May 30, 2007
Production prices up in New Zealand's beef, sheep
Input prices up for sheep and beef in New Zealand have risen to 1.9 percent over the last year, according to figures presented by Meat and Wool New Zealand Economic Service.
The agency said prices paid for a trailer-load of goods and services, used to operate sheep and beef farms, had increased 1.9 percent between February 2006 and February 2007. This compares with a 4.8 percent increase in operating costs for the previous 12 months.
Executive Director of Meat and Wool New Zealand's Economic Service Rob Davison said of the 16 categories in the index, a significant decline was noted in animal health (-11.2 percent) and insurance (-3.2 percent). The most significant increases were for rates (+7.1 percent) and cartage (+5.6 percent).
This is the sixth successive year that local body rates have increased at a higher rate than on-farm inflation (+7.1 percent).
The decrease in overall Animal Health prices (-11.2 percent) is sourced from Statistics New Zealand and is the largest decrease since records began in 1984/1985. Unchanged animal health prices could push inflation rate to 2.6 percent.
Other major categories showed increases of 3.2 percent for shearing; 3.1 for interest; 2.5 per cent for fertiliser; 2.2 percent for wages and 2.1 percent for repairs, maintenance, and vehicles.
Excluding interest, the underlying rate of on-farm inflation was 1.7 percent and was down from the 5.2 per cent for the previous 12 months. The overall 1.9 per cent increase for sheep and beef farm input prices was the lowest rate of increase since 2003-04.