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Jamie Mackay: The Country host on red meat prices improving after economic downturn · Best of Business

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  Speaker 1: You're listening to a podcast from Newstalk Z'B. Follow this
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  Speaker 1: and our wide range of podcasts now on iHeartRadio. Jamie mckaye,
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  Speaker 1: host of the Countries with Us Right now, Hey, Jamie diet,
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  Speaker 1: I hear that.
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  Speaker 2: Red meat prices they finally recovering. Are they well, they're
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  Speaker 2: coming off the bottom of the cycle, according to silver
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  Speaker 2: Fern Farms Chief executive Dan Bolton. Interestingly, when we crunch
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  Speaker 2: the August numbers from the Meat Industry Association, their exports
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  Speaker 2: to China, as Trumpy would say, we're down fifty percent
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  Speaker 2: to one hundred and seven million. But here's the good news.
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  Speaker 2: Maybe short term, the United States was again the largest
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  Speaker 2: market for New Zealand red meat and August seven percent
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  Speaker 2: year on year increased to one hundred and ninety eight million.
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  Speaker 2: What happens next week or after next week, we don't know.
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  Speaker 2: So the poor old sheep farmers here that they've had
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  Speaker 2: a hell of a time. They're not getting much, or
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  Speaker 2: they weren't getting much for their lamb, getting next to
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  Speaker 2: nothing for their wall. But lamb is up about a
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  Speaker 2: dollar a kilo from this time twelve months ago. We're
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  Speaker 2: starting to see some green shoots. I know you hate
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  Speaker 2: that word. In China due to the stimulus packages from
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  Speaker 2: the Chinese government and Silver Fern Farms, who's half owned
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  Speaker 2: by the Chinese, is quite optimistic ahead of the new year,
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  Speaker 2: so Bolton Dan Bolton went on to say, look, China's
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  Speaker 2: back in the market, they're being competitive. But here's the
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  Speaker 2: interesting thing. He said, the Middle East growth for our
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  Speaker 2: red meat was just eye watering and the United States
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  Speaker 2: was absolutely firing on all cylinders, pushing up farm gate
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  Speaker 2: price for ball beef. So we literally cannot supply them
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  Speaker 2: enough beef at the moment due to the drought they're
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  Speaker 2: having over there. So better times ahead for the red
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  Speaker 2: meat industry.
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  Speaker 1: What about strong wull, Well, it's.
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  Speaker 2: Funny you ask that, Heather. It's been a dog for
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  Speaker 2: a number of years. But maybe there's some light at
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  Speaker 2: the end of the tunnel for strong wallet. Today's North
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  Speaker 2: Island Napiers. The strong Will indicator was up ten cents
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  Speaker 2: to its highest point in the past three seasons. One
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  Speaker 2: hundred percent clearance rate, slightly lower exchange rate is happening
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  Speaker 2: as well, and some of the commentary from PGG Rights
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  Speaker 2: and waalin I has read their report was that some
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  Speaker 2: early U sharing is underway and the quality thus far
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  Speaker 2: looks to be excellent. So all in all, those two
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  Speaker 2: stories add up to a good news story for sheep farming.
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  Speaker 2: Yeah totally.
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  Speaker 1: Hey, listen, why isn't that broccoli might cost nine bucks ahead?
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  Speaker 1: What's going on there?
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  Speaker 2: Yeah? Weller, can you imagine that twenty seven dollars a
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  Speaker 2: kilo nine dollars ahead. There's a new report out from
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  Speaker 2: the New Zealand Institute of Economic Research which is warning
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  Speaker 2: fresh vegetable prices could increase, possibly dramatically, if the government
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  Speaker 2: doesn't move to provide a clear and workable regulatory pathway
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  Speaker 2: for vegeta production. I've quoted those numbers twenty seven dollars
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  Speaker 2: a kilo for broccoli, nine dollars ahead. Those are the
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  Speaker 2: potential veget vegetable production should I say, is cut by
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  Speaker 2: twenty percent as a result of proposed regulations aimed at
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  Speaker 2: reducing nitrogen runoffs. So this report draws on research estimating
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  Speaker 2: that a twenty percent reduction and vegetable supply should these
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  Speaker 2: regulations come and could push vegetable prices up by at
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  Speaker 2: least twenty percent, possibly one hundred percent. So yeah, we've
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  Speaker 2: got to tread warily on that one and the other
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  Speaker 2: problem we've got with vegetables hever is that some of
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  Speaker 2: our best vegetable growing land in this country is now
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  Speaker 2: growing houses.
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  Speaker 1: Very good point, Jamie, Thanks very much, mate, Jamie Mackay,
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  Speaker 1: Host of the Country. For more from News TALKSB listen
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  Speaker 1: live on air or online, and keep our shows with
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