Northern and southern BPIPIs rise in the June quarter

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During the June quarter, the northern and southern Beef Producer Input Price Indices (BPIPI) increased 5% and 4% on year-ago levels, respectively (Department of Agriculture).

The rise in the northern BPIPI during the June quarter was largely due to a 39% lift in the capital cost of the beef cattle herd, which, in line with higher cattle prices, has rapidly increased throughout 2015 so far, to 183.96 points.

Other northern BPIPI index measures:

• Interest costs in the north were back 5% year-on-year, at 46.09 points
• Repairs and maintenance (245.69 points) and depreciation on plant and equipment were up 2% and 3% during the quarter, respectively
• Fodder costs (179.77 points) remained relatively unchanged on the same time last year
• Fuel, oil and lubricants declined 17%, to 248.42 points.

As with northern Australia, the capital cost of the beef cattle herd in the south rose 39% year-on-year, although off a higher base, to 194.52 points in the June quarter.

Other southern BPIPI index measures:

• Depreciation on plant and equipment lifted 3% year-on-year, to 178.25 points
• Repairs and maintenance was up 2%, to 245.69 points
• Fertiliser remained unchanged on year-ago levels, at 233.09 points
• Interest and fuel, oil and lubricants were the same as in the north