1 00:00:00,000 --> 00:00:02,239 Speaker 1: Once again, it looks like our farmers are the stars 2 00:00:02,279 --> 00:00:04,680 Speaker 1: of our economy. It's predicted that our food and fiber 3 00:00:04,800 --> 00:00:07,560 Speaker 1: exports are set to break records this year, with annual 4 00:00:07,560 --> 00:00:10,840 Speaker 1: exports tip to reach almost fifty seven billion dollars by June, 5 00:00:10,880 --> 00:00:12,119 Speaker 1: and the next year are going to just break that 6 00:00:12,160 --> 00:00:14,600 Speaker 1: record all over again. Joining me now is Agriculture and 7 00:00:14,680 --> 00:00:16,280 Speaker 1: Forestry Minister Todd mclahay. 8 00:00:16,280 --> 00:00:19,079 Speaker 2: Todd, good morning, Heather, Thank goodness with the farmers an 9 00:00:19,840 --> 00:00:21,840 Speaker 2: they're did a great job because we know they work 10 00:00:22,000 --> 00:00:24,760 Speaker 2: very hard, but that they're getting better prices overseas as 11 00:00:24,760 --> 00:00:26,599 Speaker 2: a bit of a relief. It's really good for the 12 00:00:26,640 --> 00:00:29,840 Speaker 2: New Zealand economy. But it is driving up by returns 13 00:00:29,840 --> 00:00:31,680 Speaker 2: at the farm gate. And if the time we need 14 00:00:31,680 --> 00:00:33,560 Speaker 2: our farmers doing well for us, it's right now. 15 00:00:33,640 --> 00:00:35,680 Speaker 1: Yeah, totally. Now dairy is not going to surprise anybody 16 00:00:35,680 --> 00:00:37,400 Speaker 1: because we know that that's doing well. We know that 17 00:00:37,479 --> 00:00:39,640 Speaker 1: Kiwi fruit is doing as well as well. But I 18 00:00:39,680 --> 00:00:41,680 Speaker 1: see you Reckon Wol's going to pick up what are 19 00:00:41,680 --> 00:00:42,199 Speaker 1: you seeing there? 20 00:00:43,040 --> 00:00:46,040 Speaker 2: We are It's interesting we've seen the commodity price start 21 00:00:46,080 --> 00:00:48,559 Speaker 2: to increase. So Mark Patterson, Who's associate when they said 22 00:00:48,600 --> 00:00:52,120 Speaker 2: I've given him responsibility to focus solely on wool is 23 00:00:52,159 --> 00:00:54,000 Speaker 2: doing a really good job and we're starting to see 24 00:00:54,040 --> 00:00:57,760 Speaker 2: summon the roads and new users for that fiber. I mean, incidentally, 25 00:00:57,840 --> 00:01:00,400 Speaker 2: tomorrow I'm jumping on a plane to go off last 26 00:01:00,480 --> 00:01:03,040 Speaker 2: visit to India for the year as we build that relationship. 27 00:01:03,440 --> 00:01:07,520 Speaker 2: The Indian Parliament only has New Zealand woolen carpets everywhere 28 00:01:07,560 --> 00:01:09,960 Speaker 2: through their buildings, So it shows as a good role 29 00:01:10,000 --> 00:01:11,520 Speaker 2: for Will, but there's a lot of work to do 30 00:01:11,600 --> 00:01:13,399 Speaker 2: because it's been very tough for shep farmers. 31 00:01:13,480 --> 00:01:15,800 Speaker 1: Is that weird that the Indians are using our wool 32 00:01:15,800 --> 00:01:17,200 Speaker 1: and we're not even using our wool. 33 00:01:18,160 --> 00:01:20,120 Speaker 2: Well, I think it shows that they're much smarter than 34 00:01:20,200 --> 00:01:22,280 Speaker 2: Guigora who didn't put it in houses, and they've been 35 00:01:22,280 --> 00:01:24,120 Speaker 2: given a bit of a slap for that, but it 36 00:01:24,200 --> 00:01:26,399 Speaker 2: just shows that actually this is a product that is 37 00:01:26,440 --> 00:01:28,560 Speaker 2: wanted around the world. We just got to market a 38 00:01:28,600 --> 00:01:31,000 Speaker 2: bit better and a bit of reform. Tell me. The 39 00:01:31,080 --> 00:01:33,360 Speaker 2: other one that's a real standout for me is the 40 00:01:33,560 --> 00:01:37,440 Speaker 2: rebound in forestry. It's a six billion dollars worth of exports. 41 00:01:37,800 --> 00:01:40,160 Speaker 2: The commodity price is still very very low, but the 42 00:01:40,240 --> 00:01:42,960 Speaker 2: sector is working quite hard, and we're starting to see 43 00:01:43,000 --> 00:01:45,320 Speaker 2: a bit more evalue added. Some of the sawmills are 44 00:01:45,360 --> 00:01:47,160 Speaker 2: doing better than they were, and you know that's going 45 00:01:47,200 --> 00:01:48,440 Speaker 2: up the value chain. Yeah. 46 00:01:48,440 --> 00:01:52,240 Speaker 1: Now on forestry, are we being a little too optimistic 47 00:01:52,280 --> 00:01:54,640 Speaker 1: if we're relying on forestry to pick up because of 48 00:01:54,680 --> 00:01:57,120 Speaker 1: building activity in China, because it feels like the opposite 49 00:01:57,160 --> 00:01:57,960 Speaker 1: is happening in China. 50 00:01:58,680 --> 00:02:01,560 Speaker 2: Yeah, Well, we don't have too much. We don't have 51 00:02:01,600 --> 00:02:04,160 Speaker 2: too much sort of structural timber going into China, but 52 00:02:04,320 --> 00:02:05,800 Speaker 2: a lot of the wood that goes in there is 53 00:02:05,920 --> 00:02:08,560 Speaker 2: used for you know, the processing for paper and a 54 00:02:08,560 --> 00:02:10,560 Speaker 2: few other things and so on. There. I'm a lot 55 00:02:10,600 --> 00:02:13,560 Speaker 2: more optimistic than many others around China. I've been in 56 00:02:13,600 --> 00:02:15,680 Speaker 2: there a couple of times this year, and I've got 57 00:02:15,800 --> 00:02:18,119 Speaker 2: half a billion people that sort of middle class now 58 00:02:18,160 --> 00:02:21,640 Speaker 2: that are consuming more. But there are still some headwinds there. 59 00:02:21,760 --> 00:02:24,560 Speaker 2: Although you know, dairy to have gone up ten percent. 60 00:02:24,639 --> 00:02:26,880 Speaker 2: A lot of that is the Chinese market and part 61 00:02:26,919 --> 00:02:28,639 Speaker 2: we're going up the value chain as well. It's a 62 00:02:28,680 --> 00:02:31,280 Speaker 2: lot less about commodities, but there is a lot more 63 00:02:31,320 --> 00:02:33,640 Speaker 2: opportunity in the coming years for New Zealand and in China. 64 00:02:34,360 --> 00:02:35,560 Speaker 2: You know, ahead of a curve. 65 00:02:36,000 --> 00:02:38,640 Speaker 1: Hey, by the way, have you been following what's going 66 00:02:38,680 --> 00:02:42,200 Speaker 1: on with the banks and the farmers and the rural communities. 67 00:02:42,240 --> 00:02:43,560 Speaker 1: You had a chat to the farmers about how they're 68 00:02:43,560 --> 00:02:44,440 Speaker 1: feeling about the banks. 69 00:02:44,800 --> 00:02:47,600 Speaker 2: Yeah, they are. So we started an inquiry into banking 70 00:02:47,600 --> 00:02:50,440 Speaker 2: a short while ago in parliamentary inquiry, with a particular 71 00:02:50,520 --> 00:02:55,800 Speaker 2: focus on the primary sector. You know, it's been very challenging. 72 00:02:55,880 --> 00:02:58,359 Speaker 2: I'm starting to hear from farmers a little bit of relief, 73 00:02:58,600 --> 00:03:01,600 Speaker 2: but that's probably less the banks of doing and the 74 00:03:01,680 --> 00:03:04,040 Speaker 2: inquiry more that, you know, the work the government's doing 75 00:03:04,120 --> 00:03:06,520 Speaker 2: is getting inflation down, so interest rates are coming to 76 00:03:06,680 --> 00:03:09,000 Speaker 2: track down, but there are some work to do there. 77 00:03:09,040 --> 00:03:10,800 Speaker 2: We're just going to make sure that the primary sector 78 00:03:10,840 --> 00:03:12,720 Speaker 2: can have confidence in what the banks are doing, that 79 00:03:12,800 --> 00:03:14,720 Speaker 2: everybody is working as hard as they can to grow 80 00:03:14,760 --> 00:03:15,320 Speaker 2: the New Zealands. 81 00:03:15,360 --> 00:03:16,920 Speaker 1: Yeah, I just want to I mean, how do you 82 00:03:17,000 --> 00:03:20,320 Speaker 1: feel as the agriculture is about banks saying to farmers 83 00:03:20,560 --> 00:03:22,079 Speaker 1: that they're not going to lend to them unless the 84 00:03:22,080 --> 00:03:24,040 Speaker 1: farmers get their emissions down to a certain level. How 85 00:03:24,040 --> 00:03:25,640 Speaker 1: do you feel about them being the climate police. 86 00:03:26,160 --> 00:03:27,919 Speaker 2: Yeah, well they should not be. And I see one 87 00:03:27,919 --> 00:03:30,520 Speaker 2: of the Australian Banks has a view that New Zealand 88 00:03:30,600 --> 00:03:33,800 Speaker 2: farmers need to do more than Australian farm Yes, they're 89 00:03:33,840 --> 00:03:35,680 Speaker 2: welcome to that view, but they should keep it to 90 00:03:35,720 --> 00:03:37,880 Speaker 2: themselves and look at ways to get interest rates down 91 00:03:38,000 --> 00:03:41,040 Speaker 2: for farmers and you know, make them be productive. However, 92 00:03:41,280 --> 00:03:42,840 Speaker 2: there is a wider point here is that we do 93 00:03:42,880 --> 00:03:45,920 Speaker 2: have international obligations. We do have to meet them because 94 00:03:45,960 --> 00:03:49,000 Speaker 2: you know, consumers around the world of customers are demanding this. 95 00:03:49,560 --> 00:03:51,920 Speaker 2: Having said that, we have to find ways to get 96 00:03:51,960 --> 00:03:55,000 Speaker 2: emissions down without closing down farms, because otherwise all we 97 00:03:55,000 --> 00:03:57,080 Speaker 2: do is send those jobs and production overseas. And we're 98 00:03:57,080 --> 00:03:59,200 Speaker 2: really clear that one we've got a plan to do 99 00:03:59,240 --> 00:04:01,280 Speaker 2: that with farmers. Two we're not going to be closing 100 00:04:01,320 --> 00:04:04,440 Speaker 2: down farms in New Zealand, so American and European farmers 101 00:04:04,440 --> 00:04:05,600 Speaker 2: can do more good stuff. 102 00:04:05,600 --> 00:04:09,040 Speaker 1: Todd, Thanks very much, Todd McLay, Agriculture Forestry Minister. Hopefully 103 00:04:09,080 --> 00:04:09,920 Speaker 1: the banks wire listening to. 104 00:04:09,880 --> 00:04:13,240 Speaker 2: Them for more from the Mic Asking Breakfast Listen live 105 00:04:13,320 --> 00:04:16,240 Speaker 2: to news talks. It'd be from six am weekdays, or 106 00:04:16,320 --> 00:04:18,200 Speaker 2: follow the podcast on iHeartRadio.