Higher meat and milk prices push up producer price

BeefProducer prices rose in the September 2015 quarter influenced by higher meat and farm-gate milk prices, and a weaker New Zealand dollar, 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 rose in the September 2015 quarter, up 1.3 per cent and 1.6 per cent respectively.

“Prices were up 10 per cent for sheep, beef, and grain farmers,” prices manager, Chris Pike, said. “This meant meat product manufacturers had an 8.0 per cent rise in their input prices. The prices they received rose 5.5 per cent due to higher meat export prices on the back of a weaker NZ dollar.”

In the September 2015 quarter, higher farm-gate milk prices led to higher prices received by dairy cattle farmers (up 8.9 per cent) and paid by dairy product manufacturers (up 6.3 per cent).

Prices for purchasing capital goods, measured by the capital goods price index (CGPI), rose 1.4 per cent. Higher prices for plant, machinery, and equipment (up 2.4 per cent) were influenced by the weaker NZ dollar.

In the year to the September 2015 quarter, the output PPI was up 0.2 per cent, and the input PPI was down 0.2 per cent. The CGPI rose 3.6 per cent.

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