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Speaker 1: We've got a bit of a mirroring room and movement

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Speaker 1: in the electricity sector've got a new retailer entering the market,

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Speaker 1: so we'll talk about that very shortly. Meantime of twenty

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Speaker 1: three minutes away from the dairy auction, yesterday produced yet

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Speaker 1: another set of fairly positive numbers that to a degree anyway,

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Speaker 1: seemed to defy what might have been expected out of China,

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Speaker 1: where the terror of war has now become fascical. Of course,

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Speaker 1: the Frontier CEO, Miles Hurrell is back with us. Miles,

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Speaker 1: very good morning to you. Broadly speaking, Are you worried?

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Speaker 2: I wouldn't say worried, but it keeps on your toes.

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Speaker 2: You get up every morning to start to see what's

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Speaker 2: happened overnight. But you know, we love this game we

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Speaker 2: had done for our whole career. So I guess so

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Speaker 2: ninety five of their product goes into international market. So

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Speaker 2: it's not happened in one corner of the world, that's

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Speaker 2: happening in another. So no, I wouldn't say worried, but

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Speaker 2: but just just itways on our toes at the moment.

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Speaker 1: We've got some good numbers out of China yesterday, but

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Speaker 1: that's pre the shambles. What's your expectation as to what

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Speaker 1: happens to China and how that impacts somebody like you.

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Speaker 2: Well, I mean they've come out of that lull they

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Speaker 2: had a couple of years ago, so I think I

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Speaker 2: think we threw the worst of that. Now. What's obviously

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Speaker 2: playing out in the international market now will sort of

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Speaker 2: soften things a little bit, we see, But because we've

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Speaker 2: come off a pretty low base, I think we've seen

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Speaker 2: still a prey robust position out of China and the

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Speaker 2: sort of that short to medium term, probably the bigger

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Speaker 2: question for us is that long term, what happens, you know, geopolitics,

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Speaker 2: the macroeconomic situation across the globe and does they have

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Speaker 2: a slow down degree where So that's probably the pit

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Speaker 2: that we focused.

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Speaker 1: On right now, which was my next question, What do

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Speaker 1: you think happens globally?

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Speaker 2: Yeah, I do think there will be a slow down,

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Speaker 2: And excuse me, on the back of what's going on here,

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Speaker 2: you can't you can't expect a sort of the US.

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Speaker 2: It will start in the US was what we're predicting.

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Speaker 2: The consumers will feel at their first and they're feeling

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Speaker 2: it now and so you can't have the largest economy

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Speaker 2: in the world, slow down and not feeling everywhere, So

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Speaker 2: we're bracing ourselves to that. But ye, at the same time,

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Speaker 2: you know, we're in all corners of the world, as

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Speaker 2: I said earlier, and as a result, our jobs to

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Speaker 2: find the highest market, highest pay market tihed paying consumers

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Speaker 2: and you can get our products there.

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Speaker 1: Let me come back to that specifically in a moment,

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Speaker 1: So infametrics this morning, say GDP, there we caon going

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Speaker 1: from two point four to one, exports close to zero.

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Speaker 1: Would you see that as a company or is that

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Speaker 1: for New Zealand and you can escape that somehow.

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Speaker 2: Well, that's from a New Zealand context, and of course

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Speaker 2: you only have to look back the last couple of

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Speaker 2: years and the economic situation across New Zealand and Frontier

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Speaker 2: and in fact that their industry has done pretty well.

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Speaker 2: So we'd see ourselves sort of pushing forward with that.

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Speaker 2: I mean, we can't simply forward not to export and

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Speaker 2: continue to export. But from our perspective, as I say,

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Speaker 2: it's about finding those markets that generate the returns and

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Speaker 2: going after it.

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Speaker 1: So back to that, yeah, but back to that specifically,

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Speaker 1: how much can you shift and simply go, well, they're

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Speaker 1: not looking good at the moment. I'll go over here,

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Speaker 1: how real is that?

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Speaker 2: Well, it has to. I mean you're dealing with a

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Speaker 2: prod that comes out of a car at eleven o'clock

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Speaker 2: last night, it's shipped into a factory this morning, and process.

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Speaker 2: I mean, you can't hold on to the stuff, so

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Speaker 2: you have to The only thing that changes is the price.

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Speaker 2: When you get to supply, demand sort of gets out

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Speaker 2: of balance and price impacts. But you know, we spent

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Speaker 2: a lot of time the last few years been more

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Speaker 2: narrow in our focus, going after where we believe there's

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Speaker 2: long term value and you know, things like that high

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Speaker 2: ingredients business in the US and despite having to pay

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Speaker 2: a little bit more in tariff, you know, the products

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Speaker 2: that aren't generally made in the US, and so therefore

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Speaker 2: we don't think at Olympic.

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Speaker 1: Well, that's what I was going to ask as well.

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Speaker 1: So that there was an argument came from the Prime

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Speaker 1: Minister the other day on this program. He was arguing,

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Speaker 1: I think I agree with him that a bottle of

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Speaker 1: serving on blanc at a dollar twenty more than it

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Speaker 1: was if you're selling it Upper Eastside, New York doesn't

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Speaker 1: make any difference. Can you do that with what you

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Speaker 1: do in.

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Speaker 2: The markets that we sell into, so that high value

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Speaker 2: medical nutrition, high venue sports and active nutrition, we believe

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Speaker 2: we can sort of see our way through that. So

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Speaker 2: if you plan in the low end and the gallon

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Speaker 2: of milk and Walmart in California, you're probably going to

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Speaker 2: be hit somewhat. But that's not our game where it.

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Speaker 2: We're in the high end sports and active and medical nutrition,

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Speaker 2: where you know, an extra ten percent of an ingredients

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Speaker 2: cost is actually quite small. On the grand scheming thing.

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Speaker 1: The shipping. I'm looking at ships in China. They're full,

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Speaker 1: they're going nowhere. Does that lead to something problematic transportation wise? No?

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Speaker 2: Again, you know, when you've been living and playing in

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Speaker 2: places like Nigeria and Senegal for a few bunch of

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Speaker 2: your Korea. I mean, what what goes on in China

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Speaker 2: now is nothing to compare to what we have to

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Speaker 2: deal with. Again, so I see our way through that.

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Speaker 2: I don't. I don't think you're going to see ships

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Speaker 2: piled up. I mean I think that the Chinese are

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Speaker 2: pretty efficient at this. You may see some port conduced

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Speaker 2: in the short term, but they'll clear. That's one thing

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Speaker 2: that the Chinese is good as they don't muck around

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Speaker 2: in these areas, so they'll clear that relatively quickly. And

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Speaker 2: if products not moving, they ask people we export it.

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Speaker 2: I'm moving from those containers. But when you know when

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Speaker 2: food's coming in, important suppliers are coming in, they'll make

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Speaker 2: sure that happens. So there might be a short term

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Speaker 2: but but again we'll see our way through that pretty easy.

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Speaker 1: Last time we had you on the programming, you're on

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Speaker 1: the road with the divestment thing. How did that go?

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Speaker 2: Yeah? Good? You know, feedback from farmers as they understand

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Speaker 2: the why buy and large clearly we're still of a

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Speaker 2: long way off as you're going out and asking for

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Speaker 2: a vote, but no, overall they get it, they get

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Speaker 2: and it comes out to the conversation here now is you know,

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Speaker 2: they get where expertise is and it's that high value

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Speaker 2: ingredients and that food service and consumers something that's not

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Speaker 2: not our core strength. So they understand that and we'll

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Speaker 2: get to that point at some point. Talk to avows

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Speaker 2: vote good stuff.

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Speaker 1: You have a good long weekend. Appreciate it. Myles Horor

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Speaker 1: Frontier CEO eighteen minutes away from it for more from

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Speaker 1: the mic Asking Breakfast.

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