Latest / Best of Business / Jamie Mackay: The Country host on Fonterra's cautious optimism about the farmgate milk price payout

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Jamie Mackay: The Country host on Fonterra's cautious optimism about the farmgate milk price payout · Best of Business

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  Speaker 1: You're listening to a podcast from news Talk zed Be
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  Speaker 2: Jamie McKay hosts of the Countries with Us Jmeie got
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  Speaker 2: I hear that. How good is Fonterra?
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  Speaker 3: Pretty damn good, especially if you're a Fonterra farmer. Shareholders
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  Speaker 3: about ten thousand of them around the country, and I
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  Speaker 3: reckon they'll be turning up in Hamilton Heather in a
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  Speaker 3: couple of weeks time and possibly spending up large, especially
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  Speaker 3: when you consider the new tax incentive scheme put in
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  Speaker 3: place in the budget by the government. But getting back
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  Speaker 3: to Fonterra today, look, ten dollars is locked and loaded.
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  Speaker 3: That's the worst world's worst secret for this season, which
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  Speaker 3: we're going to finish on what Saturday night, Sunday morning.
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  Speaker 3: The really interesting number and the most eagerly awaited number
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  Speaker 3: from their Q three update today was the forecast opening
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  Speaker 3: price for the twenty five to twenty sixth season, and
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  Speaker 3: they came in at ten dollars, which was probably I
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  Speaker 3: think above market expectation. Their range is quite wide. They've
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  Speaker 3: gone eight dollars to eleven dollars. Midpoint of that would
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  Speaker 3: obviously be nine to fifty. But Miles Hurrell saying, look,
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  Speaker 3: we see really positive signs despite everything that's happening in
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  Speaker 3: the world geo politically out there. So if dairy farmers
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  Speaker 3: can get ten dollars two years in a row, that's
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  Speaker 3: great for them. It's great for the rural economy, and
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  Speaker 3: it's great for the New Zealand's economy because they are
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  Speaker 3: our biggest business. The other numbers out there, Heather, the dividend,
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  Speaker 3: I mean, they get the milk price that's ten bucks.
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  Speaker 3: What will the dividend be while judging on what Miles
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  Speaker 3: Hurrell was saying on my show that it could be
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  Speaker 3: up around fifty cents. And I looked at the share
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  Speaker 3: price today, Heather, it closed at four dollars sixty four.
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  Speaker 3: So if you get a fifty cent yield on that,
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  Speaker 3: that's a fifty per cent dividend. Should I say that's
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  Speaker 3: an eleven percent yield? Really interesting? And the other one
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  Speaker 3: out there that I threw at Miles Hurrell and he
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  Speaker 3: kind of duckted to cover a wee bit. Wouldn't put
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  Speaker 3: a number on it. Obviously it's too early. But when
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  Speaker 3: they flag off the consumer brand's business, that's going to be.
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  Speaker 3: It looks like quite a whiny for Fonterra shareholders. They
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  Speaker 3: might get back as much as two dollars per share.
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  Speaker 3: So at four dollars sixty four, take away two dollars
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  Speaker 3: the shares. Don't know them much, but do remember, Heather,
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  Speaker 3: a few years ago they were at six bucks. So
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  Speaker 3: some people who bought on a high I have got
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  Speaker 3: a wee bit of catching up today.
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  Speaker 2: Yeah, fair enough. What are you buying at Peel Days?
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  Speaker 3: Well nothing really. I was going to say a Queen
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  Speaker 3: Street farmer, Heather, but that's not quite right. I'm a
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  Speaker 3: George Street farmer here in Dunedin. So now look, I
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  Speaker 3: literally turn up there, do my show, do my interviews,
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  Speaker 3: do the client stuff, and then walk out. The only
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  Speaker 3: thing I spend in Hamilton is probably in a bar
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  Speaker 3: later on the evening. It's a very social event.
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  Speaker 2: How good, Jamie, Thank you as always, it's wonderful to
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  Speaker 2: talk to you. Go well, It's Jamie McKay, Host of
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  Speaker 2: the Country.
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