increase font size
Sheep and beef farm input prices rose twice as fast as consumer price inflation in the year to March 2019, says Beef + Lamb New Zealand.
This pushed on-farm inflation to 3%, according to the latest (B+LNZ) Economic Service Sheep and Beef On-Farm Inflation Report.
The report identifies annual changes in the prices of goods and services purchased by New Zealand sheep and beef farms. The overall on-farm inflation rate is determined by weighting the changes in prices for individual input categories by their proportion of total farm expenditure.
B+LNZ Economic Service’s chief economist Andrew Burtt says the biggest three expenditure categories – shearing expenses; fertiliser, lime, and seeds; and council rates – contributed substantially to the 3% percent rate of on-farm inflation.
“Of the 16 input categories, prices were up to some degree in all categories except for weed and pest control – which was down 0.2%,” says Burtt.
The most significant price increases were for shearing expenses (+11.2%); fertiliser, lime, and seeds (+6.2%); and rates (+5.1%). On average these input categories account for a quarter of farm expenditure, and were responsible for nearly 60% of the overall on-farm inflation.
Shearing expenses have also been the biggest increasing expenditure over the last 14 years following the increase in pay rates for shearing contractors by 25%.
“Excluding interest, on-farm inflation was 3.5% – the highest rate since the 2011-12 season,” Burtt says.
“Low interest rates continue to be important because interest expenditure accounts for 14% of total farm expenditure, which makes it the second largest category of sheep and beef farm expenditure.”
In contrast, consumer price inflation, which is measured by the consumer price index (CPI), was up 1.5% in the year to March 2019. Over the last decade, the CPI has increased 6.8% points more than on-farm inflation.
Recent widespread autumn rain will have triggered the germination of subterranean clover seeds, and the resulting seedlings should be allowed to reach the 3–4 trifoliate leaf stage before grazing, says Beef+Lamb NZ.
A Māori-owned agribusiness helping to turn a long-standing animal welfare and waste issue into a high-value protein stream for the dairy and red meat sectors wants more industry support.
The vineyards at Pyramid Farm in Marlborough’s Avon Valley have never been run of the mill, with plantings that follow the natural contours of the land, 250 metres above sea level.
A hub farm in each of Beef + Lamb NZ’s seven regions and more focus groups are being rolled out for the red meat sector this year.
The red meat sector is poised for a strong rebound this season, with export receipts forecast to top $10 billion and farm profitability to almost double.
Following recent storms in the region, the 69th edition of the Tour of Southland cycling event has been postponed.
A function at Parliament on 7th October brought together central government decision-makers, MPs, industry stakeholders and commercial partners to highlight the need for strategic investment in the future of Fieldays and its home, the Mystery Creek Events Centre campus.
The Government's revised 2050 biogenic methane target range of 14-24% by 2050 is being welcomed by dairy farmers.
An increasing number of students are doing agricultural and horticultural degrees at Massey University by distance learning.
ANZ New Zealand is encouraging farmers and businesses impacted by the recent extreme weather that hit Southland and South Otago last week to seek support if they need it.
When Professor Pierre Venter takes up his new role as vice chancellor at Massey University next February it will just be a matter of taking a few steps across the road to get to his new office at the Palmerston North Campus.
OPINION: The Greens have taken the high moral ground on the Palestine issue and been leading political agitators in related…
One of the most galling aspects of the tariffs whacked on our farm exports to the US is the fact…
