In January 2017, overall agricultural producer prices still sharply increased over one yearIndices of agricultural prices - January 2017

In January 2017 overall agricultural prices rose again sharply over one year (+8.4% after +6.7 % in December). Excluding fruits and vegetables, they were stable over the month and increased by 7.0% over one year.

Informations rapides
No 61
Paru le : 28/02/2017
Prochaine parution le : 31/05/2017 at 12:00 - April 2017

Warning : The seasonal adjustment of the seasonal series of producer price index have been reestimated including the year 2016

In January 2017 overall agricultural prices rose again sharply over one year (+8.4% after +6.7 % in December). Excluding fruits and vegetables, they were stable over the month and increased by 7.0% over one year.

Rebound in cereals prices and more marked rise in oleaginous prices

In January 2017, cereals prices picked up (+2.3% after –1.0%; +9.4% over one year after –1.1% in December). In the United-States, very low temperatures raised concerns about autumn seed germination of soft wheat. Furthermore, the maïze European supply was barely able to fill the continental demand, noticeably these intented to feed manufacturing. Oleaginous prices accelerated (+12.7% over one year after +6.2%) due noticeably to the drop in soy global stocks and to the floods in Argentina, which is one of the main soy producer. Soy and rape prices are correlated due to their common use by agri-food or fuel industries.

Graph1 – Producer prices of cereals

  • Source: INSEE

Sharp increase in potatoes and fresh vegetables prices

In January 2017, potatoes prices remained much higher than their levels last year (+40.3%), as a consequence of the weak yields in North-West Europe during the last production campaign. Fresh vegetables prices surged too over one year (+38.6%) due to the significant decline in the winter productions (endive, leek, lamb's lettuce and lettuce). Fresh fruits prices remained very dynamic (+9.7% over one year). Wine prices increased by 1.3 over one year, driven by the growth in PDO wine prices.

Graph2 – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

Increase in animal and milk prices

Over one year animals prices kept on rising (+2.5%) owing to the buoyant pig price trend (+19.5% over one year), sustained by Chinese demand. Big catle prices kept on rallying (+3.5% over three months); however, they remained lower than a year before (−1.3%).

Graph3 – Producer prices of pigs and large cattle

  • Source: INSEE

Cow milk price continued to strengthen (+5.4% from October to December) owing to to strong Chinese demand while production declined in the main exporting zones (Southern America, Oceania and Europe).

Tableau1 – 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 Jan. 2017 a month 3 months A year
Agricultural goods output 1000 119.7 /// /// +8.4
excluding fruits and vegetables 900 120.0 0.0 +2.5 +7.0
Crop output (excluding fruits and vegetables) 505 123.7 +0.2 +1.5 +8.0
Cereals 188 104.8 +2.3 +3.6 +9.4
of which soft wheat 112 103.0 +3.5 +4.7 +11.8
grain maize 41 101.8 +1.6 +3.6 +12.1
Potatoes 26 252.4 /// /// +40.3
Wines 177 133.1 –1.8 –1.7 +1.3
protected designation of origin 84 143.8 –2.8 –2.3 +3.9
other wines 23 136.5 –1.5 –3.1 –6.2
Oleaginous 49 110.4 +0.7 +6.7 +12.7
Horticultural products 30 111.8 +0.2 +0.9 +2.8
Other crop products 36 111.7 +1.2 +2.3 +2.3
Fruits and vegetables (1) 100 116.6 /// /// +22.4
Fresh vegetables 53 119.3 /// /// +38.6
Fresh fruits 35 114.2 /// /// +9.7
Animal output 395 115.2 –0.4 +3.9 +5.7
Animals 234 115.8 +0.9 +3.0 +2.5
of which large cattle 96 116.8 +0.3 +3.5 –1.3
calves 26 110.0 +1.9 +6.6 –2.6
pigs 54 124.5 +3.5 +5.5 +19.5
sheep 10 109.5 –6.1 –7.9 –5.7
poultry 46 109.0 0.0 –0.1 –2.0
of which chicken 28 108.8 –0.1 +0.1 –1.7
Milk 147 112.2 /// +5.0 +9.7
of which cow milk (2) 137 112.2 /// +5.4 +10.5
Eggs 15 135.7 –17.3 +5.4 +19.3
  • * 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 December value of cow milk price indice is carried forward in January
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Continued rise in purchase prices of means of production

In January 2017, intermediate consumption prices kept on picking up (+0.4%), mostly driven by fertilisers prices. Over one year overall input prices rose by 0.2%: the higher price of energy (+22.4%) was virtually offset by the retreat in fertilisers (−9.6%) and feed prices (−1.9%). Capital goods prices were roughly stable this month (−0.1%) and went up by 1.1 % over one year.

Revisions

The level of IPPAP in December 2016 has been raised by 1.3 point noticeably further to the updating in seasonal series adjustments. IPAMPA has been revised by −0.4 point in relation with the revision of raw data.

Graph4 – Purchase prices of the means of agricultural production

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

Tableau2 – 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 Jan. 2017 variation as % over
a month 3 months a year
Total input 1000 107.3 +0.3 +1.1 +0.4
Intermediate consumptions 764 107.2 +0.4 +1.4 +0.2
Energy 100 102.1 +0.1 +6.1 +22.4
Seeds 57 106.4 –0.1 –0.9 –2.0
Fertilisers and soil improvers 92 103.9 +2.7 +6.3 –9.6
Plant protection products 78 97.8 –0.9 –1.7 –0.8
Animal feed 205 112.8 +0.5 +0.7 –1.9
Veterinary expenses 43 118.9 +0.2 +0.2 +2.1
Small equipment and tools 17 104.8 +0.1 –3.7 –4.4
Maintenance of materials 67 114.6 +0.6 +0.8 +1.0
Maintenance of buildings 9 107.3 0.0 +0.1 +1.5
Other goods and services 97 102.0 –0.1 0.0 –1.2
Goods and services contributing to investment 236 107.7 –0.1 +0.2 +1.1
Material 186 109.1 –0.1 +0.1 +0.9
Tractors 79 109.6 0.0 +0.2 +1.1
Machinery and equipment for cultivation 36 110.6 –0.2 +0.3 +0.4
Machinery and equipment for harvesting 42 109.9 0.0 +0.1 +1.6
Utility vehicles 18 104.1 –1.0 –0.5 +0.1
Buildings 50 102.5 0.0 +0.4 +1.7
  • (1) The repayment of the domestic tax on energy product (TICPE) benefiting farmers has been applied in advance for the year 2017
  • Sources: INSEE, SSP (ministry in charge of agriculture)

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