Farm Expenses Price Index: December 1999 quarter

. Farm Expenses Price Index: December 1999 quarter

Livestock Prices Influence Rise in Farm Input Prices Farm input prices (expenses) increased 1.2 per cent in the December 1999 quarter. This is the largest quarterly increase recorded since the September 1996 quarter, Deputy Government Statistician Ian Ewing said today when releasing the Farm Expenses Price Index.

A 3.8 per cent increase in livestock prices was the main cause of the increase. Livestock was in greater demand over the December 1999 quarter, due to farmers restocking after the drought and an increase in meat export demand. The lower New Zealand dollar has contributed to improved returns for exporters of New Zealand meat products.

The next most significant contributor was a 2.3 per cent rise in interest rates, following five consecutive quarters of declining interest rates.

The continued increase in fuel prices also contributed to the overall rise in farm prices, while a fall in fertiliser, lime and seeds prices was the main offsetter to the overall rise in farm prices.

Ian Ewing Deputy Government Statistician END

ENDS

© Scoop Media