Latest / Best of Business / Jamie Mackay: The Country host on Fonterra lowering their farmgate milk prices

Transcript

Jamie Mackay: The Country host on Fonterra lowering their farmgate milk prices · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from news Talk zed be
• 0:12
  Speaker 1: follow this and our wide range of podcasts now on iHeartRadio.
• 0:16
  Speaker 1: Jamie McKay hosts of the countries of That's Hello, Jamie.
• 0:20
  Speaker 2: Cat here and I can tell you it'll be some
• 0:21
  Speaker 2: farmers in Canterbury who might be doing some assaults at
• 0:24
  Speaker 2: the moment. It means the demise of ECAM. They haven't
• 0:27
  Speaker 2: exactly been farmer friendly. And I must say, as someone
• 0:31
  Speaker 2: who's domiciled in Dunedin, what the hell the Otago Regional
• 0:34
  Speaker 2: Council is doing running the buses that chug around Dunedin
• 0:38
  Speaker 2: mostly empty, I might add, instead of thenedon city counts
• 0:43
  Speaker 2: or bog You know, it begs It begs the question
• 0:48
  Speaker 2: who should actually be running them? And I think I
• 0:50
  Speaker 2: just hope they don't replace this bureaucracy with a worse one.
• 0:54
  Speaker 2: But anyhow, a farewell to the regional council. Shane Jones
• 0:58
  Speaker 2: said he do it, and yes, and.
• 1:00
  Speaker 1: Don't let the door hit you on the way out.
• 1:02
  Speaker 1: We say to them, yeah, okay, Fonterra. So this was expected,
• 1:06
  Speaker 1: wasn't it.
• 1:08
  Speaker 2: Yep, Farming's worst kept secret is out. It's out a
• 1:10
  Speaker 2: week early. They were going to come out with their
• 1:12
  Speaker 2: quarterly update early next week. But I spoke to Myles
• 1:15
  Speaker 2: Hurrale on my show today and he said, look, we
• 1:17
  Speaker 2: did the numbers over the weekend. If you've got the information,
• 1:20
  Speaker 2: we don't know you're sitting on it, we mars will
• 1:22
  Speaker 2: get out there and tell the farmers. So that midpoint
• 1:24
  Speaker 2: is now nine dollars fifty. The range is nine to ten.
• 1:28
  Speaker 2: It still begs the question why they started And I
• 1:33
  Speaker 2: threw this at Miles and he ducked for cover a
• 1:35
  Speaker 2: wee bit. But they started the season at eight dollars
• 1:37
  Speaker 2: to eleven and logic would suggest the midpoint there is
• 1:40
  Speaker 2: nine to fifty, but they chose a mid point of ten,
• 1:43
  Speaker 2: remembering they paid ten dollars sixteen last season. Also, interestingly,
• 1:48
  Speaker 2: today's cut is the first mid season cut Fonterra has
• 1:52
  Speaker 2: made to its forecasts since twenty three. And that's because
• 1:57
  Speaker 2: we've had a rising plane of price as whole milk powder.
• 2:01
  Speaker 2: As we all know, we've had seven drops in a row.
• 2:03
  Speaker 2: It's twenty percent off its peak back in May. The
• 2:06
  Speaker 2: other problem is when the go up, the taps get
• 2:09
  Speaker 2: turned around turned on. Not only here in New Zealand,
• 2:13
  Speaker 2: New Zealand farmers are about four percent up on production,
• 2:16
  Speaker 2: but also right around the world where they divert, for
• 2:19
  Speaker 2: instance in America cheap grain into milk production. Look, as
• 2:23
  Speaker 2: we said, we knew this was coming. A and Z
• 2:26
  Speaker 2: cut its forecast to nine sixty five. Recently the B
• 2:29
  Speaker 2: and Z went to nine to fifty. No surprise at all.
• 2:33
  Speaker 2: It does affect other farmers supplying other dairy companies as well, Heather,
• 2:37
  Speaker 2: because the likes of sin Lay Milk and Westland milk
• 2:40
  Speaker 2: products basically peg what they paid the farmers to the
• 2:43
  Speaker 2: Fonterra milk price. So if I can stay at nine
• 2:45
  Speaker 2: to fifty, well, I think we'll still do. Okay. The
• 2:48
  Speaker 2: warrior is it might sneak below that.
• 2:50
  Speaker 1: Yeah, yeah, fair enough.
• 2:52
  Speaker 2: What's going with McDonald's and the price of beef. Well,
• 2:55
  Speaker 2: I just came across some numbers and I think I've
• 2:57
  Speaker 2: got a credit are n Z for this story about
• 3:00
  Speaker 2: McDonald's and how effectively important it is for New Zealand
• 3:04
  Speaker 2: and especially the beef industry. Percent of their menu and
• 3:10
  Speaker 2: the one hundred and seventy restaurants around the country is
• 3:13
  Speaker 2: sourced from local farms. That's good. It's spending two hundred
• 3:17
  Speaker 2: and thirty five million here in New Zealand on local
• 3:19
  Speaker 2: produce beef cheese buns, but it also exports them. So
• 3:26
  Speaker 2: last year, the American owned franchise or subsidiary used six
• 3:31
  Speaker 2: thousand tons of locally sauced beef for sale here domestically,
• 3:35
  Speaker 2: but it exported thirty thousand tons of it, making up
• 3:39
  Speaker 2: wait for this, ten percent of New Zealand's total beef
• 3:42
  Speaker 2: exports are responsible for what McDonald's are doing. They serve
• 3:47
  Speaker 2: here's an interesting stat for your heather, seventy million people
• 3:49
  Speaker 2: a day plus Donald Trump, and they use two percent
• 3:52
  Speaker 2: of the world's beef. And the burgers or the beef's
• 3:56
  Speaker 2: twenty percent more expensive than it was at the start
• 3:59
  Speaker 2: of the year. If you want to know what that
• 4:01
  Speaker 2: means for your cheeseburger, the patty that goes inside your
• 4:05
  Speaker 2: cheeseburger is now ten cents more expensive of them it
• 4:08
  Speaker 2: was at the start of the year.
• 4:10
  Speaker 1: That it all adds up.
• 4:11
  Speaker 2: I suppose, Hey, how rich is Sue's redmain What do
• 4:13
  Speaker 2: you think about that? Oh right, I was just about
• 4:17
  Speaker 2: to go and grab dinner. He hither. I thought we
• 4:19
  Speaker 2: were over, But Sue's red mat was Sue's Redmain. I'm
• 4:23
  Speaker 2: sorry for four million dollars worth of property.
• 4:25
  Speaker 1: That's not doing too bad. It's a life goal, isn't it.
• 4:29
  Speaker 2: Yeah, but we've got to we bit careful with this one.
• 4:31
  Speaker 2: The Herald did a report on this one over the
• 4:33
  Speaker 2: weekend or something like that. So Sus is topping the
• 4:37
  Speaker 2: rich list. Christopher Luckson's second, Barbara Krueger, another farmer, is
• 4:42
  Speaker 2: in third place, and I beg I threw the question
• 4:44
  Speaker 2: out there as Parliament returning to the sixties, the domain
• 4:47
  Speaker 2: for rich farmers. Well, I don't think it really is,
• 4:49
  Speaker 2: because Andrew Hoggard was also up on the rich list,
• 4:52
  Speaker 2: but he said when they worked out the value of
• 4:55
  Speaker 2: his farm they forgot to take off the half that
• 4:57
  Speaker 2: his mum and dad owed, and they also forgot to
• 5:00
  Speaker 2: take off all the money he owed to the bank.
• 5:02
  Speaker 2: I don't know SUS's personal farming operation, and it's a
• 5:07
  Speaker 2: very good one. They do some great work where they're farming.
• 5:09
  Speaker 2: They're a very good farming operation. They may well be
• 5:13
  Speaker 2: debt free and have a farm worth eighteen million, but
• 5:16
  Speaker 2: I suspect that may not be the case. All we
• 5:20
  Speaker 2: can say is that Hogart is richer than Winston Winston's
• 5:23
  Speaker 2: eleventh are on the list, Willie Jackson's the Top Labor
• 5:26
  Speaker 2: Guy at seventeenth, and surprise, surprise, no Green or Capati
• 5:30
  Speaker 2: Mari MPs make the top twenty.
• 5:32
  Speaker 1: Doesn't surprise anyone. Jamie, thanks very much, really appreciate it.
• 5:35
  Speaker 1: Jamie mckaie, Host of the Country. For more from News Talks,
• 5:39
  Speaker 1: ed B, listen live on air or online, and keep
• 5:42
  Speaker 1: our shows with you wherever you go with our podcasts
• 5:45
  Speaker 1: on iHeartRadio.