1 00:00:01,960 --> 00:00:04,960 Speaker 1: The Rural report on Heather do for see Alan. 2 00:00:04,800 --> 00:00:07,960 Speaker 2: Drive Jamie Mackay. The country is with us, Hello, Jamie. 3 00:00:08,680 --> 00:00:11,080 Speaker 1: I can't even get one word or let alone six 4 00:00:11,200 --> 00:00:14,000 Speaker 1: hundred and thirty three or whatever, Heather. So you're still 5 00:00:14,040 --> 00:00:15,120 Speaker 1: a winner in my eyes? 6 00:00:15,200 --> 00:00:17,239 Speaker 2: Well, mate, thank you, but that don't don't don't be 7 00:00:17,280 --> 00:00:19,439 Speaker 2: so stoked. There are some people who have like streaks 8 00:00:19,440 --> 00:00:22,400 Speaker 2: of about one thousand plus, so I am but a 9 00:00:22,560 --> 00:00:25,920 Speaker 2: child compared to them. Anyway, It's not to be. That's 10 00:00:26,200 --> 00:00:29,560 Speaker 2: the end of that for me. Now, alliance not a surprise, 11 00:00:29,680 --> 00:00:29,880 Speaker 2: is it. 12 00:00:30,960 --> 00:00:34,320 Speaker 1: No, not a surprise at all. Look, it was a 13 00:00:34,320 --> 00:00:37,919 Speaker 1: really Hobson's choice for the farmers. So the vote finished yesterday. 14 00:00:37,920 --> 00:00:41,880 Speaker 1: They announced the results this morning. An overwhelming mandate is 15 00:00:41,920 --> 00:00:44,920 Speaker 1: what i'd call it. Eighty eight percent of the shares 16 00:00:45,040 --> 00:00:49,440 Speaker 1: on issue voted, which was important because they needed at 17 00:00:49,520 --> 00:00:51,640 Speaker 1: least fifty percent of them to vote, and of those 18 00:00:51,640 --> 00:00:55,840 Speaker 1: that voted, they needed seventy five seventy five percent majority. 19 00:00:55,880 --> 00:00:58,320 Speaker 1: They did much better than that. They got eighty seven 20 00:00:59,400 --> 00:01:02,480 Speaker 1: so that met the threshold required by the takeovers Code. 21 00:01:02,520 --> 00:01:04,800 Speaker 1: You all know the deal by now, two hundred and 22 00:01:04,800 --> 00:01:08,480 Speaker 1: seventy million from the Irish Meat Company Dawn meets for 23 00:01:08,560 --> 00:01:11,160 Speaker 1: sixty five percent of the Alliance group. There are some 24 00:01:11,520 --> 00:01:15,400 Speaker 1: synergies and advantages because Dawn meats very strong and beef. 25 00:01:15,480 --> 00:01:19,640 Speaker 1: The Alliance is the world's biggest sheep meat processor, so 26 00:01:19,680 --> 00:01:23,160 Speaker 1: they're going to balance each other out there. Obviously, Northern 27 00:01:23,160 --> 00:01:28,960 Speaker 1: Hemisphere supply versus Southern Hemisphere supply, that around all round 28 00:01:28,959 --> 00:01:33,560 Speaker 1: supply is going to be good. Mark Win, the chair 29 00:01:33,600 --> 00:01:37,600 Speaker 1: who's really staked his reputation on this one, was pretty 30 00:01:37,600 --> 00:01:39,760 Speaker 1: tough when I was talking to him today. And you 31 00:01:39,760 --> 00:01:42,280 Speaker 1: know who were Dawn Meats. While they were established in 32 00:01:42,319 --> 00:01:46,240 Speaker 1: the nineteen eighties by three Irish farming families. They process 33 00:01:46,319 --> 00:01:48,639 Speaker 1: three and a half million sheep and one million cattle 34 00:01:48,680 --> 00:01:51,360 Speaker 1: a year. That's a lot of cattle. Forty thousand farmers 35 00:01:51,440 --> 00:01:54,600 Speaker 1: supplying them. That makes them bigger than any meat company 36 00:01:54,640 --> 00:01:57,920 Speaker 1: here in New Zealand. Turnover of five point eight billion, 37 00:01:58,000 --> 00:02:02,000 Speaker 1: which is two to three times any meat company here 38 00:02:02,960 --> 00:02:07,080 Speaker 1: in New Zealand for eleven processing sites in Ireland at 39 00:02:07,120 --> 00:02:10,120 Speaker 1: thirteen in the United Kingdom. But as I said, Hobson's 40 00:02:10,200 --> 00:02:13,080 Speaker 1: choice for the farmers, they didn't really have much of 41 00:02:13,120 --> 00:02:18,280 Speaker 1: an option. The proposal to recapitalize from some high profile, 42 00:02:18,440 --> 00:02:22,040 Speaker 1: high wealth farmers didn't really take off. So really, hither 43 00:02:22,120 --> 00:02:24,720 Speaker 1: it's up to the batter's box for the next farmer 44 00:02:24,800 --> 00:02:26,519 Speaker 1: co op vote, and that is Fonterra. 45 00:02:26,720 --> 00:02:30,120 Speaker 2: Do you think any of these farmers will all shareholders 46 00:02:30,120 --> 00:02:31,920 Speaker 2: would have been put off by Winston Peters? 47 00:02:33,520 --> 00:02:36,720 Speaker 1: Oh, I don't know. Winston's blustering away on this one, 48 00:02:36,720 --> 00:02:40,360 Speaker 1: and Shane Shane Jones is also as well. This is 49 00:02:40,400 --> 00:02:44,480 Speaker 1: all part of the New Zealand first nationalistic view on life, 50 00:02:44,520 --> 00:02:48,600 Speaker 1: where any foreign investment is totally evil. Look, Winston, as 51 00:02:48,680 --> 00:02:51,720 Speaker 1: much as I admire him on occasions, is totally wrong here. 52 00:02:51,760 --> 00:02:54,040 Speaker 1: It's none of his business. He needs to butt out. 53 00:02:54,400 --> 00:02:57,560 Speaker 1: These are farmer owned cooperatives. The only people who have 54 00:02:57,639 --> 00:03:00,000 Speaker 1: a right to make a decision here are the only 55 00:03:00,200 --> 00:03:03,640 Speaker 1: of the company, or in this case the cooperatives, the farmers, 56 00:03:03,720 --> 00:03:06,160 Speaker 1: just like the Fonterra one. He's jumping up and down 57 00:03:06,200 --> 00:03:09,239 Speaker 1: about that. And Shane Jones was saying, well, Fonterra is 58 00:03:09,280 --> 00:03:11,600 Speaker 1: going to come knocking at my door needing favors. I 59 00:03:11,600 --> 00:03:13,440 Speaker 1: said to him it sounded a bit like a threat. 60 00:03:13,720 --> 00:03:17,359 Speaker 1: So that vote, Heather, we'll know that one. Next Thursday. 61 00:03:17,400 --> 00:03:20,800 Speaker 1: We're about to talk about that one Thursday week, October 62 00:03:20,880 --> 00:03:23,240 Speaker 1: the thirtieth, and you know you don't look a gift 63 00:03:23,320 --> 00:03:26,799 Speaker 1: horse in the mouth. The farmers are of course going 64 00:03:26,840 --> 00:03:29,880 Speaker 1: to vote to get three point two billion of the 65 00:03:29,919 --> 00:03:32,160 Speaker 1: four point two billion that they're going to get from 66 00:03:32,200 --> 00:03:36,080 Speaker 1: the sale to the French dairy giant. Luck tellus. I 67 00:03:36,080 --> 00:03:38,920 Speaker 1: hope I got that right. I don't think no. I 68 00:03:38,920 --> 00:03:43,880 Speaker 1: didn't play with lactalise. Thank you, Heather, Well, you're multilingually. 69 00:03:44,040 --> 00:03:45,680 Speaker 2: I don't even know that I got it wrong, but 70 00:03:45,720 --> 00:03:47,000 Speaker 2: I just I think if you, if you just come 71 00:03:47,040 --> 00:03:49,720 Speaker 2: at it with some confidence, I think you know wins 72 00:03:49,760 --> 00:03:50,040 Speaker 2: the day. 73 00:03:50,200 --> 00:03:52,600 Speaker 1: The great, the great Keith Quinn used to say in 74 00:03:52,680 --> 00:03:55,600 Speaker 1: rugby commentary back when I was a commentator many years ago, 75 00:03:56,000 --> 00:03:58,160 Speaker 1: if you can't pronounce it, just say it quickly, and 76 00:03:58,200 --> 00:04:00,400 Speaker 1: I should have. I've missed a trick there. They're going 77 00:04:00,440 --> 00:04:04,640 Speaker 1: to get two dollars per share tax free capital return. 78 00:04:04,720 --> 00:04:07,800 Speaker 1: That's something like three to four hundred grand for your 79 00:04:07,800 --> 00:04:10,000 Speaker 1: average farmer. A lot of that's going to go into 80 00:04:10,080 --> 00:04:12,280 Speaker 1: debt repayments. Some of them paid big money for their 81 00:04:12,320 --> 00:04:14,880 Speaker 1: Fonterra shares in the first place, but a lot of that, 82 00:04:15,160 --> 00:04:16,960 Speaker 1: some of it is going to find its way into 83 00:04:17,040 --> 00:04:20,839 Speaker 1: essential farming expenditure. And I'm talking about replacing utes and 84 00:04:20,880 --> 00:04:23,520 Speaker 1: tractors that are overdue to be replaced. So this is 85 00:04:23,560 --> 00:04:26,000 Speaker 1: going to be a real kick in the backside for 86 00:04:26,040 --> 00:04:26,720 Speaker 1: the economy. 87 00:04:26,720 --> 00:04:29,520 Speaker 2: Oh brilliant, Hey, Jamie, listen, Thank you very much. Appreciate 88 00:04:31,000 --> 00:04:34,839 Speaker 2: Jamie McKay, Hosts of the Country. For more from Heather 89 00:04:34,920 --> 00:04:37,920 Speaker 2: Duplessy Allen Drive, listen live to news talks. It'd be 90 00:04:38,080 --> 00:04:41,920 Speaker 2: from four pm weekdays, or follow the podcast on iHeartRadio.