Prices paid to dairy product manufacturers fell sharply in the September 2020 quarter, reversing gains in the March and June quarters, Stats NZ said today.
Despite falling 13 per cent in the September quarter, the price level remains relatively high, similar to the highs observed in 2013.
"In the three months to September, prices fell for a variety of dairy products traded in the Global Dairy Trade auction, dipping from higher levels seen earlier in the year," business prices delivery manager Bryan Downes said.
"The dairy product manufacturing and dairy cattle farming industries are closely related and show similar trends over time."
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Across all industries in the September 2020 quarter, prices received by producers from customers continued to fall (down 0.3 per cent) while prices paid by producers to suppliers bounced back (up 0.6 per cent).
"Falling global demand, higher freight costs, and disruption to business caused by the Covid-19 pandemic meant producers received lower prices from customers across a number of industries," Downes said.
"Producers received less for products in the forestry and logging, seafood, and textiles industries in the September quarter."