January 27, 2025 • 38 mins
Jamie Mackay talks to Will Wilson, Paul Paynter, Mike Petersen, Adam Thompson, Rhys Roberts, and Phil Duncan.
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Speaker 1 (00:00):
Catch all the latest from the land. It's the Country
Podcast with Jamie McKay Thanks to Brent, the starkest of
the leading agriculture brands.
Speaker 2 (00:27):
Get a New Zealand and Welcome to the Country. It's
brought to you by Brent. My name is Jamie McKay.
This is Toto, one of my favorite eighties bands. Apparently
they're coming to New Zealand. But is all that glitters gold?
Is it the original lineup? You can't beat the original
anyhow on the show today. Got a really interesting email
last night from an ad consultant by the name of
(00:48):
Will Wilson who's run a rule over the performance of
our leading agricultural companies. What he's about to say might
surprise some of you and please others. Painter as the
chief executive of Hawk's Bay based Yummy Fruit Company, one
of the biggest apple growers, if not the biggest apple
grower in the company in the country. Should I say
(01:10):
recovery two years almost two years on from cyclone, Gabrielle
was still rather painful. We'll talk to him about that. Plus,
the positive side of the story is a bit like
Kiwi fruit apples. Our apples are in high demand around
the world. Mike Petterson will continue the hawks Bay theme
with the former chair of Beef and Lamb New Zealand,
former Special Agricultural Trade Endvoy for New Zealand, current chair
(01:35):
of horticulture company Scales. He will join us on the
show Adam Thompson and Ryes Roberts. The Zander McDonald Farming
Panel missed him yesterday, We'll get him today. And Phil
Duncan out of Weather Watch missed him yesterday as well.
What's happening with our weather? What went wrong in Maunga fire?
We will ask him before the end of the hour.
But up next new blood on the country, Will Wilson.
Speaker 3 (02:03):
Two away.
Speaker 2 (02:11):
You get some interesting emails in this job. Got one
last night from a guy by the name of Will Wilson.
He said, good day, Jamie. We haven't met whoever. I
do regularly listen to you on the countries. I travel
around New Zealand in my agricultural consultancy role now coming
up to forty five years. While based in the North Island,
I do work with numerous farming clients in the South
(02:33):
Island as well, covering sheep, beef, a dare sector as
well as the dairy sector. Will Wilson. The interesting thing
about you is that you came back after your brief
Christmas break and you decided to run the ruler over
the performance of our leading agricultural companies and co ops
in this country. It'd be fair to say you got
(02:56):
interesting results. Shall we start with the star of the stable, Fonterra.
Good afternoon, by the way.
Speaker 4 (03:02):
Good afternoon, Jamie. Yes, yeah, look at look at the
the unfolding I guess of Fonterra and the current reported
financials for the last couple of years. I mean, just
what a what a really good picture of what I
think has been a strong developing governance and management team
(03:24):
and and of course based underneath that is clearly is
clearly they've got a very strong strategy and focus on
what they're looking to do. And the focus is in
fact the key. And look at what the results are
coming through it with that business.
Speaker 2 (03:38):
Yep, you're not you're not so glowing in your praise
of Sinley. Mind you you wrote this or did this
report at the beginning of the year. Of course, in
the past five days Sinlay share price has gone up
forty percent. You did your report at forty two. It
was finished yesterday at fifty eight. It's a company that's
not out of the woods yet. I suggest, no, I
(03:58):
don't think it is.
Speaker 4 (03:59):
And you look at the balance sheet issues that they've got,
which is of concern, and then I guess they're forte
into into the North Island and it looks like that's
been really quite quite an issue for the business. The
increasing the share price. Hopefully that is being seen as
(04:20):
a reflection of their reporting and their results improving. And
you'd like to think so on the basis of what's
going on internationally in dairy returns.
Speaker 2 (04:30):
Look, I want to have a look at the two
big meat co ops, Silver Fern Farms versus the Alliance.
The Alliance Group problems are well documented. Shareholders funds have
dropped from four hundred and fifty million to two hundred
and eighty eight million in the past couple of years.
You describe the Alliance co op as high risk and
poor performance, whereas with silver Fern Farms you're saying they've
(04:52):
got a strong balance sheet and they are an average
business average in this sector.
Speaker 4 (04:59):
Yeah, I think, and the comments for the Silver Firns
average in the sector really does reflect that it was
a difficult year for both businesses in the sector for
twenty twenty three, twenty four in particular, and I think
silver firms have managed themselves through that pretty well. And
of course they do have a strong balance sheet from
which to be able to handle a year like that,
(05:20):
and we've seen plenty of those over the years. Journey
where we get those really tough ones and the guys
have to fight very dollar that they're getting. By contrast
with Alliance, I mean, there is real difficulty there with
their working capital position. It's poor. It puts it at risk,
and I guess really from a supply perspective from farmers
(05:46):
supplying to a business with a very very poor working capital,
they do have to be conscious of that there is risk.
Speaker 2 (05:53):
Okay, those are the industry processing and marketing companies. Let's
have a look at the business service companies and I'll
have to whip through them, and I'm just going to
do a very brief synopsis. L I see you're saying
really good company. I guess that's reflected in their recent
results PGG Rights, and you're saying very average business, which
is better than you can do for farmlands. You're saying
(06:14):
not profitable, poor performing company when it comes to the
fertilizer co ops balance Agra nutrients, no profit or very
low profit, very average business. Ravenstown gets somewhat more of
a positive report average business in this sector. I put
it to your will without having dalving too deeply into
(06:35):
all of those that doing business in the rural servicing
sector in recent times has been tough business.
Speaker 4 (06:43):
Oh it has, it has, and look that's not been critical.
Again when we look at the impact of the twenty
three twenty four year that's come through unto these financials
for the service sector, you know, it's been tough work.
And we know when get tough on farm that the
checkbooks go. And of course the impacts are particularly on
(07:06):
the fertilizer companies on their turnovers does result and you
know we do turnover, which of course impacts on their
impacts on the ebit does, and the ability to be
able to actually keep the things really strongly and profitable.
They were profitable however, both those companies. The one that
does worry me a little bit is farm Lands. It's
(07:28):
got a very weak balance sheet, it's got a very
very low level of work in capital and as a
service business, that is a real concern.
Speaker 2 (07:38):
Hey, well, look sorry coming over the top of you again,
but I am short on time. I just want to
finish on your last segment you had to look at.
That's the land ownership or farming segment. And I want
to take a particular look at Parmu the Artist formerly
known as land Corp. There's a lot of talk out
there that we should be selling it. You've described Parmu
poor business strategy, poor governance and management, poor performing company.
(08:03):
Why the hell have we got it?
Speaker 4 (08:05):
Yeah, it's a very good question. And I mean again,
you do look at the strong strength of the balance
sheet and the return from what we're expecting out of that.
And I guess the other thing that really does disappoint
you a little bit around the underlying farming performance within
that enterprise. You know, in the twenty three twenty four year,
(08:26):
of course, the last while well at twenty six million
million dollars, thirty eight million of that was after it
received from carbon sales. If we take the carbon strategy
or component out of that business, for example, and you
know that might be a bit unfair because it might
be becoming a core of their business. We take that out,
(08:48):
the underlying performance from their livestock businesses.
Speaker 2 (08:50):
Way for go woke, go broke. Some would say, Hey,
Will Wilson, I could chat to you all day. I
haven't got time to do so, but this is really
interesting analysis. We're going to try and put this up
on our website and people can have a look at
your analysis of our leading agricultural companies. Been great to
catch up, and thank you very much for listening in
this game, Will, Every listener is a prisoner. Thanks for
(09:12):
your time.
Speaker 4 (09:13):
No worries titulated, Jamie.
Speaker 2 (09:15):
Pleasure was all mine, Will Wilson. Interesting name, isn't it?
Agg consultant, long standing, numerous government governance roles. We didn't
even get into those what he's involved with there, but
it's interesting reading. Hopefully, Michelle Watt, we can get that
up if you can format it because it's in a
big spreadsheet that confused me completely on our website so
(09:37):
people can have a lot because I's grab this here. Sorry.
He looked at other companies as well, New Zealand's Rural
Land Company. Really good company. He says, that's too complex. Conveter.
I think got the tech as well. He didn't cover scales,
(09:58):
so I'm going to ask Mike Petters about that. He
is the chair of the scales. Now Toto, as I said,
one of my favorite eighties bands back in the day
coming to New Zealand with Christopher Cross, another eighties sort
of guy. But that the Originals aren't there.
Speaker 5 (10:13):
Clearly I'm too young to realize that it's not the
Originals coming.
Speaker 2 (10:17):
Well, we'll do some homework on that, but I don't
reckon that there was two brothers involved in Toto, and
I can't see either of their names anyhow, we'll figure
that one out next. We won't figure it out next
because we're going to talk Apple's next. Nearly two years
on from Cyclone, Gabrielle, it was devastating, especially when it
hit Hawks Bay February thirteen and fourteen. Off the top
(10:40):
of my head, so we're nearly two years twenty twenty three,
how's the recovery going. We'll ask one of the country's
leading apple growers. His name is Paul Painter, Mike Petterson,
Adam Thompson, Rhys Roberts, and Phil Duncan to come before
the end of the hour, too away, a bit of
(11:10):
a hawks Bay special today on the country or it
was going to be hopefully up next or before the
end of the hour. Mike Pederson, of course, former Chair
of Beef and Land New Zealand, former Trade Envoy. These
days involved with Scales, one of our biggest horticultural exporters.
He's a bloke who exports a bit of horticulture. His
name is Paul Painter. He's the chief executive of the
(11:32):
Yummy Fruit Company and Paul I was reading a story
online recently about the recovery or lack thereof two years
on from cyclone. Gabrielle, You've got a huge orcharding operation
in Hawks Bay. How's it going well?
Speaker 3 (11:47):
We think it's going pretty well. We're doing all things
that we said we would to our bank. We've got
to be lucky enough to get one of our government
loans from CANAA, so we've got a pathway to replant.
But the challenge with those loans it's really about rehabilitating
land and bringing it back into production. But only very
(12:08):
few people receive them so far, and it doesn't allow
for broader investment. You can't go and buy innovation and
buy new technology or do anything really progressive. It's really
about rehabilitation.
Speaker 2 (12:24):
You're very worried about some of the smaller to medium
scale fruit growing operations in the Hawk's.
Speaker 3 (12:30):
Bay very worried. I mean, I think that the most
important thing to realize in these recoveries. It's kind of
about the businesses, but the most important thing is you
keep the economic engine going of your region, and you
keep employment going. And the apple business and Hawks Bay
is a huge employer.
Speaker 6 (12:48):
And if you keep people.
Speaker 3 (12:49):
And jobs and keep the money go around going, you know,
to be honest with you, I don't worry too much
about how much profit the companies are making. We've got
an economy and all the service indues are working, the
main streets buzzing, and we have somewhere that where the
money's going round and the fields alive.
Speaker 2 (13:06):
Six hundred hectares of fruit trees had to be ripped
out in hawk Spay. You alone lost one hundred and
eighty thousand trees, and you're saying two years on many
are still still dying.
Speaker 7 (13:20):
Yeah.
Speaker 3 (13:20):
While there's a lot of diseases that take a while
to kick in, most of the information says that things
like fytoth are saw disease take a couple of years
to take hold. And we're certainly seeing that some tree
is starting to flag. And I think the forecasters were
slightly smaller fruit size, and we're expecting and that again
is down to tree health and probably damage to the
(13:42):
roots after the event.
Speaker 2 (13:45):
Now, the thing I remember most about you, Paul, is
I think chatting to you, you got stuck coming back
into the country when Cyclone Gabrielle hit on in Hawk
Space case anyhow on February thirteen and fourteen, and I think,
by memory, correct me if I'm wrong, you were stuck
in the infamous jet Park hotel, the Isolation Hotel.
Speaker 4 (14:05):
Yeah, I was.
Speaker 3 (14:06):
I was stuck there for a few days, and probably
if I had me able to come back, I would
have been stuck it with maybe airport because the bridges
were either washed out or compromised potentially. So yeah, I
was stuck up there four three, four, five days I
can't remember, and eventually got a flight to partisan North
and managed to limp our way home. But certainly was
an ordeal getting back here.
Speaker 2 (14:28):
Well, let's look at the positive side of the story,
because Cyclone Gabrielle was hopefully a once in a generation,
once in a lifetime storm event. I might be tempting
fate by saying that these days, but for apples, I
look at Kiwi fruit record returns, record crop almost it's
looking very positive. Can we say the same about apples?
Speaker 4 (14:50):
I think we can.
Speaker 3 (14:51):
I mean, they talk about a slowdown in China, but
I was there a couple of weeks ago and the
place is still buzzing from what I could see. And culturally,
they spend a lot more of their income on food.
They certainly appreciate the high quality food from New Zealand
and all that it represents, and so I'm pretty optimistic
that our future is in Asia and they absolutely love
(15:15):
what New Zealand produces.
Speaker 2 (15:16):
Hawk Space having a pretty good season where it's a
good season for the pastoral farmers, what is it like
for the horticulturalists and the cropping people.
Speaker 3 (15:25):
Yeah, we had a very warm, dry spring and we
were worried about a drought, but in the last month
or so there's been a fair bit of rain. The
hillsides have greened up, and we're very happy. It's been
a great growing season. That warm, dry spring meant very
clean fruit. So I think packouts are going to be
good and fruit quality will be excellent.
Speaker 2 (15:44):
When are some of those delicious hawks by apples gonna
hit the shelves?
Speaker 3 (15:48):
We're on the shelf now. Our first variety of the
season Sweet Tengo, and it's probably on every supermarket shelf
in the country, I hope. And it's eating very well.
So probably varieties like Rural Gala will started a couple
of weeks. There are some sort of artificially ripe on
ones that probably out there now. But yeah, February, probably
mid February is when their full season starts proper.
Speaker 2 (16:11):
Yeah, February March Apple eating season. Absolutely love it. Paul Painter,
chief executive of the Yummy Fruit Company, Thanks for your time.
I always appreciate it here on the Country.
Speaker 4 (16:22):
No worries, Jamie, thank you, Paul.
Speaker 2 (16:25):
It is twenty six after twelve you're with the Country,
brought to you by Brandt Toto coming to New Zealand.
But there's not many of the originals left. The lead
singer was a guy by the name of Bobby Kimball.
Michelle tells me he had to leave the band after
selling cocaine. As you do. That was the hedonistic days
(16:46):
of the eighties. So I don't know that's going to
be like a tribute band. Are they up next? I
don't know how I segue from tribute band to Mike Patterson.
I can't really because Mike's the real dead. He's up next,
Hawks Boy farmer. We were going to be chatting to
another Hawks Bay farmer today. I was hoping to Roland Smith,
(17:07):
but he's too modest as he builds towards the Golden Shares.
Keep an eye out on him. Radio. Up next Mike
Pedison the Farmer panel to come and fill Duncan on
the weather.
Speaker 4 (17:30):
I hear the job.
Speaker 2 (17:31):
Twenty nine after twelve. You're with the country, Mike Petterson.
You've been listening into what Paul Painter had to say,
fellow hawks Bay and it's not right, is it? Fellow
resident of Hawks Bay. You're in the apple growing business. Vicariously,
I guess through scales you're the chair. It's a bit
tough for some of these growers, apparently, especially for some
(17:54):
of the smaller growers.
Speaker 6 (17:56):
He said, has been Jamie, and look, happy new year,
and I trust twenty twenty five started well for you
and all your listeners. But look, it has been tougher,
particularly on the back of the cyclone last year. And
there certainly is a lot of ground that hasn't gone
back into apples or the other horticultural crops. That were there,
and there's still a bit of financial pressure out there
(18:17):
in the sector, that's for sure.
Speaker 2 (18:19):
Those numbers were staggering and I just had to have
double take on them to check they were okay. Six
hundred hectares of fruit trees being ripped out, Yummy Fruit
Company losing one hundred and eighty thousand trees alone, and
Paul Painter saying many more, some more were still dying.
So it's not the pain isn't over yet, No, it's not.
Speaker 6 (18:40):
But I think most of the orchards, particularly where people
took remedial action quite soon after the cyclone, managed to
get those orchards back up and running. And there's also
been an opportunity for companies like us at Scales Corporation
with mister Apple to introduce some new varieties. One of
the things we do last year was we purchased, you know,
(19:03):
a portion of John Bostock's orchards and that's got new
varieties in it as well. So as far as Scales
is concerned, you know, the footprint is solid and we're
growing it there to try and make sure we get
further up the value chain.
Speaker 2 (19:15):
Well, I'm glad glad to hear that as a very minor, minor, minor,
minor shareholder, I'm very worried that the chief executive, Andy
balland waste time duck shooting in Riversdale when he could
be making more money for the company and ultimately for me.
Speaker 6 (19:30):
Absolutely, Jamie, you can be rest assured that Andy's working
is but off for all of the shareholders in the business.
But look, I think you know, look, we're actually looking
forward to a really positive year. As Paul Painter just
talked about. The season actually has been kind to hawkspay overall,
and that includes to the pastoral sector. But it's interesting,
(19:51):
you know that rain a couple of weeks in early
January is now starting to fade of it, and we've
had a few hotter days and a bit of wind
and all of a sudden summers coming back. So that's
good for the orchardous, but it's certainly given the livestock
farmers are really nice boosts as well.
Speaker 2 (20:05):
Yeah, well even Steve when Harris is apparently happy, so
it must be a good season.
Speaker 6 (20:10):
Well that's impossible, but but of course he's he's retired now,
so he will be happy.
Speaker 2 (20:16):
Yeah, of course, And talk about some of the other
hats you wear. What else is happening in your world
at the moment.
Speaker 6 (20:23):
Mike, Well, well, you talked about the trade front and Trump,
and it's been interesting to watch that. And I think,
you know, certainly in my roles is on the book
as a chair of Scars Corporation and on Ensco Foods.
I mean, we're all watching the international trade environment really closely.
And look, I think the interesting thing for me is
I think Donald Trump is going to be a lot
(20:44):
of bluster and bluster, and you saw that with Columbia
over the last couple of days, how he's used trade
and tariffs to get an outcome on something that he
that he cared about.
Speaker 2 (20:55):
But minds you, Mike, ultimately he got what he wanted, though.
Speaker 6 (20:59):
Yes he did, Jamie. But the thing for us is
that there is a risk I think that we get
caught as collateral damage in some of the actions that
he might take against some of the countries he's really targeting.
But you know, as THO as a general is concerned,
you know, I don't think we're offensive to America in
any way, particularly in an export sense and effect. We're
complimentary in many parts of the business. So look, I'm
(21:23):
actually reasonably confident that things are going to be steady
and that you know, yes, there might be some collateral damage,
but we're not the target of any of the issues
over there.
Speaker 2 (21:32):
No, we could be the byproduct of a spat between
America and China, but you know, maybe two bulls at
a gate. Who knows about that one. Winston is he
going to be our ace in our hand on this one?
In terms of his seemingly close and cozy relationship with
the US.
Speaker 6 (21:50):
I think Winston's been a very good foreign minister and
continues to be a very good foreign minister, and he
actually has a great deal of respect for others in
the same role, and in likewisey he gets suspect from
those he's meeting with, and you know, I think he's
actually going to be very good for us in these
turbulent times. It's not easy out there in the world,
(22:11):
and the world is definitely closing up. And as Vangelis Vitalis,
our lead trade Negotia would say, the golden age of
you know, free trade and open markets is over. But
that just means we have to work hard at making
sure that we can survive and thrive. And what the
new environment looks.
Speaker 2 (22:27):
Like good on you, Mike Peterson, thanks for your time
has always appreciated as always on the.
Speaker 6 (22:32):
Country, Thanks Jamie and all ab to you.
Speaker 2 (22:34):
There we go, Mike Peterson, always got a lot of
interesting stuff to say. We are going to take a break.
On the other side of it, the latest and rural news.
I better have a look at sports news. See what's
happening there. Kansas City Chiefs through to the Super Bowl Final.
I think it's the South and girl involved with the
(22:57):
Kansas City Chiefs who might tell you about that one
as well. But before the end of the hour, mister Yesterday,
the Zander McDonald Farmer Panel and Phil Duncan on the Weather,
I'm on the run, Welcome back to the Country. Twenty
(23:26):
two away from one. Christopher Cross Chris Cross is coming
with Toto to New Zealand in April. I think at
least he's the original. Just before we get the latest
and rural news from Michelle. Thanks to the Country, but
mainly to steal fort. You could win the cub Cadet
Lex five four seven ride on MOA valued at six thousand,
(23:50):
one hundred and ninety nine dollars. It's got all the
bells and whistles, will tell you more about that. But
in the meantime, just go to our webs at the
Country dot co, dot and z to enter, or text
the keyword cub cub to five double O nine and
will send you to the link to enter. There are
(24:10):
no fishhooks in this one we're giving away or Steelford
is giving away a cub Cadet alex five four seven
right on Moer. It's a magnificent price to kick off
our farming year here on the country. Here's the latest
and rural.
Speaker 1 (24:24):
News, The Country's rural News with cub Cadet New Zealand's
leading right on lawn Bower brand. Visit steel Ford dot
co dot inz for your local stockist.
Speaker 5 (24:35):
The news is continuing to get better for Canterbury Milk
company Sinlay and at sheer price climbs sixteen percent yesterday
off the back of news, is expecting to return to
profitability in the first half of the financial year. That
follows a ball out by major shareholders Bright Dairy and
A two Milk. Acting chief executive Tim Carter says the
bounce back is good, but they still have a lot
(24:56):
of work to do and that's Rural News. You can
find more at the country.
Speaker 1 (24:59):
Dot z Sport with an AFCO Kiwi to the Bone
since nineteen.
Speaker 2 (25:05):
Oh four are the now defunct consortium that back to
Perth based bid to enter leagues NRL in twenty twenty
seven was rebuffed. Despite making a revised offer of a
twenty two million dollar license fee to join the competition.
A Papa and New Guinea based franchise got the nod
instead that a politics at play there, may thinks. A
(25:27):
Trans Tasman pre season netball showdown has been locked in
for the Waikato Bay of plenty Magic. They'll take on
Supernetball's Melbourne, Vixen's and Bendigo on March the twentieth. And finally,
six members of the German track cycling team have been
injured when they were hit by a car in New YORKA.
(25:47):
Some suffered bone fractures, but none were in a critical condition.
And Michelle, I know that you do a bit of cycling.
You're a bit of an endurance athlete in a past life.
I used to be a man a bit. Seriously, you
take your life into your hands biking on the roads
of New Zealand, don't you reckon.
Speaker 5 (26:06):
I've had without discussing it too much. I've had a
couple of quite bad crashes, one up in the back
of an ambulance.
Speaker 2 (26:13):
Oh. The worst crash I ever had in the bike
is the first time I went on the training ride
with the bike with the clippings. Oh yes, and I've
never ridden one before, and I've done miss sixty or
seventy k's. I was quite pleased with myself training for
a long ride. I got up beside my truck and
I couldn't get my feet out and I just fell
over sideways. But that was the only time that ever
(26:33):
happened to me. I learned from my own stupidity. Up next,
it is the Farmer Panel, Rhys Roberts and Adam Thompson.
We missed these gentlemen yesterday, but we always get our
men here on the country. It's the Farmer Panel, Today's
Farmer Panel. In fact, I can go one better than that.
(26:55):
They are the Xander McDonald panel for this month. And
let's start with you. Adam Thompson. Can you just remind
me again what year you finished runner up to Reese Roberts.
I apologize I have to ask every time we've got
you two together.
Speaker 8 (27:12):
Yep, I think it is all two's Jamie twenty twenty
two and I came number two. Well actually I might
have came number four to be fair, but Reece definitely
came number one.
Speaker 2 (27:20):
Well, you're both outstanding contributors to New Zealand agriculture. Adam,
you've just got back to the Waycatto nursery. Of course,
you're a nurseryman, you're a mortgage broker, you're a farmer,
you're a social media star. But you've been doing one
of our great walks.
Speaker 8 (27:36):
Yeah, down in the Able Kasman with the kids, which
is bloody fantastic. Always good to get out in nature
and spend a bit of time with them, but no
really good Jamie, like camping, you know. Talking to a
lot of other punters on the track. You know, we've
got businessman from christ Church and the locals from now
someon and your ron's pretty boyant about you know, what's
happening in agriculture. I sort of foult, you know, two
or three years ago you say you're a farmer and
people go oh yeah. But now I sort of say, hey,
(27:58):
you know we farm and grow somees and people are
really positive about what's going on out there. I think
that's a really sort of important sentiment shift that people
have been told it's okay to actually be proud of
what we're doing. You know, we've done an important job.
Speaker 2 (28:10):
Actually, that was one of the positives I think out
of COVID, maybe the only one, is that a lot
of people, especially urban folk, realize how important farming and
the primary sector is to the New Zealand economy. You're
also things are pretty buoyant on your farm at the moment.
You sold cattle stores four dollars a kilogram, great money.
Speaker 8 (28:29):
Yeah, unreal, and that was just Hessay's. They are around
Christmas style. We just start of January and yeah, just exceptionally.
You know, we had a really good spring, so good
fat animals, made good money. But now we're sort of
we've got a proper whykido summer. We've actually got dry
Hells Brown Hills the first time in a couple of years,
and it's actually, you know, it's positive. I think there's
a lot of production already been had for a lot
(28:49):
of the farmers up here. The mast crops are well
established and had nothing wrong with a little bit of
dry once in a while. We expect it, so, yeah,
a little bit dry, then it has been the last couple.
Speaker 2 (28:57):
As long as it happens after Christmas, it's head to
Mid Canterbury where they were getting dry before Christmas. It's
all changed down there. Reese Roberts as the chief executive
of Aligned Farms six Farms in mid Canterbury, and Reese,
like me, one of your topics of choice today is
net zero or the net zero banking alliance. This wokeness
(29:20):
has to.
Speaker 9 (29:21):
End, you think, Jamie, Yeah, certainly. I was reading the
favor of this yesterday, and I think federal farmers come
out and in support of it, and anyone that's gone
through the punishment of listening to me ran on about it.
I've been on this case for a year. I think
you know, it's certainly the army that's sent to try
and in their eyes, clean up emissions globally. And if
(29:42):
you lock the New Zealand the petroleum companies having amatized
by twenty thirty, if that was to hit agriculture, you know,
agricultures built on access to good and reliable capital, both
in land values, being able to reinvest in our land,
but also staying in heasitive globally. So you know, I know,
(30:03):
suicidal in my view, and if you look at Trump's
certainly come in with some interesting policies, but what he
has done is he's certainly saying enough enough. And you know,
we've seen six odd banks in America pull out of it.
We've seen something Canada, and you know, I'm not a
huge believer in it personally. I think therese better ways
of restricting emissions without the banking sector of getting involved.
Speaker 2 (30:26):
Surely the market will be the ultimate decider of farmer
behavior when it comes to emissions. Ye.
Speaker 9 (30:34):
Ultimately, if you look at it from the other lens
as well as the consumer has always been the driver
of musical arming. When the consumer after lamb, we froze
it and sent it over, Then they ask the land shops,
we cut it up and sent it over. It's always
been the driver. So I think on the other end,
the consumers will always be the driver from an emissions perspective.
(30:54):
So for me, I think it sits werely with the
farmer and the consumer to come up with an aggreat
around how we take food production globally. I don't think
it's the role of credit. It should never be. The
role of credit credits roll is to make sure that
we're growing our economy and making sure it's even for
all parties.
Speaker 2 (31:13):
One of the really interesting things and innovative things you
guys are doing in the line farms is a region trial.
You've got one, I think of your dairy farms. You're
split it in half or is it more than one?
You'll tell me just one. You've split it in half
half region half traditional. How's the trial going.
Speaker 9 (31:29):
Yeah, I think we're in the year five now, and
certainly any system, regardless of what you do in a
high payout year, the more production you do, the better
more profitable you're going to be. And that's generalizing, but
it's a fairly accurate generalization. So this year, certainly we've
got some a really really strong profit coming from both
sides for that matter. But certainly our conventional system is
(31:51):
thriving under this high payout environment. So we're quite excited.
We're about to launch our new regina of yogurt into
the supermarkets in New Zealand, so we're quite optimistic about that.
You know, one of the scary things of seeing in
our supermarkets is home brands, or you know, the supermarket's
own brands are the fastest grown brands globally. At the
moment that in some cases they're outstrippering brands by three
(32:14):
to one. So you know, we don't really want these
supermarkets getting old or if you know, it's just been
completely home brand businesses. You know that's co Op's help.
But also we're going to give it a red hot
crack and try and extract a premium for it. So yeah,
this time next year we'll be able to we'll either
be looking our wounds or rolling the red cars out.
Speaker 2 (32:31):
Okay, just to wrap up the pair of you, I'll
start with you race Adam said he's getting dry and
the like haddo Mid Canterbury the opposite, I understand.
Speaker 9 (32:40):
Yeah, certainly from an area farmerspective, it's been fantastic where
they haven't been too hot, hasn't been too cold. But
our horrible rather than sisters are certainly doing a very
tough here. And you know, the dear industry is powered
by the arable sector, no doubt, whether that's through cereal
or through winter grazing, or through straw and solids, so
certainly they need some heats and quite quickly. But certainly
(33:01):
we've had a huge three sixty from where we were
three months ago. We were very very dry and now
you know we're getting rain every two or three days,
but that's been quite frustrating for our heerial growth.
Speaker 2 (33:12):
Thank you very much, Reese. Adam Thompson, let's just finish
with you got plenty of young seedlings coming up for
the planting season. You're going to cover New Zealand and natives.
Speaker 6 (33:21):
Yep.
Speaker 8 (33:21):
Now we're humming plenty of natives in the nursery, which
is great. They're all going really well, and lots of
really positive chats with farmers too. You know, I think
the sort of boots come off the head from the
regulation side of things and they really wanted to get
out there and proactively do positive things. So yeah, it's
really interesting some of the projects, the phone calls we're
having with farmers about you know, bits of extra galizy
retiring or stream side stuff and yeah it's really positive.
(33:43):
You know, farm's get a little bit of extra money
to reinvest and yeah, we're sort of call to be
a part of it.
Speaker 2 (33:49):
Yeah, you can plant other things than pine trees. Adam
Thompson from Restrare a Native Nursery and Res Roberts from
a Line Farms for Xander McDonald panel for today. Thanks
for your.
Speaker 4 (33:59):
Time, Beauty, Thank Johnny.
Speaker 2 (34:02):
Thanks guys, that has ate away from one. Now a
lot of you would fail school. Surf doesn't even exist anymore.
It's NCEEA comprehension or English. Got to listen to the instructions.
Have I got a lisp? Don't even answer that, Michelle.
So I asked you to text cub cub to five
double O nine if you wanted to win the cub
(34:23):
Cadet Alex five four seven ride on MOA valued it
six and ninety nine dollars. Well, I've got four in
a row here. I've got a club cadet, I've got
a cud as an the cow's showing its cud. I've
got another club and I've also got a tub. No
cub c ub to five double nine if you want
(34:45):
to win the ride on MOA. Phil Duncan raps the
countrys F the stuff it is. I'll go with six
away from one, getting stuck betwixt and between. Phil Duncan
(35:07):
likes Toto, he likes Africa. We're not going to talk
about Africa fill from weather Watch. We're going to talk
about Mungafi. What the hell happened there?
Speaker 7 (35:15):
Yeah, yeah, good afternoon. Some big thunderstorms rolled through overnight Saturday,
very early Sunday morning, and while most other places weren't
very windy, just directly underneath that cell was Yeah, either
a tornado or a straight line severe squall that we
don't often see in New Zealand, but we do get
them from time to time. They're very hard to forecast,
(35:36):
but they come with severe thunderstorms usually.
Speaker 2 (35:40):
Okay, that's past tense. Hopefully it's just a bit of
a one off.
Speaker 4 (35:43):
Look.
Speaker 2 (35:43):
I'm looking at my knee. We're drought index map and
see a lot of the North Island's getting dry, and
even parts of the South Island, especially likes of the
Waitaki Valley Mackenzie Country starting to get dry and interesting
for the Ordland's dry. But it's all relative. Obviously they
haven't had much rain.
Speaker 7 (35:59):
Yeahands been remarkably dry. Actually on the soil moisture mat
there were the dryest in the country. It might have
changed now, but rain is shifting in there. There was
widespread heavy rain across Canterbury over the weekend and obviously
those downpours tracking around the North Island, so there's been
relief for some places, but long range we're still seeing
maybe the upper North Island, the upper half of the
(36:20):
North Island still being in that rainfall deficit along with Canterbury,
although Canterbury, apart from those inland areas you mentioned, much
of Canterbury Plains got some good rain hopefully over the
weekend to help balance things out, Awe and the West
Coast is now starting to get rain back into the forecast,
which a lot.
Speaker 4 (36:36):
Of them want.
Speaker 2 (36:37):
Hey, Phil, taking a bit of a longer term view things,
how do you see the rest of the summer panning out?
Speaker 7 (36:43):
So the southern Ocean is still quite stormy, although not
as bad as it was, and we've seen the tropics
now starting to really wake up. So I think I
don't see any major change to our weather patterns. Someone described, well,
we were chatting this morning in a meeting, how early
December felt like spring still and December did and now
it feels like autumn. It's sort of a strange year
this year.
Speaker 4 (37:02):
I think.
Speaker 7 (37:03):
Keep an eye on the tropics. There's some energy up there,
but we're still got plenty more high pressure yet to
come through.
Speaker 2 (37:08):
Okay, And so for the dry areas eastern or western
parts of the North Island, nothing in the immediate future.
Speaker 7 (37:16):
No al though, like I said, the tropics is getting
quite busy. There are three or four lows up there.
One may even turn into a tropical cyclone in the
Coral Sea in the next ten days. It's not guaranteed,
but there's a lot of low pressure around and a
lot of rain forming up there. So if one of
those lows around Tonga drops southwards, you know, that could
bring rain to East Cape or Northland. But at this
stage it looks like high pressure is going to dominate
(37:37):
the Tasman Sea for a bit longer and that kind
of an invisible wall in the sky pushes away those
rain makers.
Speaker 2 (37:43):
Phil duncan As always appreciate your time on the Country.
Speaker 4 (37:46):
Thank you.
Speaker 2 (37:47):
There we go. Phil likes Toto. I like Toto. I'd
like to see the original band tomorrow on the show.
Very exciting. Michael every Rabobanks, Singapore based Global Stratagus. Listen
out for him. We'll catch it tomorrow.
Speaker 1 (38:04):
Catch all the latest from the Land. It's the Country
podcast with Jamie McKay. Thanks to Brent, your specialist in
John Deere Machinery
Catch all the latest from the land. It's the Country
Podcast with Jamie McKay Thanks to Brent, the starkest of
the leading agriculture brands.
Speaker 2 (00:27):
Get a New Zealand and Welcome to the Country. It's
brought to you by Brent. My name is Jamie McKay.
This is Toto, one of my favorite eighties bands. Apparently
they're coming to New Zealand. But is all that glitters gold?
Is it the original lineup? You can't beat the original
anyhow on the show today. Got a really interesting email
last night from an ad consultant by the name of
(00:48):
Will Wilson who's run a rule over the performance of
our leading agricultural companies. What he's about to say might
surprise some of you and please others. Painter as the
chief executive of Hawk's Bay based Yummy Fruit Company, one
of the biggest apple growers, if not the biggest apple
grower in the company in the country. Should I say
(01:10):
recovery two years almost two years on from cyclone, Gabrielle
was still rather painful. We'll talk to him about that. Plus,
the positive side of the story is a bit like
Kiwi fruit apples. Our apples are in high demand around
the world. Mike Petterson will continue the hawks Bay theme
with the former chair of Beef and Lamb New Zealand,
former Special Agricultural Trade Endvoy for New Zealand, current chair
(01:35):
of horticulture company Scales. He will join us on the
show Adam Thompson and Ryes Roberts. The Zander McDonald Farming
Panel missed him yesterday, We'll get him today. And Phil
Duncan out of Weather Watch missed him yesterday as well.
What's happening with our weather? What went wrong in Maunga fire?
We will ask him before the end of the hour.
But up next new blood on the country, Will Wilson.
Speaker 3 (02:03):
Two away.
Speaker 2 (02:11):
You get some interesting emails in this job. Got one
last night from a guy by the name of Will Wilson.
He said, good day, Jamie. We haven't met whoever. I
do regularly listen to you on the countries. I travel
around New Zealand in my agricultural consultancy role now coming
up to forty five years. While based in the North Island,
I do work with numerous farming clients in the South
(02:33):
Island as well, covering sheep, beef, a dare sector as
well as the dairy sector. Will Wilson. The interesting thing
about you is that you came back after your brief
Christmas break and you decided to run the ruler over
the performance of our leading agricultural companies and co ops
in this country. It'd be fair to say you got
(02:56):
interesting results. Shall we start with the star of the stable, Fonterra.
Good afternoon, by the way.
Speaker 4 (03:02):
Good afternoon, Jamie. Yes, yeah, look at look at the
the unfolding I guess of Fonterra and the current reported
financials for the last couple of years. I mean, just
what a what a really good picture of what I
think has been a strong developing governance and management team
(03:24):
and and of course based underneath that is clearly is
clearly they've got a very strong strategy and focus on
what they're looking to do. And the focus is in
fact the key. And look at what the results are
coming through it with that business.
Speaker 2 (03:38):
Yep, you're not you're not so glowing in your praise
of Sinley. Mind you you wrote this or did this
report at the beginning of the year. Of course, in
the past five days Sinlay share price has gone up
forty percent. You did your report at forty two. It
was finished yesterday at fifty eight. It's a company that's
not out of the woods yet. I suggest, no, I
(03:58):
don't think it is.
Speaker 4 (03:59):
And you look at the balance sheet issues that they've got,
which is of concern, and then I guess they're forte
into into the North Island and it looks like that's
been really quite quite an issue for the business. The
increasing the share price. Hopefully that is being seen as
(04:20):
a reflection of their reporting and their results improving. And
you'd like to think so on the basis of what's
going on internationally in dairy returns.
Speaker 2 (04:30):
Look, I want to have a look at the two
big meat co ops, Silver Fern Farms versus the Alliance.
The Alliance Group problems are well documented. Shareholders funds have
dropped from four hundred and fifty million to two hundred
and eighty eight million in the past couple of years.
You describe the Alliance co op as high risk and
poor performance, whereas with silver Fern Farms you're saying they've
(04:52):
got a strong balance sheet and they are an average
business average in this sector.
Speaker 4 (04:59):
Yeah, I think, and the comments for the Silver Firns
average in the sector really does reflect that it was
a difficult year for both businesses in the sector for
twenty twenty three, twenty four in particular, and I think
silver firms have managed themselves through that pretty well. And
of course they do have a strong balance sheet from
which to be able to handle a year like that,
(05:20):
and we've seen plenty of those over the years. Journey
where we get those really tough ones and the guys
have to fight very dollar that they're getting. By contrast
with Alliance, I mean, there is real difficulty there with
their working capital position. It's poor. It puts it at risk,
and I guess really from a supply perspective from farmers
(05:46):
supplying to a business with a very very poor working capital,
they do have to be conscious of that there is risk.
Speaker 2 (05:53):
Okay, those are the industry processing and marketing companies. Let's
have a look at the business service companies and I'll
have to whip through them, and I'm just going to
do a very brief synopsis. L I see you're saying
really good company. I guess that's reflected in their recent
results PGG Rights, and you're saying very average business, which
is better than you can do for farmlands. You're saying
(06:14):
not profitable, poor performing company when it comes to the
fertilizer co ops balance Agra nutrients, no profit or very
low profit, very average business. Ravenstown gets somewhat more of
a positive report average business in this sector. I put
it to your will without having dalving too deeply into
(06:35):
all of those that doing business in the rural servicing
sector in recent times has been tough business.
Speaker 4 (06:43):
Oh it has, it has, and look that's not been critical.
Again when we look at the impact of the twenty
three twenty four year that's come through unto these financials
for the service sector, you know, it's been tough work.
And we know when get tough on farm that the
checkbooks go. And of course the impacts are particularly on
(07:06):
the fertilizer companies on their turnovers does result and you
know we do turnover, which of course impacts on their
impacts on the ebit does, and the ability to be
able to actually keep the things really strongly and profitable.
They were profitable however, both those companies. The one that
does worry me a little bit is farm Lands. It's
(07:28):
got a very weak balance sheet, it's got a very
very low level of work in capital and as a
service business, that is a real concern.
Speaker 2 (07:38):
Hey, well, look sorry coming over the top of you again,
but I am short on time. I just want to
finish on your last segment you had to look at.
That's the land ownership or farming segment. And I want
to take a particular look at Parmu the Artist formerly
known as land Corp. There's a lot of talk out
there that we should be selling it. You've described Parmu
poor business strategy, poor governance and management, poor performing company.
(08:03):
Why the hell have we got it?
Speaker 4 (08:05):
Yeah, it's a very good question. And I mean again,
you do look at the strong strength of the balance
sheet and the return from what we're expecting out of that.
And I guess the other thing that really does disappoint
you a little bit around the underlying farming performance within
that enterprise. You know, in the twenty three twenty four year,
(08:26):
of course, the last while well at twenty six million
million dollars, thirty eight million of that was after it
received from carbon sales. If we take the carbon strategy
or component out of that business, for example, and you
know that might be a bit unfair because it might
be becoming a core of their business. We take that out,
(08:48):
the underlying performance from their livestock businesses.
Speaker 2 (08:50):
Way for go woke, go broke. Some would say, Hey,
Will Wilson, I could chat to you all day. I
haven't got time to do so, but this is really
interesting analysis. We're going to try and put this up
on our website and people can have a look at
your analysis of our leading agricultural companies. Been great to
catch up, and thank you very much for listening in
this game, Will, Every listener is a prisoner. Thanks for
(09:12):
your time.
Speaker 4 (09:13):
No worries titulated, Jamie.
Speaker 2 (09:15):
Pleasure was all mine, Will Wilson. Interesting name, isn't it?
Agg consultant, long standing, numerous government governance roles. We didn't
even get into those what he's involved with there, but
it's interesting reading. Hopefully, Michelle Watt, we can get that
up if you can format it because it's in a
big spreadsheet that confused me completely on our website so
(09:37):
people can have a lot because I's grab this here. Sorry.
He looked at other companies as well, New Zealand's Rural
Land Company. Really good company. He says, that's too complex. Conveter.
I think got the tech as well. He didn't cover scales,
(09:58):
so I'm going to ask Mike Petters about that. He
is the chair of the scales. Now Toto, as I said,
one of my favorite eighties bands back in the day
coming to New Zealand with Christopher Cross, another eighties sort
of guy. But that the Originals aren't there.
Speaker 5 (10:13):
Clearly I'm too young to realize that it's not the
Originals coming.
Speaker 2 (10:17):
Well, we'll do some homework on that, but I don't
reckon that there was two brothers involved in Toto, and
I can't see either of their names anyhow, we'll figure
that one out next. We won't figure it out next
because we're going to talk Apple's next. Nearly two years
on from Cyclone, Gabrielle, it was devastating, especially when it
hit Hawks Bay February thirteen and fourteen. Off the top
(10:40):
of my head, so we're nearly two years twenty twenty three,
how's the recovery going. We'll ask one of the country's
leading apple growers. His name is Paul Painter, Mike Petterson,
Adam Thompson, Rhys Roberts, and Phil Duncan to come before
the end of the hour, too away, a bit of
(11:10):
a hawks Bay special today on the country or it
was going to be hopefully up next or before the
end of the hour. Mike Pederson, of course, former Chair
of Beef and Land New Zealand, former Trade Envoy. These
days involved with Scales, one of our biggest horticultural exporters.
He's a bloke who exports a bit of horticulture. His
name is Paul Painter. He's the chief executive of the
(11:32):
Yummy Fruit Company and Paul I was reading a story
online recently about the recovery or lack thereof two years
on from cyclone. Gabrielle, You've got a huge orcharding operation
in Hawks Bay. How's it going well?
Speaker 3 (11:47):
We think it's going pretty well. We're doing all things
that we said we would to our bank. We've got
to be lucky enough to get one of our government
loans from CANAA, so we've got a pathway to replant.
But the challenge with those loans it's really about rehabilitating
land and bringing it back into production. But only very
(12:08):
few people receive them so far, and it doesn't allow
for broader investment. You can't go and buy innovation and
buy new technology or do anything really progressive. It's really
about rehabilitation.
Speaker 2 (12:24):
You're very worried about some of the smaller to medium
scale fruit growing operations in the Hawk's.
Speaker 3 (12:30):
Bay very worried. I mean, I think that the most
important thing to realize in these recoveries. It's kind of
about the businesses, but the most important thing is you
keep the economic engine going of your region, and you
keep employment going. And the apple business and Hawks Bay
is a huge employer.
Speaker 6 (12:48):
And if you keep people.
Speaker 3 (12:49):
And jobs and keep the money go around going, you know,
to be honest with you, I don't worry too much
about how much profit the companies are making. We've got
an economy and all the service indues are working, the
main streets buzzing, and we have somewhere that where the
money's going round and the fields alive.
Speaker 2 (13:06):
Six hundred hectares of fruit trees had to be ripped
out in hawk Spay. You alone lost one hundred and
eighty thousand trees, and you're saying two years on many
are still still dying.
Speaker 7 (13:20):
Yeah.
Speaker 3 (13:20):
While there's a lot of diseases that take a while
to kick in, most of the information says that things
like fytoth are saw disease take a couple of years
to take hold. And we're certainly seeing that some tree
is starting to flag. And I think the forecasters were
slightly smaller fruit size, and we're expecting and that again
is down to tree health and probably damage to the
(13:42):
roots after the event.
Speaker 2 (13:45):
Now, the thing I remember most about you, Paul, is
I think chatting to you, you got stuck coming back
into the country when Cyclone Gabrielle hit on in Hawk
Space case anyhow on February thirteen and fourteen, and I think,
by memory, correct me if I'm wrong, you were stuck
in the infamous jet Park hotel, the Isolation Hotel.
Speaker 4 (14:05):
Yeah, I was.
Speaker 3 (14:06):
I was stuck there for a few days, and probably
if I had me able to come back, I would
have been stuck it with maybe airport because the bridges
were either washed out or compromised potentially. So yeah, I
was stuck up there four three, four, five days I
can't remember, and eventually got a flight to partisan North
and managed to limp our way home. But certainly was
an ordeal getting back here.
Speaker 2 (14:28):
Well, let's look at the positive side of the story,
because Cyclone Gabrielle was hopefully a once in a generation,
once in a lifetime storm event. I might be tempting
fate by saying that these days, but for apples, I
look at Kiwi fruit record returns, record crop almost it's
looking very positive. Can we say the same about apples?
Speaker 4 (14:50):
I think we can.
Speaker 3 (14:51):
I mean, they talk about a slowdown in China, but
I was there a couple of weeks ago and the
place is still buzzing from what I could see. And culturally,
they spend a lot more of their income on food.
They certainly appreciate the high quality food from New Zealand
and all that it represents, and so I'm pretty optimistic
that our future is in Asia and they absolutely love
(15:15):
what New Zealand produces.
Speaker 2 (15:16):
Hawk Space having a pretty good season where it's a
good season for the pastoral farmers, what is it like
for the horticulturalists and the cropping people.
Speaker 3 (15:25):
Yeah, we had a very warm, dry spring and we
were worried about a drought, but in the last month
or so there's been a fair bit of rain. The
hillsides have greened up, and we're very happy. It's been
a great growing season. That warm, dry spring meant very
clean fruit. So I think packouts are going to be
good and fruit quality will be excellent.
Speaker 2 (15:44):
When are some of those delicious hawks by apples gonna
hit the shelves?
Speaker 3 (15:48):
We're on the shelf now. Our first variety of the
season Sweet Tengo, and it's probably on every supermarket shelf
in the country, I hope. And it's eating very well.
So probably varieties like Rural Gala will started a couple
of weeks. There are some sort of artificially ripe on
ones that probably out there now. But yeah, February, probably
mid February is when their full season starts proper.
Speaker 2 (16:11):
Yeah, February March Apple eating season. Absolutely love it. Paul Painter,
chief executive of the Yummy Fruit Company, Thanks for your time.
I always appreciate it here on the Country.
Speaker 4 (16:22):
No worries, Jamie, thank you, Paul.
Speaker 2 (16:25):
It is twenty six after twelve you're with the Country,
brought to you by Brandt Toto coming to New Zealand.
But there's not many of the originals left. The lead
singer was a guy by the name of Bobby Kimball.
Michelle tells me he had to leave the band after
selling cocaine. As you do. That was the hedonistic days
(16:46):
of the eighties. So I don't know that's going to
be like a tribute band. Are they up next? I
don't know how I segue from tribute band to Mike Patterson.
I can't really because Mike's the real dead. He's up next,
Hawks Boy farmer. We were going to be chatting to
another Hawks Bay farmer today. I was hoping to Roland Smith,
(17:07):
but he's too modest as he builds towards the Golden Shares.
Keep an eye out on him. Radio. Up next Mike
Pedison the Farmer panel to come and fill Duncan on
the weather.
Speaker 4 (17:30):
I hear the job.
Speaker 2 (17:31):
Twenty nine after twelve. You're with the country, Mike Petterson.
You've been listening into what Paul Painter had to say,
fellow hawks Bay and it's not right, is it? Fellow
resident of Hawks Bay. You're in the apple growing business. Vicariously,
I guess through scales you're the chair. It's a bit
tough for some of these growers, apparently, especially for some
(17:54):
of the smaller growers.
Speaker 6 (17:56):
He said, has been Jamie, and look, happy new year,
and I trust twenty twenty five started well for you
and all your listeners. But look, it has been tougher,
particularly on the back of the cyclone last year. And
there certainly is a lot of ground that hasn't gone
back into apples or the other horticultural crops. That were there,
and there's still a bit of financial pressure out there
(18:17):
in the sector, that's for sure.
Speaker 2 (18:19):
Those numbers were staggering and I just had to have
double take on them to check they were okay. Six
hundred hectares of fruit trees being ripped out, Yummy Fruit
Company losing one hundred and eighty thousand trees alone, and
Paul Painter saying many more, some more were still dying.
So it's not the pain isn't over yet, No, it's not.
Speaker 6 (18:40):
But I think most of the orchards, particularly where people
took remedial action quite soon after the cyclone, managed to
get those orchards back up and running. And there's also
been an opportunity for companies like us at Scales Corporation
with mister Apple to introduce some new varieties. One of
the things we do last year was we purchased, you know,
(19:03):
a portion of John Bostock's orchards and that's got new
varieties in it as well. So as far as Scales
is concerned, you know, the footprint is solid and we're
growing it there to try and make sure we get
further up the value chain.
Speaker 2 (19:15):
Well, I'm glad glad to hear that as a very minor, minor, minor,
minor shareholder, I'm very worried that the chief executive, Andy
balland waste time duck shooting in Riversdale when he could
be making more money for the company and ultimately for me.
Speaker 6 (19:30):
Absolutely, Jamie, you can be rest assured that Andy's working
is but off for all of the shareholders in the business.
But look, I think you know, look, we're actually looking
forward to a really positive year. As Paul Painter just
talked about. The season actually has been kind to hawkspay overall,
and that includes to the pastoral sector. But it's interesting,
(19:51):
you know that rain a couple of weeks in early
January is now starting to fade of it, and we've
had a few hotter days and a bit of wind
and all of a sudden summers coming back. So that's
good for the orchardous, but it's certainly given the livestock
farmers are really nice boosts as well.
Speaker 2 (20:05):
Yeah, well even Steve when Harris is apparently happy, so
it must be a good season.
Speaker 6 (20:10):
Well that's impossible, but but of course he's he's retired now,
so he will be happy.
Speaker 2 (20:16):
Yeah, of course, And talk about some of the other
hats you wear. What else is happening in your world
at the moment.
Speaker 6 (20:23):
Mike, Well, well, you talked about the trade front and Trump,
and it's been interesting to watch that. And I think,
you know, certainly in my roles is on the book
as a chair of Scars Corporation and on Ensco Foods.
I mean, we're all watching the international trade environment really closely.
And look, I think the interesting thing for me is
I think Donald Trump is going to be a lot
(20:44):
of bluster and bluster, and you saw that with Columbia
over the last couple of days, how he's used trade
and tariffs to get an outcome on something that he
that he cared about.
Speaker 2 (20:55):
But minds you, Mike, ultimately he got what he wanted, though.
Speaker 6 (20:59):
Yes he did, Jamie. But the thing for us is
that there is a risk I think that we get
caught as collateral damage in some of the actions that
he might take against some of the countries he's really targeting.
But you know, as THO as a general is concerned,
you know, I don't think we're offensive to America in
any way, particularly in an export sense and effect. We're
complimentary in many parts of the business. So look, I'm
(21:23):
actually reasonably confident that things are going to be steady
and that you know, yes, there might be some collateral damage,
but we're not the target of any of the issues
over there.
Speaker 2 (21:32):
No, we could be the byproduct of a spat between
America and China, but you know, maybe two bulls at
a gate. Who knows about that one. Winston is he
going to be our ace in our hand on this one?
In terms of his seemingly close and cozy relationship with
the US.
Speaker 6 (21:50):
I think Winston's been a very good foreign minister and
continues to be a very good foreign minister, and he
actually has a great deal of respect for others in
the same role, and in likewisey he gets suspect from
those he's meeting with, and you know, I think he's
actually going to be very good for us in these
turbulent times. It's not easy out there in the world,
(22:11):
and the world is definitely closing up. And as Vangelis Vitalis,
our lead trade Negotia would say, the golden age of
you know, free trade and open markets is over. But
that just means we have to work hard at making
sure that we can survive and thrive. And what the
new environment looks.
Speaker 2 (22:27):
Like good on you, Mike Peterson, thanks for your time
has always appreciated as always on the.
Speaker 6 (22:32):
Country, Thanks Jamie and all ab to you.
Speaker 2 (22:34):
There we go, Mike Peterson, always got a lot of
interesting stuff to say. We are going to take a break.
On the other side of it, the latest and rural news.
I better have a look at sports news. See what's
happening there. Kansas City Chiefs through to the Super Bowl Final.
I think it's the South and girl involved with the
(22:57):
Kansas City Chiefs who might tell you about that one
as well. But before the end of the hour, mister Yesterday,
the Zander McDonald Farmer Panel and Phil Duncan on the Weather,
I'm on the run, Welcome back to the Country. Twenty
(23:26):
two away from one. Christopher Cross Chris Cross is coming
with Toto to New Zealand in April. I think at
least he's the original. Just before we get the latest
and rural news from Michelle. Thanks to the Country, but
mainly to steal fort. You could win the cub Cadet
Lex five four seven ride on MOA valued at six thousand,
(23:50):
one hundred and ninety nine dollars. It's got all the
bells and whistles, will tell you more about that. But
in the meantime, just go to our webs at the
Country dot co, dot and z to enter, or text
the keyword cub cub to five double O nine and
will send you to the link to enter. There are
(24:10):
no fishhooks in this one we're giving away or Steelford
is giving away a cub Cadet alex five four seven
right on Moer. It's a magnificent price to kick off
our farming year here on the country. Here's the latest
and rural.
Speaker 1 (24:24):
News, The Country's rural News with cub Cadet New Zealand's
leading right on lawn Bower brand. Visit steel Ford dot
co dot inz for your local stockist.
Speaker 5 (24:35):
The news is continuing to get better for Canterbury Milk
company Sinlay and at sheer price climbs sixteen percent yesterday
off the back of news, is expecting to return to
profitability in the first half of the financial year. That
follows a ball out by major shareholders Bright Dairy and
A two Milk. Acting chief executive Tim Carter says the
bounce back is good, but they still have a lot
(24:56):
of work to do and that's Rural News. You can
find more at the country.
Speaker 1 (24:59):
Dot z Sport with an AFCO Kiwi to the Bone
since nineteen.
Speaker 2 (25:05):
Oh four are the now defunct consortium that back to
Perth based bid to enter leagues NRL in twenty twenty
seven was rebuffed. Despite making a revised offer of a
twenty two million dollar license fee to join the competition.
A Papa and New Guinea based franchise got the nod
instead that a politics at play there, may thinks. A
(25:27):
Trans Tasman pre season netball showdown has been locked in
for the Waikato Bay of plenty Magic. They'll take on
Supernetball's Melbourne, Vixen's and Bendigo on March the twentieth. And finally,
six members of the German track cycling team have been
injured when they were hit by a car in New YORKA.
(25:47):
Some suffered bone fractures, but none were in a critical condition.
And Michelle, I know that you do a bit of cycling.
You're a bit of an endurance athlete in a past life.
I used to be a man a bit. Seriously, you
take your life into your hands biking on the roads
of New Zealand, don't you reckon.
Speaker 5 (26:06):
I've had without discussing it too much. I've had a
couple of quite bad crashes, one up in the back
of an ambulance.
Speaker 2 (26:13):
Oh. The worst crash I ever had in the bike
is the first time I went on the training ride
with the bike with the clippings. Oh yes, and I've
never ridden one before, and I've done miss sixty or
seventy k's. I was quite pleased with myself training for
a long ride. I got up beside my truck and
I couldn't get my feet out and I just fell
over sideways. But that was the only time that ever
(26:33):
happened to me. I learned from my own stupidity. Up next,
it is the Farmer Panel, Rhys Roberts and Adam Thompson.
We missed these gentlemen yesterday, but we always get our
men here on the country. It's the Farmer Panel, Today's
Farmer Panel. In fact, I can go one better than that.
(26:55):
They are the Xander McDonald panel for this month. And
let's start with you. Adam Thompson. Can you just remind
me again what year you finished runner up to Reese Roberts.
I apologize I have to ask every time we've got
you two together.
Speaker 8 (27:12):
Yep, I think it is all two's Jamie twenty twenty
two and I came number two. Well actually I might
have came number four to be fair, but Reece definitely
came number one.
Speaker 2 (27:20):
Well, you're both outstanding contributors to New Zealand agriculture. Adam,
you've just got back to the Waycatto nursery. Of course,
you're a nurseryman, you're a mortgage broker, you're a farmer,
you're a social media star. But you've been doing one
of our great walks.
Speaker 8 (27:36):
Yeah, down in the Able Kasman with the kids, which
is bloody fantastic. Always good to get out in nature
and spend a bit of time with them, but no
really good Jamie, like camping, you know. Talking to a
lot of other punters on the track. You know, we've
got businessman from christ Church and the locals from now
someon and your ron's pretty boyant about you know, what's
happening in agriculture. I sort of foult, you know, two
or three years ago you say you're a farmer and
people go oh yeah. But now I sort of say, hey,
(27:58):
you know we farm and grow somees and people are
really positive about what's going on out there. I think
that's a really sort of important sentiment shift that people
have been told it's okay to actually be proud of
what we're doing. You know, we've done an important job.
Speaker 2 (28:10):
Actually, that was one of the positives I think out
of COVID, maybe the only one, is that a lot
of people, especially urban folk, realize how important farming and
the primary sector is to the New Zealand economy. You're
also things are pretty buoyant on your farm at the moment.
You sold cattle stores four dollars a kilogram, great money.
Speaker 8 (28:29):
Yeah, unreal, and that was just Hessay's. They are around
Christmas style. We just start of January and yeah, just exceptionally.
You know, we had a really good spring, so good
fat animals, made good money. But now we're sort of
we've got a proper whykido summer. We've actually got dry
Hells Brown Hills the first time in a couple of years,
and it's actually, you know, it's positive. I think there's
a lot of production already been had for a lot
(28:49):
of the farmers up here. The mast crops are well
established and had nothing wrong with a little bit of
dry once in a while. We expect it, so, yeah,
a little bit dry, then it has been the last couple.
Speaker 2 (28:57):
As long as it happens after Christmas, it's head to
Mid Canterbury where they were getting dry before Christmas. It's
all changed down there. Reese Roberts as the chief executive
of Aligned Farms six Farms in mid Canterbury, and Reese,
like me, one of your topics of choice today is
net zero or the net zero banking alliance. This wokeness
(29:20):
has to.
Speaker 9 (29:21):
End, you think, Jamie, Yeah, certainly. I was reading the
favor of this yesterday, and I think federal farmers come
out and in support of it, and anyone that's gone
through the punishment of listening to me ran on about it.
I've been on this case for a year. I think
you know, it's certainly the army that's sent to try
and in their eyes, clean up emissions globally. And if
(29:42):
you lock the New Zealand the petroleum companies having amatized
by twenty thirty, if that was to hit agriculture, you know,
agricultures built on access to good and reliable capital, both
in land values, being able to reinvest in our land,
but also staying in heasitive globally. So you know, I know,
(30:03):
suicidal in my view, and if you look at Trump's
certainly come in with some interesting policies, but what he
has done is he's certainly saying enough enough. And you know,
we've seen six odd banks in America pull out of it.
We've seen something Canada, and you know, I'm not a
huge believer in it personally. I think therese better ways
of restricting emissions without the banking sector of getting involved.
Speaker 2 (30:26):
Surely the market will be the ultimate decider of farmer
behavior when it comes to emissions. Ye.
Speaker 9 (30:34):
Ultimately, if you look at it from the other lens
as well as the consumer has always been the driver
of musical arming. When the consumer after lamb, we froze
it and sent it over, Then they ask the land shops,
we cut it up and sent it over. It's always
been the driver. So I think on the other end,
the consumers will always be the driver from an emissions perspective.
(30:54):
So for me, I think it sits werely with the
farmer and the consumer to come up with an aggreat
around how we take food production globally. I don't think
it's the role of credit. It should never be. The
role of credit credits roll is to make sure that
we're growing our economy and making sure it's even for
all parties.
Speaker 2 (31:13):
One of the really interesting things and innovative things you
guys are doing in the line farms is a region trial.
You've got one, I think of your dairy farms. You're
split it in half or is it more than one?
You'll tell me just one. You've split it in half
half region half traditional. How's the trial going.
Speaker 9 (31:29):
Yeah, I think we're in the year five now, and
certainly any system, regardless of what you do in a
high payout year, the more production you do, the better
more profitable you're going to be. And that's generalizing, but
it's a fairly accurate generalization. So this year, certainly we've
got some a really really strong profit coming from both
sides for that matter. But certainly our conventional system is
(31:51):
thriving under this high payout environment. So we're quite excited.
We're about to launch our new regina of yogurt into
the supermarkets in New Zealand, so we're quite optimistic about that.
You know, one of the scary things of seeing in
our supermarkets is home brands, or you know, the supermarket's
own brands are the fastest grown brands globally. At the
moment that in some cases they're outstrippering brands by three
(32:14):
to one. So you know, we don't really want these
supermarkets getting old or if you know, it's just been
completely home brand businesses. You know that's co Op's help.
But also we're going to give it a red hot
crack and try and extract a premium for it. So yeah,
this time next year we'll be able to we'll either
be looking our wounds or rolling the red cars out.
Speaker 2 (32:31):
Okay, just to wrap up the pair of you, I'll
start with you race Adam said he's getting dry and
the like haddo Mid Canterbury the opposite, I understand.
Speaker 9 (32:40):
Yeah, certainly from an area farmerspective, it's been fantastic where
they haven't been too hot, hasn't been too cold. But
our horrible rather than sisters are certainly doing a very
tough here. And you know, the dear industry is powered
by the arable sector, no doubt, whether that's through cereal
or through winter grazing, or through straw and solids, so
certainly they need some heats and quite quickly. But certainly
(33:01):
we've had a huge three sixty from where we were
three months ago. We were very very dry and now
you know we're getting rain every two or three days,
but that's been quite frustrating for our heerial growth.
Speaker 2 (33:12):
Thank you very much, Reese. Adam Thompson, let's just finish
with you got plenty of young seedlings coming up for
the planting season. You're going to cover New Zealand and natives.
Speaker 6 (33:21):
Yep.
Speaker 8 (33:21):
Now we're humming plenty of natives in the nursery, which
is great. They're all going really well, and lots of
really positive chats with farmers too. You know, I think
the sort of boots come off the head from the
regulation side of things and they really wanted to get
out there and proactively do positive things. So yeah, it's
really interesting some of the projects, the phone calls we're
having with farmers about you know, bits of extra galizy
retiring or stream side stuff and yeah it's really positive.
(33:43):
You know, farm's get a little bit of extra money
to reinvest and yeah, we're sort of call to be
a part of it.
Speaker 2 (33:49):
Yeah, you can plant other things than pine trees. Adam
Thompson from Restrare a Native Nursery and Res Roberts from
a Line Farms for Xander McDonald panel for today. Thanks
for your.
Speaker 4 (33:59):
Time, Beauty, Thank Johnny.
Speaker 2 (34:02):
Thanks guys, that has ate away from one. Now a
lot of you would fail school. Surf doesn't even exist anymore.
It's NCEEA comprehension or English. Got to listen to the instructions.
Have I got a lisp? Don't even answer that, Michelle.
So I asked you to text cub cub to five
double O nine if you wanted to win the cub
(34:23):
Cadet Alex five four seven ride on MOA valued it
six and ninety nine dollars. Well, I've got four in
a row here. I've got a club cadet, I've got
a cud as an the cow's showing its cud. I've
got another club and I've also got a tub. No
cub c ub to five double nine if you want
(34:45):
to win the ride on MOA. Phil Duncan raps the
countrys F the stuff it is. I'll go with six
away from one, getting stuck betwixt and between. Phil Duncan
(35:07):
likes Toto, he likes Africa. We're not going to talk
about Africa fill from weather Watch. We're going to talk
about Mungafi. What the hell happened there?
Speaker 7 (35:15):
Yeah, yeah, good afternoon. Some big thunderstorms rolled through overnight Saturday,
very early Sunday morning, and while most other places weren't
very windy, just directly underneath that cell was Yeah, either
a tornado or a straight line severe squall that we
don't often see in New Zealand, but we do get
them from time to time. They're very hard to forecast,
(35:36):
but they come with severe thunderstorms usually.
Speaker 2 (35:40):
Okay, that's past tense. Hopefully it's just a bit of
a one off.
Speaker 4 (35:43):
Look.
Speaker 2 (35:43):
I'm looking at my knee. We're drought index map and
see a lot of the North Island's getting dry, and
even parts of the South Island, especially likes of the
Waitaki Valley Mackenzie Country starting to get dry and interesting
for the Ordland's dry. But it's all relative. Obviously they
haven't had much rain.
Speaker 7 (35:59):
Yeahands been remarkably dry. Actually on the soil moisture mat
there were the dryest in the country. It might have
changed now, but rain is shifting in there. There was
widespread heavy rain across Canterbury over the weekend and obviously
those downpours tracking around the North Island, so there's been
relief for some places, but long range we're still seeing
maybe the upper North Island, the upper half of the
(36:20):
North Island still being in that rainfall deficit along with Canterbury,
although Canterbury, apart from those inland areas you mentioned, much
of Canterbury Plains got some good rain hopefully over the
weekend to help balance things out, Awe and the West
Coast is now starting to get rain back into the forecast,
which a lot.
Speaker 4 (36:36):
Of them want.
Speaker 2 (36:37):
Hey, Phil, taking a bit of a longer term view things,
how do you see the rest of the summer panning out?
Speaker 7 (36:43):
So the southern Ocean is still quite stormy, although not
as bad as it was, and we've seen the tropics
now starting to really wake up. So I think I
don't see any major change to our weather patterns. Someone described, well,
we were chatting this morning in a meeting, how early
December felt like spring still and December did and now
it feels like autumn. It's sort of a strange year
this year.
Speaker 4 (37:02):
I think.
Speaker 7 (37:03):
Keep an eye on the tropics. There's some energy up there,
but we're still got plenty more high pressure yet to
come through.
Speaker 2 (37:08):
Okay, And so for the dry areas eastern or western
parts of the North Island, nothing in the immediate future.
Speaker 7 (37:16):
No al though, like I said, the tropics is getting
quite busy. There are three or four lows up there.
One may even turn into a tropical cyclone in the
Coral Sea in the next ten days. It's not guaranteed,
but there's a lot of low pressure around and a
lot of rain forming up there. So if one of
those lows around Tonga drops southwards, you know, that could
bring rain to East Cape or Northland. But at this
stage it looks like high pressure is going to dominate
(37:37):
the Tasman Sea for a bit longer and that kind
of an invisible wall in the sky pushes away those
rain makers.
Speaker 2 (37:43):
Phil duncan As always appreciate your time on the Country.
Speaker 4 (37:46):
Thank you.
Speaker 2 (37:47):
There we go. Phil likes Toto. I like Toto. I'd
like to see the original band tomorrow on the show.
Very exciting. Michael every Rabobanks, Singapore based Global Stratagus. Listen
out for him. We'll catch it tomorrow.
Speaker 1 (38:04):
Catch all the latest from the Land. It's the Country
podcast with Jamie McKay. Thanks to Brent, your specialist in
John Deere Machinery
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