1 00:00:00,120 --> 00:00:02,279 Speaker 1: Jomie mckaye, host of the Countries with us Alo Jamie 2 00:00:03,080 --> 00:00:06,080 Speaker 1: good A header. So we've been speaking about insurance on 3 00:00:06,120 --> 00:00:09,039 Speaker 1: the show and there's a huge insurance payout for the 4 00:00:09,600 --> 00:00:10,200 Speaker 1: South Island. 5 00:00:10,280 --> 00:00:13,560 Speaker 2: Yeah yeah, yeah, those storms you might remember the big 6 00:00:13,600 --> 00:00:17,400 Speaker 2: winds that lash Southland, Otago and Canterbury. Well, the country's 7 00:00:17,440 --> 00:00:22,680 Speaker 2: biggest largest rural insurer is FMG. It's the second most 8 00:00:22,720 --> 00:00:24,799 Speaker 2: claims for an event that they've paid out on their 9 00:00:24,800 --> 00:00:27,920 Speaker 2: one hundred and twenty year history. So they've paid out 10 00:00:27,960 --> 00:00:30,560 Speaker 2: twenty million. They expect the figure to rise to about 11 00:00:30,600 --> 00:00:34,600 Speaker 2: fifty million. They've got five thousand claims lodged, about half 12 00:00:34,640 --> 00:00:37,720 Speaker 2: of those are now settled and obviously the only event 13 00:00:37,800 --> 00:00:41,839 Speaker 2: resulting in more claims was the Auckland Anniversary floods and 14 00:00:41,920 --> 00:00:45,479 Speaker 2: cyclone Gabrielle and twenty twenty three. Now where farmers have 15 00:00:45,520 --> 00:00:48,640 Speaker 2: come on stuck away, that is what's covered and what's 16 00:00:48,720 --> 00:00:51,120 Speaker 2: not a number of farmers have discovered to their own 17 00:00:51,159 --> 00:00:54,720 Speaker 2: cost in the wake of the storm that their insurance 18 00:00:54,800 --> 00:00:59,080 Speaker 2: did not cover damaged fencing or fallen trees. And the 19 00:00:59,160 --> 00:01:01,880 Speaker 2: fencing one with the trees is a bit of a 20 00:01:01,880 --> 00:01:05,160 Speaker 2: double edged sword because what happened there heather trees. Literally 21 00:01:05,200 --> 00:01:09,960 Speaker 2: whole plantations of shouterbouts got blown over. Obviously they smashed 22 00:01:10,680 --> 00:01:14,840 Speaker 2: the fences on the shelter or the side that they 23 00:01:14,880 --> 00:01:18,440 Speaker 2: fell on, but they also with the roots upended the 24 00:01:18,520 --> 00:01:21,480 Speaker 2: fence on the other side. So you've got two fences 25 00:01:21,520 --> 00:01:25,200 Speaker 2: completely destroyed, stock running everywhere. It's been a real nightmare. 26 00:01:25,200 --> 00:01:28,520 Speaker 2: The other big insurer in this country is AIG. They've 27 00:01:28,560 --> 00:01:31,680 Speaker 2: had five thousand claims as well. The majority of theirs 28 00:01:32,160 --> 00:01:34,560 Speaker 2: we're in Otago and South And here's a good stat 29 00:01:34,640 --> 00:01:37,440 Speaker 2: for you. A log and contractor in the Kluther district 30 00:01:37,440 --> 00:01:40,480 Speaker 2: that's the Belkluther area said there were more than one 31 00:01:40,520 --> 00:01:45,240 Speaker 2: hundred and fifty thousand tons of trees still on the 32 00:01:45,280 --> 00:01:49,960 Speaker 2: ground at private properties three months on from the storm. Horrendous. 33 00:01:50,160 --> 00:01:52,840 Speaker 1: There's a lot. Now what do you make of the 34 00:01:52,960 --> 00:01:54,520 Speaker 1: end of the wool auctions in Napier. 35 00:01:56,520 --> 00:01:59,840 Speaker 2: I just think it's probably inevitable. They for years with 36 00:02:00,080 --> 00:02:03,280 Speaker 2: had North and South Island auctions. Well, PGG Rights in 37 00:02:03,320 --> 00:02:08,280 Speaker 2: the country's biggest wall broker, has decided to centralize them 38 00:02:08,440 --> 00:02:12,480 Speaker 2: all in christ Church. They've been having wall auctions in 39 00:02:12,600 --> 00:02:16,639 Speaker 2: Napier since the year eighteen eighty when the company's previous 40 00:02:16,680 --> 00:02:20,119 Speaker 2: owner PGG, Right, since previous owner Williams and Kettle held 41 00:02:20,160 --> 00:02:23,400 Speaker 2: its first Napier auction. So what they're doing now is 42 00:02:23,440 --> 00:02:29,480 Speaker 2: they're concentrating at all on christ Church. So and for 43 00:02:29,639 --> 00:02:33,720 Speaker 2: the reason they've chosen christ Church over Napier, international buyers 44 00:02:33,800 --> 00:02:37,080 Speaker 2: get ready access to an international airport. Obviously, christ Church 45 00:02:37,600 --> 00:02:40,680 Speaker 2: wall would continue to be scoured and stored in Napier, 46 00:02:40,680 --> 00:02:44,040 Speaker 2: remembering there's a big scouring plant up there, but samples 47 00:02:44,080 --> 00:02:46,200 Speaker 2: would be shipped down to christ Church for the sales 48 00:02:46,639 --> 00:02:50,160 Speaker 2: so the buyers could do the touch and feel and 49 00:02:50,200 --> 00:02:53,880 Speaker 2: see with the wall samples. Now pgg's head of wool, 50 00:02:54,160 --> 00:02:57,720 Speaker 2: Rachel Sharer, what a great name of that is. Rachel said, 51 00:02:58,120 --> 00:03:00,520 Speaker 2: the amount of sharable sheep in the world and in 52 00:03:00,600 --> 00:03:04,079 Speaker 2: New Zealand is at a record low. Volumes that are 53 00:03:04,080 --> 00:03:07,000 Speaker 2: coming forward to be traded are also at a record low. 54 00:03:07,080 --> 00:03:11,799 Speaker 2: Remembering Heather that in the nineteen fifties, wall, particularly strong wool, 55 00:03:11,880 --> 00:03:15,760 Speaker 2: was our biggest exporter export earner. Look where it is now. 56 00:03:15,960 --> 00:03:17,960 Speaker 2: So you know, the sheep numbers in this country are 57 00:03:18,280 --> 00:03:22,360 Speaker 2: continuing on downwards. They were six million fewer in the 58 00:03:22,360 --> 00:03:25,880 Speaker 2: past decade. The decade they've fallen twenty one percent to 59 00:03:26,080 --> 00:03:28,919 Speaker 2: just twenty three point six million sheep in this country. 60 00:03:29,080 --> 00:03:32,960 Speaker 2: We used to have over seventy million of them. So 61 00:03:33,080 --> 00:03:35,160 Speaker 2: there you go. That's the wall industry at the moment. 62 00:03:35,400 --> 00:03:37,560 Speaker 2: The good news is here that the good news is 63 00:03:37,560 --> 00:03:42,520 Speaker 2: that wall prices have risen consistently something like about thirty 64 00:03:42,600 --> 00:03:44,800 Speaker 2: percent in the past year off the back of this 65 00:03:44,920 --> 00:03:49,160 Speaker 2: low supply, and threefold since the downturn of the COVID 66 00:03:49,200 --> 00:03:50,840 Speaker 2: lows of twenty twenty one. 67 00:03:51,080 --> 00:03:53,240 Speaker 1: Good stuff. Hey, thank you very much, as always appreciated. 68 00:03:53,280 --> 00:03:53,560 Speaker 2: Jamie. 69 00:03:53,560 --> 00:03:55,240 Speaker 1: We'll talk to you again next week. Jamie mckaie, Host of 70 00:03:55,240 --> 00:03:58,640 Speaker 1: the Country. It's funny when people's names are relevant to 71 00:03:58,680 --> 00:04:02,360 Speaker 1: their jobs. Ah are working in wool, That's funny. There's 72 00:04:02,400 --> 00:04:05,680 Speaker 1: a brewer Chap called Brewer who's one of the He's 73 00:04:05,680 --> 00:04:08,680 Speaker 1: in charge of one of the lobbying lobbying outfits for alcohol. 74 00:04:09,480 --> 00:04:10,600 Speaker 1: Brings me no end of joy. 75 00:04:11,360 --> 00:04:14,560 Speaker 2: For more from Hither Duplessy Allen Drive, listen live to 76 00:04:14,640 --> 00:04:17,679 Speaker 2: news talks it'd be from four pm weekdays, or follow 77 00:04:17,720 --> 00:04:19,480 Speaker 2: the podcast on iHeartRadio.