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Karl Dean: Federated Farmers Dairy Chair on the opening milk price forecast · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Have you said thank God for dairy lately? You should.
• 0:02
  Speaker 1: Our dairy sector is racking up win after win. I
• 0:06
  Speaker 1: fon Terra's operating profit for its third quarter top one
• 0:09
  Speaker 1: point eight billion dollars. That's a billion with a B,
• 0:12
  Speaker 1: and that is up one hundred and three million dollars.
• 0:14
  Speaker 1: The long term outlook is where the real excitement is though.
• 0:16
  Speaker 1: For farmers. They're they're predicting a farm gate milk price
• 0:19
  Speaker 1: of around nine dollars seventy five for the twenty six
• 0:21
  Speaker 1: to twenty seven season, and milk solids might even hit
• 0:25
  Speaker 1: eleven dollars a kilo. So the fed Farmer's dairy chair
• 0:29
  Speaker 1: is Carl Dean, who joins me this morning.
• 0:31
  Speaker 2: Hello, Hello Carl, Oh, good morning, Andrew.
• 0:35
  Speaker 1: I'm very good. How are you? You must be chuffed?
• 0:37
  Speaker 1: Gold golden era for dairy.
• 0:40
  Speaker 2: It is definitely feel little golden ear of fidery at
• 0:43
  Speaker 2: the moment. That is, especially after the season we've just
• 0:45
  Speaker 2: had of great growing season and a great milk for
• 0:50
  Speaker 2: us that are predicted to end this season at seventy
• 0:54
  Speaker 2: after last year ten dollars and.
• 0:56
  Speaker 1: The world's hunger for protein, so they wanting to buy us.
• 1:00
  Speaker 2: Does yeah, yeah, And Normally we see when we've got
• 1:04
  Speaker 2: increased production, the prices start to ease. And at the
• 1:08
  Speaker 2: moment and all counts as looking positive for the price
• 1:14
  Speaker 2: for the coming year.
• 1:16
  Speaker 1: So is there any more upside? I mean, if we're
• 1:18
  Speaker 1: producing at great levels and they're buying a great levels,
• 1:22
  Speaker 1: the question is is there any more growth in there?
• 1:26
  Speaker 2: I guess the world's population has always got potential growth
• 1:31
  Speaker 2: for protein consumption. So we hear, I hear, you know,
• 1:36
  Speaker 2: we're not going to work dairy summit. For instance, in
• 1:39
  Speaker 2: Chili last year they said the amount of the growth
• 1:43
  Speaker 2: in the dairy protein sector seman to continue for another
• 1:46
  Speaker 2: fifteen to twenty years as we have more people moving
• 1:50
  Speaker 2: to the middle middle income of society. So yeah, it
• 1:57
  Speaker 2: doesn't seem to be a pause of that. There might
• 2:00
  Speaker 2: be some plateauing in the future years, but it will
• 2:03
  Speaker 2: come back again.
• 2:04
  Speaker 1: And how will this positive outlook, certainly for the next
• 2:07
  Speaker 1: twelve months of not eighteen months, if not more, How
• 2:10
  Speaker 1: will that affect the way farmers are planning the operation
• 2:13
  Speaker 1: of their farms.
• 2:16
  Speaker 2: Well, I suppose at the moment, obviously farms will be
• 2:19
  Speaker 2: fairly cautious about the spay out because it is an
• 2:21
  Speaker 2: eight dollars to eleven dollar range, So Montia has got
• 2:25
  Speaker 2: a bit of easiness in there, and the fact that
• 2:28
  Speaker 2: it could go down to eight fifty eight dollars and
• 2:32
  Speaker 2: they have warned the farmers of that, but I guess
• 2:35
  Speaker 2: the long term average does look good, so that that
• 2:39
  Speaker 2: for farmers means they have confidence to make sure they
• 2:42
  Speaker 2: keep investing in infrastructure, keep investing in technology, and keep
• 2:46
  Speaker 2: investing in people.
• 2:48
  Speaker 1: Okay, And how farmers feeling about the budget.
• 2:52
  Speaker 2: Well, I think farmers are that will be okay with
• 2:55
  Speaker 2: the budget. There's nothing that's amazing in there. It's a
• 2:59
  Speaker 2: pretty you've proven budget, which is what most farmers would
• 3:02
  Speaker 2: expect our government to be doing when they're indeed.
• 3:06
  Speaker 1: Good stuff. Carl, thank you so much for getting up early,
• 3:08
  Speaker 1: though I guess it's not actually early for you. Kyl
• 3:11
  Speaker 1: is the Fed Parmas Dairy chair. And there's some good news.
• 3:13
  Speaker 1: There's always a little bit of good news. It's always
• 3:16
  Speaker 1: a bit of good news, isn't it.
• 3:18
  Speaker 2: For more from Early Edition with Ryan Bridge, listen live
• 3:21
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• 3:24
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