In April 2017, agricultural product prices kept increasing sharply over one year (+6.4%)Indices of agricultural prices - April 2017

In April 2017, agricultural product prices rose by 6.4% over one year, after +6.2 % in March. Excluding vegetables and fruits, they decreased by 0.3% over one month and went up by 7.1% over one year.

In April 2017, agricultural product prices rose by 6.4% over one year, after +6.2 % in March. Excluding vegetables and fruits, they decreased by 0.3% over one month and went up by 7.1% over one year.

Drop in cereal and oilseed prices

In April 2017, cereal prices declined again (−2.7%, after −2.6% in March). The ample global supply weighed on prices. Similarly, oilseed prices continued to drop (−3.2% after −2.9%). Rape price, the main oilseed grown in France, followed the fall in soy and palm oil prices, which rape can be used as a substitute for. Forecasts have showed a record soy crop this year, while demand was sluggish for palm oil.

Graph1 – Producer prices of cereals

  • Source: INSEE

Decline in fresh vegetable prices but fresh fruit and potato prices became higher

In April 2017, fresh vegetable prices decreased over one year (−3.8%). Demand barely kept up with the abundant supply of lettuces and caulyflowers boosted by good weather conditions. Conversely, tomato price remained high in this period of the year: the greenhouse production started lower than last year. Fresh fruit prices remained dynamic over one year (+4,9%). Because of the weak yields in North-Western Europe during the last production campaign, potato prices remained higher than a year ago (+26.7%). Wine prices declined by 0.6% over one year reflecting the fall (−9.0%) 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 accelerated (+7.5% in April after +4.3% in March) reflecting the stronger rise in pig price (+32.6% after +25.1% in March). Pig demand remained buoyant, still noticeably from China.

Graph3 – Producer prices of pigs and large cattle

  • Source: INSEE

Cow milk price rose again (+2.6% from January to March) : global milk collection has been decreasing since mid-2016 while butter and cheese exportations were dynamic, mainly towards the United States and Asia.

Tableau1 – 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 April2017 a month 3 months a year
Agricultural goods output 1000 117.3 /// /// +6.4
excluding fruits and vegetables 900 118.5 –0.3 –0.4 +7.1
Crop output (excluding fruits and vegetables) 505 120.8 –1.4 –2.3 +5.9
Cereals 188 99.8 –2.7 –4.8 +10.2
of which soft wheat 112 96.7 –4.1 –6.1 +13.5
grain maize 41 101.4 –0.7 –0.4 +10.7
Potatoes 26 247.0 /// /// +26.7
Wines 177 132.7 –0.5 –0.3 –0.6
protected designation of origin 84 143.9 –0.4 +0.1 +1.1
other wines 23 132.7 –1.8 –2.6 –9.0
Oleaginous 49 104.4 –3.2 –5.4 +7.3
Horticultural products 30 111.1 +3.3 –0.2 +0.6
Other crop products 36 111.4 –0.4 –0.3 +2.6
Fruits and vegetables (1) 100 106.5 /// /// –0.6
Fresh vegetables 53 102.2 /// /// –3.8
Fresh fruits 35 111.0 /// /// +4.9
Animal output 395 115.6 +1.2 +2.4 +9.0
Animals 234 118.4 +2.0 +2.2 +7.5
of which large cattle 96 119.6 +1.7 +2.4 +3.4
calves 26 108.2 –1.4 –1.6 –1.6
pigs 54 132.2 +5.4 +6.2 +32.6
sheep 10 110.9 +5.4 +1.3 –1.4
poultry 46 107.9 –0.6 –1.0 –2.3
of which chicken 28 107.1 –0.9 –1.6 –2.7
Milk 147 108.5 /// +2.3 +9.2
of which cow milk (2) 137 108.3 /// +2.6 +9.8
Eggs 15 143.1 +0.7 +5.5 +31.5
  • * 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 March value of cow milk price indice has been carried forward in April.
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Purchase prices of means of production were virtually stable In April

In April 2017, intermediate consumption prices increased by 0.2% over the month and by 1.6 % yoy, mainly due to higher energy prices (+0.9% in April, +15.5% yoy). On the other hand, fertilisers prices kept on going down (−0.2% in April  ; −5,2% over one year). Capital goods prices were stable over the month and increased by 1.8% over a year.

Revisions

The variation over one year of IPPAP has been raised by 0.3 points in March and that of IPAMPA by 0.1 points over one month and over one year alike.

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)
variation as % over
Weights April 2017 a month 3 months a year
Total input 1000 108.0 +0.1 +0.6 +1.7
Intermediate consumptions 764 107.9 +0.2 +0.5 +1.6
Energy 100 101.1 +0.9 –1.1 +15.5
Seeds 57 106.5 +0.1 +0.2 –1.8
Fertilisers and soil improvers 92 105.9 –0.2 +1.9 –5.2
Plant protection products 78 98.3 +0.4 +0.6 –0.6
Animal feed 205 113.7 –0.1 +0.9 +2.0
Veterinary expenses 43 119.4 +0.1 +0.3 +1.9
Small equipment and tools 17 106.9 +0.2 –1.1 –1.0
Maintenance of materials 67 115.2 +0.2 +0.5 +1.8
Maintenance of buildings 9 108.2 0.0 +0.1 +2.1
Other goods and services 97 102.8 +0.1 +0.2 –0.4
Goods and services contributing to investment 236 108.3 0.0 +0.6 +1.8
Material 186 109.4 0.0 +0.6 +1.4
Tractors 79 110.0 –0.3 +0.7 +1.9
Machinery and equipment for cultivation 36 111.2 0.0 +0.9 +1.2
Machinery and equipment for harvesting 42 109.6 +0.2 –0.2 +1.3
Utility vehicles 18 104.6 +0.3 +0.6 +0.5
Buildings 50 104.4 0.0 +0.8 +3.4
  • (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)