Higher prices for lamb, beef, and dairy products helped lift prices received by manufacturers, but they also paid more for raw products and power, Stats NZ said.
Overall, producer output prices (the prices producers get for their goods and services) rose 1.3 percent in the June 2017 quarter, while input prices (the costs producers pay) rose 1.4 percent.
In the June 2017 quarter, meat product manufacturing and dairy product manufacturing rose 6.9 percent and 3.4 percent respectively. Dairy cattle farmers also received higher prices (up 5.8 percent), due to higher farm-gate milk prices.
In the June 2017 quarter, producer input prices also rose, mainly influenced by dairy product manufacturing prices (up 4.6 percent), while meat product manufacturing prices were up 6.5 percent.
Both input and output prices for electricity and gas supply rose in the June quarter (up 8.5 percent and 6.9 percent respectively). These increases were influenced by higher prices for electricity generation, partly arising from a dry winter. Higher output prices for electricity lead to higher input costs for other industries.
In the June 2017 year, producer output prices increased by 5.2 percent, and producer input prices increased by 4.7 percent.
“In June 2017, prices received by dairy cattle farmers were up 53 percent due to a rise in farm-gate milk prices, from $4.25 to $6.50 per kilo of milk solids. This was still lower than the March 2014 quarter peak, when forecast milk prices were $8.65. In the June 2017 year, prices received for manufactured dairy products, such as butter and cheese, were up by 35 percent,” business prices manager Sarah Williams said.
The capital goods price index (CGPI) rose 3.2 percent, influenced by higher prices for residential and non-residential buildings (up 5.8 percent and 5.5 percent respectively). The farm expenses price index rose 1.1 percent.
Source: Stats NZ