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Speaker 1: Jamie McKay is with us. Jamie is hosted The Country

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Speaker 1: of course here on Newstalk MB and we were talking

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Speaker 1: yesterday about a whole bunch of stuff to do with Fonterra.

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Speaker 1: So we'll get into this now. Jamie's with us.

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Speaker 2: Hi, Jamie, Good evening, Ryan.

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Speaker 1: Now Fonterra is just going from strength to strength. We

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Speaker 1: had a bit on this on the show yesterday, but

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Speaker 1: you put it in perspective for us, how well are

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Speaker 1: they doing well?

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Speaker 2: They're doing very well, and I think the farmers are

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Speaker 2: going to do pretty well this year as well. I

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Speaker 2: guess it's more good news for dairy farmers. On top

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Speaker 2: of what you discussed yesterday about that full year earnings

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Speaker 2: guidance being lifted to fifty five to seventy five cents

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Speaker 2: per share. Remembering this is on top of a ten

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Speaker 2: dollars fore cast milk price, they're going to effectively have

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Speaker 2: a dividend by my calculation, any anyhow of anywhere between

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Speaker 2: thirty three and sixty cents. If it gets to sixty cents,

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Speaker 2: it'll be the best dividend than Fonterra's history. The previous

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Speaker 2: best was fifty five cents, and the season just being

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Speaker 2: twenty three, twenty four, and to put that ten dollar

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Speaker 2: milk price ryan into some sort of historic perspective, the

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Speaker 2: previous best was nine dollars thirty in the twenty one

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Speaker 2: twenty two season, but it's generally considered that the eight

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Speaker 2: dollars forty payout way back in twenty thirteen fourteen, more

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Speaker 2: than a decade ago, is the best inflation adjusted milk

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Speaker 2: price in Fonterra's history. And just having a look at

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Speaker 2: that share price earlier this afternoon, it was trading at

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Speaker 2: four dollars eighty six. The Fonterra co Op farmer share price,

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Speaker 2: this is the one that the farmers trade amongst themselves.

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Speaker 2: It was languishing at just over two dollars in November

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Speaker 2: twenty twenty three, so it's more than doubled in the

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Speaker 2: past year, and you would have to say Fonterra farmers

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Speaker 2: had got to be pretty happy with the direction Miles

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Speaker 2: Hurrell and Peter McBride are driving the cooperative.

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Speaker 1: Absolutely, and not just dairy of course, beef as well.

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Speaker 1: We had a good second half last year and actually

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Speaker 1: a good start to twenty twenty five as well for

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Speaker 1: farmgate beef pricing.

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Speaker 2: Well, despite Donald Trump beef prices Ryan, are at a

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Speaker 2: record highs and they look like maintaining that tat Trump

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Speaker 2: and his tariff's aside, certainly through this season. And I

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Speaker 2: was talking to Jen Corchran out of Rabobank. They've just

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Speaker 2: released their Q one beef quarterly report. She's saying that

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Speaker 2: it's going to take three or four years to rebuild

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Speaker 2: that US herd after all the issues they've had over

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Speaker 2: there with drought and all that sort of stuff. So

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Speaker 2: the prospect for beef for beef farmers in this country

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Speaker 2: is pretty strong for the next three to four seasons.

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Speaker 2: Despite that global beef production is contracting a wee bit.

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Speaker 2: And also here in New Zealand, we're expecting our beef

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Speaker 2: production to be down around five to six percent from

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Speaker 2: year on year quarter one twenty twenty four, and that's

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Speaker 2: partly because of the fallout of fewer beef carts being

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Speaker 2: read a couple of years ago when the prices weren't

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Speaker 2: too flashed. So I can tell you Ryan, there'll be

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Speaker 2: lots of beefcarts red I would imagine in New Zealand

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Speaker 2: this season because they're going to be worth gold.

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Speaker 1: And just finding you've got some receipts from the biggest

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Speaker 1: carbon emitters in the world. How do our cows burping rank?

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Speaker 2: Well, I think our cow's burping aren't even a problem.

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Speaker 2: I mean I have said all along, or argued all along, Ryan,

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Speaker 2: that our farmers are carbon neutral, if not carbon positive.

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Speaker 2: We're not counting everything on farm that sequesters carbon. Yes,

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Speaker 2: we count the vegetation, the trees. We're not counting the

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Speaker 2: grass or the soil. We won't go down that track today.

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Speaker 2: But I came across an interesting fact that half of

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Speaker 2: the world's climate heating carbon emissions come from the fossil

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Speaker 2: fuels produced by just thirty six companies. Those thirty six

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Speaker 2: major fossil fuel companies were responsible for more than twenty

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Speaker 2: billion tons of CO two emissions in twenty twenty three.

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Speaker 2: Listen to this one. If Saudi Aramco was a country,

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Speaker 2: the big fossil fuel company, if it was a country,

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Speaker 2: it would be the fourth biggest polluter in the world,

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Speaker 2: after China, the US, and India. While if Exon Mobile

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Speaker 2: was responsible was a country, it would be responsible for

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Speaker 2: about the same emissions as Germany, the world's ninth biggest polluter.

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Speaker 2: So I've said all along, Rhine and no one's changing

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Speaker 2: my mind. Methane emitting ruminants aren't the problem. It's man

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Speaker 2: and woman burning fossil fuels.

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Speaker 1: Jamie, thank you for that. Jamie mckaie hosted the Country.

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Speaker 2: For More from Heather Duplessy Allen Drive.

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Speaker 1: Listen live to news talks.

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Speaker 2: It'd be from four pm weekdays, or follow the podcast

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