Producers’ prices whey down for dairy manufacturers

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 percent 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.

Quarter endedDairy product manufacturingDairy cattle farmingAll industries
Dec-09748.992516829.174664958.4775087
Mar-10970.639033884.836852975.7785467
Jun-101024.17962910.748561986.1591696
Sep-101064.478987958.733205997.9238754
Dec-10100010001000
Mar-11104610841017
Jun-11109910531031
Sep-1110599231033
Dec-1110529531034
Mar-129999321033
Jun-129918681036
Sep-128927861027
Dec-128908191026
Mar-139418601034
Jun-1310699371044
Sep-13122312111069
Dec-13122012111065
Mar-14122812601075
Jun-14119311171070
Sep-1410898021058
Dec-149777231057
Mar-159266901048
Jun-159416521046
Sep-159467101060
Dec-158506451051
Mar-168796061049
Jun-168196251051
Sep-168167981061
Dec-169279031077
Mar-1710739041092
Jun-1711099561106
Sep-17110010141117
Dec-1711589651128
Mar-1810779871130
Jun-1811149961140
Sep-1811869481157
Dec-1811249311167
Mar-1910659711161
Jun-1911589761166
Sep-19124310611179
Dec-19122011001185
Mar-20124910941186
Jun-20132210351184
Sep-20115010241180

“The dairy product manufacturing and dairy cattle farming industries are closely related and show similar trends over time.”

See Dairy exports dip in September for more information on the dairy industry.

Across all industries in the September 2020 quarter, prices received by producers from customers continued to fall (down 0.3 percent) while prices paid by producers to suppliers bounced back (up 0.6 percent).

“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,” Mr Downes said.

“Producers received less for products in the forestry and logging, seafood, and textiles industries in the September quarter.”

Prices paid for rent and fuel increase

Businesses paid more for commercial rent and fuel in the September quarter. Petrol and diesel prices increased by 7.0 percent and 9.2 percent respectively. This was a partial rebound from the fall in prices during the June 2020 quarter, when crude oil prices slumped after the COVID-19 pandemic spread around the world.

Quarter endedRent of commercial land and buildingsPetrolDiesel
Dec-09100010001000
Mar-10100510631062
Jun-10100510761119
Sep-10101010521061
Dec-10101210771074
Mar-11101311671239
Jun-11102311841325
Sep-11102911391193
Dec-11102911991342
Mar-12102912211371
Jun-12105512251344
Sep-12105812171338
Dec-12106112011324
Mar-13106812321333
Jun-13108012061272
Sep-13108812631368
Dec-13109112011324
Mar-14108912281309
Jun-14109612191280
Sep-14109812341267
Dec-14110111551165
Mar-1511011026962
Jun-15110411271063
Sep-15110711411038
Dec-1511091063962
Mar-161109994800
Jun-1611121035913
Sep-161129988894
Dec-1611401044970
Mar-17114010821013
Jun-17114410771012
Sep-1711571053991
Dec-17115711361125
Mar-18115811441163
Jun-18115912071277
Sep-18116112901366
Dec-18117612571363
Mar-19117911881270
Jun-19117712551324
Sep-19119912451275
Dec-19120412841300
Mar-20120412361220
Jun-2011881094914
Sep-2012321171998

/Stats NZ Public Release. View in full here.