Latest / Best of Business / Jamie Mackay: The Country host on farmers probing Fonterra's decisions at AGM

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Jamie Mackay: The Country host on farmers probing Fonterra's decisions at AGM · Best of Business

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  Speaker 1: You're listening to a podcast from Newstalk ZB Follow this
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  Speaker 1: and our wide range of podcast now on iHeartRadio.
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  Speaker 2: Heavan with me right now is Jamie McKay, host to
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  Speaker 2: the Country.
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  Speaker 3: Hey, Jamie good a head.
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  Speaker 2: Hey are you going to the Christi JMP show?
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  Speaker 1: Are you?
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  Speaker 3: Yes? I am. I'm about to board a plane from
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  Speaker 3: Dunedin and if I get the call, I'll have to
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  Speaker 3: hang up on you quickly. But I'm not due to
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  Speaker 3: board till six thirty, so I should be safe.
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  Speaker 2: Yeah you Zeeland mate, you're not boarding at six thirty,
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  Speaker 2: don't worry about Yeah.
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  Speaker 3: Hey, well I could be joining sixty thousand others at
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  Speaker 3: the christ Church amp Show this year. They're calling it
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  Speaker 3: that it used to be called that. It was the
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  Speaker 3: artist formerly known as the New Zealand Agricultural Show, which
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  Speaker 3: is a week down on the one hundred thousand they
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  Speaker 3: normally get. It is the biggest amp show in the country,
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  Speaker 3: or it was until it was canceled at the beginning
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  Speaker 3: of this year, and to be fair, a local event
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  Speaker 3: hire company and Sir David Carter got together and they
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  Speaker 3: revived it. So good on them. A bit of a
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  Speaker 3: cold and damp start to the show today only hired
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  Speaker 3: at sixteen tomorrow they're expecting eighteen which will be better.
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  Speaker 3: And the last day of the show for the public
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  Speaker 3: on Saturday only twelve decrees and of course a big
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  Speaker 3: day at Rickerton on Saturday as well free for all
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  Speaker 3: at Addington tomorrow. So it's all I really looking forward
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  Speaker 3: to it. The sharing, the wood shopping and the equestrian
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  Speaker 3: get under way tomorrow. It's a public holiday in christ Church,
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  Speaker 3: so looking forward to it.
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  Speaker 2: The Fonterra AGM today, how did the farmers in the
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  Speaker 2: shareholder and so on feel about the consumer brands being
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  Speaker 2: sold off?
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  Speaker 3: Well? I think there was some grumblings, but not too many.
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  Speaker 3: Peter McBride, who's a very smart man, Miles Hurrell, gets
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  Speaker 3: a lot of the credit quite rightly. So as chief
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  Speaker 3: executive he's the front face if you want to Fontira.
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  Speaker 3: Peter McBride's a kind of a reserved sort of guy,
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  Speaker 3: but he's got a very good track record at Zespree
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  Speaker 3: before Fonterra and between the two of them they've really
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  Speaker 3: turned the good ship Fonterra around. And HEAs fronted up
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  Speaker 3: to the shareholders there and said, look, you can spend
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  Speaker 3: this money better than we can, and look, I don't
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  Speaker 3: think there'll be too many grumbles from the farmer shareholders. Heather.
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  Speaker 3: It's worth about two bucks two bucks in counting the
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  Speaker 3: share for them. And just remember this, at the beginning
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  Speaker 3: of the year, they're farmer's shares that they've got a
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  Speaker 3: buy to supply the co op. We're trading at two
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  Speaker 3: dollars fifty. I think they were at a low of
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  Speaker 3: two dollars twelve last year. They're up to four dollars
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  Speaker 3: eighty eight today, so they've seen a considerable improvement on
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  Speaker 3: their balance sheet. And if they get another couple of
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  Speaker 3: bucks a share, you know they're starting to cook with
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  Speaker 3: gas there in the high sixes. Interestingly, also, Fonterra came
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  Speaker 3: out recently and on Monday, I think it was and
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  Speaker 3: obviously went to nine dollars fifty for a midpoint. But
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  Speaker 3: the futures market, and that only is the future, is
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  Speaker 3: sitting now at nine dollars ninety. I see ben Z
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  Speaker 3: lifted theirs up to nine seventy five. Look, Heather, I
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  Speaker 3: think I see this to you the other day, ten
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  Speaker 3: dollars is on the cards. Now. You talked about Trump,
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  Speaker 3: Trump and American economy up supposedly New Zealand dollar down,
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  Speaker 3: so all those things are playing in the favor of
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  Speaker 3: New Zealand exporters. Just on that Fonterra AGM today. The
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  Speaker 3: only hiccup I think they were greeted by some Greenpeace
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  Speaker 3: protesters calling for a band on Palm Kernel. But when
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  Speaker 3: it comes to protesting, let's face it, today Heather Greenpeace
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  Speaker 3: were just bored.
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  Speaker 2: Hey, you've got one minute before you board. Best of luck, Jamie,
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  Speaker 2: Thank you, Jamie McKay, Host to the Country.
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