In March 2017, agricultural product prices kept rising sharply over one yearIndices of agricultural prices - March 2017

In March 2017, agricultural product prices increased by 5.9% over one year, less sharply than in February. Excluding fruits and vegetables, they declined by 0.6% over one month and went up by 7.2% over one year.

Informations rapides
No 113
Paru le : 27/04/2017
Prochaine parution le : 29/09/2017 at 12:00 - August 2017

In March 2017, agricultural product prices increased by 5.9% over one year, less sharply than in February. Excluding fruits and vegetables, they declined by 0.6% over one month and went up by 7.2% over one year.

Downturn in cereal and oilseed prices

In March 2017, cereal prices retreated (−2.6%). The supply has been considered ample and the current weather conditions in the Northern hemisphere have helped crop development. Over one year, cereal prices have been rallying from the low levels they reached in the beginning of 2016 (+14.9% over one year in February). Likewise, oilseed prices fell back over the month (−2.9%) while they increased sharply over one year (+14.7%). The month-on-month drop was driven by the decrease in soy and palm oil prices whose supply has been significant, and to the simultaneous fall in petroleum product prices which made less attractive biodiesel, notably made from rape.

Graph1 – Producer prices of cereals

  • Source: INSEE

Decrease in fresh vegetable prices but increase in fresh fruit and potato prices

In March 2017, fresh vegetable prices decreased year on year (−16.5% after +52.0%). The return to milder temperatures in March accelerated the growth of vegetables like lamb's lettuce and lettuce while the consumers tended to turn aside from cauliflowers. By contrast, fresh fruit prices remained dynamic (+6.0% yoy). Because of the weak yields in North-Western Europe during the last production campaign, potato prices strongly increased over one year (+36.2%). Wine prices declined by 1.0% over one year reflecting the fall (−6,9%) in prices of wines without protected designation of origin (“other wines”), which underwent Spanish competition.

Graph2 – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

Rise in animals and milk prices

Over one year, animal prices kept on increasing sharply (+4.3% after +3.8%) reflecting pig prices dynamism (+25.1%), buoyed by Chinese demand. Large cattle prices sligntly went up (+0.7%) while the prices of others animals declined.

Graph3 – Producer prices of pigs and large cattle

  • Source: INSEE

Cow milk price rose again (+4.7% from December to February) : global milk collection has been decreasing since mid-2016 while butter and cheese exportations were dynamic, mainly towards the United States and Asia.

table1 – Indice of producer prices of agricultural products (IPPAP)

Seasonnaly adjusted * - base and reference 100 in 2010
Indice of producer prices of agricultural products (IPPAP)
Variation as % over
Weights March 2017 a month 3 months a year
Agricultural goods output 1000 117.2 /// /// +5.9
excluding fruits and vegetables 900 118.4 –0.6 –0.1 +7.2
Crop output (excluding fruits and vegetables) 505 122.1 –1.2 –1.1 +8.1
Cereals 188 102.6 –2.6 +0.2 +14.9
of which soft wheat 112 100.8 –2.8 +1.3 +19.4
grain maize 41 102.1 –1.2 +1.9 +16.2
Potatoes 26 252.1 /// /// +36.2
Wines 177 132.2 –0.2 –2.4 –1.0
protected designation of origin 84 142.3 –0.4 –3.9 –0.3
other wines 23 135.0 –0.5 –2.5 –6.9
Oleaginous 49 107.8 –2.9 –1.6 +14.7
Horticultural products 30 107.3 –0.5 –3.9 –5.4
Other crop products 36 112.5 –0.5 +1.9 +3.5
Fruits and vegetables (1) 100 105.8 /// /// –7.4
Fresh vegetables 53 96.9 /// /// –16.5
Fresh fruits 35 117.4 /// /// +6.0
Animal output 395 113.7 +0.3 +1.3 +6.2
Animals 234 116.1 –0.3 +1.1 +4.3
of which large cattle 96 117.6 +0.1 +0.9 +0.7
calves 26 109.7 –0.6 +1.7 –3.6
pigs 54 125.4 –0.9 +4.2 +25.1
sheep 10 105.2 –1.3 –9.8 –9.7
poultry 46 108.6 –0.3 –0.4 –1.8
of which chicken 28 108.1 –0.5 –0.7 –1.8
Milk 147 107.2 /// +4.4 +8.8
of which cow milk (2) 137 106.8 /// +4.7 +9.4
Eggs 15 142.1 +11.5 –13.4 +13.4
  • * 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 February value of cow milk price indice is carried forward in March
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Purchase prices of means of production were virtually stable over the month

In March 2017, intermediate consumption prices slightly decreased over one month (−0.2%) but rose over one year (+1.2%). These moves reflected mainly the energy prices variations (−2.4% over one month; +14.9% yoy). On the other hand, fertilisers prices still decreased markedly over one year (−5.9%). Capital goods prices rose a little more than in February (+0.3% after +0.2%; +1.5% yoy).

Revisions

The changes in IPPAP and IPAMPA over one year in February 2017 have been raised by 0.1 points each for the seasonally adjusted 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 March 2017 variation as % over
a month 3 months a year
Total input 1000 107.8 –0.1 +0.7 +1.2
Intermediate consumptions 764 107.7 –0.2 +0.8 +1.2
Energy 100 100.0 –2.4 –2.0 +14.9
Seeds 57 106.5 +0.1 0.0 –1.7
Fertilisers and soil improvers 92 106.2 +0.4 +5.3 –5.9
Plant protection products 78 97.8 +0.3 –0.3 –0.6
Animal feed 205 113.8 +0.3 +1.5 +1.2
Veterinary expenses 43 119.3 +0.2 +0.5 +2.1
Small equipment and tools 17 106.7 –0.4 –1.3 –1.4
Maintenance of materials 67 115.0 +0.1 +1.0 +1.5
Maintenance of buildings 9 108.1 0.0 +0.4 +2.2
Other goods and services 97 102.7 0.0 +0.1 –0.5
Goods and services contributing to investment 236 108.2 +0.3 +0.3 +1.5
Material 186 109.5 +0.4 +0.3 +1.3
Tractors 79 110.4 +0.5 +0.7 +1.9
Machinery and equipment for cultivation 36 111.1 +0.8 +0.3 +0.5
Machinery and equipment for harvesting 42 109.5 –0.2 –0.4 +1.2
Utility vehicles 18 104.3 +0.3 –0.8 +0.1
Buildings 50 103.6 0.0 +0.5 +2.9
  • (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)