Agriculture markets in 2006: surge in prices
After two years of decline, agricultural prices in France went up by 5.2 % in 2006. Without precedent since the end of the 1980s, this rise affected most areas of production, and reflected a change in international markets. Whilst the price of cereals and oils seeds reflected the downturn in world production and the development of energy uses, the price of fruit and vegetables soared with the effects of an extremely hot July and a wet August. Only sugarbeet and cow's milk fell back in price, as a result of the latest reforms to the Common Agricultural Policy. The development of consumption in the emerging economies and the growing use of agricultural products as biofuels could herald further rises over coming years. However, the rise in strength of new countries as producers weakened certain areas of production in France such as wine and poultry.