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Speaker 1: Jamie McKay from the Countries with us. Jamie, Will the

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Speaker 1: government looked to put land Corp up on the chopping block.

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Speaker 1: I mean, well, I guess this is the question. Is

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Speaker 1: the government going to look at selling land Corp? And

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Speaker 1: if they do, is that a good idea? How will

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Speaker 1: that go down with farmers? Jamie Giddy gid a Ryan,

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Speaker 1: thanks for being with me. So land Corp. It's one

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Speaker 1: of the ones they're talking about putting it on the

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Speaker 1: chopping block. What do you reckon? Good idea, bad idea?

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Speaker 2: Well, it depends whether you're into selling state assets. I

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Speaker 2: guess if you, Brian, if you are going to sell one,

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Speaker 2: you would have to think seriously about selling the nation's farm.

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Speaker 2: It's not performing very well at all and it's worth

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Speaker 2: quite a bit of money. I had a guy on

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Speaker 2: the show today on my show The Country called Will Wilson.

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Speaker 2: He's a long standing agricultural consultant. He takes he's involved

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Speaker 2: in several high profile governance roles in the primary sector

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Speaker 2: and he was doing the sums on the performance of

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Speaker 2: all of our leading ad companies and he was almost

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Speaker 2: quite scathing about Pamu, the artist formerly known as Landcorpy said, Look,

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Speaker 2: it's it's got poor business strategy, poor governance and management,

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Speaker 2: and it's a poor performing company. But the kicker is

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Speaker 2: ryan if you take its assets less its liabilities, it's

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Speaker 2: still worth about one point six billion dollars. We could

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Speaker 2: do a lot with that. And the other interesting thing

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Speaker 2: is it's worth about, according to will Anyhow, about one

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Speaker 2: hundred and fifty billion less than it was a year ago.

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Speaker 2: So maybe we're throwing good money after bad with Parmu.

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Speaker 2: But if we sell it, who do we sell it to?

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Speaker 2: It's a huge farm, it's New Zealand's bigger's farm. Would

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Speaker 2: it flood the rural market? And then it plays other

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Speaker 2: roles in agriculture as well, such as research on behalf

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Speaker 2: of the wider agricultural industry and also training young people

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Speaker 2: onto the land. So it's a bit of a vex question,

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Speaker 2: but you would have to say, as it stands at

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Speaker 2: the moment, it ain't a great investment.

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Speaker 1: No, and it's I think it's sort of top of

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Speaker 1: the list for the government when you know, because farmers

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Speaker 1: run their farms much better than where then the government

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Speaker 1: runs its farm, right, so why not let them have it? Yeah?

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Speaker 2: Well, and there's also an argument because in the old days,

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Speaker 2: Land Corp used to be lands and surveys and they

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Speaker 2: would have ballot blocks and they would put young farmers

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Speaker 2: in and produce the or increase the productivity of the country.

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Speaker 2: There is a argument that maybe Land Corp should become

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Speaker 2: a bank and for instance, with its dairy farms, and

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Speaker 2: they've got some lovely dairy farms, put fifty to fifty

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Speaker 2: share milkers in there, give them some skin in the

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Speaker 2: game and rarely start to generate some money. But it

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Speaker 2: would be fair to say that financially the performance of

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Speaker 2: land Corp hasn't been that flash. Last year, Ryan, they

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Speaker 2: lost off the top of my head, something like twenty

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Speaker 2: six million dollars, Yes it was, yeah, twenty six million dollars.

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Speaker 2: And when you consider that they got thirty eight million

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Speaker 2: from a windfall or windfalls from carbon credits. Putting that aside,

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Speaker 2: the actual meat and taties of the farming business ain't

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Speaker 2: going that well.

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Speaker 1: Let's talk about something that is going well. Then, dairy

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Speaker 1: price is off to a very strong start, the Global

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Speaker 1: Dairy Trade Action. The first two of them for the.

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Speaker 2: End, yeah, well, the first one was down and the

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Speaker 2: second one was up. Wasn't it.

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Speaker 1: Yes, Yes, it was down one point four then up

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Speaker 1: one point four.

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Speaker 2: Yeah, and that sort of equalized one another out there.

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Speaker 2: But the big one was in the last one. Ryan

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Speaker 2: one point four was GDT across the board. But the

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Speaker 2: really important one we have a look at is whole

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Speaker 2: milk powder prices. They went up five percent and this

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Speaker 2: is the highest price on the platform since June twenty

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Speaker 2: twenty two. And this has I guess convinced ASB they've

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Speaker 2: led the charge. They're saying that their milk futures or

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Speaker 2: the future milk price forecast price for this season. They're

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Speaker 2: saying ten dollars twenty five, remembering that everyone else in

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Speaker 2: the market, including Fonterra, is pretty much ten bucks. Ten

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Speaker 2: dollars twenty five would obviously be a record price, maybe

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Speaker 2: not an flation adjusted terms, but a very good one

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Speaker 2: for all that. Now, their chief economist, a guy by

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Speaker 2: the name of Chris Tennant Brown. You would have seen

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Speaker 2: him on the tally. He's saying, look, this isn't a dundelle.

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Speaker 2: This four months left in the season. Prices could still move.

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Speaker 2: The season to date is up production wise three point

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Speaker 2: seven percent, but we're well past the midpoint. Of the

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Speaker 2: Bell curve. In terms of production, typically only about a

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Speaker 2: third of the production comes from here on and so

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Speaker 2: a lot of that production and sales have been locked in.

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Speaker 2: But there are a few other things to consider. Kneewers,

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Speaker 2: soil moisture deficit charts have been showing a lot of

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Speaker 2: the country could do with the drink. We've also got

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Speaker 2: the exchange rate. Goodness knows what happens there with Donald

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Speaker 2: Trump in charge. And we've also got a couple of

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Speaker 2: other issues in Europe which has forced them back into

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Speaker 2: the market. A weebit, the threat of foot and mouth

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Speaker 2: in Germany and the ongoing presence of blue tongue virus.

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Speaker 2: There's a lot of things that play here, Ryan, but

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Speaker 2: generally in terms of New Zealand industries, New Zealand or

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Speaker 2: the New Zealand airy industries is looking as good as anything.

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Speaker 1: And thank goodness, we've got them. Gosh, don't we need

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Speaker 1: a bit of that at the moment. Jamie, Thank you

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Speaker 1: very much.

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Speaker 2: Cheers Ryan, always good the chat.

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Speaker 1: Cheers Jamie. It's Jamie McKay from the Country. For more

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Speaker 1: from Heather Duplessy Allen Drive listen live to news Talks.

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