Sheep and beef farm input prices increase

6 June 2012

Sheep and beef farm input prices increase

New Zealand sheep and beef farm input prices increased 2.4 per cent for the year ended March 2012, according to the Beef + Lamb New Zealand Economic Service Movements in Sheep and Beef Farm Input Prices 2011-12 report.

Sheep and beef input prices have gone up 22.3 per cent in the last five years, compared with a 15.2 per cent increase in the Consumer Price Index for the same period, said Beef + Lamb New Zealand Economic Service Executive Director, Rob Davison.

“Fertiliser, lime and seeds increased 7 per cent (7.5 per cent increase in 2010-11), while fuel increased 5.4 per cent, which was the smallest price increase since 2007. Feed and grazing prices went up 5.9 per cent.

Local government rates increased 56 per cent with an overall cumulative increase over five years of 30.7 per cent.

Davison said offsetting the increases were some significant decreases, with the “price” of interest on farm debt going down 4.6 per cent and the strong New Zealand dollar helping dampen the domestic rate of inflation.

If interest is removed from the calculation the underlying rate of on-farm inflation for sheep and beef farm input prices was 3.8 per cent. This was the same as the previous year.

The full report can be read online at beeflambnz.com/economic-reports

About Beef + Lamb New Zealand:
Beef + Lamb New Zealand Ltd is the farmer owned industry organisation representing New Zealand’s sheep and beef farmers. Beef + Lamb New Zealand Ltd invests farmer levies to help develop a growing sheep and beef industry providing sustainable returns for future generations. Beef + Lamb New Zealand has four programmes – Farm, Market, People and Information – to deliver innovative tools and services to support informed decision making, and continuous improvement in market access, product positioning and farming systems for New Zealand’s sheep and beef sector.

www.beeflambnz.com

ENDS

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