18/09/2021
An investment in knowledge pays the best interest. --Benjamin Franklin
Over the last 24 hours I have had a number of people contact me asking if we will see huge price inflation with our livestock and I have seen this also being discussed in some groups so I thought I would break down one of the costs many are talking about... Shipping.
Today I have taken some time to dive into the actual impact shipping costs are having to us as a company and what that means for you the customer.
For this I have taken the average cost of shipping from an import in 2019 pre Covid and then compared it to two figures a, an import we did in March and b, the current price we are being quoted.
A, The price pre COVID vs March this year. This worked out at a cost increase on average across the shipment of roughly $4.35 NZD per fish
B, Current price - the current price we are seeing is roughly 3 times our 2019 price putting the cost per fish at roughly $8.70 higher than 2019.
When I take this figure of $8.70 and average it out against the average retail price of our product it works out at a tiny 3.7% increase.
To give you a comparison between the 20th Aug and 4th Sept the NZD Vs USD increased 4.9% (This alone more than offsets the cost of freight)
I have attached a chart showing the NZD Vs USD over the past 10 years as this shows the huge differences this has at any one time, its constantly changing and is a huge part of our business as all our exporters deal in USD.
So COVID or no COVID the cost impact is minimal vs our constantly fluctuating dollar. What do we do about it? We build that fluctuation into our everyday cost - some imports we are up a bit more than normal, others we are down a bit more than normal but at the end of the day it all averages out.
Remember to invest in Knowledge and take the emotion out of the decisions.