Latest / Best of Business / Karl Dean: Federated Farmers Dairy Chair on Fonterra reporting a 2.8 percent lift in first-half net profit to $750 million

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Karl Dean: Federated Farmers Dairy Chair on Fonterra reporting a 2.8 percent lift in first-half net profit to $750 million · Best of Business

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  Speaker 1: Ever duples see out.
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  Speaker 2: So more good news for Fonterra. The dairy co op
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  Speaker 2: has made a seven hundred and fifty million dollar profit
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  Speaker 2: after tax, beating market expectations and improving on last year's result,
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  Speaker 2: and the fore cast farm gate milk price midpoint has
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  Speaker 2: been lifted to nine dollars seventy per kg of milk solids.
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  Speaker 2: Carl Dean is the Federated Farmer's Dairy Chair is with us.
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  Speaker 3: Hi, Carl Hi the heather.
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  Speaker 2: This is great, but probably not unexpected, right, because you
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  Speaker 2: guys have been having these wonderful milk auctions.
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  Speaker 3: Yeah, like you said, we've been having I think it's
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  Speaker 3: been about five or six options in a row now
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  Speaker 3: where it's been quite an uplift. So it's not unexpected.
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  Speaker 3: And obviously there's going to be a bit of change
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  Speaker 3: with the increasing fuel price will put a hamper on
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  Speaker 3: any profits from that.
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  Speaker 2: I would imagine are you guys headed towards a ten
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  Speaker 2: dollar midpoint?
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  Speaker 3: I don't believe we'll be seeing a ten dollars It'd
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  Speaker 3: be hard to imagine that would be the case. Now
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  Speaker 3: there are futures markets sitting around the nine dollars seventy
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  Speaker 3: to eighty mark, So Fontira's got it pretty much where
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  Speaker 3: the futures are.
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  Speaker 2: Yeah, Carl, I mean you couldn't have two more different
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  Speaker 2: situations with Fonterra in Sinlay. What are you seeing in Sinlay?
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  Speaker 2: Are you seeing signs that this is getting better?
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  Speaker 3: I think it's toods that it's very hard for a
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  Speaker 3: processor if you put all your eggs in one basket
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  Speaker 3: to try to turn things around. I think in the
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  Speaker 3: report that had mentioned homework powder and that wasn't so
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  Speaker 3: flash towards the beginning of the financial years. So I
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  Speaker 3: think that they've got a strategy that they need to
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  Speaker 3: execute in terms of tuning tuning sin Lay around. But
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  Speaker 3: the main thing is they're paying farmers based on what
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  Speaker 3: Fontira is paying.
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  Speaker 2: Yeah, now tell me about your guys fuel situation in
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  Speaker 2: rural New Zealand. You've still got lots of diesel.
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  Speaker 3: I think the market for diesels is tight enough. Most
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  Speaker 3: farms are still getting diesel when they require, but obviously
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  Speaker 3: that prices always gone through the roof. In the last
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  Speaker 3: couple of weeks, you.
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  Speaker 2: Good stuff, Hey Carl, Thanks very much, Man Carl Dean
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  Speaker 2: Federated Farmer's Dairy Chair.
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