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Speaker 1: Fontira has lifted its forecast farm gate milk prices too,

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00:00:03,240 --> 00:00:06,040
Speaker 1: between nine to fifty to ten dollars fifty. The dairy

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Speaker 1: cooperative says it's seeing increasing demand from China and Southeast Asia.

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Speaker 1: The move comes despite profits falling from three hundred and

5
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Speaker 1: forty six million to two hundred and sixty three million.

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Speaker 1: That's a thirty percent reduction on the same time last year.

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Speaker 1: That's for quarter one. Matt Montgomery is the Forsyth Bars

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Speaker 1: Senior analyst Equities is with us this morning. Matt, good morning,

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Speaker 1: Good morning, Ryan, thanks for having me. Had good great

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Speaker 1: result about the well if the result materializes about the

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Speaker 1: forecast farm gate milk prices.

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Speaker 2: Yeah, No, indeed, I think if you look at recent

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00:00:36,920 --> 00:00:41,440
Speaker 2: Glowood Dury trade octions have been strong and ten dollars

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00:00:41,479 --> 00:00:43,680
Speaker 2: would be a record high if you look at the

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Speaker 2: midpoint in nominal terms. The previous high was nine dollars

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Speaker 2: thirty back in twenty two. So yeah, father, how high?

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Speaker 1: How much high could it potentially go? I mean I'm

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Speaker 1: reading that this is all about China, in particular stockpiling

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Speaker 1: ahead of Christmas learning New Year. Does it taper off

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Speaker 1: next year?

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Speaker 2: Yeah? I mean, I'm reluctant to forecast that. I must say,

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Speaker 2: I mean commodity faster, the inherently qualatile, but the China

23
00:01:14,120 --> 00:01:18,360
Speaker 2: demand has been fluggish for some time, so as pleased

24
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Speaker 2: and could least see that they're returning in some ways.

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Speaker 1: What about the profit for a quarter one miles house

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Speaker 1: is that was a strong result despite the thirty percent reduction.

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Speaker 2: Yeah, I think for Fontierra, you've got to consider that

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Speaker 2: when milk prices are high like they are, and that

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Speaker 2: often tends to mean that margins and their consumer and

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Speaker 2: food service businesses are slightly well good than their inability

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Speaker 2: to pass the higher prices on. So they reiterated their

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Speaker 2: full year earnings guidance yesterday for forty to sixty cents

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Speaker 2: this year. So I think that's the important thing to

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Speaker 2: consider where that's exactly what they had been signaling back

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Speaker 2: in September when they reported their results, So it shouldn't

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Speaker 2: be any major surprises to invest it all funners.

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Speaker 1: They're also a business and transition, which is another thing

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Speaker 1: that Harrell spoke about you spoke about yesterday.

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Speaker 2: Yeah, No, there's there's been a lot of change in

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Speaker 2: the corp for a number of years now. So Darla

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Speaker 2: wouldn't say that it's reflective of thirty per client. It's

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Speaker 2: more reflection of, hey, looks this is a volatile business

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Speaker 2: and it's thanks move around on prices, and the last

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Speaker 2: year was a very good year as well. I think

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Speaker 2: that's important to consider too.

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Speaker 1: Matt, Thank you very much for that analysis. Really appreciated

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Speaker 1: this morning. Matt Montgomery for Scith bast Senior Analyst, Equities.

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Speaker 1: For more from earlier edition with Ryan Bridge, listen live

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Speaker 1: to news Talks it'd be from five am weekdays, or

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