Latest / Best of Business / Jamie Mackay: The Country host on milk production increasing and milk prices decreasing in China

Transcript

Jamie Mackay: The Country host on milk production increasing and milk prices decreasing in China · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talks be follow
• 0:12
  Speaker 1: this and our wide range of podcasts. Now on iHeartRadio,
• 0:17
  Speaker 1: The Ruer Report on the Heather Duper se Eland Drive
• 0:20
  Speaker 1: with n's Kofoods, New Zealand's Finest Beef and Lamb.
• 0:25
  Speaker 2: Now to talk rural, we've got Jamie McKay, host of
• 0:27
  Speaker 2: the Country and from the Country dot Co dot NZ.
• 0:30
  Speaker 3: Hello Jamie Good Andrew HEWI look, I'm wondering whether maybe
• 0:35
  Speaker 3: someone should Dr Rod Carr, the Climate Change Commissioner or
• 0:40
  Speaker 3: the chairman, and tell him not to venture into rural
• 0:43
  Speaker 3: New Zealand because he's ruffled a few feathers today.
• 0:45
  Speaker 2: All right, so this is so you actually broke out,
• 0:47
  Speaker 2: broke down a little bit there. So this is kind
• 0:50
  Speaker 2: of Change Commission Chair Dr Rod Carr, who says it
• 0:53
  Speaker 2: is not true to say pharmacy to wait for new
• 0:55
  Speaker 2: technology before they can lower their planet heating commissions. They
• 0:58
  Speaker 2: can do it now.
• 1:00
  Speaker 3: Here. Well, it's interesting, he said. The idea that and
• 1:02
  Speaker 3: I hope you can hear me Andrew apologize for the reception.
• 1:05
  Speaker 3: He said. The idea that farmers have no tools and
• 1:08
  Speaker 3: wait for new things before they can reduce emissions is
• 1:11
  Speaker 3: simply not true. We know different feeding practices are associated
• 1:15
  Speaker 3: with different emissions. We know different breeds and breed with
• 1:19
  Speaker 3: breeds within breeds are associated with different emissions. Now, this
• 1:24
  Speaker 3: got a strong rebuke from Mark Cameron, who's one of
• 1:28
  Speaker 3: the act agricultural spokespeople. He's also a Northland Kalkaki. He said, well,
• 1:34
  Speaker 3: mister Carr, it's about time you visited rural New Zealand
• 1:37
  Speaker 3: before making in accurate statements about on farm practice. Has
• 1:41
  Speaker 3: a thought for you, right, he writes, the Climate Change
• 1:44
  Speaker 3: Commissioner should tell rural people what bovine breeds and what
• 1:47
  Speaker 3: breeds within breeds. He's specifically talking about that, he states,
• 1:51
  Speaker 3: has such different emissions profiles New Rural and New Zealand
• 1:55
  Speaker 3: is waiting with baited breath for the answer to that one. Yeah.
• 1:58
  Speaker 3: So look he's going out all guns blazing, doctor RhoD
• 2:01
  Speaker 3: He's never been afraid to speak out. It'll be fair
• 2:03
  Speaker 3: to say he's probably not the post popular man in
• 2:06
  Speaker 3: the rural New Zealand.
• 2:08
  Speaker 2: Good seth, Look this is starting to worry me. Development
• 2:12
  Speaker 2: of large scale dairy farms and forming feed prices are
• 2:15
  Speaker 2: driving China's raw milk production app and the official price
• 2:18
  Speaker 2: down they're getting good at this stuff.
• 2:20
  Speaker 3: Yeah, they are getting really good at it. And I've
• 2:22
  Speaker 3: been trading for a lot longer than us, and it's
• 2:24
  Speaker 3: a bit of a worry if they start moving some
• 2:26
  Speaker 3: of their production Andrew on to the world stage. Interestingly,
• 2:29
  Speaker 3: that the current price they're being paid in China at
• 2:32
  Speaker 3: the moment in New Zealand dollar equivalents about nine dollars
• 2:35
  Speaker 3: per kilogram of milk solid, so it's still above ours.
• 2:38
  Speaker 3: But their cost of production is quite a bit higher
• 2:41
  Speaker 3: than ours, obviously because it's all it's mainly bought in feed,
• 2:46
  Speaker 3: whereas our dairy system is pasture based. So China's raw
• 2:50
  Speaker 3: milk production's gone up one percent in May year on year,
• 2:53
  Speaker 3: two point three percent growth in April, and we're looking
• 2:56
  Speaker 3: at possibly because we're not sure of these numbers coming
• 2:59
  Speaker 3: out of China eight point six percent per annum twenty
• 3:02
  Speaker 3: twenty two are two point nine twenty twenty three, So
• 3:06
  Speaker 3: their self sufficiency, this is the key number, Andrew and
• 3:08
  Speaker 3: Darry has grown from seventy percent to eighty five percent
• 3:12
  Speaker 3: in the past four years. You know, with these low
• 3:15
  Speaker 3: farm gate prices, China will quickly become a major exporter
• 3:19
  Speaker 3: of dairying around the world and that could cause us
• 3:21
  Speaker 3: some issueshaps not even to mention the market that where
• 3:24
  Speaker 3: that is being flooded with some of their products.
• 3:27
  Speaker 2: And this also remind them that nearly will mind ourselves.
• 3:30
  Speaker 2: At sixty percent of the New Zealand and formulum exports
• 3:33
  Speaker 2: go to China, but if they start being self sufficient,
• 3:35
  Speaker 2: then we lose money here.
• 3:38
  Speaker 3: And a final thought on that one, Andrew, just following
• 3:40
  Speaker 3: on from your excellent number, is that we do have
• 3:43
  Speaker 3: an FTA with China and that helps us because the
• 3:45
  Speaker 3: other big players in the infant formula market are getting
• 3:48
  Speaker 3: h hit harder than us the likes of the Netherland.
• 3:50
  Speaker 3: So thank goodness for that FTA with China.
• 3:54
  Speaker 2: Good So if Jamie go the Rowers and I thank
• 3:55
  Speaker 2: you for your time today or the best Buddy Sea.
• 3:59
  Speaker 1: For more from News Talks b listen live on air
• 4:02
  Speaker 1: or online and keep our shows with you wherever you
• 4:05
  Speaker 1: go with our podcasts on IR Radio.