
loud with Ag Proud, because 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. Alrighty, that's
(05:36):
us over and done with for the afternoon. The podcast
will be up shortly. Thanks to iHeartRadio. 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.
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