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Home / Business / Companies / Agribusiness

Higher dairy export prices lift output index

NZPA
16 Feb, 2009 03:00 PM2 mins to read

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KEY POINTS:

Higher export prices for dairy products have driven an increase in producers' output prices.

The Producers Price Index (PPI) rose 1.4 per cent and input prices fell 2.2 per cent in the December 2008 quarter, Statistics New Zealand said yesterday.

The PPI looks at changes in the prices
of primary products, manufactured goods, rent and leasing revenue, service provision, business services and others.

The main contributor to the rise in output prices was the dairy product manufacturing index, while fuel wholesaling within the wholesale trade index was the greatest contributor to the fall in the inputs index, said Government Statistician Geoff Bascand.

The dairy product manufacturing outputs index rose 19.2 per cent in the December 2008 quarter, following a fall of 2.5 per cent in the September quarter.

The main driver of the index was higher export prices for dairy products such as milk powder, butter and cheese, Bascand said.

Export prices declined in the December month, but were at higher levels during October and November, resulting in an overall quarterly increase (influenced by the depreciating NZ dollar).

The wholesale trade inputs index fell 11.7 per cent in the December 2008 quarter, with lower prices for imported crude oil, a major input to fuel wholesaling, being the major driver of this fall. The fall in the wholesale trade index followed 8.3 and 9 per cent rises in the September and June quarters of 2008 respectively.

In the year to the December 2008 quarter, the PPI outputs index rose 9.9 per cent and the PPI inputs index rose 9.7 per cent.

- NZPA

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