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Speaker 1: Right, farmers are getting a record payday. Fonterra has delivered

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Speaker 1: one of its best results ever, with a net profit

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Speaker 1: at one point I wait billion dollars shares, a jump

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Speaker 1: to just over six dollars, the high since twenty and eighteen,

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Speaker 1: and shareholders get a record divid in a fifty seven

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Speaker 1: cents a share. Carl Dean, the Federated Farmer's Dairy Terror

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Speaker 1: is with me now. Good morning, Thanks for your time, Carl,

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Speaker 1: Good morning, record record results across the board. How have

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Speaker 1: you the farmers today?

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Speaker 2: I think fathers are pretty esthetic about hearing a strong

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Speaker 2: farm rate nook price as well as a very strong dividend.

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Speaker 1: Like you said, where will that money go with their

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Speaker 1: investments that need to be made or debt to pay down.

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Speaker 2: I think it's very important to realize that deer farmers

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Speaker 2: actually haven't had very a great rate of return or

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Speaker 2: a great profit with the high on farm costs the

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Speaker 2: last two to three seasons. So a lot of us

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Speaker 2: is probably going back into bank, back into paying do

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Speaker 2: some capital projects that have been put on hold for

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Speaker 2: the last couple of years, all those sort of things

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Speaker 2: that we like to do. You know, we only have

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Speaker 2: the opportunity to do it for a couple of years.

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Speaker 2: When they're doing there is actually profit made. More importantly, yes,

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Speaker 2: there will be some obviously some tasks even for the government.

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Speaker 1: Hence we all benefit. Right. Do you think farmers will

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Speaker 1: also store some of that money away for a rainy

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Speaker 1: day rather than sort of having a wild time at

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Speaker 1: field days next year?

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Speaker 2: I think most farmers. You know, we've been around around

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Speaker 2: quite a while, I suppose, and we know that there's

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Speaker 2: not normally two record payouts.

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Speaker 1: Right.

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Speaker 2: The last time there was a record, then there was

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Speaker 2: a quite a significant drop the following season. So sometimes

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Speaker 2: there's things that are one off. Sometimes they might stay

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Speaker 2: out for two seasons, but normally it does.

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Speaker 1: I'm down again, so expectations are in check. How much

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Speaker 1: is Fontierra kept for itself, Carl.

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Speaker 2: I don't believe frontiers information outside. I haven't seen any information.

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Speaker 1: On that was under the impression that they had kept

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Speaker 1: a substantial amounts themselves, which I was just wondering, you

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Speaker 1: know how if that's the right decision given the current

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Speaker 1: economic and trade out lockes.

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Speaker 2: Yeah, I think they have obviously get some of the

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Speaker 2: earnings per year about stained eighteen cents, and then they

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Speaker 2: are obviously going to if the divestment went through, there's

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Speaker 2: mony of that that would stay in the corporative as well.

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Speaker 1: Someone made a comment in the newsroom, gosh, you know,

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Speaker 1: do you think that there might be a little bit

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Speaker 1: of angst from regular Kiwi's doing it tough, that they'll

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Speaker 1: see this great result and get jealous, And I thought,

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Speaker 1: I don't think so. We all will benefit from the

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Speaker 1: start with Carl, farmers are at the forefront of our

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Speaker 1: economic recovery.

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Speaker 2: Yes, well, I've said that at the end of the day,

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Speaker 2: profit means tax. That's probably the key thing that people

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Speaker 2: have to realize is when farmers are making a profit,

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Speaker 2: that means that the text takes heart and that all

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Speaker 2: helps when it comes to devetments able to spend money.

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Speaker 1: So in summary, Carl, farmers are ecstatic today, but they're

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Speaker 1: being cautious and you know about about the future. Pretty

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Speaker 1: much sums it up.

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Speaker 2: Yes, yes, we all are under the understanding that, yeah,

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Speaker 2: costs may come up again and income they drop.

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Speaker 1: Carl, good to talk to you. Thank you for your

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Speaker 1: time this morning. That was Federata Farmer's Dairy Chair. For

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Speaker 1: more from early edition with Ryan Bridge, listen live to

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