31 July 2012

2012- n° 194

Overall producer prices of agricultural products were stable in June 2012 Indices of agricultural prices - June 2012

Price of cereals rose between May and June (+1.9 %). The price of wheat showed a sharper rise (+3.9 %). The drought - which has been going since May - in the United States and in the Black Sea region led to smaller harvests than those initially forecast.

Oleaginous price decreased in June (-1.3 %). Price of rape was stable, whereas sunflower depreciated (–5.7 %) as soon as a record global harvest was forecast.

Potato price fell in June year-over-year (–29.8 %), the last harvest in North-West Europe having been profuse.

Price of wine decreased slightly in June (-0.5 %).

Price of fresh fruits rose in June year-over-year (+9.3 %). On the supply side, bad weather damaged cherry crops ; it also caused lower yields for peach, whose surface area devoted to its production was, moreover, reduced. On the other hand, apricot output is expected to be higher that last year, with a decreasing price. On the demand side, the dull weather affected the consumption of strawberries whose price went down too.

The price of fresh vegetables was higher in June year-over-over (+18.5 %) : heavy rains at the beginning of this spring had damaged salad plants, and the foreign competition is moderate for cucumbers, tomatoes and carrots. On the demand side, the dull weather favoured on the consumption of carrots, but also cabbage and leek, which is usually lower at this time of the year.

On a seasonally adjusted basis, price of animals rose in June (+1.4 %). Price of big cattle kept increasing, showing an increase approaching 20% year-over-year, due to a progressive cut of livestock. Price of pigs picked up again, driven up by the exports to Asia. On the other hand, price of calves staggered, with the French consumption tendentially decreasing. Egg prices kept decreasing (-11.3 % over one month) : the supply is catching up following the implementation of a new standard size for hen houses which had led to a loss of production capacity.

The price of intermediate consumptions went down slightly in June due to lower energy prices. Price of investments was stable. However, purchase prices increased year-over-year, most notably for seeds and fertilisers (more than 4 %).