In June 2017, overall agricultural prices rose by 3.2% over one yearIndices of agricultural prices - June 2017

In June 2017, overall agricultural products prices continued to slow year on year (+3.2% after 5.3% in May and +6.6% in June). Excluding fruits and vegetables, they decreased by 0.2% over one month and rose by 4.0% over one year.

Informations rapides
No 201
Paru le : 27/07/2017
Prochaine parution le : 29/09/2017 at 12:00 - August 2017

In June 2017, overall agricultural products prices continued to slow year on year (+3.2% after 5.3% in May and +6.6% in June). Excluding fruits and vegetables, they decreased by 0.2% over one month and rose by 4.0% over one year.

Cereal prices rallied while oilseed ones still dropped

In June 2017, cereal prices picked up (+2.8%). Heat waves in Western Europe and United States raised fears about yields drops for wheat and maïze. Oilseed prices further decreased (−11.5% over three months): the decline in oil prices reduced the attractiveness of bio-diesel while the edible oil market was filled-up due to sluggish demand from the agri-food industry.

Graph1 – Producer prices of cereals

  • Source: INSEE

Fresh fruit prices tumbled; vegetable prices rose slightly

In June 2017, fresh fruits prices slipped back significantly year on year (−12.4%). Apricot price plunged by a third owning to abundant supply. The high temperatures in June hastened the harvests in France; moreover these were in competition with seasonal Spanish inflows. Cherry prices fell too in June by near 20%. Its production went back to a normal level compared to the weak amounts collected last year. In contrast, fresh vegetable prices increased a little (+1.1%). Tomato was more expensive, as the early summery weather boosted the demand. Wine prices broadly decreased by 0.5% over one year: protected designation of origin wine prices rose by 1.9% whereas prices of wines without protected designation of origin, facing competition with Spanish ones, dropped by 10.8%.

Graph2 – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

Falling animal prices, rising milk price

In June, animal prices kept on decreasing overall (−1.3% after −0.6%). Pig prices retreated for two months (−5.9% in June after −2.7%) with the downturn in Chinese demand. Sheep prices went up significantly (+6.2 %) with, on the demand side, the end of Ramadan and, on the supply side, a decrease in New-zeland exportations.

Graph3 – Producer prices of pigs and large cattle

  • Source: INSEE

Cow milk price kept rising (+0.9 % from March to May). Global milk collection has been decreasing since mid-2016 while the demand for dairy products was still on the rise. Egg prices climbed over one year (+22.7%): a health issue in Poland lessened global supply.

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 June 2017 a month 3 months a year
Agricultural goods output 1000 116.1 /// /// +3.2
excluding fruits and vegetables 900 117.7 –0.2 –1.0 +4.0
Crop output (excluding fruits and vegetables) 505 119.9 0.0 –2.1 +0.5
Cereals 188 101.5 +2.8 –1.1 +4.2
of which soft wheat 112 99.3 +4.3 –1.5 +9.4
grain maize 41 98.7 –1.8 –3.3 –4.5
Potatoes 26 229.0 /// /// +0.7
Wines 177 134.8 +0.4 +1.1 –0.5
protected designation of origin 84 148.0 0.0 +2.4 +1.9
other wines 23 133.3 +3.5 –1.4 –10.8
Oleaginous 49 95.4 –2.6 –11.5 –4.7
Horticultural products 30 110.3 –0.4 +2.4 –0.2
Other crop products 36 110.7 –0.4 –1.0 +1.3
Fruits and vegetables (1) 100 101.6 /// /// –4.7
Fresh vegetables 53 98.4 /// /// +1.1
Fresh fruits 35 102.9 /// /// –12.4
Animal output 395 114.4 –0.9 +0.2 +8.5
Animals 234 116.2 –1.3 +0.1 +4.9
of which large cattle 96 120.0 +0.1 +2.0 +5.5
calves 26 102.9 –2.4 –6.2 –0.8
pigs 54 121.0 –5.9 –3.5 +9.5
sheep 10 121.9 +6.2 +15.9 +9.8
poultry 46 109.0 +0.5 +0.4 –0.5
of which chicken 28 109.0 +0.8 +0.8 –0.4
Milk 147 109.4 /// +0.9 +13.7
of which cow milk (2) 137 109.2 /// +0.9 +14.8
Eggs 15 135.2 –2.1 –4.9 +22.7
  • * 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 May value of cow milk price indice has been carried forward in June.
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Decline in purchase prices of means of production

In May 2017, intermediate consumption prices decreased again (−0.7%, as in May) as a result of the decline in fertilisers prices (−4.3%) and energy (−2.3 %). Over one year, they decreased by 0.3%, mainly held back by the drop in fertilisers prices (−4.9%). Capital goods prices were stable over one month and rose by 1.7% over one year.

Revision

The variation over one year of IPPAP has been lowered by 0.1 point in May; that of IPAMPA is unchanged.

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 June 2017 a month 3 months a year
Total input 1000 106.8 –0.6 –0.9 +0.2
Intermediate consumptions 764 106.2 –0.7 –1.3 –0.3
Energy 100 95.3 –2.3 –4.7 +0.6
Seeds 57 106.4 –0.1 +0.1 –2.2
Fertilisers and soil improvers 92 99.1 –4.3 –6.5 –4.9
Plant protection products 78 98.4 0.0 +0.6 –0.6
Animal feed 205 113.2 –0.2 –0.6 +1.0
Veterinary expenses 43 119.6 +0.1 +0.3 +1.4
Small equipment and tools 17 107.2 –0.1 +0.6 –1.8
Maintenance of materials 67 115.6 +0.2 +0.5 +1.9
Maintenance of buildings 9 108.5 0.0 +0.1 +1.6
Other goods and services 97 102.4 0.0 0.0 –0.9
Goods and services contributing to investment 236 108.7 0.0 +0.3 +1.7
Material 186 109.8 +0.1 +0.4 +1.6
Tractors 79 111.1 +0.2 +0.7 +2.4
Machinery and equipment for cultivation 36 111.3 0.0 0.0 +1.1
Machinery and equipment for harvesting 42 109.6 –0.1 +0.3 +1.4
Utility vehicles 18 104.3 +0.2 +0.1 –0.1
Buildings 50 104.8 0.0 +0.3 +2.2
  • (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)