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Rising cost affect profits

09 Feb, 2010 10:34 AM
NEW figures show that as business input costs in the Loddon region increase, business performance is declining.

The Westpac and Charles Sturt University agribusiness index has recorded changes across the agriculture supply chain.

Positive increases were shown across transport, manufacturing, wholesale and retail businesses compared to the same time last year.

Figures in the quarterly report showed 92 per cent of agribusinesses surveyed were aware a carbon trading system might be introduced, up from 84 per cent in 2007.

Westpac regional manager Mark O’Dowd said most agribusinesses were aware some sort of system would be introduced.

“As would be expected from such an innovative industry there are some remarkable efforts under way, mainly in reducing emissions,” he said.

Mr O’Dowd said Westpac local agribusiness staff were confident agribusinesses in Bendigo were well placed to come to terms with carbon trading.

The region also recorded strong results in the economic performance indicator.

The Loddon region recorded an EPI of 0.11 for the quarter, compared to the 0.04 and 0.06 national and state results.

While zero is considered a satisfactory result, the best result possible is one.

Charles Sturt University western research institute CEO Tom Murphy said that the results compared to a 0.12 EPI last quarter and 0.01 for the same time last year.

“Upstream (input suppliers) and downstream (transport, manufacturing, wholesale and retail) agribusinesses along the supply chain are generally performing more strongly than the primary producer sector,” he said.

“Agribusinesses in the Loddon district reported their input costs, such as for raw materials, fuel, freight, feed, fertiliser, wages and utilities, increased this quarter.”

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