In recent times and 2022 especially, Farmers have had to reassess the budget as costs continue to rise. With higher fuel costs, increased costs on fertiliser going up 30-50%, price increase on machinery and facing supply issues or delays in stock, increasing interest rates, rising costs of energy, rates, wages and audits. In turn creating farmers to be cautious to try and save costs on farms.
Statistics New Zealand released it’s latest farm expense price index and it showed large inflation costs for farmers over the past two years. They reported that four key farming costs have experienced inflation of more than 10% between 2019 and 2021. Electricity increased by 21%, while the cost of fertiliser, animal feed, and cultivation, harvesting, and stock grazing charges increased by 15.9%, 18.9%, and 21%, respectively, from the previous year. Food remains in high demand worldwide, particularly dairy goods. However, there is a limited supply due to inadequate manufacturing and high input prices globally. Meaning world food prices are a third higher than this time last year. Due to port delays and closures associated with covid, shipping costs are generally 600% more than they were two years ago.
