In May 2017, rise in overall agricultural prices of 5.4% over one yearIndices of agricultural prices - May 2017

In mai 2017, overall agricultural prices increased by 5.4% over one year, after +6.6% in April. Excluding fruits and vegetables, they decreased by 0.5% over one month and rose by 6.1 % over one year.

In mai 2017, overall agricultural prices increased by 5.4% over one year, after +6.6% in April. Excluding fruits and vegetables, they decreased by 0.5% over one month and rose by 6.1 % over one year.

Further drop in cereals and oleaginous prices

In May 2017, cereal prices declined again (−1.1%, after −2.7% in April), those of oleaginous as well (−6.2% after −3.2%). The supply of cereal was already ample and significant crops were expected, especially in Russia for soft wheat. Prices of cereals and oleaginous, which are widely exported goods, also decreased to offset a higher euro value towards dollar. In addition the prices of rape, the main oleaginous grown in France, were driven down by soy prices, as these two goods are substitutable. The fall in the Brazilian currency weighted on soy prices while the forecasts showed an abundant crop in Latin America.

Graph1 – Producer prices of cereals

  • Source: INSEE

Fresh vegetables prices went down; fresh fruits and potatoes prices remained dynamic

In May 2017, fresh vegetables prices decreased over one year (−3.8%). The demand for tomatoes and cucumbers was sluggish towards the seasonal greenhouse production rise. Fresh fruits prices remained dynamic (+3.5% over one year). Cherries production went back to a normal level compared to the low crop last year. Potatoes prices remained higher than last year (+13.4%) reflecting the weak yields of the last production campaign in North-Western Europe.

Wine prices broadly increased by 0.6% over one year: protected designation of origin wine prices rose by 4.7% whereas prices of wines without protected designation of origin (“other wines”), facing competition with spanish ones, dropped by 14.0%.

Graph2 – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

Animals and milk prices still increased

Over one year, animal prices increased (+6.9%) mainly due to the rise in pig prices (+22.1%), in line with China's dynamic demand and, to a lesser extent, to the upturn in large cattle prices (+5.0%).

Graph3 – Producer prices of pigs and large cattle

  • Source: INSEE

Cow milk price rose again (+2.4% from February to April). Global milk collection has been decreasing since mid 2016 while the industy barely kept up with the demand for butter.

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 May 2017 a month 3 months a year
Agricultural goods output 1000 116.4 /// /// +5.4
excluding fruits and vegetables 900 118.1 –0.5 –0.9 +6.1
Crop output (excluding fruits and vegetables) 505 120.1 –0.6 –2.8 +3.5
Cereals 188 98.7 –1.1 –6.3 +6.1
of which soft wheat 112 95.2 –1.6 –8.2 +9.7
grain maize 41 100.5 –0.9 –2.7 +4.0
Potatoes 26 239.0 /// /// +13.4
Wines 177 134.7 +1.5 +1.7 +0.6
protected designation of origin 84 148.5 +3.2 +4.0 +4.7
other wines 23 129.9 –2.1 –4.4 –14.0
Oleaginous 49 97.9 –6.2 –11.8 –0.4
Horticultural products 30 110.7 –0.4 +2.2 –0.4
Other crop products 36 111.4 +0.3 –1.5 +2.9
Fruits and vegetables (1) 100 101.8 /// /// –0.9
Fresh vegetables 53 96.7 /// /// –3.8
Fresh fruits 35 105.4 /// /// +3.5
Animal output 395 115.5 –0.5 +1.8 +9.7
Animals 234 117.7 –0.6 +1.0 +6.9
of which large cattle 96 119.9 +0.3 +2.0 +5.0
calves 26 105.4 –2.6 –4.5 –0.7
pigs 54 128.6 –2.7 +1.6 +22.1
sheep 10 114.8 +3.5 +7.7 +2.8
poultry 46 108.5 +0.6 –0.4 –1.0
of which chicken 28 108.1 +0.9 –0.5 –1.2
Milk 147 109.7 /// +2.2 +11.1
of which cow milk (2) 137 109.6 /// +2.4 +12.1
Eggs 15 137.9 –3.6 +8.2 +48.1
  • * Except for fresh fruits, fresh vegetables and potatoes
  • /// Absence of meaning due to the nature of these series
  • (1) Including vegetables for industry.
  • (2)The April value of cow milk price indice has been carried forward in May.
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Decline in purchase prices of means of production

In May 2017, intermediate consumption prices decreased by 0.7% as a result of the decline in energy (−3,6%) and fertilisers prices (−2,0%). Over one year, they increased by 0.4%, in line with energy prices (+4.6%) and those of feed (+1.8%) whereas fertilisers prices kept going down (−4.8%). Capital goods prices grew by 0.4% over the month and by 1.8 % over one year.

Revisions

The variation over one year of IPPAP has been raised by 0.2 point in April and that of IPAMPA has been lowered by 0.1 point.

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)
Variation as % over
Weights May 2017 a month 3 months a year
Total input 1000 107.4 –0.5 –0.5 +0.7
Intermediate consumptions 764 107.0 –0.7 –0.7 +0.4
Energy 100 97.4 –3.6 –5.0 +4.6
Seeds 57 106.5 0.0 +0.2 –1.8
Fertilisers and soil improvers 92 103.7 –2.0 –1.8 –4.8
Plant protection products 78 98.4 +0.1 +0.8 –0.7
Animal feed 205 113.4 –0.4 –0.1 +1.8
Veterinary expenses 43 119.4 +0.1 +0.3 +1.5
Small equipment and tools 17 107.1 +0.2 0.0 –0.9
Maintenance of materials 67 115.4 +0.2 +0.4 +1.9
Maintenance of buildings 9 108.4 0.0 +0.2 +2.0
Other goods and services 97 102.4 0.0 0.0 –0.8
Goods and services contributing to investment 236 108.7 +0.4 +0.6 +1.8
Material 186 109.9 +0.5 +0.7 +1.6
Tractors 79 110.9 +0.7 +0.9 +2.3
Machinery and equipment for cultivation 36 111.8 +0.4 +1.4 +0.9
Machinery and equipment for harvesting 42 109.8 +0.2 +0.1 +1.6
Utility vehicles 18 104.2 –0.3 +0.2 +0.1
Buildings 50 104.5 0.0 +0.1 +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)