KEY POINTS:
A Stock Exchange subsidiary, NZX Agrifax, has launched an index aimed at measuring the growth and return of the dairy industry.
The NZX Agrifax Dairy Index will combine capital values and returns for dairy farmers, exporters and associated companies, together with dairy commodity prices and the exchange rate.
The base index value of the dairy index as at 1 January 2007 was set at 1000.
On February 27 the dairy index was at 1012.76. A year ago the index would have been at 982.27.
A key factor in the rise is the increase in farm capital, particularly in relation to the value of dairy land and the increased value of the Fonterra Fair Value Shares.
Other factors include the strengthening of the New Zealand dollar against the greenback and rising dairy commodity prices.
The index will be updated on a monthly basis.
- NZPA
