Lower farm-gate milk prices lead to lower producer prices

Lower farm-gate milk prices lead to lower producer prices – Media release

19 August 2015

Producer prices fell in the June 2015 quarter, due to lower farm-gate milk prices, Statistics New Zealand said today. Prices received (as measured by the output producers price index (PPI)) and paid (as measured by the input PPI), both fell in the June 2015 quarter, down 0.2 percent and 0.3 percent, respectively.

"Prices were down 5.5 percent for dairy cattle farming outputs, and down 4.2 percent for dairy product manufacturing inputs. Both falls were due to lower farm-gate milk prices," prices manager Chris Pike said.

Output prices for electricity and gas supply fell 2.4 percent in the June 2015 quarter, due to lower electricity generation prices. Higher lake levels and lower wholesale electricity spot prices influenced the fall.

Higher retail electricity and fuel (both petrol and diesel) prices led to higher input prices for many industries, including farming. The farm expenses price index rose 0.4 percent in the June quarter, compared with a 0.5 percent fall in the March quarter.

Producers in the construction industry continued to receive higher prices (up 0.5 percent) in the June 2015 quarter. This was largely influenced by the prices for constructing new residential buildings (up 1.3 percent), as measured by the capital goods price index (CGPI), which was up 0.6 percent overall.

In the year to the June 2015 quarter, the output PPI was down 2.2 percent, and the input PPI fell 3.3 percent. The CGPI rose 2.7 percent.

Ends

For more information about these statistics:
• Visit Business Price Indexes: June 2015 quarter (includes Producers Price Index and Capital Goods Price Index)
• Open the attached files
BusinessPriceIndexesJun15qtr.pdf
bpijun_15qtrsummarytable.xls
bpijun_15qtrcgpitables.xls
bpijun_15qtrfepitables.xls
bpijun_15qtrppitables.xls

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