1 00:00:00,120 --> 00:00:02,440 Speaker 1: JB McKay host to the countries with me, Hey, Jamie, 2 00:00:03,040 --> 00:00:03,520 Speaker 1: go hea. 3 00:00:03,520 --> 00:00:05,519 Speaker 2: They're hard to believe it's four years. 4 00:00:05,280 --> 00:00:07,560 Speaker 1: Isn't I know, it's nutty and we thought it would 5 00:00:07,560 --> 00:00:09,400 Speaker 1: be all over within about a weekend. So you know, 6 00:00:09,440 --> 00:00:12,960 Speaker 1: credits to the Ukrainians for holding those guys back. So 7 00:00:13,119 --> 00:00:16,480 Speaker 1: Land Corp looks like it's doing okay. 8 00:00:16,560 --> 00:00:19,439 Speaker 2: Yeah, well, depending on how cynical you want to be, 9 00:00:20,000 --> 00:00:23,119 Speaker 2: and there are some cynical farmers out there saying with 10 00:00:23,560 --> 00:00:26,400 Speaker 2: record prices, anyone would be doing okay. But to be 11 00:00:26,520 --> 00:00:30,840 Speaker 2: fair to Land Corp these days known as PAMU, they 12 00:00:31,200 --> 00:00:33,400 Speaker 2: could be on track to hit their goal of a 13 00:00:33,479 --> 00:00:38,120 Speaker 2: one hundred million dollar operating profit four years earlier than planned, 14 00:00:38,120 --> 00:00:40,280 Speaker 2: because they'd hope to hit that by twenty thirty and 15 00:00:40,320 --> 00:00:43,480 Speaker 2: it looks like this year they might hit it because 16 00:00:43,520 --> 00:00:47,920 Speaker 2: they're forecasting an increased annual profit of somewhere between ninety 17 00:00:48,120 --> 00:00:50,640 Speaker 2: seven and one hundred and seven million. This would be 18 00:00:50,680 --> 00:00:53,080 Speaker 2: a very good result. It would be like about I 19 00:00:53,120 --> 00:00:56,760 Speaker 2: was talking to the chief executive today, Mark Leslie. This 20 00:00:56,800 --> 00:00:59,480 Speaker 2: would be like a five percent return on equity, which 21 00:00:59,520 --> 00:01:03,000 Speaker 2: is a farming operation isn't too bad at all, and 22 00:01:03,040 --> 00:01:06,640 Speaker 2: it's come off the back of productivity gains. That's good 23 00:01:06,640 --> 00:01:11,240 Speaker 2: farming and continued high commodity prices. Maybe that's good luck 24 00:01:11,319 --> 00:01:15,200 Speaker 2: or good fortune. So in the six month period to 25 00:01:15,240 --> 00:01:19,320 Speaker 2: December the thirty first, remembering that their financial year ends 26 00:01:19,360 --> 00:01:22,880 Speaker 2: on June thirty, I've had an eleven percent increase in 27 00:01:23,840 --> 00:01:27,039 Speaker 2: milk production off the back of only milking one point 28 00:01:27,040 --> 00:01:30,640 Speaker 2: two percent more cows. That's that's a very good result. 29 00:01:31,280 --> 00:01:37,280 Speaker 2: Livestock revenue has lifted from fifty million from fifty million 30 00:01:37,360 --> 00:01:40,319 Speaker 2: last year to seventy one million this year. Forty million 31 00:01:40,400 --> 00:01:43,720 Speaker 2: was beef, twenty four million was sheep. That's only a 32 00:01:43,760 --> 00:01:45,800 Speaker 2: half year result. A lot of that income will come 33 00:01:45,840 --> 00:01:48,400 Speaker 2: in on the second half of the year. And these 34 00:01:48,480 --> 00:01:52,120 Speaker 2: numbers do not include that these numbers were done before 35 00:01:52,160 --> 00:01:55,480 Speaker 2: Fonterra announced an increase in the farm gate forecast milk 36 00:01:55,520 --> 00:01:58,560 Speaker 2: price last week to a midpoint of nine dollars fifty 37 00:01:58,800 --> 00:02:02,000 Speaker 2: So all in all, heather good results for Parmu. But 38 00:02:02,040 --> 00:02:05,320 Speaker 2: you do have to ask the question, in these tough times, 39 00:02:05,400 --> 00:02:08,840 Speaker 2: should we be farming a two billion dollar asset or 40 00:02:08,840 --> 00:02:11,440 Speaker 2: should we be used salt and use that money to 41 00:02:11,480 --> 00:02:13,560 Speaker 2: build hospital, schools and roads. 42 00:02:13,639 --> 00:02:15,800 Speaker 1: Yeah, well, I mean I think that's It feels very 43 00:02:15,880 --> 00:02:18,320 Speaker 1: much like PAMU is being lined up for sale, possibly 44 00:02:18,360 --> 00:02:20,720 Speaker 1: after the next election. But look, what I want to 45 00:02:20,800 --> 00:02:25,040 Speaker 1: understand here is obviously the commodity prices have helped its books. 46 00:02:25,800 --> 00:02:28,240 Speaker 1: Can we sheot any of this back to Same and 47 00:02:28,240 --> 00:02:30,359 Speaker 1: Brown sending them letters and saying, listen, you need to 48 00:02:30,400 --> 00:02:32,040 Speaker 1: start running the show properly. 49 00:02:33,200 --> 00:02:37,440 Speaker 2: I think you can because previous Palmu or Land Court 50 00:02:37,520 --> 00:02:40,640 Speaker 2: management probably I'm not saying they lost their way, but 51 00:02:40,680 --> 00:02:43,200 Speaker 2: the guy marked Leslie, to be fair to him, seems 52 00:02:43,240 --> 00:02:46,480 Speaker 2: to be pretty focused. They've come almost sort of meat 53 00:02:46,520 --> 00:02:50,040 Speaker 2: and taties back to basics. They've had the message hard 54 00:02:50,040 --> 00:02:53,720 Speaker 2: and fast that they've got to return a meaningful dividend 55 00:02:54,120 --> 00:02:56,080 Speaker 2: to the government. You know, they've got one hundred million 56 00:02:56,120 --> 00:02:59,760 Speaker 2: dollar profit. That's fine and dandy. They will repay some 57 00:02:59,760 --> 00:03:03,200 Speaker 2: debts with that, they will reinvest some, but the government 58 00:03:03,240 --> 00:03:05,560 Speaker 2: gets a diffidend. I think last year they divdent, just 59 00:03:05,600 --> 00:03:08,200 Speaker 2: off the top of my head, Heather was something like 60 00:03:08,560 --> 00:03:11,320 Speaker 2: fifteen million dollars. It's obviously going to be better than that. 61 00:03:11,720 --> 00:03:14,960 Speaker 2: But if you've got a two billion dollar asset and 62 00:03:15,000 --> 00:03:19,080 Speaker 2: your netting a dividend to the government of fifteen million. 63 00:03:19,160 --> 00:03:21,119 Speaker 2: I'm not saying that's the case this year. I don't 64 00:03:21,160 --> 00:03:23,239 Speaker 2: know what the dividend will be. That is not a 65 00:03:23,320 --> 00:03:24,720 Speaker 2: very good return on investment. 66 00:03:24,880 --> 00:03:27,480 Speaker 1: I would agree with you. Now, what's Beef and Lamb's 67 00:03:27,480 --> 00:03:29,600 Speaker 1: problem with the RMA replacement legislation. 68 00:03:30,960 --> 00:03:35,800 Speaker 2: Well, strangely Beef and Lamb and Groundswell are agreeing on 69 00:03:35,840 --> 00:03:38,240 Speaker 2: this one, and I think dairy enz and fad farmers 70 00:03:38,240 --> 00:03:41,040 Speaker 2: aren't a mile away either. Look what they're saying with 71 00:03:41,120 --> 00:03:44,840 Speaker 2: the RAMA reforms is they like them. They like the intent, 72 00:03:44,920 --> 00:03:49,360 Speaker 2: they just don't like the wording. Kate Ackland, chair of 73 00:03:49,400 --> 00:03:53,000 Speaker 2: Beef and Lamb New Zealand, saying we welcome the intent. However, 74 00:03:53,360 --> 00:03:56,800 Speaker 2: the way the legislation is currently written, it's missing the 75 00:03:56,880 --> 00:03:59,520 Speaker 2: mark and farmers could be worse off. And they're worried 76 00:03:59,560 --> 00:04:05,640 Speaker 2: about more owner's requirements on permitted activities, significant issues around 77 00:04:05,640 --> 00:04:09,800 Speaker 2: fresh water plans and just consenting things that should be 78 00:04:10,120 --> 00:04:13,720 Speaker 2: a given in farming. We've got the ridiculous situation where 79 00:04:13,760 --> 00:04:18,600 Speaker 2: some farmers cannot get set consented or have potentially cannot 80 00:04:18,680 --> 00:04:23,000 Speaker 2: get consented enough water for their stock to drink. Well, 81 00:04:23,320 --> 00:04:25,800 Speaker 2: you know that's a rather dumb situation to be and 82 00:04:25,839 --> 00:04:28,559 Speaker 2: you need to have a consent so that your stock 83 00:04:28,640 --> 00:04:31,160 Speaker 2: can drink all the water they need so they can 84 00:04:32,120 --> 00:04:35,560 Speaker 2: go on and produce well. So those are some of 85 00:04:35,600 --> 00:04:39,160 Speaker 2: the issues. Look, the submissions closed on February the thirteenth. 86 00:04:39,200 --> 00:04:41,720 Speaker 2: I think Beef and Lamb got an extension for a week. 87 00:04:41,960 --> 00:04:45,080 Speaker 2: But all those industry good bodies, Beef and Lamb, dreian Z, 88 00:04:45,279 --> 00:04:48,560 Speaker 2: Federated Farmers, ground Sweller chipping in from the side, they're 89 00:04:48,600 --> 00:04:52,680 Speaker 2: all going through the submission process. So I'm hoping that 90 00:04:52,760 --> 00:04:56,920 Speaker 2: the intent from the current government will see sanity prevail, 91 00:04:57,240 --> 00:04:59,279 Speaker 2: but I don't hold my breath on that one either. 92 00:05:00,200 --> 00:05:01,920 Speaker 1: Jamie, Hey, thank you very much. Appreciate it, mate, look 93 00:05:01,920 --> 00:05:04,920 Speaker 1: after yourself. Jamie Mackay hosts of the Country. For more 94 00:05:05,000 --> 00:05:08,320 Speaker 1: from Hither Duplessy Allen Drive, listen live to news talks. 95 00:05:08,360 --> 00:05:11,520 Speaker 1: It'd be from four pm weekdays, or follow the podcast 96 00:05:11,640 --> 00:05:12,640 Speaker 1: on iHeartRadio.