Latest / The SME Stream / The Country 21/01/26: Andrew Murray talks to Jamie Mackay

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The Country 21/01/26: Andrew Murray talks to Jamie Mackay · The SME Stream

• 0:00
  Speaker 1: Andrew Murray, who I caught up with on the Fonterra
• 0:03
  Speaker 1: Global Dairy Trade event overnight. This was a good one
• 0:06
  Speaker 1: to wake up to unless it was teeming rain outside
• 0:09
  Speaker 1: of your place. And of course that is the second
• 0:12
  Speaker 1: global dairy trade auction of the year. To tell us
• 0:15
  Speaker 1: more about it, Fonterra CFO Chief financial Officer, Andrew Murray.
• 0:20
  Speaker 1: Those milk production numbers came out yesterday afternoon, Andrew for
• 0:24
  Speaker 1: December up three point one percent. I thought that might
• 0:27
  Speaker 1: have put a spanner in the works, but no, the
• 0:30
  Speaker 1: index up one point five percent.
• 0:32
  Speaker 2: What a good result, Yeah, Jenny, it was a very
• 0:35
  Speaker 2: good result for us to see that coming through overnight.
• 0:38
  Speaker 2: Obviously there's a lot of stuff still being around in
• 0:40
  Speaker 2: the world, but yeah, a good result all up.
• 0:43
  Speaker 1: Yeah, whole milk powder one percent, skim milk powder two
• 0:46
  Speaker 1: point two percent, butter two point one percent. There were
• 0:51
  Speaker 1: good rises across the board.
• 0:53
  Speaker 2: Yeah, it was actually I think we saw some good Yeah,
• 0:56
  Speaker 2: some good across the board. Visies, you know, Hall milk Podo,
• 1:00
  Speaker 2: really seeing that demand remain pretty robust in that space,
• 1:03
  Speaker 2: and a good showing up actually from Middle East in
• 1:07
  Speaker 2: that particular auction as well. So you know with that
• 1:09
  Speaker 2: what's happening. You know, there was an Algerian tender, et
• 1:12
  Speaker 2: cetera as well, So we're seeing good demand come through,
• 1:15
  Speaker 2: which we've always had. There has always been good demand
• 1:17
  Speaker 2: there and I think as we're seeing maybe volumes tail
• 1:20
  Speaker 2: off a little bit and people are sort of showing
• 1:22
  Speaker 2: up that inventry going into next season.
• 1:24
  Speaker 1: I was writing some commentary from Mike McIntire from Jardin
• 1:27
  Speaker 1: this morning and he was saying here very much what
• 1:30
  Speaker 1: you're saying. Good result, but he said, what has been
• 1:32
  Speaker 1: a bit of a towel wind could turn into a
• 1:34
  Speaker 1: bit of a headwind, and that is the exchange rate.
• 1:39
  Speaker 2: Yeah, look, it is still moving around a little bit.
• 1:42
  Speaker 2: I mean it's actually up about a cent on yesterday
• 1:44
  Speaker 2: I think today. You know, we're relatively hedged, so you know,
• 1:48
  Speaker 2: for this season that's not causing a lot of problem.
• 1:50
  Speaker 2: The thing is it's moving around a bit, but actually
• 1:52
  Speaker 2: still within a relatively narrow band. So yeah, look it
• 1:56
  Speaker 2: might turn a little bit. We're well hedged, so we
• 1:58
  Speaker 2: tried to take out that volatility.
• 2:00
  Speaker 1: And while the weather is dominating the headlines today, when
• 2:04
  Speaker 1: this passes through, and hopefully it does quickly, it's going
• 2:07
  Speaker 1: to insulate you would think the North Island from drought
• 2:11
  Speaker 1: this summer.
• 2:13
  Speaker 2: Yeah, so, I mean, obviously we've had, you know, some
• 2:16
  Speaker 2: farms that have been hit quite hard, but at the moment,
• 2:19
  Speaker 2: you know, we haven't had any impact from a collection standpoint.
• 2:21
  Speaker 2: We'll try and get out, you know, and we're continuing
• 2:23
  Speaker 2: to make sure that we're picking up and you know,
• 2:26
  Speaker 2: we'll just see to anyone sort of in that area.
• 2:28
  Speaker 2: If they do need any help, then reach out to
• 2:30
  Speaker 2: the sort of farm source rep. But at the moment,
• 2:33
  Speaker 2: what that's doing is I think it's it's so long
• 2:35
  Speaker 2: as it doesn't prolong for too long, and I think
• 2:37
  Speaker 2: this is pretty good from our production standpoint.
• 2:40
  Speaker 1: Fingers crossed on the weather front. Andrew Murray from Fonterra
• 2:43
  Speaker 1: Chief Financial Officer, thanks for your time, great result for
• 2:46
  Speaker 1: dairy farmers this morning.
• 2:48
  Speaker 2: Turn there, Jimmy, got you