✨ Data Pricing Methodology
21 JULY 2004 NEW ZEALAND GAZETTE, No. 90 2213
In many situations, however, applications for data are likely to require both core and
value added data. In these situations, Livestock Improvement provides a price for
the combination of core and value added data. The price of the core data contained
in this combination would be set as if only the core data were being provided, and in
accordance with this methodology. The Applicant can either accept Livestock
Improvement’s implied price for the value added data contained in this combination,
or be provided with an extract of core data at a price determined in accordance with
this pricing methodology and carry out any processes it chooses itself to generate its
own value added data.
The method for setting the price of core data parallels that which Livestock
Improvement would carry out for allocating costs to a service it sells itself. In setting
prices for core data, processes that add value are omitted. Where processes handle
both value added and core data, their costs allocated to core data are reduced so
that they only reflect the share of the cost relating to the core data.
Capital Costs
The costs include capital costs (e.g. computers, furniture etc; but not the inherent
capital value of the core database). The capital costs are calculated on a capital cost
recovery basis over the estimated lives of the assets employed in collecting,
verifying, correcting, storing and extracting core data at Livestock Improvement’s
weighted average cost of capital. This calculation gives an annual cost covering both
the depreciation of the asset over its life and a return on the capital employed, also
over its life.
Pricing Method
Processing Applications
There are significant costs in processing each application. With regard to the Panel,
costs include Panel members’ time. From Livestock Improvement’s perspective,
an application entails significant amounts of management time in preparing the
documentation required and carrying out the investigations needed to advise and
service the Panel and/or the Applicant. Livestock Improvement must, among other
things, specify the outputs required, prepare an agreement with the Applicant, and
make the necessary arrangements to extract the data.
The costs of the Panel are (partially) met through the application fee prescribed
under the Regulations, although at $200 (including GST) the revenue from the
application fees will be a small fraction of the costs of the process.
Similarly, Livestock Improvement will be charging an administration fee for its work in
processing applications, but again this fee represents only a small fraction of the
costs incurred by Livestock Improvement in carrying out this work.
In the event the Applicant and Livestock Improvement come to a separate agreement
where Livestock Improvement undertakes administrative tasks for an applicant in
relation to data delivery, that separate agreement will provide for Livestock
Improvement to be engaged in accordance with Livestock Improvement’s (Business
Information Unit) standard terms and conditions, including standard charges.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2004, No 90
Gazette.govt.nz —
NZ Gazette 2004, No 90
✨ LLM interpretation of page content
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Livestock Improvement's Procedures for Complying With Regulation 25
(continued from previous page)
🌾 Primary Industries & ResourcesDairy Industry, Herd Testing, Core Database, Regulation 25, Confidentiality, Data Administration, Pricing Methodology, Capital Costs, Application Processing