Electricity prices increased almost 5 per cent on sheep and beef farms in the past 12 months.
But, the higher cost of electricity is being well and truly offset by lower fertiliser and seed prices, according to Beef + Lamb New Zealand's on-farm inflation report for 2013-14.
The report showed that overall sheep and beef farm inflation fell slightly (0.6 per cent) from March 2013 to March 2014 following no change in the previous year.
B+LNZ economic service chief economist Andrew Burtt said the decrease had been driven by the decline in the cost of fertiliser, interest and fuel.
Fertiliser and seeds are one of the biggest expenses on sheep and beef farms but prices fell 6.1 per cent in the past year while interest and fuel reduced 3 per cent and 2 per cent respectively.
Of the 16 categories of inputs, prices for 12 increased and four decreased, but the size and weighting of the decreases more than offset the increases.
The cost of repairs maintenance and vehicles increased 2.6 per cent while both cartage and feed and grazing increased 2.1 per cent.
Animal health increased 2.4 per cent while wages increased 1.8 per cent while rates and insurance and shearing costs lifted 1.6 and 1.2 per cent and 1.1 per cent respectively.
Administration and depreciation recorded very slight increases at 0.5 per cent and 0.1 per cent respectively.
ON THE UP
Wages + 1.8 per cent (9.1 per cent of total farm input costs)
Animal health + 2.4 per cent (5.1 per cent)
Shearing expenses + 1.1 per cent (5.5 per cent)
Electricity + 4.9 per cent (0.9 per cent)
Feed and grazing + 2.1 per cent (7.8 per cent)
Repairs, maintenance and vehicles + 2.6 per cent (11.5 per cent)
Cartage + 2.1 per cent (1.9 per cent)
Administration + 0.5 per cent (3.7 per cent)
Insurance + 1.2 per cent (1.8 per cent)
Rates + 1.6 per cent (3.1 per cent)
Rent + 1.2 per cent (2.9 per cent)
Depreciation + 0.1 per cent (7.5 per cent)
Weed and pest control -0.1 per cent (3.6 per cent of total farm input costs)
Fertiliser, lime and seeds -6.1 per cent (17.5 per cent)
Fuel -2 per cent (3.8 per cent)
Interest -3 per cent (14.3 per cent)
- The Southland Times