✨ Dairy Industry Data Pricing
4 JUNE 2013 NEW ZEALAND GAZETTE, No. 70 1877
In many situations, however, applications for data are likely to require both core and value added data. In these situations, LIC 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 LIC’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 LIC 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 LIC’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 LIC’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. LIC 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, LIC 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 LIC in carrying out this work.
In the event the Applicant and LIC come to a separate agreement where LIC undertakes administrative tasks for an applicant in relation to data delivery, that separate agreement will provide for LIC to be engaged in accordance with LIC’s (Business Information Unit) standard terms and conditions, including standard charges.
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NZ Gazette 2013, No 70
✨ LLM interpretation of page content
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Pricing Methodology for Access to Core Data
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🌾 Primary Industries & ResourcesDairy Industry, Core Data, Pricing Methodology, Data Access, LIC, Cost-Based Pricing, Value Added Data, Capital Costs, Processing Applications