1 00:00:00,080 --> 00:00:01,680 Speaker 1: On the farm. In fact, we've got a new report 2 00:00:01,720 --> 00:00:04,640 Speaker 1: on the potential of our dairy and beef sector. Rabobank 3 00:00:04,720 --> 00:00:08,080 Speaker 1: tells us the industry is at a quote strategic crossroad, 4 00:00:08,680 --> 00:00:11,960 Speaker 1: strong returns nearly two million underutilized dairy carbs though born 5 00:00:12,000 --> 00:00:13,840 Speaker 1: each year. So what we need is a coordinated effort 6 00:00:13,880 --> 00:00:17,040 Speaker 1: across breeding, reading and value chains so we can add 7 00:00:17,079 --> 00:00:20,440 Speaker 1: allegedly an extra one point two billion annually to our economy. Now, 8 00:00:20,520 --> 00:00:23,520 Speaker 1: Nathan Guys, the chair of the Meat Industry Association, and 9 00:00:23,560 --> 00:00:26,520 Speaker 1: it's back with us. Nathan, Morning, Yeah, morning, Mike, All 10 00:00:26,560 --> 00:00:27,280 Speaker 1: this makes sense. 11 00:00:28,440 --> 00:00:30,720 Speaker 2: Yeah, it's a novel idea. It's actually been talked about 12 00:00:30,800 --> 00:00:34,000 Speaker 2: for some time. I remember sitting in a lecture in 13 00:00:34,080 --> 00:00:37,160 Speaker 2: Massi University in the early nineteen nineties and Professor Steve 14 00:00:37,240 --> 00:00:40,480 Speaker 2: Morris was doing some work on the potential of young 15 00:00:40,520 --> 00:00:44,559 Speaker 2: bull beef coming into the system. What happened then was 16 00:00:44,640 --> 00:00:48,520 Speaker 2: the stars never rarely properly aligned, unlike now where we've 17 00:00:48,560 --> 00:00:52,800 Speaker 2: got the stars are aligning. We've got record returns, The 18 00:00:52,960 --> 00:00:55,560 Speaker 2: rare as are back in the system, which is very exciting. 19 00:00:57,040 --> 00:00:59,960 Speaker 2: The opportunity for this beef to come through the plants 20 00:01:00,120 --> 00:01:04,520 Speaker 2: also exciting because our meat plants do need decent throughput, 21 00:01:05,480 --> 00:01:09,480 Speaker 2: and so we've got exciting opportunities ahead. But I guess 22 00:01:09,520 --> 00:01:12,479 Speaker 2: also there's a few challenges with this report as well. 23 00:01:12,640 --> 00:01:15,480 Speaker 1: Who makes this dance work, who's coordinating all of this. 24 00:01:16,880 --> 00:01:19,399 Speaker 2: We're doing some work with Dairy and z and with 25 00:01:19,520 --> 00:01:21,959 Speaker 2: the government and we'll be talking more about a project 26 00:01:22,000 --> 00:01:25,960 Speaker 2: that's looking likely to fly very shortly. So there's an 27 00:01:25,959 --> 00:01:28,760 Speaker 2: exciting initiative there where we've all come together and realized 28 00:01:28,760 --> 00:01:33,480 Speaker 2: there's a massive opportunity. I guess returns really drive it, 29 00:01:34,200 --> 00:01:37,320 Speaker 2: and we're also cognizant of the fact that our social 30 00:01:37,360 --> 00:01:40,640 Speaker 2: license to operate, we need to reduce these young animals 31 00:01:41,520 --> 00:01:44,520 Speaker 2: and try and bring them into the system. But genetics 32 00:01:44,520 --> 00:01:47,360 Speaker 2: play a very important part. If you look at what's 33 00:01:47,360 --> 00:01:50,200 Speaker 2: happening now, you can now go and get semen that 34 00:01:50,320 --> 00:01:53,600 Speaker 2: is sexed, so you can put this into your dairy 35 00:01:53,640 --> 00:01:56,960 Speaker 2: cows and guaranteed to get a heifer, so that means 36 00:01:57,280 --> 00:02:00,160 Speaker 2: that's positive. And you can play with beef genetics in 37 00:02:00,160 --> 00:02:02,320 Speaker 2: your dairy cows and get an animal that's going to 38 00:02:02,320 --> 00:02:06,760 Speaker 2: grow faster. In the New Zealand farming system, the real 39 00:02:06,800 --> 00:02:09,079 Speaker 2: focus is to try and get an animal through before 40 00:02:09,080 --> 00:02:13,040 Speaker 2: the second winter. Because the second winter is when they're big, 41 00:02:13,120 --> 00:02:15,440 Speaker 2: they can do quite a bit of damage to soil 42 00:02:15,680 --> 00:02:18,519 Speaker 2: and of course the pasture as they're expensive to grow 43 00:02:18,560 --> 00:02:20,800 Speaker 2: through the winter as well. So there's a lot of 44 00:02:20,840 --> 00:02:23,919 Speaker 2: system change that needs to occur. And also to get 45 00:02:23,960 --> 00:02:25,880 Speaker 2: the rears into the system, they need to have a 46 00:02:25,919 --> 00:02:29,680 Speaker 2: guaranteed return when an animal is weaned at one hundred 47 00:02:29,760 --> 00:02:33,760 Speaker 2: kilos that's now happening. They also need to stand up 48 00:02:33,800 --> 00:02:36,520 Speaker 2: and get sheds. And the milk powder price is very high. 49 00:02:36,639 --> 00:02:39,400 Speaker 2: So I guess there's a lot of things at play 50 00:02:39,480 --> 00:02:42,440 Speaker 2: to get the system to work. But said at the start, 51 00:02:42,560 --> 00:02:43,760 Speaker 2: the stars are now aligning. 52 00:02:44,000 --> 00:02:47,399 Speaker 1: How does it work between on farm and where you're at? 53 00:02:47,400 --> 00:02:50,120 Speaker 1: For example, if I'm getting good returns, how many farmers 54 00:02:50,160 --> 00:02:51,920 Speaker 1: actually go You know what? I'm doing fine? At the moment, 55 00:02:51,919 --> 00:02:53,560 Speaker 1: I don't need to think too much about this. Life 56 00:02:53,639 --> 00:02:55,800 Speaker 1: is good. Therefore you don't advance, you don't grow. 57 00:02:57,400 --> 00:02:59,760 Speaker 2: Oh well, farmers have innovated for a long time mic 58 00:03:00,120 --> 00:03:04,680 Speaker 2: or decades. We've been leading the world in innovation. Seamen 59 00:03:04,800 --> 00:03:06,800 Speaker 2: sexing is one. If we look at what's happening in 60 00:03:06,800 --> 00:03:09,120 Speaker 2: innovation and meat plants, there's a hell of a lot 61 00:03:09,120 --> 00:03:14,360 Speaker 2: of investment going on in that space. Farmers react to signals. 62 00:03:14,600 --> 00:03:18,680 Speaker 2: They know that the demand is there and there is 63 00:03:18,840 --> 00:03:21,840 Speaker 2: change happening, so I think it's an exciting time. We 64 00:03:21,960 --> 00:03:25,280 Speaker 2: also know that our beef when you have a look 65 00:03:25,280 --> 00:03:28,360 Speaker 2: around the world. There's a recent report out from the 66 00:03:28,480 --> 00:03:31,040 Speaker 2: FAO that had a look at the global meat index. 67 00:03:31,520 --> 00:03:34,720 Speaker 2: It's been the highest price in July since they've been 68 00:03:34,760 --> 00:03:38,680 Speaker 2: recording records across the globe. That's very exciting for us. 69 00:03:39,120 --> 00:03:40,960 Speaker 2: We know the returns for beef are going to be 70 00:03:41,040 --> 00:03:43,280 Speaker 2: very positive for the next two or three years. So 71 00:03:44,160 --> 00:03:46,920 Speaker 2: I reckon we're in a very much sweet spot and 72 00:03:46,960 --> 00:03:48,720 Speaker 2: there is going to be a change in terms of 73 00:03:48,720 --> 00:03:53,800 Speaker 2: these young animals being taken through. So yep, exciting times ahead. 74 00:03:53,840 --> 00:03:56,080 Speaker 1: Only nice to catch up, appreciate it very much. Good insight. 75 00:03:56,160 --> 00:03:59,160 Speaker 1: Nathan Guye, chair of the New Zealand Meat Industry Association, 76 00:03:59,280 --> 00:04:02,240 Speaker 1: that somewhat of sits this morning sneeze from the dairy industry, 77 00:04:02,240 --> 00:04:05,440 Speaker 1: of course. For more from the Mic Asking Breakfast, listen 78 00:04:05,520 --> 00:04:08,440 Speaker 1: live to news Talks at b from six am weekdays, 79 00:04:08,680 --> 00:04:10,680 Speaker 1: or follow the podcast on iHeartRadio.