Latest / Best of Business / Jamie Mackay: The Country host on Fonterra shareholders voting to receive the tax free capital return from the Mainland sale

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Jamie Mackay: The Country host on Fonterra shareholders voting to receive the tax free capital return from the Mainland sale · Best of Business

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  Speaker 1: You're listening to a podcast from News Talk ZEDB. Follow
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  Speaker 2: Jamie mckaye, host of the Countries with Us Right now, Hi, Jamie, good,
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  Speaker 2: I hear that. So the Fonterra shareholders have said yes
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  Speaker 2: to the sale.
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  Speaker 3: Yes, shak horror. Ninety nine percent of them said yes.
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  Speaker 3: Unlike the turkeys, Heather, they voted for an early Christmas,
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  Speaker 3: so overwhelming, no surprise there. Four point two billion was
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  Speaker 3: the sale price of the mainland consumer brands to Luck
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  Speaker 3: to lease the French company. They're going to pay out
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  Speaker 3: three point two billion to the shareholders. We know all
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  Speaker 3: this two dollars per share, it's going to be something
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  Speaker 3: like nearly four hundred thousand dollars for your average Fonterra shareholder.
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  Speaker 3: Sixty percent of them will get at least a couple
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  Speaker 3: one hundred grand and they're big boys. The big suppliers
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  Speaker 3: will get two to three million dollars. So we're expecting
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  Speaker 3: this to settle before March thirty one, and then the
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  Speaker 3: capital return will take place. If you're wondering, what's happening
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  Speaker 3: to the other billion that's left over the balance of
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  Speaker 3: the sale, proceeds will be retained by the co op
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  Speaker 3: to reinvest in its ingredients and food service business. But
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  Speaker 3: that's not the big question from fonterrahead. The big question,
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  Speaker 3: and I've got Myles Hurrel on my show tomorrow and
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  Speaker 3: I'll ask him this one is when is he going
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  Speaker 3: to raise the farmgate milk price? Remember just before Christmas
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  Speaker 3: they dropped it down to a midpoint of nine. After
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  Speaker 3: nine GDT drops in a row, will We've had four
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  Speaker 3: really good options to kick off twenty twenty six, so
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  Speaker 3: I would expect sooner rather than later for that midpoint
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  Speaker 3: maybe to get up to nine dollars fifty Yep.
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  Speaker 2: Good. I like the sound of that. And speaking of
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  Speaker 2: good things, Zespury's looking pretty good.
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  Speaker 1: Ah yeah.
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  Speaker 3: It's final forecast for the twenty five twenty six season
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  Speaker 3: before it gives its final numbers out record returns or
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  Speaker 3: record returns per hectare for all fruit categories. That's the
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  Speaker 3: whole lot. Now, the likes of Zesbury Green, Organic Green
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  Speaker 3: and organic sun Gold, they've gone up in price. All
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  Speaker 3: the rest have held their own. For example, like a
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  Speaker 3: tray of Zesbury Green, the good old Chinese gooseberry that
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  Speaker 3: we remember from years and years ago. Look that is
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  Speaker 3: now up to ten dollars per tray. That is great money.
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  Speaker 3: Sun Gold the most popular ones eleven dollars seventy a tray.
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  Speaker 3: There's a significant premium. Four organic, the likes of sun
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  Speaker 3: gold it's another four dollars a tray, so up to
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  Speaker 3: about fifteen dollars eighty there. Interestingly, the per hectare returns
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  Speaker 3: for the organic versus the traditionally grown sun gold pretty
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  Speaker 3: much the same on a per hector basis, and that's
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  Speaker 3: because of the lower yield from the organic crop. So
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  Speaker 3: Zesbury have come out and said they're going they've got
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  Speaker 3: a record crop of around two hundred and fifteen million
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  Speaker 3: trays to sell. They I have no problem doing that.
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  Speaker 3: Early estimates indicate there's another record crop of two hundred
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  Speaker 3: and twenty million for the season that we've just started
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  Speaker 3: picking now. The picking for the Ruby red is underway
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  Speaker 3: now and Zespery chief executive Jason to Brak he said
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  Speaker 3: they're trying to get their marketing team out there. They're
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  Speaker 3: going to sell a large proportion of the crop early
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  Speaker 3: in the season to help avoid the late season fruit
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  Speaker 3: quality costs that they experience with sun gold last season.
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  Speaker 3: So look, Heather, Kiwi fruit going great, guns are red
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  Speaker 3: meat at Record High's Dairy on the way back up.
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  Speaker 3: It's all looking good unless you're an arable farmer and
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  Speaker 3: Canterbury where you just can't get a break.
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  Speaker 2: Yeah too right, Hey, thank you very much, as always
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  Speaker 2: Jamie Jamie mckaye, Host of the Country.
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