Latest / Best of Business / Jamie Mackay: The Country host on Richard Allen being named Fonterra's new CEO

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Jamie Mackay: The Country host on Richard Allen being named Fonterra's new CEO · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talk ZEDB. Follow
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• 0:17
  Speaker 1: The Rural Report with Farmland, Skid Advice and Support Growing
• 0:21
  Speaker 1: What Really Matters.
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  Speaker 2: Jamie mckaye, host of the Countries with Us.
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  Speaker 3: Hello, Jamie good eight Heather, how are you going very well?
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  Speaker 3: Thank you?
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  Speaker 2: So tell me what you make of Fonterra's new boss.
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  Speaker 3: Ah, Well, I've met the bloke a few times. See Look,
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  Speaker 3: I think it was the world's worst kept secret that
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  Speaker 3: he was the anointed one. Peter McBride, the chair, was
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  Speaker 3: on my show today saying that Miles Hurrell had initiated
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  Speaker 3: succession planning as long as five years ago. So Richard Allen,
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  Speaker 3: he's got a I think his title as President of
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  Speaker 3: Global Ingredients. Spent quite a bit of time in America
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  Speaker 3: to get a title like that. But he's in charge
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  Speaker 3: of the ingredients business, which is now more important than
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  Speaker 3: ever for Fonterra because they've obviously sold their consumer brands
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  Speaker 3: and as of today, the farmer's got the check for
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  Speaker 3: that shopping effectively an assets for cash because yet I've
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  Speaker 3: got two dollars a share, but basically the shares have
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  Speaker 3: dropped by two dollars in simple mathematical equation. But it's
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  Speaker 3: still good news for the New Zealand economy, whether it's
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  Speaker 3: lifting the GDP by as much as one percent. So
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  Speaker 3: this appointment, by the way, and I didn't hear your
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  Speaker 3: show yesterday, and I don't know whether you covered it
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  Speaker 3: or not, and whether I'm repeating old ground here, but
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  Speaker 3: just twenty eight days after the Miles Hurror resignation, would
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  Speaker 3: have to suggest to you that this was an inside job.
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  Speaker 3: And it's a good inside job as well, because I
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  Speaker 3: don't want to relitigate history. But last time we had
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  Speaker 3: a flash for and a come in it ended in
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  Speaker 3: tears for Fonterra. Miles Hurrals come from the coal face,
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  Speaker 3: as has Richard Allen. He's worked at my Milk and
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  Speaker 3: farm sauce and farm sources that Fonterra store that all
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  Speaker 3: the farmers deal with. Legend has it Miles Hurrell knew
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  Speaker 3: just about the name of every single Fonterra farmer. I'm
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  Speaker 3: exact rating a weebit there, but he certainly had a
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  Speaker 3: lot of FaceTime to use modern terminology with them. Richard
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  Speaker 3: Allen's the same look. He's a good appointment.
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  Speaker 2: What is this warning from the accounting firm in Index.
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  Speaker 3: Yeah, well, this was an interesting one to me because
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  Speaker 3: it is a bit of a windfall. The average payout
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  Speaker 3: is four hundred thousand dollars. It is a return on capital. Therefore,
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  Speaker 3: there isn't a tax implication. But there could be tax
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  Speaker 3: implications in Index and other accounting companies too, I might saying,
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  Speaker 3: I'd just read their press release. They're saying taking funds
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  Speaker 3: out of a company structure without tax implications is not likely.
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  Speaker 3: They're saying if the Fonterra a shareholding is held in
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  Speaker 3: it by a dairy farming company, and many of the
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  Speaker 3: farms will be company set ups, spending funds on things
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  Speaker 3: that are not assets of the company either, such as
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  Speaker 3: holidays or a new car, And if I got four
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  Speaker 3: hundred grand from Fonterra, I'd be out for both of those.
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  Speaker 3: They cannot be done here that without triggering tax consequences.
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  Speaker 3: So look the messages to the Fonterra farmers. No doubt
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  Speaker 3: they will have banked it today. A lot of them
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  Speaker 3: might have paid the whole lot, used the whole lot
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  Speaker 3: to pay off debt. That's the best form of investment.
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  Speaker 3: Others will be making spending decisions. The advice is just
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  Speaker 3: talk to your consultant or financial advisor before you spend
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  Speaker 3: the money.
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  Speaker 2: Yea fair advice to give. I think, now, listen, how
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  Speaker 2: have the kiwi fruit done with the cyclone?
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  Speaker 3: Really well? Really well? Actually I'm involved in a wee
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  Speaker 3: bit of very small involvement too, I might add hither
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  Speaker 3: with a kiwi fruit growing business in the Bay are
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  Speaker 3: plenty in Gisbon and cyclone Gabrielle and twenty twenty three,
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  Speaker 3: it absolutely got smacked, especially in the Gisbon region. And
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  Speaker 3: even though there's a lot of surface flooding, a lot
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  Speaker 3: of wind damage, there's trees down, and we're certainly not
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  Speaker 3: belittling or writing off the effect that cyclone vayann who had.
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  Speaker 3: But it moved through so quickly that it hasn't really
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  Speaker 3: been an issue for the keyw fruit industry. They're right
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  Speaker 3: in the middle of harvest at the moment the red
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  Speaker 3: stuff swell through. The gold harvest is about forty percent
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  Speaker 3: of the way through, so they're right at the peak
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  Speaker 3: there and the green has sort of just got started.
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  Speaker 3: It's last cab off the rank with about ten percent
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  Speaker 3: of the harvest on. But what the worry is after
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  Speaker 3: the surface flooding. Keywi fruit don't like wet feet, so
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  Speaker 3: if the water hangs around for too long, that's no good.
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  Speaker 3: And the other one is wind rub with these high
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  Speaker 3: winds that came through, you know, keiw fruit rubbing against
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  Speaker 3: one another effectively or against a branch, and that scars
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  Speaker 3: the fruit and therefore makes it less valuable. It's not
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  Speaker 3: top grade exports stuff. But all in all, Heather, a bullet.
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  Speaker 2: Dodged yep, sounds like it. Hey, Jamie has always Thank
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  Speaker 2: you so much, look after yourself. Jamie Mackay, Host of
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  Speaker 2: the Country.
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