Production

Producer input costs climb in June quarter

Beef Central, 18/08/2014

The northern and southern Beef Producer Input Price Indices (BPIPI) increased 5pc and 4pc year-on-year during the June quarter, respectively, underpinned by a rise in the capital cost of the beef cattle herd.

During the quarter, the capital cost of the northern beef cattle herd increased 11pc, to 133.58 points, as Queensland trade cattle prices lifted 13pc over the period, averaging 329¢/kg cwt, while cows lifted 12pc, averaging 247¢/kg cwt for the quarter.

Also rising for the northern index was depreciation, which rose 3pc, repairs and maintenance, up 2pc, and freight, increasing 5pc year-on-year for the June quarter. Given the majority of Queensland is drought declared, fodder costs in the June quarter rose 3pc year-on-year, to 179.56 points. The only component with significant weighting that declined was interest, which fell 3pc over the period, to 51.47 points.

For the southern index, the capital cost of the beef herd rose 6pc year-on-year, with the average saleyard price of cows in NSW increasing 24pc, to 265¢/kg cwt, while in Victoria, cows jumped 22pc, to 284¢/kg cwt.

Like in the northern index, depreciation costs rose 3pc, while repairs and maintenance increased 2pc and freight was up 5pc year-on-year. Interest was the only heavily weighted component to ease, back 3pc year-on-year.

Source: Meat & Livestock Australia

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