In February 2017, agricultural products prices accelerated over one yearIndices of agricultural prices - February 2017

In February 2017, producer prices for agricultural products increased by 9.2% over one year, a sharper rise than in January (+8.3%) and in December (+5.5%). Excluding fruits and vegetables, they were stable over one month and rose by 7.6% over one year.

Informations rapides
No 93
Paru le : 31/03/2017
Prochaine parution le : 31/05/2017 at 12:00 - April 2017

In February 2017, producer prices for agricultural products increased by 9.2% over one year, a sharper rise than in January (+8.3%) and in December (+5.5%). Excluding fruits and vegetables, they were stable over one month and rose by 7.6% over one year.

Strong rise in the prices of cereals and oleaginous over one year

In February 2017, cereal prices slowed down compared with the previous month (+0.5% after +2.3%). Global demand remained buoyant, facing an abundant supply enhanced by significant crops in the Southern hemisphere. Over one year, cereal prices have been rallying from the low levels they reached in the beginning of 2016 (+15.6 % over one year in February). Since this summer, oleaginous prices have increased significantly (+16.7% over one year), owing to the retreat in global production in 2016 and to the rebound in oil prices which make biodiesel from vegetable oil more attractive.

Graph1 – Producer prices of cereals

  • Source: INSEE

Steep rise in fresh vegetables and potato prices

In February 2017, fresh vegetables prices surged (+52.0%) reflecting the decline in winter productions (endive, leek, lettuce and lamb's lettuce) compared to last year. Potato prices also strongly increased over one year (+37.5%) because of the weak yields in North-Western Europe during the last prodcution campaign. Fresh fruits prices remained dynamic (+7.5 % yoy).

Wine prices declined by 1.0 % over one year reflecting the fall (-8,0 %) in prices of wines without protected designation of origin (“other wines”): their stocks were high; in addition, among these wines, those without geographical indication had to face the Spanish competition.

Graph2 – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

Rise in animal and milk prices

Over one year animal prices kept on rising (+3.5%) owing to the buoyant pig price trend (+22.2%), sustained by the Chinese demand. The recovery in large cattle prices continued (+2.4 % over three months) despite Polish export competition.

Graph3 – Producer prices of pigs and large cattle

  • Source: INSEE

Cow milk price continued to strengthen (+5.9% from November to January) owing to to strong Chinese demand for dairy products while production declined in the main exporting zones (Southern America, Oceania and Europe).

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 Feb. 2017 a month 3 months a year
Agricultural goods output 1000 119.0 /// /// +9.2
excluding fruits and vegetables 900 119.0 0.0 +1.5 +7.6
Crop output (excluding fruits and vegetables) 505 123.6 –0.1 +0.7 +9.0
Cereals 188 105.3 +0.5 +1.8 +15.6
of which soft wheat 112 103.7 +0.7 +3.1 +19.7
grain maize 41 103.3 +1.5 +2.9 +17.9
Potatoes 26 250.6 /// /// +37.5
Wines 177 132.5 –0.4 –2.0 –1.0
protected designation of origin 84 142.8 –0.7 –2.9 0.0
other wines 23 135.7 –0.4 –2.8 –8.0
Oleaginous 49 111.0 +0.5 +5.6 +16.7
Horticultural products 30 107.8 –3.1 –2.7 +1.3
Other crop products 36 113.4 +1.5 +4.2 +3.8
Fruits and vegetables (1) 100 118.8 /// /// +26.5
Fresh vegetables 53 124.6 /// /// +52.0
Fresh fruits 35 112.4 /// /// +7.5
Animal output 395 113.2 +0.1 +2.9 +5.8
Animals 234 116.5 +0.6 +3.0 +3.5
of which large cattle 96 117.5 +0.6 +2.4 0.0
calves 26 110.4 +0.4 +5.7 –3.2
pigs 54 126.6 +1.7 +7.7 +22.2
sheep 10 106.6 –2.6 –8.9 –6.6
poultry 46 108.9 –0.1 0.0 –1.9
of which chicken 28 108.6 –0.2 –0.1 –1.5
Milk 147 106.4 /// +5.5 +9.1
of which cow milk (2) 137 106.0 /// +5.9 +9.8
Eggs 15 127.4 –6.1 –15.8 +11.5
  • * 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 January value of cow milk price indice is carried forward in February
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Further rise in purchase prices of means of production

In February 2017, intermediate consumption prices kept on increasing (+0.5% after +0.6%), driven by fertilisers (+1.8%) and animal feed (+0.7%). Over one year input prices increased by 1.4%, mainly because of soaring energy prices (+23.0 %) while fertilisers prices went down over by 7.1 %. In February, capital goods prices rose by 0.2% over the month and by 1.1% year on year.

Revisions

The January y-o-y variation in IPPAP has been lowered by 0.1 points. The m-o-m variation in IPAMPA has been revised by 0.1 point, due to raw data revisions, for milk prices especially.

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 Feb. 2017 variation as % over
a month 3 months a year
Total input 1000 107.8 +0.4 +1.6 +1.2
Intermediate consumptions 764 107.9 +0.5 +2.2 +1.4
Energy 100 102.5 +0.3 +8.6 +23.0
Seeds 57 106.5 +0.1 –0.7 –1.8
Fertilisers and soil improvers 92 105.8 +1.8 +7.8 –7.1
Plant protection products 78 97.5 –0.2 –1.4 –0.9
Animal feed 205 113.5 +0.7 +1.3 –0.3
Veterinary expenses 43 119.2 +0.2 +0.4 +2.3
Small equipment and tools 17 107.0 –1.0 –1.7 –1.8
Maintenance of materials 67 114.9 +0.3 +1.1 +1.2
Maintenance of buildings 9 107.7 0.0 +0.4 +1.9
Other goods and services 97 102.7 +0.1 +0.1 –0.5
Goods and services contributing to investment 236 107.8 +0.2 –0.1 +1.1
Material 186 109.1 +0.2 –0.3 +0.8
Tractors 79 109.9 +0.5 –0.1 +1.2
Machinery and equipment for cultivation 36 110.2 0.0 –0.5 –0.2
Machinery and equipment for harvesting 42 109.7 –0.1 –0.1 +1.5
Utility vehicles 18 104.0 –0.1 –1.0 –0.1
Buildings 50 103.1 0.0 +0.6 +2.4
  • (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)