In July 2016, overall agricultural prices decreased by 0.2% over one yearIndices of agricultural prices - Juillet 2016

In July 2016, overall producer prices of agricultural products faltered slightly compared to last year: –0.2% over one year, after +0.1% in June. Excluding fruits and vegetables, they went down by 2.0% year-on-year while they slightly rose (+0.3%) month-on-month.

Erratum: this Informations Rapides replaces and supersedes the issue published on 31 August 2016 at 12 am, as the year-on-year variation in the overall index of producer prices of agricultural products has been revised from +0.8% to +0.1% in June 2016.

In July 2016, overall producer prices of agricultural products faltered slightly compared to last year: –0.2% over one year, after +0.1% in June. Excluding fruits and vegetables, they went down by 2.0%year-on-yearwhile they slightly rose (+0.3%)month-on-month.

Cereals prices kept on growing, oleaginous prices slipped back

Soft wheat prices strongly rose in July (+8.7%). In France the bad ongoing harvest prompted local market participants to increase the value of thiscommodity, despite an abundant world supply. On the other hand, maïze crop forecasts are somewhat more upbeat. Maïze prices declined (−5.9%), also in relation with good growing conditions in the United States or in the Black Sea region. Oleaginous prices declined (−4.0 %) in July with the prospect of a significant global crop while the drop in the prices of oil and palm oil limited the demand for rape as a substitute for these products.

cereal – Producer prices of cereals

  • Source: INSEE

Over one year, leap in the prices of potates, fuits and vegetables

Compared to July 2015, potatoes prices surged (+80.2%). The 2015 crop, still put on sale, reached its long-term average whereas the previous one was exceptional, which had led to a sharp price fall last year.

Over one year, fruits and vegetables prices soared (+21.4%). The heavy rainy spring lessened the yields of open-air seasonal productions (apricots, peaches, nectarines, cherries and melons). Moreover, the good weather in July made the consumers to find appealing these seasonal products. The fair weather also stimulated the demand for tomatoes, vegetable mainly grown in greenhouses, whose price increased too.

vegetable – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

Animal prices rose over the month

In July, animal prices slightly rose (+0.5%), but dipped over one year (−2.1%). Indeed, large cattle prices has been falling steadily for a year (−8.0% compared to July 2015), notably reflecting the milk crisis which prompted French farmers to have more cows slaughtered. In addition, the European livestock has expanded since the end of milk quotas in 2015. Conversely, pig prices have been picking up for one quarter (+18.4%) : the global exportations soared, mainly toward China.

pig – Producer prices of pigs and large cattle

  • Source : INSEE

Cow milk prices dropped over one year (−9.2 %) as a result of the current over-production crisis mainly related to the end of quotas and the Russian embargo.

Tab1 – Indices of producer prices of agricultural products (IPPAP)

Seasonnaly adjusted * - base and reference 100 in 2010
Indices of producer prices of agricultural products (IPPAP)
Variation as % over
Weights July 2016 a month 3 months a year
Agricultural goods output 1000 113.0 /// /// –0.2
excluding fruits and vegetables 900 113.0 +0.3 +2.1 –2.0
Crop output (excluding fruits and vegetables) 505 119.6 +0.4 +5.0 +0.3
Cereals 188 100.7 +3.4 +11.1 –13.7
of which soft wheat 112 98.7 +8.7 +15.8 –11.9
grain maize 41 97.2 –5.9 +6.1 –8.0
Potatoes 26 227.6 /// /// +80.2
Wines 177 134.2 –0.7 +0.7 +4.0
protected designation of origin 84 144.7 –0.2 +1.6 +8.6
other wines 23 143.5 –3.8 –1.4 –3.8
Oleaginous 49 96.1 –4.0 –1.2 –8.1
Horticultural products 30 110.6 –0.2 +0.3 +2.9
Other crop products 36 107.4 –0.7 –0 .2 –0.7
Fruits and vegetables (1) 100 112.9 /// /// +21.4
Fresh vegetables 53 112.1 /// /// +35.4
Fresh fruits 35 114.0 /// /// +11.0
Animal output 395 104.6 0.0 –1.9 –5.2
Animals 234 111.3 +0.5 +1.5 –2.1
of which large cattle 96 112.2 –1.0 –3.3 –8.0
calves 26 102.3 –1.4 –7.1 +1.3
pigs 54 115.9 +4.3 +18.4 +6.9
sheep 10 113.6 +3.5 +1.8 –0.9
poultry 46 109.0 –0.5 –1.3 –1.0
of which chicken 28 108.8 –0.5 –1.2 –1.1
Milk 147 94.2 /// –7.1 –8.6
of which cow milk (2) 137 93.0 /// –7.6 –9.2
Eggs 15 101.8 –7.6 –6.4 –21.8
  • * Except for fresh fruits, fresh vegetables and potatoes
  • (1) Including vegetables for industry.
  • (2)The June value of cow milk price indice is carried forward in July
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Purchase prices of means of production declined by 0.6% in July and by 2.3% over one year

In July, intermediate consumption prices fell back by 0.7% over one month and by 3.0 % over one year due to the drop in fertilisers and energy prices. Capital goods prices slightly grew over one month (+0.2 %) and over one year (+0.3 %).

means – Purchase prices of the means of agricultural production

  • Sources: INSEE, SSP (ministry in charge of agriculture)

Tab2 – Indices of purchase prices of the means of agricultural production (IPAMPA)

Raw data - base and reference 100 in 2010
Indices of purchase prices of the means of agricultural production (IPAMPA)
Weights July 2016 variation as % over
a month 3 months a year
Total input 1000 107.3 –0.6 –0.1 –2.3
Intermediate consumptions 764 107.5 –0.7 –0.3 –3.0
Energy 100 92.8 –2.7 +5.2 –7.3
Seeds 57 104.3 –1.3 –2.2 –3.8
Fertilisers and soil improvers 92 104.7 –4.3 –9.4 –11.1
Plant protection products 78 100.5 0.0 –0.2 +0.1
Animal feed 205 113.5 +0.4 +1.7 –3.5
Veterinary expenses 43 117.7 +0.1 +0.5 +3.2
Small equipment and tools 17 106.9 –0.5 +0.4 –2.5
Maintenance of materials 67 113.8 +0.4 +0.5 +0.4
Maintenance of buildings 9 107.1 0.0 +0.3 0.0
Other goods and services 97 105.4 0.0 0.0 +3.5
Goods and services contributing to investment 236 107.2 +0.2 +0.6 +0.3
Material 186 108.4 +0.3 +0.6 +0.8
Tractors 79 108.9 +0.5 +1.2 +1.2
Machinery and equipment for cultivation 36 110.2 0.0 +0.2 +0.9
Machinery and equipment for harvesting 42 108.4 +0.1 +0.2 +1.1
Utility vehicles 18 104.1 –0.1 0.0 –0.4
Buildings 50 102.9 0.0 +0.6 –1.7
  • (1) The repayment of the domestic tax on energy product (TICPE) benefiting farmers has been applied in advance for the year 2016
  • Sources: INSEE, SSP (ministry in charge of agriculture)