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Jamie Mackay: The Country host on red meat prices rebounding · 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 1: this and our Wide Ranger podcasts now on iHeartRadio.
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  Speaker 2: Jamie McKay is with us, hoster of the Country Jamie.
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  Speaker 2: Good evening, so forgive me Jamie you're there. Good evening
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  Speaker 2: to you. Yeah, you got me now, got you now.
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  Speaker 2: And the red meat sector doing very very well, back
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  Speaker 2: on track for a strong rebound.
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  Speaker 3: Yeah, yeah, a couple of good news stories out in
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  Speaker 3: the last couple of days. We'll start with the red
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  Speaker 3: meat then look at the dairy one. So yeah. Look.
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  Speaker 3: Beef and Lamb New Zealand released their mid season update today.
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  Speaker 3: They did it on the on the mid Canterbury or
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  Speaker 3: Mount Summers farm of the chair of Beef and Lamb
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  Speaker 3: New Zealand, Kate Ackland, well known Canterbury farming family, and
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  Speaker 3: they're saying that export receipts a force forecast should I say,
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  Speaker 3: to increase by one point two billion on last year
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  Speaker 3: to reach ten point two billion. So obviously that's up
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  Speaker 3: from nine in the year before. And this is despite
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  Speaker 3: overall export volumes dropping, so we're sending away less and
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  Speaker 3: getting more for it. Lamb prices are forecast to reach
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  Speaker 3: one hundred and fifty five dollars per head. That's up
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  Speaker 3: twenty percent from last season, nine percent above the five
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  Speaker 3: year average. Mutton, which crashed badly in the past couple
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  Speaker 3: of years, expected to rise to ninety dollars per head.
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  Speaker 3: This is the old US of course, seventy percent increase
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  Speaker 3: on last year. Cattle prices, as we all know, at
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  Speaker 3: the moment, at record levels, and all the all beef
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  Speaker 3: rounded out price of six hundred and eighteen cents per
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  Speaker 3: kilogram is also a record high. But there's a big
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  Speaker 3: rider on that one, obviously, with Trump AND's tariff. Now
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  Speaker 3: here's the interesting one. Your average sheep and beef farmer
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  Speaker 3: Ryan will make a profit of one hundred and six thousand,
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  Speaker 3: five hundred dollars per year. And I'm guessing a lot
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  Speaker 3: of people are listening in and thinking that's really good money. Well,
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  Speaker 3: it's double last year's profit of fifty six hours. But
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  Speaker 3: just remember from that money, that one hundred and six thousand,
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  Speaker 3: they've got to pay drawings, tax, capital expenditure I replacing
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  Speaker 3: the tractor or the ut and principal repayments, so it
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  Speaker 3: doesn't actually leave that much and it's still less than
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  Speaker 3: the five year average. Just another one fact that came
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  Speaker 3: out today. Every day she can bee farmers spend fifteen
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  Speaker 3: million dollars in goods and services, with eighty to ninety
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  Speaker 3: percent of that money staying in local communities.
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  Speaker 2: No great context at you to put around that for
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  Speaker 2: people to understand, Jamie. Now, the dairy modest growth BETWEENY
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  Speaker 2: twenty five predicted. This is a Rabobank report, is it?
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  Speaker 3: Yeah, this one came out well, it came out today,
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  Speaker 3: but we were on to it yesterday. As a result,
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  Speaker 3: Rabobanks lifted its milk price forecast upwards by thirty cents
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  Speaker 3: to ten dollars per kilogram of milk solids. That's where
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  Speaker 3: Fonterra and a number of other banks are sitting in fact,
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  Speaker 3: I think asb don't quite this one their weather. Dairy
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  Speaker 3: portally export regions around the world Australia, US obviously, Argentina, Uruguay, Brazil,
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  Speaker 3: the EU and the US are expected to expand production
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  Speaker 3: by only zero point eight percent, so not much of
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  Speaker 3: an increase on world milk production there. Interestingly, twenty twenty
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  Speaker 3: four dairy exports reached a three year high, with sales
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  Speaker 3: to China following a similar trend. Now China has been
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  Speaker 3: off the boil in recent years since COVID, so it's
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  Speaker 3: good to see a bit of recovery there. Milk prices
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  Speaker 3: up two dollars on where it was a year ago.
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  Speaker 3: That's fantastic. Interstrates dropping, that's fantastic. The only rider I
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  Speaker 3: would add to that one and it's the weather. You
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  Speaker 3: can't do much about that. A lot of the North
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  Speaker 3: Island in particular is very very dry, so there is
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  Speaker 3: a risk that milk production could finish abruptly in the western,
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  Speaker 3: middle and north of the North Island.
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  Speaker 2: Jamie, thank you for that update. Jamie mckaye, host of
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  Speaker 2: the Country Here on News t B with a couple
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  Speaker 2: of bits of good news from the rural sector.
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