Latest / Best of Business / Jamie Mackay: The Country host on the golden run that's set to continue for NZ beef pricing

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Jamie Mackay: The Country host on the golden run that's set to continue for NZ beef pricing · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talk ZEDB. Follow
• 0:12
  Speaker 1: this and our wide range of podcasts now on iHeartRadio.
• 0:16
  Speaker 2: Jamie McKay is with us. Jamie is hosted The Country
• 0:19
  Speaker 2: of course here on News Talk z MB, and we
• 0:22
  Speaker 2: were talking yesterday about a whole bunch of stuff to
• 0:24
  Speaker 2: do with Fonterra. So we'll get into this now. Jamie's
• 0:27
  Speaker 2: with us.
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  Speaker 3: Hi, Jamie, Good evening, Ryan.
• 0:29
  Speaker 2: Now Fonterra is just going from strength to strength. We
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  Speaker 2: had a bit on this on the show yesterday, but
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  Speaker 2: you put it in perspective for us, how well are
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  Speaker 2: they doing well?
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  Speaker 3: They're doing very well, and I think the farmers are
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  Speaker 3: going to do pretty well this year as well. I
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  Speaker 3: guess it's more good news for dairy farmers. On top
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  Speaker 3: of what you discussed yesterday about that full year earnings
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  Speaker 3: guidance being lifted to fifty five to seventy five cents
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  Speaker 3: per share. Remembering this is on top of a ten
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  Speaker 3: dollars fore cast milk price, they're going to effectively have
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  Speaker 3: a dividend by my calculation, any anyhow of anywhere between
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  Speaker 3: thirty three and sixty cents. If it gets to sixty cents,
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  Speaker 3: it'll be the best dividend in Fonterra's history. The previous
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  Speaker 3: best was fifty five cents and the season just being
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  Speaker 3: twenty three twenty four. And to put that ten dollars
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  Speaker 3: milk price ryan into some sort of historic perspective, the
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  Speaker 3: previous best was nine dollars thirty in the twenty one
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  Speaker 3: to twenty two season. But it's generally considered that the
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  Speaker 3: eight dollars forty payout way back in twenty thirteen fourteen
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  Speaker 3: more than a decade ago, is the best inflation adjusted
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  Speaker 3: milk price in Fonterra's history. And just having a look
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  Speaker 3: at that share price earlier this afternoon, it was trading
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  Speaker 3: at four dollars eighty six. The Fonterra co Op farmer
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  Speaker 3: share price, this is the one that the farmers trade
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  Speaker 3: amongst themselves. It was languishing at just over two dollars
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  Speaker 3: in November twenty twenty three, so it's more than doubled
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  Speaker 3: in the past year, and you would have to say
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  Speaker 3: Fonterra farmers have got to be pretty happy with the
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  Speaker 3: direction Miles Hurrell and Peter McBride are driving the cooperative.
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  Speaker 2: And not just dairy of course, beef as well. We
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  Speaker 2: had a good second half last year and actually a
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  Speaker 2: good start to twenty twenty five as well for farmgate
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  Speaker 2: beef pricing.
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  Speaker 3: Well, despite Donald Trump, beef prices Ryan are at a
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  Speaker 3: record highs and they look like maintaining that Trump and
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  Speaker 3: his tariffs aside, certainly through this season. And I was
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  Speaker 3: talking to Jen Corchran out of Rabobank. They've just released
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  Speaker 3: their Q one beef quarterly report. She's saying that it's
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  Speaker 3: going to take three or four years to rebuild that
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  Speaker 3: US herd after all the issues they've had over there
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  Speaker 3: with drought and all that sort of stuff. So the
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  Speaker 3: prospect for beef for beef farmers in this country is
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  Speaker 3: pretty strong for the next three to four seasons. Despite that,
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  Speaker 3: beef production is contracting a wee bit. And also here
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  Speaker 3: in New Zealand, we're expecting our beef production to be
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  Speaker 3: down around five to six percent from year on year
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  Speaker 3: QUARTERWI twenty twenty four, and that's partly because of the
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  Speaker 3: fallout of fewer beef calfs are being read a couple
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  Speaker 3: of years ago when the prices weren't too flash. So
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  Speaker 3: I can tell you Ryan, there'll be lots of beef
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  Speaker 3: calfs read. I would imagine in New Zealand this season,
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  Speaker 3: because they're going to be worth gold and.
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  Speaker 2: Just finding you've got some receipts from the biggest carbon
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  Speaker 2: emitters in the world. How do our cows burping rank?
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  Speaker 3: Well, I think our cows burping aren't even a problem.
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  Speaker 3: I mean I have said all along, or argued all along, Ryan,
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  Speaker 3: that our farmers are carbon neutral, if not carbon positive.
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  Speaker 3: We're not counting everything on farm that sequesters carbon. Yes,
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  Speaker 3: we count the vegetation, the trees. We're not counting the
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  Speaker 3: grass or the soil. We won't go down that track today.
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  Speaker 3: But I came across an interesting fact that half of
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  Speaker 3: the world's climate heating carbon emissions come from the fossil
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  Speaker 3: fuels produced by just thirty six companies. Those thirty six
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  Speaker 3: major fossil fuel all companies were responsible for more than
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  Speaker 3: twenty billion tons of CO two emissions in twenty twenty three.
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  Speaker 3: Now listen to this one. If Saudi Aramco was a country,
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  Speaker 3: the big fossil fuel company, if it was a country,
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  Speaker 3: it would be the fourth biggest polluter in the world,
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  Speaker 3: after China, the US and India. While if Exon Mobile
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  Speaker 3: was responsible was a country, it would be responsible for
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  Speaker 3: about the same emissions as Germany, the world's ninth biggest polluter.
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  Speaker 3: So I've said all along, Ryan, and no one's changing
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  Speaker 3: my mind. Methane emitting ruminants aren't the problem. It's man
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  Speaker 3: and woman burning fossil fuels.
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  Speaker 2: Jamie, thank you for that, Jamie mckaie, Host of the Country.
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