In Decembre 2016, overall agricultural producer prices increased by 5.0% over one yearIndices of agricultural prices - December 2016

In Decembre 2016, overall agricultural prices increased again compared to last year (+5.0%), faster than in the previous month (+3.0%). Excluding fruits and vegetables, they went up by 1.0% over the month and by 3.8% over one year.

Informations rapides
No 26
Paru le : 27/01/2017

In Decembre 2016, overall agricultural prices increased again compared to last year (+5.0%), faster than in the previous month (+3.0%). Excluding fruits and vegetables, they went up by 1.0% over the month and by 3.8% over one year.

Downturn in cereal prices but strong rise in oleaginous prices

In December, cereal prices fell back (−1.0 %) due to the abundant supply, backed by record crops of wheat in the Southern hemisphere, noticeably in Australia. For the exporters in the euro zone, the drop in wheat prices was mitigated by the appreciation of the dollar. Oleaginous prices kept on growing at a high pace (+8.6 % over three months), as the rise in oil price bolstered the attractivity of vegetal oils as substitute for hydrocarbons. The appreciation of dollar against euro also took part in this upward momentum.

Graph1 – Producer prices of cereals

  • Source: INSEE

Sharp year-on-year price rise for potatoes, wines, fruits and vegetables

In December, potato prices strongly rose over one year (+43.0%): adverse climatic condictions reduced the yields in North-Western Europe.

Wine prices went up (+3.6% over one year), in particular those for protected designation of origin wines (+7.7%) which harvests were affected by climatic hazards.

Fresh fruit prices remained dynamic over one year in December (+8.1%), as the crops of apples and pears retreated markedly. Fresh vegetables prices surged over one year (+35.1%). Lamb's lettuce price almost tripled : very mild weather had encouraged over-production at end-2015. Endive and winter salad became more expensive, as the supply fell back as well.

Graph2 – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

Animal and milk prices picked up for three months

Animal prices kept on going up (+4.0% over the quarter). Large cattle prices have rebounded since the end of the milk crisis (+6.2% over three months ; −2.1% over one year). The farmers had indeed more cows slaughtered when facing milk overproduction, which weighed on the beef market. Pig prices gained almost 20% over one year, significantly buoyed by Chinese demand.

Graph3 – Producer prices of pigs and large cattle

  • Source: INSEE

Cow milk prices continued to pick up (+9.9% between September and November). The production of the main exporting countries declined, whereas China drove the global demand up.

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 Dec. 2016 a month Weights Nov. 2016
Agricultural goods output 1000 117.7 /// /// +5.0
excluding fruits and vegetables 900 118.7 +1.0 +4.2 +3.8
Crop output (excluding fruits and vegetables) 505 123.4 +0.6 +2.2 +5.2
Cereals 188 102.4 –1.0 +3.9 –1.1
of which soft wheat 112 99.5 –1.1 +2.7 –0.7
grain maize 41 100.2 –0.2 +5.8 +3.6
Potatoes 26 250.3 /// /// +43.0
Wines 177 135.2 0.0 +0.1 +3.6
protected designation of origin 84 147.4 +0.2 –0.1 +7.7
other wines 23 138.6 –0.7 +1.6 –4.4
Oleaginous 49 109.6 +4.3 +8.6 +6.2
Horticultural products 30 112.0 +1.3 +2.4 +2.4
Other crop products 36 110.9 +1.9 +1.6 +2.0
Fruits and vegetables (1) 100 109.6 /// /// +18.9
Fresh vegetables 53 104.4 /// /// +35.1
Fresh fruits 35 118.1 /// /// +8.1
Animal output 395 112.6 +1.6 +7.1 +2.0
Animals 234 115.8 +2.0 +4.0 +2.4
of which large cattle 96 117.5 +1.6 +6.2 –2.1
calves 26 107.8 +3.3 +5.1 –2.6
pigs 54 122.4 +3.8 +4.1 +19.9
sheep 10 117.5 +0.1 –0.3 +1.4
poultry 46 109.0 +0.1 –0.3 –2.3
of which chicken 28 108.9 +0.2 +0.1 –2.2
Milk 147 102.5 /// +9.0 –2.2
of which cow milk (2) 137 101.9 /// +9.9 –2.5
Eggs 15 162.8 +8.2 +38.9 +29.3
  • * 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 November value of cow milk price indice is carried forward in December
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Rebound in purchase prices of means of production

In December 2016, intermediate consumption prices picked up (+0.8%), driven up by the rising prices of energy and fertilisers. Over one year overall input prices decreased by 1.3%: the strong decline in fetilisers prices (−13.0%), and those more moderate for seeds (−2.9%) and feed (−3.0%), were partly offset by higher energy prices (+13.5%). Capital goods prices still expanded (+0.2 % as in November) and grew by 1.4% over one year.

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 Dec. 2016 variation as % over
a month 3 months a year
Total input 1000 107.4 +0.6 +0.8 –0.6
Intermediate consumptions 764 107.3 +0.8 +0.9 –1.3
Energy 100 98.6 +3.6 +6.5 +13.5
Seeds 57 105.5 –0.8 –1.4 –2.9
Fertilisers and soil improvers 92 100.7 +3.0 +3.5 –13.0
Plant protection products 78 100.1 –0.6 –0.7 –0.5
Animal feed 205 112.1 +0.2 –0.1 –3.0
Veterinary expenses 43 118.2 0.0 +0.1 +3.0
Small equipment and tools 17 107.9 –0.9 –1.5 –1.7
Maintenance of materials 67 113.9 +0.2 +0.2 +0.3
Maintenance of buildings 9 108.0 0.0 +0.2 +1.3
Other goods and services 97 103.7 +0.1 +0.1 –0.7
Goods and services contributing to investment 236 108.2 +0.2 +0.7 +1.4
Material 186 109.4 +0.1 +1.0 +1.4
Tractors 79 109.8 0.0 +1.3 +2.0
Machinery and equipment for cultivation 36 111.7 +0.8 +0.5 +1.5
Machinery and equipment for harvesting 42 109.9 0.0 +1.4 +1.2
Utility vehicles 18 104.7 +0.1 +0.9 +0.2
Buildings 50 103.4 0.0 –0.9 +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)

Revision

The variation in IPPAP in November 2016 has been raised by 0.3 points owing to the integration of cow milk price. The IPAMPA of november has not been revised.