1 00:00:00,080 --> 00:00:03,400 Speaker 1: Fonterra is creaming it. The country's largest dairy co op, 2 00:00:03,440 --> 00:00:05,440 Speaker 1: is posted a net profit of one point one billion 3 00:00:05,480 --> 00:00:07,720 Speaker 1: dollars for the year, will be paying a total dividend 4 00:00:07,760 --> 00:00:09,959 Speaker 1: of fifty five cents per share. And the good news 5 00:00:09,960 --> 00:00:12,760 Speaker 1: didn't stop there. Farmgate milk price for the dairy season 6 00:00:12,800 --> 00:00:15,319 Speaker 1: was raised fifty cents to a midpoint price of nine 7 00:00:15,320 --> 00:00:17,919 Speaker 1: dollars per kg of milk solids and Miles Hurrel is 8 00:00:17,960 --> 00:00:19,840 Speaker 1: one Terra's chief executive Hay Miles. 9 00:00:20,079 --> 00:00:22,439 Speaker 2: Heather, how good is this? Yeah? 10 00:00:22,480 --> 00:00:26,480 Speaker 3: Great result stars have aligned is as you say, a 11 00:00:26,480 --> 00:00:28,920 Speaker 3: good dividend for the year, but also a strong outlook 12 00:00:28,960 --> 00:00:30,600 Speaker 3: for the year ahead. So you know, farmers are happy 13 00:00:30,600 --> 00:00:33,880 Speaker 3: and just shows that you put your focus out the 14 00:00:34,080 --> 00:00:35,880 Speaker 3: team have lent into it and delivered a good result. 15 00:00:35,960 --> 00:00:37,400 Speaker 1: Which are the stars that have aligned for you? 16 00:00:38,240 --> 00:00:40,520 Speaker 3: Well, we're starting to see a bit of demand starting 17 00:00:40,520 --> 00:00:42,280 Speaker 3: to re emerge out of China, which has been a 18 00:00:42,280 --> 00:00:45,360 Speaker 3: bit sluggish. We've talked about that previously, but also the 19 00:00:45,400 --> 00:00:48,800 Speaker 3: areas we've really focused in terms of our food service. 20 00:00:48,960 --> 00:00:50,600 Speaker 2: And our actual ingredients businesses. 21 00:00:50,600 --> 00:00:52,920 Speaker 3: You know, they're really starting to hit their straps and 22 00:00:52,960 --> 00:00:54,800 Speaker 3: so you know, these things are all come together at 23 00:00:54,800 --> 00:00:56,880 Speaker 3: the same time and really pleased to be able to 24 00:00:56,880 --> 00:00:57,880 Speaker 3: put the results out today. 25 00:00:58,000 --> 00:00:59,760 Speaker 1: Yeah, and have you heard from any of the farmers 26 00:01:00,200 --> 00:01:01,960 Speaker 1: that that farm gate milk price. 27 00:01:02,640 --> 00:01:06,160 Speaker 3: Many which is which is a great a great news story, 28 00:01:06,160 --> 00:01:09,160 Speaker 3: as you say, so it's a great feedback. But the 29 00:01:09,200 --> 00:01:11,480 Speaker 3: management team and the board will be out visiting farmers 30 00:01:11,520 --> 00:01:12,920 Speaker 3: next week so will get it face to face. 31 00:01:13,560 --> 00:01:15,360 Speaker 1: But over all there please, so you guys hear from 32 00:01:15,400 --> 00:01:17,640 Speaker 1: the farmers not just when they're upset, but when they're happy. 33 00:01:17,640 --> 00:01:18,880 Speaker 1: They send you messages as well. 34 00:01:19,720 --> 00:01:21,360 Speaker 3: Yeah, they do, I mean to be fair, it's not 35 00:01:21,400 --> 00:01:23,960 Speaker 3: as many when when they're a bit upset and saying that. 36 00:01:24,080 --> 00:01:26,320 Speaker 3: No that they you know, they understand the value of 37 00:01:26,319 --> 00:01:28,959 Speaker 3: the cooperative and they will give credit where credits due. 38 00:01:29,000 --> 00:01:30,960 Speaker 2: So so I know we've had a lot of that today. 39 00:01:31,200 --> 00:01:34,360 Speaker 1: That's good. It sounds like next year you're a little 40 00:01:34,360 --> 00:01:36,360 Speaker 1: bit worried about is that what's going on here? 41 00:01:37,160 --> 00:01:38,399 Speaker 3: Well, I mean we need to be a little bit 42 00:01:38,440 --> 00:01:40,479 Speaker 3: cautious still, and we asked to see you know that 43 00:01:40,520 --> 00:01:43,080 Speaker 3: the dairy side of things emerged from China, but but 44 00:01:43,080 --> 00:01:45,000 Speaker 3: at macro level, we've still got some issues we need 45 00:01:45,160 --> 00:01:48,880 Speaker 3: to watch really closely. The geopolitics haven't changed it all internationally, 46 00:01:48,880 --> 00:01:50,280 Speaker 3: so we need we need to keep an eye on that. 47 00:01:50,320 --> 00:01:51,880 Speaker 3: But you know, we do need to keep an eye 48 00:01:51,880 --> 00:01:54,080 Speaker 3: on the you know, from a cautious perspective, but you know, 49 00:01:54,120 --> 00:01:55,680 Speaker 3: as we sit here today, you know that the things 50 00:01:55,680 --> 00:01:56,880 Speaker 3: are looking positive for the year. 51 00:01:57,680 --> 00:01:59,640 Speaker 1: How are you going selling the consumer brands? 52 00:02:00,840 --> 00:02:01,520 Speaker 2: Early days? 53 00:02:01,520 --> 00:02:04,000 Speaker 3: So we've appointed some some advisors to help us through 54 00:02:04,040 --> 00:02:06,720 Speaker 3: that next phase, But no real update. We're sort of 55 00:02:06,720 --> 00:02:08,240 Speaker 3: on track with we would expect to be at the 56 00:02:08,240 --> 00:02:10,679 Speaker 3: time of the process, probably in a position sort of 57 00:02:10,760 --> 00:02:12,640 Speaker 3: late November I think to give another update. 58 00:02:12,680 --> 00:02:14,920 Speaker 2: But we talked about a sort of a twelve. 59 00:02:14,680 --> 00:02:17,960 Speaker 3: To eighty month process in last May, so you know 60 00:02:18,080 --> 00:02:20,560 Speaker 3: we're still on track for that, but a bit early 61 00:02:20,600 --> 00:02:20,919 Speaker 3: to say. 62 00:02:21,120 --> 00:02:23,040 Speaker 1: So if you're going to make an update and you're 63 00:02:23,080 --> 00:02:25,000 Speaker 1: going to give us an update in November, that suggests 64 00:02:25,000 --> 00:02:26,840 Speaker 1: that you might be talking to someone as that what's up. 65 00:02:27,440 --> 00:02:28,760 Speaker 2: No, I wouldn't. I wouldn't go that far. 66 00:02:28,800 --> 00:02:30,320 Speaker 3: I mean, we've had we've had a lot of interest, 67 00:02:30,520 --> 00:02:32,480 Speaker 3: as I think we've said previously also we've had a 68 00:02:32,520 --> 00:02:34,680 Speaker 3: lot of interest in it. But the what will come 69 00:02:34,680 --> 00:02:36,400 Speaker 3: out in November is probably what the process, what the 70 00:02:36,440 --> 00:02:39,320 Speaker 3: sale process would look like and then and then we'll 71 00:02:39,320 --> 00:02:41,720 Speaker 3: probably take it to market officially sort of come New Years. 72 00:02:41,760 --> 00:02:44,440 Speaker 3: So we're still still early in the process and it's 73 00:02:44,440 --> 00:02:46,640 Speaker 3: a complex that of you know that these businesses are 74 00:02:46,720 --> 00:02:49,240 Speaker 3: very intertwined. You know, we've got factories around the country 75 00:02:49,280 --> 00:02:51,560 Speaker 3: here in New Zealand that make for consumer and they 76 00:02:51,600 --> 00:02:53,960 Speaker 3: make for ingredients and food service. So it's not a 77 00:02:54,000 --> 00:02:55,919 Speaker 3: case of just picking up a brand and selling that. 78 00:02:55,919 --> 00:02:58,000 Speaker 3: There's a lot of sort of unwhining to do that. 79 00:02:58,000 --> 00:02:59,080 Speaker 3: That's what's taking the time. 80 00:02:59,400 --> 00:03:02,000 Speaker 1: Miles, how worried to you about power prices in this country? 81 00:03:04,120 --> 00:03:07,359 Speaker 3: Look, I am power prices is one, but security is 82 00:03:07,360 --> 00:03:09,320 Speaker 3: probably the other one that we need to consider. And 83 00:03:09,680 --> 00:03:11,360 Speaker 3: I know there's a lot of talk around sort of 84 00:03:11,400 --> 00:03:14,160 Speaker 3: lifting the Oidler gas band, but you know, maybe maybe 85 00:03:14,160 --> 00:03:16,040 Speaker 3: the horse has bolted on some of that. And I'll 86 00:03:16,040 --> 00:03:18,520 Speaker 3: see some of the announcements around Todd Energy with people today, 87 00:03:18,560 --> 00:03:20,640 Speaker 3: and you know that that those are concerns for us, 88 00:03:20,639 --> 00:03:22,560 Speaker 3: and so you know, we can't be in a position 89 00:03:22,600 --> 00:03:26,320 Speaker 3: where where we don't have a gas supply or energy supply, 90 00:03:26,480 --> 00:03:28,480 Speaker 3: So that is a concern for us, and we need 91 00:03:28,520 --> 00:03:30,119 Speaker 3: to sort of take the destin into our own hands 92 00:03:30,120 --> 00:03:31,799 Speaker 3: and make sure we have solutions for. 93 00:03:31,760 --> 00:03:32,360 Speaker 2: That, which we'll do. 94 00:03:32,760 --> 00:03:36,080 Speaker 3: What kind of solutions, well, we need to think about, 95 00:03:36,240 --> 00:03:38,360 Speaker 3: you know, what, what energy sources do we use. You know, 96 00:03:38,480 --> 00:03:40,440 Speaker 3: at the moment we've sort of got accommodation of natural 97 00:03:40,480 --> 00:03:43,480 Speaker 3: gas and coal. We're obviously exiting coal, as we've seid previously, 98 00:03:43,600 --> 00:03:45,680 Speaker 3: but you know, as natural guess the answer do when 99 00:03:45,720 --> 00:03:47,960 Speaker 3: you think about, you know, speeding up some electorication or 100 00:03:48,000 --> 00:03:50,520 Speaker 3: speeding up some of our wood biomess or wood palettes 101 00:03:50,520 --> 00:03:52,600 Speaker 3: sort of borders so we need we need to start 102 00:03:52,640 --> 00:03:53,880 Speaker 3: thinking about those quite seriously. 103 00:03:53,920 --> 00:03:55,520 Speaker 2: And again back to the results. 104 00:03:55,560 --> 00:03:56,760 Speaker 3: You know, to have a balance sheet to be able 105 00:03:56,760 --> 00:03:58,640 Speaker 3: to think like that is bloody helpful when we have 106 00:03:58,640 --> 00:03:59,200 Speaker 3: been previously. 107 00:04:00,320 --> 00:04:04,120 Speaker 1: Do you believe would your preference be to you know, 108 00:04:04,160 --> 00:04:07,000 Speaker 1: obviously exit coal, and would your preference be to replace 109 00:04:07,040 --> 00:04:08,360 Speaker 1: that with gas natural gas? 110 00:04:09,640 --> 00:04:11,960 Speaker 3: No, I certainly not replace the coal with natural gas. 111 00:04:11,960 --> 00:04:13,920 Speaker 3: But I think we thought natural gas had a longer 112 00:04:13,960 --> 00:04:16,560 Speaker 3: runway before we started to think about moving those plants 113 00:04:16,600 --> 00:04:19,480 Speaker 3: out of out of natural gas on onto something else. 114 00:04:19,520 --> 00:04:22,240 Speaker 2: But we may need to bring those forward, I guess. 115 00:04:22,240 --> 00:04:24,559 Speaker 1: And would you like would you like us to find 116 00:04:24,640 --> 00:04:25,880 Speaker 1: more gas. 117 00:04:26,400 --> 00:04:28,359 Speaker 2: If we could find more gas, it'll be very helpful. 118 00:04:28,400 --> 00:04:29,760 Speaker 1: Do you think there's more gas? 119 00:04:30,920 --> 00:04:33,279 Speaker 3: Oh, look, I'm outside of my wheelhouse on that one here. 120 00:04:33,680 --> 00:04:35,320 Speaker 3: You know, if there is more gas, it would be 121 00:04:35,320 --> 00:04:37,080 Speaker 3: great for it to come onto the market, But as 122 00:04:37,120 --> 00:04:40,040 Speaker 3: we sit there today, it's certainly constrained, and that worries 123 00:04:40,320 --> 00:04:42,159 Speaker 3: not just us, but I think the industry as a whole. 124 00:04:43,120 --> 00:04:46,280 Speaker 1: For more from Hither Duplessy Allen Drive. 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