Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


PPI falls in the second quarter as dairy prices decline

NZ producer prices fall in the second quarter as dairy prices decline

By Tina Morrison

Aug. 19 (BusinessDesk) - New Zealand producers' input and output prices fell in the second quarter of this year as dairy prices declined.

Producer output prices, which measure the prices received by New Zealand producers, fell 0.5 percent in the three months ended June 30, Statistics New Zealand said. Input prices, representing the prices of goods and services used by local producers, fell 1 percent in the quarter.

Prices for dairy products have weakened this year as farmers increased production to take advantage of higher prices, resulting in a build up of inventory in China and falling demand in some emerging markets. Fonterra Cooperative Group's GlobalDairyTrade auction tomorrow morning will be closely watched after dairy product prices slumped to the lowest level since October 2012 in the last auction. Lower prices for raw milk in the second quarter led an 11 percent decline in the prices received by dairy cattle farmers and a 9.4 percent decrease in input prices paid by dairy product manufacturers, the statistics agency said today.

"Lower milk prices contributed to decreases in both the input and output producers price index in the June quarter," Statistics NZ prices manager Chris Pike said.

In the June quarter, the output dairy product manufacturing price index fell 2.9 percent, reflecting lower prices for milk powder.

Cheaper electricity prices also weighed, with the input electricity and gas supply price index down 8.4 percent due to lower prices for electricity generation. Lower electricity prices reflect spot-market conditions, a shift towards geothermal procuction over thermal gas-fired generation and higher lake levels, the statistics agency said.

On an annual basis, producer output prices were up 2.5 percent while input prices rose 1.4 percent.

In a separate release, the capital goods price index, which measures changes in the price of new fixed assets bought by local producers, rose 0.7 percent in the second quarter for an annual rise of 2.2 percent. That was led by a 1.3 percent increase in residential building and a 1.1 percent increase in non-residential buildings.

The quarterly capital goods increase was partly offset by a fall in the prices for plant, machinery, and equipment, which declined 0.3 percent as a result of an increase in the New Zealand dollar.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news