Wednesday, 20 November 2013 14:34

Dairy pushes up producer prices

Written by Pamela Tipa

font size decrease font size increase font size
Print
Email

PRICES RECEIVED BY New Zealand producers, as measured by the output producers price index (PPI), rose 2.4% in the September 2013 quarter, Statistics New Zealand says.

"The September quarter output producers price index had its biggest quarterly rise in five years. Higher farm-gate milk prices for dairy farmers and strong prices for milk powder exports contributed to this rise," prices manager Chris Pike says.

Two major upward contributions to the output PPI came from dairy cattle farming (up 29%) and dairy product manufacturing (up 14%). In contrast, electricity and gas supply prices fell 4.4% in the September 2013 quarter.

The input PPI, representing the prices of goods and services used by New Zealand producers, rose 2.2% in the September 2013 quarter. The latest increase was influenced by the higher milk prices paid by dairy producers, and higher prices for lamb and beef – due to strong demand and tight supply.

In the year to the September 2013 quarter, the output PPI was up 4.1%, while the input PPI rose 3.3%.

More like this

Open Country opens butter plant

When American retail giant Cosco came to audit Open Country Dairy’s new butter plant at the Waharoa site and give the green light to supply their American stores, they allowed themselves a week for the exercise.

Revamped Fonterra to be ‘more capital-efficient’

Fonterra chair Peter McBride says the divestment of Mainland Group is their last significant asset sale and signals the end of structural changes.

Green light for virtual fencing, herding in Victoria

Virtual fencing and herding systems supplier, Halter is welcoming a decision by the Victorian Government to allow farmers in the state to use the technology.

Dairy sector profit still on the table, but margin gap tightens

DairyNZ’s latest Econ Tracker update shows most farms will still finish the season in a positive position, although the gap has narrowed compared with early season expectations.

Michelle Pye elected to Fonterra board

Canterbury farmer Michelle Pye has been elected to Fonterra’s board for a three-year term.

Featured

New Zealand Beekeepers Move Towards Single National Organisation

Moves are underway to create a single organisation to represent the country's beekeepers.

New Zealand Primary Sector Forecast to Reach $70 Billion by 2030

Against all the odds, the primary sector has turned in a stellar performance with export returns for 2026 hitting $64.3 billion - up 6% on the previous year.

NZ Farmers Power Economy as Primary Exports Hit Record $64 Billion

Farmers and growers are powering the economy with export revenue at record highs.

Native Forest Champions Honoured at Fieldays 2026

Forestry Minister Todd McClay has today congratulated the winners of the 2026 Growing Native Forests Champions Awards at Fieldays.

Government Backs NZ Young Farmers Clubs Nationwide

The Government has announced $60,000 to provide one-off grants of $1,000 to each of the 60 New Zealand Young Farmers (NZYF) clubs across the country.

Good Farming Practices Proven to Reduce Nutrient Losses and Improve Water Quality

Analysis of decades of research has revealed the implementation of good farming practices plays a critical role in reducing nutrient losses to improve freshwater outcomes.