Tuesday, February 27, 2024

Farm expenses keep lifting, especially for dairy

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Fuel, fertiliser and interest rates were the largest contributors to increased costs for dairy farms.
The dairy price index rose the most, up 17%.
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By Alexandria Winning-Browne, NZX analyst

In the September 2022 quarter (Q3), farm expenses were 15% higher year on year for all farm types. This is the largest increase since the series began in 1993. 

Rises in interest rates, fertiliser and fuel prices were notable according to Statistics New Zealand – up 34.1%, 36.8% and 53.2% respectively. 

All farm types faced significant increases in costs in the September quarter, but the dairy price index rose the most, with dairy farm expenses up 17% year on year. Fuel, fertiliser and interest rates were the largest contributors to increased costs for dairy farms too, up 47%, 38% and 34% respectively compared to a year ago. 

The farm expenses price index rose 3.2% in the September 2022 quarter, compared to the June quarter. The dairy farm price index rose 3.4% quarter on quarter.

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