In November 2016, overall agricultural producer prices increased by 2.7% over one yearIndices of agricultural prices - November 2016

In November 2016, overall agricultural prices continued to increase compared to last year : +2.7%, after +1.0% in October. Excluding fruits and vegetables, they went up by 0.9% over the month and by 1.3% over one year.

In November 2016, overall agricultural prices continued to increase compared to last year : +2.7%, after +1.0% in October. Excluding fruits and vegetables, they went up by 0.9% over the month and by 1.3% over one year.

The increases in the prices of cereals and oleaginous prices continued in November

In November, cereal prices rose again (+2.2 % after +2.6 % in October), owing to strong international demand and a slight appreciation of the dollar. They nevertheless remained lower than last year (−3.2% yoy), as the global supply was ample. Oleaginous prices kept on rising (+7.0% over three months) due to a retreating global production and a decision from the United States to increase the amount of vegetal oil in fuel.

Graph1 – Producer prices of cereals

  • Source: INSEE

Adverse weather conditions during the spring and the summer lessened the yields and the crops for many agricultural products. Hence potato prices surged compared to November 2015 (+38.9%). Similarly, fresh vegetables prices soared over one year (+28.0%) due to limited supply for the main traded vegetables in autumn (cauliflower, chicory, lettuce grown in winter). The prices of pears and apples prices significantly went up over one year reflecting a declining production. Wine prices became higher as well (+3.4% over one year), in particular those for protected designation of origin wines (+7.3%) whose crops were more affected by climatic hazards than the other wines.

Graph2 – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

Animal and milk prices picked up for three months

Animal prices rebounded for one quarter (+2.2% compared to August). Pig price (+3.1% since three months) was sustained by dynamic Asian demand. Big cattle one increased as well (+4.3% over three months). Conversely, calve prices dropped (−1.7% over three months and −8,1% over one year) reflecting the drop in consumption.

Graph3 – Producer prices of pigs and large cattle

  • Source: INSEE

Cow milk prices kept on picking up (+9.4% between August and October) but still decreased over one year. The production of the main export countries declined, while China drove the global demand up. The increase in eggs prices was sharper in November, as the production capacities have been diminishing since last spring.

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 Nov. 2016 a month 3 months a year
Agricultural goods output 1000 116.8 /// /// +2.7
excluding fruits and vegetables 900 116.9 +0.9 +3.5 +1.3
Crop output (excluding fruits and vegetables) 505 122.8 +0.8 +1.7 +3.4
Cereals 188 103.4 +2.2 +2.2 –3.2
of which soft wheat 112 100.6 +2.2 +0.4 –3.6
grain maize 41 100.4 +2.1 +4.7 +1.5
Potatoes 26 243.2 /// /// +38.9
Wines 177 135.4 –0.1 +1.3 +3.4
protected designation of origin 84 147.1 –0.1 +1.1 +7.3
other wines 23 140.6 –0.2 +4.5 –4.7
Oleaginous 49 105.1 +1.5 +7.0 +0.5
Horticultural products 30 110.6 –0.3 +0.5 +1.0
Other crop products 36 109.4 +0.2 +0.2 +0.9
Fruits and vegetables (1) 100 115.7 /// /// +15.7
Fresh vegetables 53 112.9 /// /// +28.0
Fresh fruits 35 122.6 /// /// +6.9
Animal output 395 109.5 +1.0 +6.3 –1.4
Animals 234 113.0 +0.4 +2.2 –1.1
of which large cattle 96 115.6 +2.5 +4.3 –5.0
calves 26 100.1 –2.9 –1.7 –8.1
pigs 54 117.9 –0.8 +3.1 +11.5
sheep 10 117.4 –2.4 –0.8 +1.9
poultry 46 108.9 –0.2 –0.3 –2.5
of which chicken 28 108.7 0.0 –0.3 –2.8
Milk 147 99.8 /// +8.6 –4.5
of which cow milk (2) 137 98.9 /// +9.4 –4.9
Eggs 15 150.4 +16.5 +59.0 +19.8
  • * 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 October value of cow milk price indice is carried forward in November
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Purchase prices of means of production dipped over the month and decreased over one year

In November 2016, intermediate consumption prices slightly fell back (−0.2%) due to the drop in energy prices. Over one year, input prices decreased (−3.1%), due to the sharp decline in fertilisers prices (−15.8%) and the decrease both in feed prices (−3.5%) and seeds prices (−2.4%). Capital goods prices still slightly increased (+0.2% after +0.4% in October) and went up by 1.1% over one year.

Revisions

The IPPAP of October 2016 have been raised by +0.8 points owing to the integration of the cow milk price. For the same reference month, the IPAMPA have been lowered by 0.1 points, following raw data revisions.

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 Nov. 2016 variation as % over
a month 3 months a year
Total input 1000 106.8 –0.1 +0.3 –2.1
Intermediate consumptions 764 106.5 –0.2 +0.2 –3.1
Energy 100 95.2 –1.8 +4.3 +1.1
Seeds 57 106.5 +0.1 –0.6 –2.4
Fertilisers and soil improvers 92 97.8 +0.8 –0.2 –15.8
Plant protection products 78 100.5 –0.1 –0.2 –0.4
Animal feed 205 111.9 0.0 –0.5 –3.5
Veterinary expenses 43 118.2 +0.1 +0.3 +3.1
Small equipment and tools 17 109.9 0.0 +0.4 +0.1
Maintenance of materials 67 113.7 0.0 0.0 +0.3
Maintenance of buildings 9 107.8 0.0 0.0 +1.2
Other goods and services 97 103.6 0.0 –0.1 –0.7
Goods and services contributing to investment 236 108.0 +0.2 +0.6 +1.1
Material 186 109.0 +0.2 +0.7 +1.1
Tractors 79 109.2 +0.2 +0.8 +1.4
Machinery and equipment for cultivation 36 110.6 +0.1 –0.1 +1.1
Machinery and equipment for harvesting 42 110.1 +0.2 +1.7 +1.6
Utility vehicles 18 104.5 +0.3 +0.8 –0.3
Buildings 50 104.2 0.0 0.0 +1.0
  • (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)