Latest / Best of Business / Jamie Mackay: The Country host on Fonterra's opening shot for the 26/27 season forecast milk price

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Jamie Mackay: The Country host on Fonterra's opening shot for the 26/27 season forecast milk price · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talk sed B.
• 0:12
  Speaker 1: Follow this and our Wide Ranger podcasts now on iHeartRadio.
• 0:16
  Speaker 2: Jamie McKay, host of the Countries with.
• 0:18
  Speaker 1: Us the Rural Report with Farmland's for smarter deals on
• 0:23
  Speaker 1: big ticket investments this season.
• 0:25
  Speaker 2: How are you, Jamie?
• 0:27
  Speaker 3: Oh, well, well, I'm not as good as you actually, Heather,
• 0:30
  Speaker 3: you should be thankful for Mayor Wayne Brown. And what
• 0:33
  Speaker 3: have you got seven point nine percent or something in
• 0:35
  Speaker 3: all plind Yeah, well I'll just fast Well, I've just
• 0:39
  Speaker 3: fast forwarded through. Is it TV one or TV three
• 0:42
  Speaker 3: one of the network news channels. I was watching Dunedin
• 0:45
  Speaker 3: ten point five, Queenstown eleven point seven, So we're much
• 0:48
  Speaker 3: worse off at the bottom.
• 0:51
  Speaker 2: You elected Benedict Dong tape face, and we elected a
• 0:54
  Speaker 2: mayor who said he was going to cut the raids.
• 0:56
  Speaker 2: So it's a bit of buyer regreat, isn't it. Anyway? Listen,
• 1:00
  Speaker 2: tell me about Fonterra's opening shop for the twenty six
• 1:02
  Speaker 2: twenty seven season.
• 1:04
  Speaker 1: Yeah.
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  Speaker 3: While on Thursday we've not only got Nicholas tough Love
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  Speaker 3: Bud to look forward to, Fonterra will announce its opening shot.
• 1:12
  Speaker 3: It's a forecast milk price for the twenty six to
• 1:15
  Speaker 3: twenty seven season. Rabobank have just released a report on
• 1:19
  Speaker 3: that and they're going with the range from nine to
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  Speaker 3: fifty to ten, which is a pretty good number. I'll
• 1:24
  Speaker 3: be very surprised if it's as high as ten. But
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  Speaker 3: you've got to remember that we did finish the dairy
• 1:30
  Speaker 3: season that we've just finished with a bit of a
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  Speaker 3: wet sale. Eight of the last ten auctions went up.
• 1:36
  Speaker 3: But obviously the income, and I've always go on about this,
• 1:40
  Speaker 3: the income side of the ledge is one thing, the
• 1:43
  Speaker 3: cost sides the other. We all know what's happening in
• 1:45
  Speaker 3: the strait of the moves. It's rarely squeezing margins for
• 1:48
  Speaker 3: all businesses, not only farmers. So yes, the income's going
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  Speaker 3: to be up a starting shot between nine to fifty
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  Speaker 3: and ten's really good, but that break even price for
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  Speaker 3: production will creep up. Interestingly, global, there's been not a
• 2:03
  Speaker 3: global glot, but there's been plenty of milk on the
• 2:06
  Speaker 3: global market. But the big seven play New Zealand, Australia,
• 2:10
  Speaker 3: the US, the EU, Uruguay, Brazil and Argentina. There's a
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  Speaker 3: bit of a margin squeeze going on there. Interestingly, here
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  Speaker 3: in New Zealand where because we don't know the main
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  Speaker 3: numbers yet, we obviously haven't finished that, but for the
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  Speaker 3: eleven months up to April twenty twenty six, we're four
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  Speaker 3: percent ahead of production on the year just being and
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  Speaker 3: it looks like we're positioned to pass the annual record
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  Speaker 3: set back in twenty twenty twenty twenty one season and
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  Speaker 3: we're doing it with less cows. So good result, Yeah, brilliant.
• 2:43
  Speaker 2: How do you like that wilding pines announcement?
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  Speaker 3: Look, it's good And I went to the Federated Farmer's
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  Speaker 3: High Country field day down in south Onto a beautiful
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  Speaker 3: farm called Carnary Station, one of the best stations in
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  Speaker 3: the country, and just learned a lot about wilding pines.
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  Speaker 3: So the government's throwing an extra and I know you
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  Speaker 3: covered this one yesterday, an extra seventy nine million dollars
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  Speaker 3: at it. That's one hundred and nine all up, and
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  Speaker 3: they're going to target some of the country's worst affected areas.
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  Speaker 3: They're going to have a real crack, so says FED
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  Speaker 3: Farmer's Pest spokesperson Richard Dawkins, who's a Marlborough farmer, and
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  Speaker 3: that's one of the real hot spots in the country
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  Speaker 3: Wanica or Central Otago, Marlborough, Mackenzie Basin, Molesworth which is
• 3:28
  Speaker 3: in Marlborough, and the North Island Central Plateau. So it's
• 3:32
  Speaker 3: been severely underfunded. Wilding pines increase wildfire risk, smother native vegetation,
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  Speaker 3: reduced groundwater supplies. A handful of trees can spread seed
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  Speaker 3: via the wind all over the place. And we've got
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  Speaker 3: a bit of an issue in this country because we
• 3:51
  Speaker 3: locked up a lot of dock country. We've left it ungrazed.
• 3:54
  Speaker 3: It should have been grazed. It's been poorly managed. Merino
• 3:57
  Speaker 3: sheep and cattle given the opportunity and a bit of
• 4:00
  Speaker 3: grazing pressure can nip off some of those seedlings quite
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  Speaker 3: literally at the bud. So we're onto it. Whether another
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  Speaker 3: or whether one hundred and nine million is enough, I
• 4:10
  Speaker 3: don't know. But we've got heather two million hectares of
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  Speaker 3: wilding pines in this country. It is a real problem.
• 4:17
  Speaker 2: It really is a thank you, Jamie, appreciate it, mate,
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  Speaker 2: Good luck with everything. With your rates rise. As Jamie McKay,
• 4:22
  Speaker 2: host of the country, you see you hung up even
• 4:24
  Speaker 2: before we would turned them down. Hasty, isn't he hasty?
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  Speaker 3: To get sorry.
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  Speaker 2: I clearly need to be fast. You need to be fast,
• 4:31
  Speaker 2: but you need to be be quick trigger ants. When
• 4:34
  Speaker 2: it comes to Jamie mccochy.
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  Speaker 3: We're up against each other and like one of those
• 4:36
  Speaker 3: quiz shows where you have to buzzer and Jamie would
• 4:38
  Speaker 3: be beat me like ten mil probably every time.
• 4:42
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• 4:47
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