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Jamie Mackay: The Country host on dairy prices bouncing back after latest GDT auction · Best of Business

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  Speaker 1: You're listening to a podcast from Newstalk ZB. Follow this
• 0:13
  Speaker 1: and our wide range of podcasts now on iHeartRadio. Jamie McKay,
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  Speaker 1: host of the Countries with Us, Hello, Jamie, Hello. How
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  Speaker 1: good was that milk auction?
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  Speaker 2: Bloody good in a word or in two words? Yeah, Look,
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  Speaker 2: it was the best GDT auction for two years. I
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  Speaker 2: know you talked about it yesterday, Whole milk Powder posting
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  Speaker 2: its best single event gain since twenty twenty one. Interestingly,
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  Speaker 2: Fonterra is still so that they're going to have to
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  Speaker 2: move obviously, they're sitting at eight dollars at the moment
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  Speaker 2: for their forecast milk price for this season, that the
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  Speaker 2: futures market is at eight dollars eighty. In this afternoon
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  Speaker 2: or later on this afternoon, I found out that the
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  Speaker 2: NZX milk price forecast has now lifted to a range
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  Speaker 2: of well, I won't tell you the range, but the
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  Speaker 2: mid point of the range is nine dollars thirty three. Heather,
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  Speaker 2: So at those sort of numbers, dairy farmers are quite
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  Speaker 2: literally starting to cook with gas. They are good number
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  Speaker 2: us if they know if they come to pass.
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  Speaker 1: Yeah, brilliant.
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  Speaker 2: I'm very very pleased with them. Why are farmers so
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  Speaker 2: freaked out about this report into planting trees? Well, let
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  Speaker 2: me quote Toby Williams, Federated Farmers Meat and Wael Chair,
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  Speaker 2: and he's probably the biggest critic I know. Toby. He's
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  Speaker 2: based up there in Gisbon on the East coast of
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  Speaker 2: carbon farming and forestry taking over good crazible land. He's
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  Speaker 2: saying this report out called why Pines, it's a white
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  Speaker 2: paper that was released today by our Land and Water
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  Speaker 2: National Science Challenge, and he says it may have been
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  Speaker 2: published as a report, but it reads more like a
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  Speaker 2: horror story for his Zealand farmers and rural communities. You know.
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  Speaker 2: The study, he says, makes it clear that under the
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  Speaker 2: current policy settings will continue to see millions of hectares
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  Speaker 2: of productive farmland plastered in pine plantations. And he's saying
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  Speaker 2: planting pines as far as the eye can see may
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  Speaker 2: well help reduce missions or improve water quality, which is
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  Speaker 2: the idea of this report. But somebody has to ask
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  Speaker 2: the question at what cost? And listen for this one
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  Speaker 2: here the here's my final shot. One of the studies
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  Speaker 2: even found out that if there was no carbon price,
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  Speaker 2: if carbon was worth nothing, it's currently trading at about
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  Speaker 2: sixty bucks a ton. One fifth of sheep and sheep
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  Speaker 2: and beef country would still need to be converted to
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  Speaker 2: pine forest to meet our current freshwater goals, So you know,
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  Speaker 2: sticky times ahead for sheep and beef up against the trees.
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  Speaker 1: I was under the impression that somehow the gnats were
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  Speaker 1: going to crack down on this stuff and stop all
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  Speaker 1: of the planting just getting out of control. Was I wrong?
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  Speaker 2: Well, they have cut down and I think eating fair
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  Speaker 2: to the previous government and Damian O'Connor of they kind
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  Speaker 2: of cut down on carbon farming, so we're not actually
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  Speaker 2: I think the days of spray and walk away people
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  Speaker 2: just buying some land planting some pine trees were basically
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  Speaker 2: walking away after thirty years, but collecting all the carbon
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  Speaker 2: credits along the way are gone. Forestry log prices are
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  Speaker 2: down at the moment, but by you need to get
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  Speaker 2: two bytes at the cherry. So if you plant now,
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  Speaker 2: you're going to get hopefully a meaningful return for your
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  Speaker 2: logs and twenty five or thirty years time, but you're
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  Speaker 2: going to clip the ticket on carbon credits on the
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  Speaker 2: way through. So it's a bit like sheep farming used
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  Speaker 2: to be sheep farming here. They used to have two
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  Speaker 2: bytes at the cherry as well, meat and wool. Wallsworth
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  Speaker 2: next to nothing now so the forestry has taken over
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  Speaker 2: that mantle I see, Jamie, thank you so much.
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  Speaker 1: We have chat to you again next week. Jamie McKay
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  Speaker 1: host to the Country. For more from News Talk, sed B,
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  Speaker 1: listen live on air or online, and keep our shows
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