SHEEP FARM COSTS

Press, Volume C, Issue 29513, 13 May 1961, Page 6

SHEEP FARM COSTS

Further Rise In Year

Between the first quarter of last year and the same quarter of this year costs on sheep farms in New Zealand have gone up on average by 1.7 per cent. On high country properties the upward movement in cost structure has been 2.1 per cent., on hill country properties 1.9 per cent., and on fattening farms 1.8 per cent, according to the senior statistician of the Economic Service of the Meat and Wool Boards, Mr W. L. Keen. The main increases in cost have been in shearing (9.2 per cent.), rates and land tax (3.8 per cent.), rent (3.7 per cent.), interest and repairs and maintenance (3.3 per cent), insurance (3.1 per cent.) and general expenses (4.6 per cent.) The only item to move in the other direction has been motor, truck, tractor and fuel or power, which is back by 2.1 per cent. Special Concern “After a sharp rise in 195152 there has been an average annual cost increase of just over 2 per cent.,” says Mr Keen. “Though this may not sound very serious, it is in fact of special concern to the sheep farmer because he is not able to pass on to the overseas consumer any increases in his costs of producing meat and wool.” Compared with the first quarter of 1951 costs on the high country have risen by 39.8 per cent, on the hill country by 39.1 per cent, and on fat lamb farms by 34.9 per cent. The slight differences in these percentage increases are due to the differences inherent in the three types of farming as reflected in their expenditure patterns.