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Speaker 1: To ever do buzios.

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Speaker 2: So more good news for Fonterra. The dairy co op

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Speaker 2: has made a seven hundred and fifty million dollar profit

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Speaker 2: after tax, beating market expectations and improving on last year's result,

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Speaker 2: and the full cast farm gate milk price midpoint has

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Speaker 2: been lifted to nine dollars seventy per kg of milk solids.

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Speaker 2: Carl Dean is the Federated Farmer's Dairy Chair is with us.

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Speaker 1: Hi, Carl, why are they Heather?

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Speaker 2: This is great but probably not unexpected, right because you

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Speaker 2: guys have been having these wonderful milk auctions.

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Speaker 1: Yeah, like you said, we've been having I think it's

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Speaker 1: been about five or six options in a row now

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Speaker 1: where it's been quite an uplift. So it's not unexpected.

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Speaker 1: And obviously there's going to be a bit of change

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Speaker 1: with the increasing fuel price will put a hamper on

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Speaker 1: any profits from that.

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Speaker 2: Ye. I'd imagine are you guys headed towards a ten

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Speaker 2: dollar midpoint?

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Speaker 1: I don't believe we'll be seeing a ten dollars It'd

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Speaker 1: be hard to imagine that would be the case. Now

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Speaker 1: there are futures markets sitting around the nine dollars seventy

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Speaker 1: to eighty mark. So Fontira's got it pretty much where

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Speaker 1: the futures are.

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Speaker 2: Yeah, Carl, I mean you couldn't have two more different

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Speaker 2: situations with Fonterra in Sinlay. What are you seeing in Sinlay?

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Speaker 2: Are you seeing signs that this is getting better?

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Speaker 1: I think it's told that it's very hard for a

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Speaker 1: processor if you put all your eggs in one basket

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Speaker 1: to try to turn things around. I think in the

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Speaker 1: report that did mentioned homework powder and that wasn't so

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Speaker 1: flash towards the beginning of the financial years. So I

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Speaker 1: think that they've got a strategy that they need to

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Speaker 1: execute in terms of tuning tuning sin Lay around. But

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Speaker 1: the main thing is they're paying farmers based on what

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Speaker 1: Fontira is paying. Yeah.

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Speaker 2: Now tell me about your guys fuel situation in rural

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Speaker 2: New Zealand. You've still got lots of diesel.

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Speaker 1: I think the market for diesels is tight enough. Most

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Speaker 1: farms are still getting diesel when they require it, but

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Speaker 1: obviously that price of diesel has gone through the roof

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Speaker 1: in the last couple of weeks.

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Speaker 2: Good stuff, Hey, Carl, Thanks very much, man. Carl Dean

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Speaker 2: Federated Farmer's Dairy Chair for more from Hither Duplessy Allen Drive.

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Speaker 2: Listen live to News Talk Set B from four pm weekdays,

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Speaker 2: or follow the podcast on iHeartRadio