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


Milk processors reap fatter margins in September quarter

By Paul McBeth

Nov. 19 (BusinessDesk) - Cheaper raw milk prices and better prices for processed dairy products at home and abroad supported fatter margins for dairy product manufacturers in the second quarter.

Prices received by dairy product manufacturing firms rose 6.5 percent in the three months ended Sept. 30 while input prices dropped 3.7 percent in the same period, Statistics New Zealand figures show.

The upstream dairy producers have enjoyed the favourable price conditions over the past year as well, with output prices up 7.8 percent from a year earlier and input prices down 4.7 percent in the same period.

That didn't flow down to dairy farmers, who faced a 1.5 percent increase in input prices in the quarter, while their output prices dropped 4.8 percent. On an annual basis, output prices were 6.5 percent lower than a year earlier and input prices were 6.1 percent higher. StatsNZ said there's typically a lag between a change in costs and what a firm can charge customers.

Across the broader producer prices index, output prices rose 1.5 percent in the quarter while input prices increased 1.4 percent. Output prices for professional, scientific and tech services - which account for 7.5 percent - rose 1.6 percent in the quarter, while property operators and real estate services - which account for 6.1 percent - increased 0.3 percent.

Dairy product manufacturing has the biggest weighting on input prices at 6.5 percent. Building construction input prices are the second-biggest contributor at 6.2 percent, and rose 1.3 percent in the quarter.

Mining output prices climbed 7.5 percent in the quarter, while input prices rose 2.2 percent. Output prices for petroleum and coal product manufacturers rose 7.2 percent in the September quarter and input prices were up 2.8 percent.

On an annual basis, PPI output prices rose 3.6 percent, lagging behind a 4 percent increase in input prices. Higher fuel prices contributed to the margin squeeze, as petrol prices for businesses climbed 22.5 percent and diesel costs were up 37.8 percent.

That's been keenly felt in the transport sector. Input prices for rail, water, air and other transport firms rose 10.8 percent in the September quarter from a year earlier, while outprice prices were up just 1.4 percent.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>


Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing


House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>