In October 2016, overall agricultural producer prices increased by 0.2 % over one yearIndices of agricultural prices - October 2016

In October 2016, overall agricultural prices slightly rebounded compared to last year : +0.2%, after −0.5% in September. Excluding fruits and vegetables, they increased by 0.9 % over the month but decreased by 0.2% over one year.

In October 2016, overall agricultural prices slightly rebounded compared to last year : +0.2%, after −0.5% in September. Excluding fruits and vegetables, they increased by 0.9 % over the month but decreased by 0.2% over one year.

Over the month, cereals prices picked up, oleaginous ones kept on going up

In October, cereals prices rallied (+2.6% after −2.6% in September), owing to a slight appreciation of the dollar and strong international demand. In absolute terms, they nevertheless remained low because the global supply was abundant. Oleaginous prices kept on rising (+7.7% over three months) due to higher oil price which revived interest in hydrocarbon substitution by rape and to increases in some edible oils as well (palm and soy).

Graph1 – Producer prices of cereals

  • Source: INSEE

Marked rises in potatoes, fruits, vegetables and wines prices

Potato price was much higher (+32.0%) than in October 2015: bad weather conditions lessened the yields in North-Western Europe.

Overall wine prices were higher than last year (+4.4%), as crops were affected by adverse weather conditions in some areas, such as the Val-de-Loire and Languedoc-Roussillon regions.

Over one year, fruits and vegetables prices increased by 4.1% in October. Noticeably, apples and pears were more expensive, as production retreated, affected by adverse weather.

Graph2 – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

The prices of animals and milk picked up

Animal prices continued to rise in October (+1.2% over one month after +0.6%). Pig prices increased again (+2.6 % over three months ; +8.3% over one year) boosted by a buoyant Asian demand, mainly Chinese. Large cattle prices picked up in October (+2.0 % after −0.2 %) but still significantly fell back over one year (−8.1%) due to a larger amount of dairy cows slaughtering in Europe in relation with the milk crisis.

Graph3 – Producer prices of pigs and large cattle

  • Source: INSEE

Cow milk price pickep up in the third quarter (+2.7%) but still stepped back by 10.6% from September 2015 to September 2016. This recovery reflects a short-term upturn: the production of the main exporting countries has decreased, while China has driven the global demand upwards.

Table1 – 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 Oct. 2016 a month 3 months a year
Agricultural goods output 1000 114.9 /// /// +0.2
excluding fruits and vegetables 900 114.8 +0.9 +1.7 –0.2
Crop output (excluding fruits and vegetables) 505 121.8 +0.8 +1.5 +3.2
Cereals 188 101.2 +2.6 +0.5 –3.5
of which soft wheat 112 98.4 +1.5 –0.3 –2.3
grain maize 41 98.3 +3.8 +1.1 +1.3
Potatoes 26 242.5 /// /// +32.0
Wines 177 135.4 +0.2 +0.2 +4.4
protected designation of origin 84 147.2 –0.3 +0.7 +9.7
other wines 23 140.7 +3.2 –2.0 –5.8
Oleaginous 49 103.5 +2.6 +7.7 +0.7
Horticultural products 30 110.9 +1.4 +0.3 +0.3
Other crop products 36 109.6 +0.1 +0.6 +1.2
Fruits and vegetables (1) 100 115.3 /// /// +4.1
Fresh vegetables 53 109.2 /// /// +6.1
Fresh fruits 35 127.1 /// /// +3.4
Animal output 395 105.9 +1.0 +2.1 –4.8
Animals 234 112.6 +1.2 +1.2 –2.3
of which large cattle 96 112.8 +2.0 +0.5 –8.1
calves 26 103.1 +0.5 +0.8 –2.2
pigs 54 118.9 +1.1 +2.6 +8.3
sheep 10 120.3 +2.0 +5.9 +1.5
poultry 46 109.1 –0.2 0.0 –2.5
of which chicken 28 108.7 –0.1 –0.2 –3.0
Milk 147 93.9 /// +2.5 –9.7
of which cow milk (2) 137 92.5 /// +2.7 –10.6
Eggs 15 119.9 +6.4 +14.8 –0.3
  • * Except for fresh fruits, fresh vegetables and potatoes
  • /// Absence of result due to the nature of these series
  • (1) Including vegetables for industry.
  • (2)The September value of cow milk price indice is carried forward in October
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Purchase prices of means of production went up over the month and dropped over one year

In October 2016, intermediate consumption prices climbed by 0.4% over one month, mainly due to the rise in energy prices. Over a year inputs prices declined by 3.1%, driven by the sharp fall in fertiliser prices (−16.9%) and by the drop in feed prices (−4.1%). Capital goods prices increased over one month (+0.3%) and over one year (+1.0%).

Revisions

The variation in IPPAP over one year in September 2016 have been raised by 0.4 points and that in IPAMPA by 0.2 points, due to revisions in raw data.

Graph4 – Purchase prices of the means of agricultural production

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

Table2 – 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 Oct. 2016 variation as % over
a month 3 months a year
Total input 1000 107.0 +0.4 +0.1 –2.1
Intermediate consumptions 764 106.8 +0.4 –0.1 –3.1
Energy 100 96.9 +4.6 +4.3 +2.5
Seeds 57 106.3 –0.7 –1.0 –2.7
Fertilisers and soil improvers 92 97.1 –0.2 –3.1 –16.9
Plant protection products 78 100.6 –0.3 +0.2 –0.4
Animal feed 205 111.9 –0.3 –0.5 –4.1
Veterinary expenses 43 118.1 +0.1 +0.3 +2.8
Small equipment and tools 17 109.9 +0.4 +0.5 –0.1
Maintenance of materials 67 113.7 0.0 –0.1 +0.2
Maintenance of buildings 9 107.8 0.0 +0.1 +1.1
Other goods and services 97 105.0 +0.1 0.0 +0.6
Goods and services contributing to investment 236 107.8 +0.3 +0.5 +1.0
Material 186 108.8 +0.5 +0.7 +1.1
Tractors 79 109.0 +0.6 +0.6 +1.5
Machinery and equipment for cultivation 36 110.5 –0.5 +0.4 +0.9
Machinery and equipment for harvesting 42 109.9 +1.4 +1.7 +1.9
Utility vehicles 18 104.1 –0.2 –0.2 –0.5
Buildings 50 104.2 0.0 –0.2 +0.8
  • (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)