In August 2016, overall agricultural prices rose by 0,5 % over one yearIndices of agricultural prices - August 2016

In August 2016, overall producer prices of agricultural products increased compared to last year : +0.5 % over one year, after –0.4 % in July. Excluding fruits and vegetables, they went down by 0.2% year-on-year and were stable over one month.

In August 2016, overall producer prices of agricultural products increased compared to last year : +0.5 % over one year, after –0.4 % in July. Excluding fruits and vegetables, they went down by 0.2% year-on-year and were stable over one month.

Cereal prices slightly increased, oleaginous ones went up more sharply

Overall cereals prices rose by 0.5 % in August. The bad European crop of soft wheat noticeably in France had only a limited impact on the prices of that cereal in August (+1.5% after +8.8% in July) due to the abundance of the global supply marked by good crops in the United-States and inEastearn Europe. Maïze prices fell (–1.3%) because of the record crop in the United-States.

Oleaginous prices went up sharply (+2.2%): the demand for vegetable oil was robust while new estimates of the rape crop in Europe and Canada, revised downwards, supported the price as well.

cereal – Producer prices of cereals

  • Source: INSEE

Strong rise in the prices of potates, fuits and vegetables over one year

Compared to August 2015, potatoes prices surged (+88.9%). The 2015 crop, still put on sale, had reached its long-term average whereas there was a bumper crop in 2014.

Over one year, fruits and vegetables increased again in August (+7.8% after +21.4%). Peaches, melons and tomatoes were easily sold. Indeed high temperatures prompted the consumers to favor these summer products. In addition, open-air growing production volumes – peaches and melons – decreased over the year, as the rainy spring lessened the yields

vegetable – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

Overall animals prices weakened in August(−0.6% over one month). Large cattle prices have been declining steadily for one year (−8.9% compared to August 2015), mostly in relation with the milk crisis which prompted French farmers to have more cows slaughtered. Pig price has strongly rebounded since March (+10.2% over three months) due to the acceleration in exports toward Asia, mainly China. Sheep prices increased in August (+4.2% ; +2.4% over one year) : the good weather and the preparation of the muslim feast of Aïd stimulated the demand.

pig – Producer prices of pigs and large cattle

  • Source : INSEE

Cow milk price kept up declining strongly (−10.1% from May to July 2016) due to the huge supply related, in particular, to the end of milk quotas and the Russian embargo which is still in effect.

Egg price lost one quarter of its value over one year : the demand barely kept up with the supply.

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 Aug. 2016 a month Weights July 2016
Agricultural goods output 1000 112.0 /// /// +0.5
excluding fruits and vegetables 900 112.7 0.0 +1.2 –0.2
Crop output (excluding fruits and vegetables) 505 120.5 +0.5 +4.0 +5.4
Cereals 188 101.2 +0.5 +8.8 –3.7
of which soft wheat 112 100.2 +1.5 +15.4 +2.7
grain maize 41 95.9 –1.3 –0.7 –4.6
Potatoes 26 243.7 /// /// +88.9
Wines 177 133.4 –1.2 –0.3 +4.2
protected designation of origin 84 145.5 –0.5 +2.5 +10.6
other wines 23 134.5 –6.3 –10.8 –9.2
Oleaginous 49 98.2 +2.2 –0.1 –2.4
Horticultural products 30 110.0 –0.5 –1.4 +1.9
Other crop products 36 107.9 +0.4 +0.6 –0.1
Fruits and vegetables (1) 100 105.5 /// /// +7.8
Fresh vegetables 53 98.6 /// /// +7.3
Fresh fruits 35 113.7 /// /// +10.1
Animal output 395 102.8 –0.8 –2.7 –7.1
Animals 234 110.6 –0.6 +1.0 –3.1
of which large cattle 96 110.8 –1.2 –2.6 –8.9
calves 26 101.8 –0.5 –4.1 +1.4
pigs 54 114.3 –1.4 +10.2 +3.1
sheep 10 118.4 +4.2 +7.5 +2.4
poultry 46 109.2 +0.1 –0.4 –1.3
of which chicken 28 109.0 +0.1 –0.4 –1.5
Milk 147 91.3 /// –9.4 –11.9
of which cow milk (2) 137 89.9 /// –10.1 –12.8
Eggs 15 94.6 –9.4 +1.6 –24.9
  • * Except for fresh fruits, fresh vegetables and potatoes
  • (1) Including vegetables for industry.
  • (2)The July value of cow milk price indice is carried forward in August
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Purchase prices of means of production declined by 0.5% in August and by 1.7% over one year

In August, the global indice of purchase prices of means of production declined by 0.5%, leading to a −1,7% drop over one year. This was due to intermediate consumptions prices that fell by 0.6 % over one month and by 2.4% over one year, as a result of the decreases in prices of the main agricultural inputs : fertilisers, energy, seeds. Conversely, capital goods prices were virtually stable over one month (+0.1%) and rose slightly 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 Aug. 2016 variation as % over
a month 3 months a year
Total input 1000 107.5 –0.5 –0.5 –1.7
Intermediate consumptions 764 107.7 –0.6 –0.6 –2.4
Energy 100 91.3 –1.7 –2.7 –3.5
Seeds 57 104.5 –0.1 –1.3 –3.7
Fertilisers and soil improvers 92 106.8 –1.7 –6.4 –9.3
Plant protection products 78 100.4 –0.1 –0.1 +0.2
Animal feed : cereals, meals, processed food,… 205 114.1 –0.6 +1.8 –3.6
Veterinary expenses 43 118.2 +0.2 +0.7 +2.8
Small equipment and tools 17 108.1 +0.1 +1.0 –1.8
Maintenance of materials 67 113.7 –0.1 +0.4 +0.3
Maintenance of buildings 9 107.6 0.0 +0.5 +0.6
Other goods and services 97 105.0 0.0 +0.1 +3.2
Goods and services contributing to investment 236 107.3 +0.1 +0.3 +0.3
Material 186 108.3 +0.3 +0.2 +0.6
Tractors 79 108.3 0.0 +0.2 +0.4
Machinery and equipment for cultivation 36 110.7 +0.5 –0.2 +1.1
Machinery and equipment for harvesting 42 108.3 +0.2 +0.1 +0.6
Utility vehicles 18 104.1 –0.1 0.0 –0.5
Buildings 50 103.8 0.0 +0.9 –0.3
  • (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

Revisions

The variation in IPPAP in July 2016 has been lowered by 0.2 points. It amounts to −0.4%, instead of −0,2%. This revision is due to the integration of data that have been known since then (cow milk, PDO wines).