Wednesday, July 6, 2022

Rise in dairy farm price index

The REINZ Dairy Farm Price Index rose by 0.9% in the three months to April compared to the three months to March, from 1,744.80 to 1,761.16. Compared to April 2012 the REINZ Dairy Farm Price Index fell by 6.1%. The REINZ Dairy Farm Price Index adjusts for differences in farm size and location compared to the median price per hectare, which does not adjust for these factors.  

For the three months ended April 2013 the median sales price per hectare for dairy farms was 
$34,819 (87 properties), compared to $35,487, for the three months ended March (83 properties), 
and $33,132 (68 properties) for the three months ended April 2012. The median dairy farm size for 
the three months ended March 2013 was 129 hectares.
Included in sales for the month of April were 29 dairy farms at a median sale value of $27,616 per 
hectare. The median farm size was 129 hectares with a range of 47 hectares in the Waikato to 409 
hectares in Canterbury. The median production per hectare across all dairy farms sold in April 2013
was 928kgs of milk solids. 

The REINZ All Farm Price Index increased by 1.4% in the three months to April compared to the three 
months to March, from 2,907.18 to 2,946.57. Compared to April 2012 the REINZ All Farm Price Index 
fell by 5.2%. The REINZ All Farm Price Index adjusts for differences in farm size, location and farming 
type compared to the median price per hectare, which does not adjust for these factors.
Six regions recorded increases in sales volume for the three months ended April 2013 compared to 
the three months ended April 2012. Auckland recorded the largest increase in sales (+23 sales), 
followed by Waikato (+11 sales) and Northland (+10 sales). Eight regions recorded decreases in sales 
volume with Southland recording the largest fall (-18 sales), followed by Canterbury (-17 sales) and
Nelson (-9 sales). Compared to the three months ended March 2013 11 regions recorded an increase 
in sales, lead by Manawatu/Wanganui (+13 sales). 
“In spite of the earlier dry conditions that resulted in some vendors being reluctant to commit to the 
marketplace, sales volumes have remained steady, prices have remained fully firm and the demand 
for rural property has been consistently strong across the country,” says REINZ Rural Market 
Spokesman Brian Peacocke.“Highlights this month include, strong interest in dry stock and dairy properties in the Waikato and 
King Country, a re-emergence of interest in kiwifruit sector in the Bay of Plenty, steady activity in the 
horticulture sector in Gisborne, and increasing demand for dairy land in the lower North Island, 
underpinned by bank support.”
“In the South Island, there has been very strong demand for dairy, dairy support, finishing and arable 
land across Canterbury, strong demand for drystock properties in Otago and a busy market in 
Southland for all property types.”
Grazing properties accounted for the largest number of sales with 46.3% share of all sales over the 
three months to April. Dairy properties accounted for 19.6%, finishing properties accounted for 
18.7% and Horticulture properties accounted for 7.0% of all sales. These four property types 
accounted for 91.6% of all sales during the three months ended April 2013.

 

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