ANZ Bank’s commodities price index rose 2.8 percent in November on the month before, to be 26.1 percent ahead of last year.

Agri-economist Susan Kilsby said dairy prices gained 6 percent during the month, underpinned by butter and cheese.

“Global milk supplies are relatively tight … all dairy commodities have strengthened in the past month and this trend is expected to continue into 2022.”

Similarly demand for beef and lamb had sent prices to record highs, while stronger prices for kiwifruit supported the broader horticulture sector.

“Labour and pack-house limitations have forced Zespri to reconsider the rate at which the industry can expand and it has revised down the volume of SunGold licences that will be available next year,” Kilsby said.

“But the next harvest is expected to be bigger than this season, as previous plantings start to reach fruit-bearing age, which will add to already stretched labour requirements next season.”

On the downside, prices for forest products fell 5.7 percent on reduced demand out of China, and aluminium fell 10 percent hit on uncertainty caused by the new Covid-19 variant, Omicron.

Kilsby said there had been some easing in high freight costs, but they remained volatile and choppy and could be expected to remain “elevated” going into 2022.