The Country Full Show: Monday, March 24 , 2025

Published Mar 24, 2025, 12:55 AM

Jamie Mackay talks to Ian Kirkpatrick, Claire Taylor, Jason Te Brake, Stefan Vogel, and Mark Storey. 

Catch all the latest from the land. It's the Country Podcast with Jamie McKay. Thanks to friend, you're specialist in John Deere construction equipment.

Get a New Zealand and welcome to the Country. It's brought to you by Brant Scottish theme today because very shortly our favorite Scottish Ossie Farmer slash Nuffield Scott is going to be on the show, Claire Taylor. We're going to talk to Jason Sabrak, chief executive of Zestbury. Good stories coming out of there and Mark's story Darien Zed's head of economics. Good stories coming out of the dairy industry at the moment. The one we're worried about is of course Trump and his tariffs. We're going to talk to Stefan Vogel. He's Rabobanks expert in the field. But we're going to kick off the show today by getting a legendary former All Black and farmer to pay tribute to another. Sadly, Alex Griswiley passed away over the weekend at the age of eighty. Ian Kirkpatrick joins us on the Country. The patron of New Zealand Rugby and Kirkie a sad day for you and your All Black mates, because I know you and Chris played a lot of footy together and your remained mates right to the end.

Yeah, sure did Jamie and I was a good mate Grizz over the years. Yeah, it was probably latterly more so that you know, we sort of saw each other and talk to each other quite a bit. He was part of a group in Warrington was formed by the late Doug Catley sort of you know, to address what was wrong with the game. And there's quite a few ex All Blacks and rugby people that were part of that. And yeah, so yeah, you know we we kept in contact all the time, and yeah, it was he was. He was a good makers and yes, condolences to his family. You know. Gris never really talked too much about about his illness, but which you know, which which I expected that of Gris. I mean he didn't go on about anything too much. But yes, anyway, yeah, I said that he's gone and yeah, the rest in peace.

As a young buck, you went down to Canterbury basically to make your way I think with Haimush McDonald into the into the All Blacks. So you were to cut your teeth playing at rugby for Canterbury with Gris.

Yeah, well we sent it up playing for run Or because he was Glenmark and we played, you know, we played in the Norse Canoby competition and we went round down there to farm, not to not to make make through a headway and rugby was mainly farm for some farming reasons that we went down him only managed to do cropping, which we didn't do a lot of here. And yeah, and so you know, things happened and yeah, so we there was a sort of introduction to Gris Wiley really and sort of and then there was the start of it. Yeah.

So as as young guys playing sub union rugby and Canterbury, when you played Glenmark were you were a bit fearful of him because he was no shrinking.

Violet, that's for sure. No, we had to keep an eye on them, that was sure. He was able to keep an eye on most people, so he had to watch out for them. He was a good plague grizz. You know, he had everything. He had all the skills, he was quick, he could play six, seven or eight was without any problems at all, without any adjustments that he had to play. I think he put probably for third number eight and where he could control things from his way and he was good at it too, so you know, yeah, he was. He was playing great plague Grizz. He sort of he should have played more games for the All Blacks, is no doubt about that.

You know.

There was I suppose a lot of good loose forwards around then, but you know, he was, he was right up there and just you know, he should have in my view, and I guess a lot of others too in their view with it that he should have had more games for the ABS. There's no doubt about that. He was. He was a great player, Grizz and he you know, he was passionate. He no game he would ever just go out there and have a game. Was all on with Grizz so and he was always great to have the side and those test matches that we played with each other, you know, he was he was always there and you could always rely on him and he didn't have to worry about Grizz. I mean, he was so passionate about it. He knew that he was going to be one hundred plus every game that he played, particularly when he pulled out all that jersey on. So yeah, you know he was. He was. He was great to play, with no doubt about it.

His first Test was the Second Test against the spreading Box in Africa and nineteen seventy that was the series you were never going to win because it was fifteen versus sixteen. I think you scored a try by memory when when you won that second Test. Tough tow that one. Incidentally, his last game for the All Blacks, and as you say he should have played more, was in that bizarre one off Test against England in nineteen seventy three when they lost their three provincial games and then beat the All Blacks. You were captain. His last Test was my old mate Kenny Stewart's first Test.

Yeah, exactly. I wish you hadn't sort of.

Sorry for Do you want me to play? Do you want me to play the audio if you try against the Lions in nineteen seventy one, that'll make you feel better.

No, I wouldn't take away that lasted as Heaton Parker had no worry. Yeah, that always has always been a stiicular thing with me.

I bet you it has. You know, as good as he was as a rugby player, he probably in some ways made even a bigger mark as a coach, especially like when he was coaching that Canterbury team which was in the doldrums, and then he took over in the early eighties. And I know because I was at Lincoln at the time and my wife to be was flatting with Warwick Taylor and I used to get all the stories from Warwick about how hard Chris's trainings were. He was. He was legendary hard man as a coach.

Oh for sure.

You know he was always going to be like that too. I mean that that's what that was his nature. And so he was always going to be a good coach because he didn't take you know, he didn't take fools too easily, and so he got he did things his way and they're always successful ways, so you know, they're great. Run he had with Cannoby Auklan defeated him at Lencaster Park. Yeah, I was at that game, and yeah, I mean he was, Yeah, he was always going to be a great coach, and you know, he just he would have just picked up players and they would have all wan of the players, Like you've got no idea with Grizzy, because if he didn't, you either didn't say or he got it through verbal verbal means, and so that's why he was so good as a coach, you know. And he had all these huge respect and so yeah, he was always going to be a very successful coach, which he was. Here.

Well, I ran across him a few times. He once put me in a headlock, believe it or not, poor little me and Tarny Norton's spats Alehouse in christ Church. But the last time I saw him was with you a couple of years ago here in Dunedin for the for the Bledislope Cup. He was, he was down for that. He was having a do I say, an early morning morning tea. It might have been an early bear before the game, but I reckon as he got older he mellowed a bit. I think his bark was worse than his bite.

Yeah, well it could have been. I'm not sure he was. He was something else, Griz. He didn't hold back if he wanted to say something. And you know you used to say it was with a lot of meanings. So when you're yeah, you listened, that's for sure, and everyone else. And so yeah, he was he was great, great, great mate, Chris. And yes, I he's left us that, you know, seems just you know, this life, and so it goes on. We're all going to end up in the same place in some states. So might ever be with a matter on somewhere, Well you might, of course.

Just finally, the other the other passion you and Gris Waly obviously shared was farming.

Yeah, yeah, yeah, no, he farmed up there at Omer he and yeah he was. He was a good farmer too, don't He'd farnd like he played rugby and so he was passionate about that as well. So yeah, you know, he's a talents all around, Chris, no doubt about that.

He's a legend actually, just on a light. And note there's a legendary story about Griss's mailbox too. When Ranfully won the shield, didn't they go past and leave something in the mailbox after they beat Canterbury in nineteen seventy three. I'll bet you Grizz wasn't too happy about that.

I never really heard too much about that.

I might it might just be legend and folklore. But ye, look, one of the great one, you know, one of the old school guys, and you know there's not many left now and we just want to pay tribute to him and thank you in Kirkpatrick, patron of New Zealand Rugby, for coming onto the show today and paying tribute to your old mate. It was lovely.

Pleasure, pleasure Jamie, no problem is talking about Griz. Yeah, we'll never forget him. Really. I actually had a whiskey with Andy jeffre yesedid afs then to serve wish him well. And we'll continue to do that, I think, because you know, whiskey was one of his favorite drinks, good stuff, and so we did that, so we'll keep on doing that as well.

Good on you, Kirki, Thank you very much for your time. What a lovely tribute there from an Kirkpatrick Scottish theme today, very shortly clear Taylor our favorite favorite Scottish Nuffield scholar. This is simple minds. Don't you forget about me. We're not going to forget about Gris Wilie and I'm sure has send off will be huge, huge, a huge imprint footprint if you wants on New Zealand Rugby. Oh so up next to Claire Taylor before the end of the hour, Jason to break out of zesprey gee. There's an industry the Kiwi for an industry that's going well at the moment. Stefan Vogel out of Rabobank's Sydney office on Trump and the tariffs. We're all waiting with bated breath to see what happens on April to second and Mark's story, head of economics for Darien zed Are we going to get two back to back ten dollar payouts? It'll be the first time in twenty five years since Fonterra was formed that we've had two decent payouts in a row. If it comes to pass. N Colmar.

Spy Spy now.

Great to welcome back to the country our favorite Scottish Ozzie farmer slash Nuffield scholar, in the form of Clear Taylor. Claire Taylor. We last caught up with you in August of last year. You were in the studios here in Dunedin in March of last year. I think that you are completing or about to complete the longest Snuffield scholarship in the history of Nuffield scholarships.

Clear, Hi, Jamie Screetchy back on the program. I am. Last time you spoke to me, I was visiting Australia. Now I've moved to Australia and I'm at the same Those stages of my must Field report was to on hold slightly as I moved continents, I moved to different hemispheres. But yeah, I'm getting to the end of it now, so it's yeah, the end is in sight.

Well, I played a way bit of wet wit wit love is all around into you clear here today, am, and that's what brought you to Australia. Love with a guy. By that I'm of much higher who's a former Zenda McDonald reward woner and you and you can thank Shane mcmanoway, the matchmaker, I can and I.

Laughed about it because I think it was just before I went to Australia where I met Mitch. I'd been on your program, Jamie and having everybody been warning me in New Zealand that I wasn't to meet an Aussie farmer. I was to marry a Kiwi farmer, so that made me laugh. I think it was day two of Australia I accidentally was introduced to Mitch and here I am over here later, living here, so things have definitely changed now.

Your Nufield scholarship was based around turning the tide on the anti farming agenda. Gee, I'll tell you what. You're an Aussie nel Clay, but I think your home country, Scotland needs you the why Cirkaia Stam is going tough times at home.

Yeah, it's been really difficult watching and speaking to people at home. I mean just to give your listeners a bit of a summary. They they haven't really got the background on it. Last Madjune we had the Labor Government come in to was elected into parliament. For the UK, we had a conservative government in for many years. Labor Government came in and when their first budget came out in the October, they basically announced that they were going to lift inheritance tax relief for farmers and this sent absolute shockwaves throughout the whole of the United Kingdom because they set the limit at a million pounds, so any property that was worth the value over a million would have to find twenty percent to pay back. But the problem is in the UK farmers are they're very sort of low in cash flow, but they're sitting on land assets are eye in value and it's just sent shockwaves because family farms who are they're sitting on profit margins zero point five one percent. There's no way they had the castle to pay this off and it's really sparked this upset about could this be the end of family farming, which is why we're seeing protests around the country. I mean these have been going off now since November. I was there in November. I went to some of the pro well protest rallies. It's been all sorts of things happening. But this has continued right into March. There was one only last week. So yeah, a lot of concern in Scotland right now.

Tell me about that. Yeah, tell me about the new business you've set up in Australia, but you're looking for business here in New Zealand as well, and now doubt Beck in the UK. I'll give you a shineless plug, Clay Tyler.

Yeah, So off the back of my scholarship, I wanted to put my learnings into practice and you said there, Jamie, that I've been looking at how do we turn to tide an anti farming sentiment, and a lot of that has been about how can we help farmers, how can you help different individuals business to the organizations better respond to growing scrutiny. Because you've just given the example there of the UK scrutiny is growing and farming and my business is all about basically looking at how we're communicating it and how we're advocating it. So it's advocacy consulting is what I've called it, and it's going to be looking at really amplifying the voice of agriculture more positively, and there's various things I'm doing as part of that, but I basically want to help farmers really get out with echo chambers and build relationships, build social license and put them on the front foot because I do think farming right around the world is under the cost. And yes I've moved from Scotland to Australia, but since I've been doing my scholarship, I've been so passionate about what's happening around the world and farming. We often get into the doorstep don't weave in our own country, but really it's much bigger than that. We've got to think more collaboratively globally. So that's why it's going to be all about how can I work with different countries.

Hells and you not a final question for you in Orange with the love of your life now much hight AlSi Farmen, You've been pretty dry and inline New South Wales.

Yeah, we've been really struggling. I mean I've been here ten weeks and I think I can count in two hands how many times it's rained. So you can imagine what a shock that is coming from Scotland, especially where I live in the West Coast, which it's just rain almost every day. But yeah, we had a bit of rain recently. I'm staying here in a beautiful place called Orange for about four hours west of Sydney. It's a cool climate, bit of similarity to Scotland. We're pretty famous here for our cellar doors or wine or cherries, some beautiful cattle productions, so there's part of that. It does still feel like home. And yeah, Mitch has been great moving here and he's got a fantastic business, so've been able to learn more about that. It's been a wonderful experience so far.

Well, Claire Tyler has been great to catch up. Look forward to your final publication of your Nuffield scholarship around turning the tide on the anti farming agenda. Don't be a stranger. Good luck with your new lote.

Thanks Jamie, take care, Thank.

You, Claire. Twenty seven after twelve. You're with the country Scottish music theme just for just for Claire Taylor. This is Wet, Wet, Wet. The lead singer, Marty Pallow, I think is turning sixty today. Interesting to hear Claire's comments on how tough it is in the UK at the moment with that inheritance tax. There's a big protest happening tonight or tomorrow our time, and we're going to catch up with our guy in the UK, farmer Tom Martin on tomorrow's show. Michelle Watts wandered and here, Michelle, you put the music on, or most of it. I think I chose Wet, Wet Wet, But you did say to me knowledge gap, siren alert? Are the Bay City Rollers? You're too young to remember the Bay City Rollers, but you did say are they Scottish?

Yeah, I'm kind of shocked. Why a knowledge gap? Even though I am too young to remember them, I do.

Love these songs. Yeah, well, they were known as the Tartan Terror As it might have been a bit of a giveaway we might play a wee bit of the Bay City Rollers. Some nice feedback coming in on the tribute to Gris Wiley from n Kirkpatrick, patron of New Zealand rugby one Text of Rights. He really was a legend. This is Chris So's kirky an icon, particularly in that Shield era. And I was at Lincoln when it started in nineteen eighty two and Robbie Deans. Robbie Deans actually kicked a goal in the first defense against Counties by memory, because we did nothing much Lincoln always go along on a Wednesday afternoon. I think it was a midweek game. I might be wrong, but he kicked a goal to draw the game against Counties. Otherwise they would have lost the Shield in the first defense. They went on and defended it something like twenty five times, and then Auckland took it in eighty five in the Game of the Century, and our Texas says it was quite something to be a part of the era as young kids and fans. Lancaster Park was absolutely packed for all of those defenses. Up next, Jason to break as we talk another industry on a real high at the moment.

Ki We.

News out late last week that Zesbury was expecting a record harvest two hundred and five million trays and near record returns. But here's the question Jason to Break, chief executive of Zesprey. Can we find a home for all this product?

Yeah?

Actually, we've been able to build really strong demand over a number of years with a good brand and a good product. So at the moment, we've got a good, strong demand from our customers in the market and very confidence we get into the season that we've got a home for all this fruit at good pricing for our growers as well.

How much do we send into the US, and you know why I'm asking this question around Trump and his tariffs.

Yeah, so the moment, we send probably about six to eight percent of our total product into the US. It's a developing market for US, so we're actually investing quite heavily to grow demand in North America at the moment. I mean Trump and teriffs. Look, we don't know which way that's going to fall, but probably the biggest thing that we're worried about is what's the flow on around the world through China, through Europe when he's got tariffs and stuff. So that's probably what we're waiting to see a bit more about as it comes through.

So two hundred and five million trays, that's a hell of a lot of trays, beating last year's record of one hundred and ninety million trays. Jason, it's not that long ago. I think you had an your production of one hundred and forty five million trays. Is there any danger of creating a kiwi fruit glut? I know you said you found a home for it all, but surely there must be a ceiling point at some stage. Or is this a super food that the world wants?

No, we're pretty confident that. You know, Actually, we've got good demand for the product and good demand for a good brand, and customers around the world are still wanting to spend good money on premium, high quality, consistent fruit. If you went back and a couple of years ago, we're one hundred and forty five million trays because we had cyclones and we had a whole lot of challenges that actually brought our industry quite low in terms of productivity and affects our growers. If you went back before that, we're about one hundred and seventy million trades. So it's been a steady growth. We've been able to build good demand and maintain good pricing through that cycle.

The ruby red is already on the market. It's on the ships it's about to land if it hasn't already in the likes of China. So how big a deal or how much of the pie is the red versus the gold versus the green?

Yeah, so Read's still only about two percent of our overall, the gold ends up being about sixty five sixty six percent, and then green is about thirty thirty two percent, so very very much dominated by gold. Still got a strong green in there. And then Read is the exciting one that's coming through and growing quite rapidly. Read this year will be up basically double what we did last year, with still strong demand there.

Just finally you've just forecast orchard gate returns. Let's start with the gold, the big one, between eleven and twelve to fifty a tray. What is the record price?

The record price if you think back a couple of seasons ago, we were around that's sort of mid twelve to late twelves. So I mean, we'd like to be able to push towards the higher end of that range as the season goes on, to be back at close to record pricing.

Yeah, and green eight dollars to nine fifty a tray. That's good, a good return for Green and interestingly Ruby Red has dropped a wee bit from your original forecast.

Why is that just as more volume comes on. We always said that as the category grows and we're getting more volume, you will see a little bit of dilution starting to take place. So we've probably been a bit artificially high in recent seasons and now we're starting to sort of equal out around that sort of mid fifteen to sixteen dollars portray level.

Key we for it's going to be worth four point five billion dollars to us this year. How are you getting on getting your feet under the desk, because they've been under for about a year now. As the chief executive of Zesprey, you must wake up, Jason to break and pinch yourself every morning, do you well?

I mean I've been in the role for what nine months? Eight or nine months? The team's going really well, and you know, we're in a really good place, good product, good brand, good people around the world. So look at the things are going well. But we also know that it doesn't take much a little bit of uncertainty around the world. And you've already talked about one particular person making decisions, but you know, things always pop up, so we're just trying to keep on our toes and players.

Yes we can really well.

Good on you doing a great job at Zesprey Jason to break. Thanks for your time on the country, Jeff, thank you, Jason. We're going to take a break. Michelle's got rural news and I've got sports news for you. And Winston has the election campaign begun already. Some feedback from comments he made over the weekend. You're the one to welcome back to the country. It's brought to you by Brandt very shortly the latest and rural news and sports news. But we've been following these blogs with interest. Matt Dealy and Wade Bell they're the hosts of the Feed for Thought podcast and they're having a ball taking their show on the road. They're halfway through a three week tour throughout Heartland, New Zealand called Matten Wade's Rural Roady and with fourteen different events along the way. There no slouches are this industry experts farmers sharing their experiences and networking opportunities for loore. So whether you're a farmer, grower, contractor consultant or rural professional, Matten Wade's Rural Roady offers something for everyone. This week the lads are heading through Taranaki and the Lower North Island tomorrow. They'll be in Hawara Wednesday, Oprah Keep and on from there. Next week it's the South Island's turn with stops and range Aura, Mid Canterbury, Ashburton and Simaru. As with any good rural road trip, stops will include giveaways, Barista made coffee and free lunches. To find your nearest event for mattin Wade's Rural roadye check out the tour schedule. It's A's Pioneer dot co dot nz.

The country's world news with Cob Cadet, New Zealand's leading right on Lawnbower brand. Visit steel Ford dot co dot nz for your local stockers.

So here's Michelle Watt with Rural News and Michelle. A good result for Sinlay.

Yeah, a major turnaround for Sinlay Milk. The Canterbury milk processor is reporting a four point eight million dollar half year net profit off the back of a four year earnings of sixty three point one million dollars. The result comes just half a year after Sinlay was forced to borrow from a major Chinese sheerhold to meet a deadline. Acting Chief Executive Tim Carter says it's great to return to profit but warns the next half won't be quite strong. He says there's some headwinds to face, but he believes there will still be a material year on yet improvement. And the Young Farmer of the Year regional finals continued over the weekend. This time it was in the Tasman. George Letham from Banks Peninsula Young Farmers was announced the winner, and George is no stranger to the competition. Last year he came second to George Dodson, so it could be a real battle in this grand final in July. There are only two more seats at the table for the Grand Final, with our Rangy and Otago and Southland yet to come.

All the good finalists come from Otago Southland. There's rural news for you.

Sport you afco visit them online at a fco dot co dot nz.

Actually sports news looks pretty boring, so I think the best sport might be watching Winston and David Seymour vying. I don't think he's gonna like handing the Deputy Prime the ship over to Seymour. So Winston did a State of the Nation yesterday. You've got to admire his energy if nothing else. Flew all the way back from the States, did a State of the nation, fought with the hecklers, and he's come out today and he's just posted this on Facebook. Why this is Winston's words, not mine? Why are we making a rod for our own backs being part of the Paris Accord, punishing our farmers and our taxpayers and our economy when China or the US could sneeze and produce more CO two overnight than we do in a year. That was straight from his speech yesterday. So look out. The jostling for position and policy is already starting up. Next Stephan Vogel talking about the US Trump and his tariffs. What does it mean for us? We look at that one next. A recent report out from Rabobanks said the USA's relatively small trade death with New Zealand has so far helped to keep our food and agri exports off the US trade terraff queil of misfortune. But the terraff threat remains, so says the guy who wrote the report, Ravo Research GM Australia. In New Zealand Stephan Vogel out of Sydney, Stephan, are we on tariff death row with America?

Well, let's put it this way, we are probably not on the Wheel of Misfortune's top list. So clearly, if you think about it, the US is using different ways of assessing shall I impose tariffs on another region or not. The first one usually just goes and says, well, you guys are close to me Canada and Mexico and across your borders. There are coming plenty of refugees in my country, and I want to limit that as a US president. So with that there has been quite a bit of pressure on Canada, Mexico, and obviously always China is that mix as well, not for refugee reasons, but clearly more for the reason of other historic trade relations. And their argument these days is often that there is material coming in that is used for drug production, so that Canada, Mexico, and China are the top of the list, which is first of all, good, We're not close to them, We're not of that ranks. But then the second way of that the US president is looking at terraffs is often in terms of is the country that I'm intending to impose terris on actually running a deficit or a surplus of trade with me. So the US obviously always loss if other countries spend more money on US products than the US is spending on importing products from that country. Unfortunately, as a total, New Zealand has a bit of a problem there, so we are actually shipping more to the US than the US is buying is selling to the New Zealand market.

Chohan is obviously the biggest tride deficit, followed by Mexico. Interestingly, in third places Vietnam. What has Trump done to Vietnam so far, not.

So much, and that gives us a bit of hope that right now he actually doesn't tackle every of those countries immediately, but really focuses on a few and as that North America's neighbors are in the mix. The reason where if you think about New Zealand, why we might be actually a little bit worried about it, is actually twelve and a half to thirteen percent of our agricultural exports as New Zealand actually move into that US market. So we're talking about a number slightly above five billion New Zealand dollars worth of goods that last year went over, the US has grown quite a bit, so that number actually has almost doubled in the last eight nine years. So with that we need to watch the products like beef, dairy, sheet meat, and probably also things like wine as well as some of the kiwi fruit, and there we actually don't expect that we're right away in a really bad spot. But if you think about beef, New Zealand as well as Australia are key export suppliers into that market, and so is Canada and Mexico. So if Canada and Mexico would face a tariff, and that one is all the time in the talks here, so with that, if they get twenty five percent tariff, there might actually be a little bit of a benefit for us that we could see that there's even stronger demand for New Zealand products.

So sorry, Stephen, we've really got to watch out obviously on the beef and the wine. But you talked about dairy as well, and it's a significant export market, but only only six percent of our total dairy exports are going there, so perhaps we can pivot with the dairy one. I just want to wrap this if I can, by just asking you, what do you expect to happen on April the second.

And nobody knows.

Trump has posted Farmers of America be prepared. I'm going to put some Harris on agriculture. Nobody knows what's going to happen. But as you said, for dairy, it is a rather small volume that goes over there from the total production, less than ten percent. While if we're looking at meat, especially for the b side of things, that is an important part, a very big destination, the largest we have these days. For wine, it is a very important destination. So those products are probably more at risk than the dairy side.

We well white with bited breath to see what he comes up with between now and April the second. You probably change his mind's mind, should I say a few times if he's true to form. Stefan Vogel out of Rabobanks Sydney Office, Thanks for some of your time today on the country.

Thanks for having me, and I agree with you. I hope that he changes things because very often there is a big diversion, big messages, big headlines, and then nothing happens because he gets something else done he actually wanted to get done. So maybe not much happens in a couple of days when we hit April too.

You might remember last week dairy en Zed came out with a new season forecast and they threw this one out there. Could the twenty five to twenty six season, i e. Next season be one for the history books? Could we get to ten dollars payouts in a row? Let's crunch the numbers with Dairy and Z's head of economics, Mark Story and Mark. In twenty five years of Fonterra, we've never had two really good payout years in a row. What chance this year and next year?

Hi, Jamie? Yeah, cautiously courtiously optimistic going into next season, As he said, we don't if you look back at the last twenty five years, and farmers will be well aware of this. When we had a really good payout season, it's often been followed by quite a sharp four. Actually that's you know. Every time we've had a payout by some real term it's been above ten dollars, it's been followed by four the year after this year, we're hoping we'll break that curse.

Yeah, I remember the big remember the big payout of was was it twenty thirteen? Fourteen? Off the top of my head, eight dollars something and then it literally halved to the next season. It was a bit brutal, okay, So a ten dollar payouts one thing that's good. You guys are predicting what ten dollars for for this season and ten dollars thirteen for next season. But the cost of production or the break even milk price stands at just over eight dollars fifty for both of those seasons. It's stubbornly high. Are we going to see that drop off the back of falling interest rates?

It is stubbornly high. It partly effects did on farm inflation. We've had that sort of coming in the last couple of years. That infation's sort of coming off, and the cost of borrowing are definitely easing in twenty five to twenty six. That also affects that break even milk price. It's not just the price of your inputs, it's actually the use of the inputs. So that also effects that we check farmers to be have been putting more input on to the farm in the last season and next, and that's partly in response to a positive milk price, and it's partly partly responses to catching up with with previous seasons when they're sort of backed off on fertilizer. And the final thing is we're the conditions which have been prevalent in different parts of the country.

So it's not just.

Expenses, reflects what farmers are are putting on in terms of both the price and quantity.

Obviously a lot of North Island farmers are going big on the supplements with a ten dollar payout. It's a mathematical equation. As I like to say, you put it in one end, you get it out the other, and it works at ten dollars. Of course, the elephant in the room, the orange elephant, as I like to call them our tongue in cheek, of course, is Donald Trump and his tariffs. Nobody knows geopolitically what's going to happen in the world in the next year to eighteen months, in fact, for the next three and a half years.

Yeah, that's why, you know, it's always it's always a bit thought coming out with a forecast the next season a couple of months ahead, and in partecular before before front here have given us there their first forecast of the season as well, So it's always a bit it's always a bit fought with risky. You know, you can only call it as you see it at the time, but definitely no one knows really which how those tariff disputes might play out. There could be there could be shock effects for us, there could be opportunities for us that come out of it, and we don't quite know what will mean for the value of the dollar either, so that will be quite a fundamental to the picture Mark's story.

Let's finish very quickly on e Coon Tracker. That's the tool you've got at Dairy and Z. Farmers can go onto this site and have a look and compare their farms to like farms and therefore be able to crunch the numbers on their performance.

Yes, we have that, you know. We publish our e contractors our major economic tool for economic data on our Dairy int your website. The reason we publish our forecast now is to help farmers with your financial planning for the season. They yet, You've got a detailed breakdown of farm financial forecasts both nationally and by region and by different ownership types on the econtractor, and it's designed to basically look at both the storical and a future forecast and you can sort of compare your farms darted to those averages, and we update it at least quarterly or more more often depending on you know, significant announcements in terms of forecast, farmgate, milk price or other developments.

Daariz dot co, dot in z board, slash econ Tracker one word, Mark's Story, Dairy and Zed head of Economics. Thanks for your time today on the Country.

Thank you, Jamie, cheers, but thank you Mark.

And Matt wraps the Country on the day where we remember with sadness the passing of Alex Swally wrist in pace. We'll catch you back tomorrow.

Catch all the latest from the land. It's the Country podcast with Jamie Mgue. Thanks to Brent starkest of the leading agriculture brands.

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