CPI rise highest since 1990

21/10/2008

The Consumer Price Index rose 5.1% in the year to September – the highest it’s been since the year to June 1990.

Steep rises in the price of electricity, fuel, food and electricity were the major contributers to the increase.

Food prices rose 10.8% in the year to September, the highest increase since the year to April 1990 (which included an increase in GST from 10 to 12.5%)

All five subgroups recorded upward contributions to the annual increase, with the most significant contribution coming from the grocery food subgroup (up 12.8 percent). Within this subgroup, higher prices were recorded for cheddar cheese (up 61.6 percent), bread (up 16.5 percent), and fresh milk (up 12.6 percent).The remaining four subgroups recorded the following upward contributions: fruit and vegetables (up 17.9 percent), meat, poultry and fish (up 8.8 percent), restaurant meals and ready-to-eat food (up 6.3 percent), and non-alcoholic beverages (up 6.9 percent).

 

The 61.6% increase in the price of chedder cheese is huge, but when the increase for milk was about a fifth of that (12.6%) it can’t be all blamed on farmers.
 


Ausssie farmers want ag out of ETS

16/07/2008

Australian farmers  want their Government to keep agriculture out of its Emissions Trading Scheme.

AUSTRALIA’S proposed emissions trading scheme (ETS) could affect international food and fibre prices at a time of food crisis, the nation’s farm sector has warned.

National Farmers’ Federation vice-president Charles Burke said rarely did governments pursue policies like the ETS that could have such broad-reaching ramifications.

”If we don’t get this right, this could become a new and additional factor putting pressure on global markets, affecting both supply and prices in Australia,” he said on the eve of the release of the Federal Government’s green paper on emissions trading.

Mr Burke said Australian farmers’ input costs – fuel, electricity, fertiliser and chemicals – may increase regardless of agriculture’s role in an ETS.

All of this sounds very similar to what farmers are saying on this side of the Tasman.

Westpac’s senior agribusiness economist, Justin Smirk, said global markets responded immediately to any event, be it floods in Iowa, food export tariffs in Argentina or aggressive US and European biofuels policies.

”Actions, events and seasonal conditions in Australia and their impact on our farm sector are no different, reverberating through global markets,” he said.

”Markets are closely watching the complex problem of climate change, its potential impact on global farm output, and the policies proposed to mitigate global warming emissions.”

Competitors will also be working out if they could use the ETS to impose non-tariff barriers to imports.

NFF president David Crombie warned against including agriculture in the ETS, citing the difficulty in measuring, monitoring or verifying the sector’s emissions. No country had included agriculture in an ETS, he said, with the exception of New Zealand, ”where farmers are now looking at margins reducing by up to 160% as a result”.

And how silly is that when it won’t do anything to reduce the global carbon footprint?


On-farm inflation 9.7%

15/07/2008

A 9.7% increase in costs for sheep and beef farmers in the year to March 2008 is the highest rate of on-farm inflation since 1986-87 when input prices rose 13.2%.

The previous year the price of inputs increased 2.7%.

Major increases were:

Fertiliser, lime & seeds:         30%

Fuel:                                      23.5%

Feed & grazing:                     13.7%

Interest:                                 9.0%

Electricity                               7.2%

Local Govt. rates                    6.6%

Although the high dollar reduced the price of imported goods, fertilsier, lime and seed prices still increased by 30%. The price of fertiliser increased from $260 to $480, another 60%, between March and June, June but that is not included in these figures.  

Local Government rates increased 6.6 per cent. This was the second largest increase in 17 years and in the last five years the overall increase was 33 per cent, an average of 6.6 per cent per year. The overall cumulative increase over 5 years to March 2008 was 22.7 per cent, while over 10 years the increase was 37.0 per cent.

In comparison the CPI rate of increase over 5 years was 14.0 per cent, well below the 22.7 per cent for sheep and beef farm input prices

If interest is excluded, the underlying rate of on-farm inflation in 2007-08 was up 8.3 per cent.

Meat & Wool Economic Service figures for the annual on farm inflation percentage change in the past 10 years:

including interest        (underlying % change) excluding interest

1998 -99         -2.0%                                          0.9%

1999-00                 2.8                                                             1.4

2000-01                 5.2                                                             6.0

2001-02                 1.7                                                             2.8

2002-03                 3.6                                                             3.4

2003-04                -0.2                                                             0.0

2004-05                 4.1                                                             3.7

2005-06                 4.8                                                             5.2

2006-07                 2.7                                                             2.7

2007-08                 9.7                                                             9.8

 


Is This A Threat or a Joke?

20/06/2008

Is this comment on a post I made last week yes, yes, yes, no crises, a joke, a threat or just a shameless attempt to encourage traffic to a website?

I just ran across an article you wrote on Homepaddock entitled Yes, Yes, Yes, No Crisis, https://homepaddock.wordpress.com/2008/06/11/yes-yes-yes-no-crisis/, and I would like to raise an issue that is of concern to Selling Power magazine, which is the use of our trademark.

The word “Selling Power” is sometimes erroneously used as a synonym for sales effectiveness. For example, your article states: “The other flaw is that the companies are businesses which need to make profits which they do by selling power.” We do not condone such uses of our trademark.

As a practical matter, when you describe sales effectiveness, there are a wide range of terms available such as: sales excellence, sales savvy, sales mastery, sales acumen, sales efficiency, and many more.

The reason for this letter is to educate writers like yourself that we want to protect our trademark, since we don’t want to risk Selling Power being declared by the courts a generic word. Therefore we ask you not to use Selling Power as a phrase since it is our legal trademark.

We would like to receive a written acknowledgment of this letter stating that you will in the future identify Selling Power as a trademark if you should write about our magazine, and not use Selling Power as a phrase. If we do not hear from you, we will need to take further action.

Thank you for your understanding and cooperation.

That the post was about electricity not sales seems to have escaped the writer as is the fact you can’t trademark or copyright random words and phrases in common usage.


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