Producer prices increase

Producer prices increased more in the year ended September 2021 than in any other year for more than a decade, Stats NZ said today.

In the year ended September 2021, prices received by producers increased 6.2 percent, and prices paid by producers increased 7.0 percent.

“The increases in prices received and paid by producers in the year ended September 2021 are the largest increases since the years ended March 2009 and December 2008 respectively,” business prices delivery manager James Mitchell said.

Quarterly dairy prices up and electricity down

In the September 2021 quarter, prices received by producers increased 1.8 percent, and prices paid by producers increased 1.6 percent.

The overall change in prices received by producers was influenced by increases in the dairy product manufacturing industry (up 6.3 percent), and the dairy cattle farming industry (up 9.1 percent) as final dairy products and raw milk increased in price.

The overall change in prices paid by producers was influenced by increases in the dairy product manufacturing industry (up 7.4 percent) as raw-milk prices increased.

“Prices paid and received by producers in dairy industries are linked. Raw milk is not only an output for farmers but is also an input for producers of dairy products for final consumption,” Mr Mitchell said.

The overall increases in prices received and paid by producers were somewhat offset by falls in prices in the electricity and gas supply industry. In the September 2021 quarter, prices received by producers in the industry decreased 15.6 percent, and the prices they paid decreased 24.0 percent after reaching high levels in the first half of 2021.