1 00:00:00,240 --> 00:00:03,840 Speaker 1: Dairy company Sinley have been handled a lifeline, but it's 2 00:00:03,880 --> 00:00:06,960 Speaker 1: not a lifesaver. The shareholders have approved a one hundred 3 00:00:06,960 --> 00:00:09,120 Speaker 1: and thirty million dollar loan to keep the business afloats. 4 00:00:09,160 --> 00:00:13,200 Speaker 1: That money comes from Bright Dairy, which is a Chinese 5 00:00:13,240 --> 00:00:16,080 Speaker 1: firm with a thirty nine percent stake in Sinlay, even 6 00:00:16,079 --> 00:00:18,160 Speaker 1: though they abstained from the vote. But you've got to 7 00:00:18,160 --> 00:00:19,920 Speaker 1: take that as a side of confidence. It went through 8 00:00:19,960 --> 00:00:24,000 Speaker 1: with a ninety nine point six percent majority. Now Cameron 9 00:00:24,120 --> 00:00:26,880 Speaker 1: Henderson supplies Sinley and he joins me. 10 00:00:26,920 --> 00:00:29,640 Speaker 2: Now, Hello Cameron, good morning Andrew. How are you? 11 00:00:29,800 --> 00:00:31,920 Speaker 1: I'm good? Are you feeling relieved? 12 00:00:33,520 --> 00:00:36,400 Speaker 2: Absolutely? On very hippy dairy farmer this morning. It was 13 00:00:36,400 --> 00:00:38,159 Speaker 2: a very nervous wait for that result yesterday. 14 00:00:38,200 --> 00:00:39,920 Speaker 1: Could they have actually wrapped up the whole company? 15 00:00:41,440 --> 00:00:44,519 Speaker 2: Look, that's basically what the counter advice was that if 16 00:00:44,560 --> 00:00:46,600 Speaker 2: they didn't vote for this, that they were looking at 17 00:00:46,800 --> 00:00:50,559 Speaker 2: seizing trading, in voluntary administration or receivership so as a 18 00:00:50,560 --> 00:00:53,279 Speaker 2: supply to the company. That made us all very very nervous. 19 00:00:53,680 --> 00:00:56,520 Speaker 1: So Siddley ended out in a hole for a whole 20 00:00:56,560 --> 00:00:59,520 Speaker 1: heap of reasons, partly the construction of a new pocino plant. 21 00:01:00,080 --> 00:01:02,240 Speaker 1: They did that at a bad time, and China's stopped 22 00:01:02,280 --> 00:01:04,360 Speaker 1: having children, and they did that at a bad time. 23 00:01:05,200 --> 00:01:07,360 Speaker 1: You know, how is that Pergono plant going to Is 24 00:01:07,400 --> 00:01:08,840 Speaker 1: it a white elephant? Was it going to come into 25 00:01:08,880 --> 00:01:09,280 Speaker 1: its own? 26 00:01:10,360 --> 00:01:12,360 Speaker 2: Yeah? Look, my understanding is that it was. It was 27 00:01:12,360 --> 00:01:14,960 Speaker 2: built at the state of the plant for certain markets 28 00:01:14,959 --> 00:01:17,360 Speaker 2: that readly just didn't develop as fast as what Sinla 29 00:01:17,440 --> 00:01:20,679 Speaker 2: had planned. So I think a great vision, but probably 30 00:01:20,720 --> 00:01:23,319 Speaker 2: a little too visionary, and the market just wasn't there 31 00:01:23,360 --> 00:01:25,119 Speaker 2: for it. So it's just caught it out at a bad. 32 00:01:25,000 --> 00:01:27,280 Speaker 1: Time, okay. And the China problem with the lowering birth 33 00:01:27,360 --> 00:01:30,319 Speaker 1: rate and the economic slow down and the diigu system, 34 00:01:30,400 --> 00:01:31,320 Speaker 1: what's the answer to that. 35 00:01:32,520 --> 00:01:34,880 Speaker 2: Yeah, that's that's a tricky one. You know, a lot 36 00:01:34,880 --> 00:01:38,520 Speaker 2: of Cinele's value has been built alongside A two's on 37 00:01:38,560 --> 00:01:42,759 Speaker 2: that infant formula market, shipping infant formula two to China, 38 00:01:42,760 --> 00:01:44,959 Speaker 2: whether through official channels or through this you know, the 39 00:01:45,000 --> 00:01:47,800 Speaker 2: diguge trade. And so both companies got hit pretty hard, 40 00:01:47,800 --> 00:01:51,720 Speaker 2: with COVID obviously unexpectedly or wasn't part of their plan, 41 00:01:52,160 --> 00:01:54,320 Speaker 2: and that's part of this recovery as well. What's next? 42 00:01:54,320 --> 00:01:57,240 Speaker 2: And I guess as a farmer, that's that's what we're 43 00:01:57,240 --> 00:01:58,720 Speaker 2: waiting for now, is what's the plan? 44 00:02:00,120 --> 00:02:02,680 Speaker 1: Is there a move to diversify markets? I mean all 45 00:02:02,760 --> 00:02:04,720 Speaker 1: New Zealand businesses are being told this. You know, we've 46 00:02:04,760 --> 00:02:06,600 Speaker 1: got thirty percent of all our trade with China and 47 00:02:06,640 --> 00:02:09,520 Speaker 1: that's actually putting too many eggs in one basket. Either 48 00:02:09,560 --> 00:02:12,400 Speaker 1: other markets for the particular sin name product. 49 00:02:13,600 --> 00:02:16,119 Speaker 2: Yeah, they look, they do export a number of products. 50 00:02:16,720 --> 00:02:19,520 Speaker 2: The highest value was clearly the infant formula, so they 51 00:02:19,560 --> 00:02:22,720 Speaker 2: are I think scrambling to find where that value is 52 00:02:22,760 --> 00:02:25,280 Speaker 2: going to come from long term. But it's just I 53 00:02:25,320 --> 00:02:28,119 Speaker 2: think the infant formula is just one of the many 54 00:02:28,160 --> 00:02:30,639 Speaker 2: straws that broke the Kemel's back. I guess you could say, yeah, 55 00:02:30,680 --> 00:02:33,480 Speaker 2: a number of issues are spat with A two is 56 00:02:33,480 --> 00:02:37,959 Speaker 2: a major shareholder, perhaps some poor implementation in the company itself, 57 00:02:39,560 --> 00:02:43,440 Speaker 2: and obviously there was a purchase of Dairy Works and 58 00:02:43,440 --> 00:02:45,280 Speaker 2: a few other companies as well that probably haven't gone 59 00:02:45,320 --> 00:02:49,400 Speaker 2: to plan. So yeah, a whole lot of perhaps on hindsight, 60 00:02:49,520 --> 00:02:50,959 Speaker 2: some poor decisions coming home to Rust. 61 00:02:51,000 --> 00:02:53,799 Speaker 1: Really Okay, so this ninety nine point six percent vote, 62 00:02:53,800 --> 00:02:56,200 Speaker 1: that's pretty extraordinary. Were you surprised about it? 63 00:02:56,240 --> 00:02:59,760 Speaker 2: Ah? Yeah, absolutely, Look, I think that does show that 64 00:02:59,760 --> 00:03:02,040 Speaker 2: this is the right right path forward, and I think 65 00:03:02,040 --> 00:03:05,880 Speaker 2: most shareholders recognize that, you know, if they vote to know, 66 00:03:06,160 --> 00:03:09,160 Speaker 2: virtually they're voting their shareholding out of existence. So I 67 00:03:09,160 --> 00:03:12,239 Speaker 2: think it was a pretty clear cut decision for most people. 68 00:03:12,280 --> 00:03:15,000 Speaker 2: And then look suddenly mounted a very strong campaign to 69 00:03:15,040 --> 00:03:17,480 Speaker 2: try and get this over the line, probably one of 70 00:03:17,520 --> 00:03:20,440 Speaker 2: the biggest board lead campaigns for a vote that I've 71 00:03:20,480 --> 00:03:20,920 Speaker 2: ever seen. 72 00:03:21,480 --> 00:03:23,679 Speaker 1: So you'd say you're on the back of the right cow. 73 00:03:24,680 --> 00:03:27,120 Speaker 2: Well, I'm hoping. So look, I think you heard earlier 74 00:03:27,120 --> 00:03:28,840 Speaker 2: in your program that you know there's a long road 75 00:03:28,840 --> 00:03:32,040 Speaker 2: to go. This is one step forward and a long pathway. 76 00:03:32,280 --> 00:03:34,680 Speaker 2: There's a number of other issues to get over the line. 77 00:03:35,040 --> 00:03:38,160 Speaker 2: But as a shareholder, as a supplier, you know we're 78 00:03:38,160 --> 00:03:40,800 Speaker 2: along for the journey. Our contract says that we're with 79 00:03:40,920 --> 00:03:43,320 Speaker 2: certainly for at least another two years, and it makes 80 00:03:43,400 --> 00:03:46,160 Speaker 2: up over ninety percent of our income, so that we're 81 00:03:46,200 --> 00:03:48,440 Speaker 2: definitely vested in the outcome of this. We really want 82 00:03:48,480 --> 00:03:50,920 Speaker 2: them to do well because it has a massive impact 83 00:03:50,920 --> 00:03:51,600 Speaker 2: on our business. 84 00:03:51,880 --> 00:03:53,640 Speaker 1: Cameron, I'm sure you've got some cows and milk, so 85 00:03:53,640 --> 00:03:54,760 Speaker 1: I'll let you go, and I thank you so much 86 00:03:54,800 --> 00:03:58,120 Speaker 1: for your time today, all the very best. Thank you mate. 87 00:03:58,320 --> 00:04:00,000 Speaker 1: Cameron is a supply to suldn't they. 88 00:04:00,960 --> 00:04:03,840 Speaker 2: For more from the mic Asking Breakfast, listen live to 89 00:04:03,960 --> 00:04:07,040 Speaker 2: News Talk set B from six am weekdays, or follow 90 00:04:07,080 --> 00:04:08,640 Speaker 2: the podcast on iHeartRadio.