In July 2017, overall agricultural prices rose by 1.0% over one yearIndices of agricultural prices - July 2017

In July 2017, overall agricultural products prices remained higher than last year but this rise lessened: +1.0% over one year, after +2.9 % in June and +5.2% in May. Excluding fruits and vegetables, they decreased by 0.3% over one month and climbed by 3.4% over one year (after +3,8% in June).

In July 2017, overall agricultural products prices remained higher than last year but this rise lessened: +1.0% over one year, after +2.9 % in June and +5.2% in May. Excluding fruits and vegetables, they decreased by 0.3% over one month and climbed by 3.4% over one year (after +3,8% in June).

Rise in cereals and oilseed prices

In July 2017, overall cereal prices continued to increase (+1.3% after +2.8%) while oilseed prices rebounded (+1.2% after a cumulative decline of 11.5% from April to June). The dry weather conditions in the United States and Canada until July raised fear about yield drops for wheat and rape. Nevertheless, maïze prices retreated over one month (−3.9%) and over one year alike (−2.4%). The Ukrainian and South American competition on the European marked weighed on the price and volume of production of maïze.

Graph1 – Producer prices of cereals

  • Source: INSEE

Strong drop in fresh vegetable and fruit prices

In July 2017, the prices of summer fruits and vegetables (peach, apricot, tomato et melon) plunged owing to an ample European supply. The high temperatures at the end of the spring noticeably accelarated the maturity of the French products. Indeed, fresh fruit prices declined by 16.1% over one year in July (after −12.4%) and fresh vegetable prices by 28.9% (after +1,1% in June).

Graph2 – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

Falling animal prices in July, rising milk price over one year

In July, animal prices kept on decreasing overall compared to the previous month (−1.5% after −1.3%; +2.9% over one year). Over the last three months, pig price declined sharply (−11.3 %) owing to a large retreat in Chinese demand. Cattle prices declined too.

Graph3 – Producer prices of pigs and large cattle

  • Source: INSEE

Cow milk price declined from April to June (−1.6%) but still remained on the rise over one year (+16.1 % from July 2016 to June 2017). Until May, high global demand for dairy products, butter and cheese, had been sustaining the cow milk price paid to producers. But the surplus of skim milk powder, by-product of butter, has weighed since then on the raw material price paid to producers.

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 July 2017 a month 3 months a year
Agricultural goods output 1000 114.4 /// /// +1.0
excluding fruits and vegetables 900 117.2 –0.3 –1.3 +3.4
Crop output (excluding fruits and vegetables) 505 121.0 +0.5 +0.2 +0.7
Cereals 188 102.8 +1.3 +3.0 +2.1
of which soft wheat 112 101.1 +1.8 +4.6 +2.4
grain maize 41 94.9 –3.9 –6.4 –2.4
Potatoes 26 231.3 /// /// +0.7
Wines 177 135.0 +0.2 +1.9 –0.1
protected designation of origin 84 148.1 +0.2 +3.1 +1.3
other wines 23 133.9 +0.6 +1.0 –7.0
Oleaginous 49 96.5 +1.2 –7.6 +0.4
Horticultural products 30 110.3 0.0 –0.8 –0.2
Other crop products 36 110.3 –0.4 –0.7 +1.6
Fruits and vegetables (1) 100 88.9 /// /// –21.3
Fresh vegetables 53 79.7 /// /// –28.9
Fresh fruits 35 95.7 /// /// –16.1
Animal output 395 112.3 –1.4 –3.3 +7.3
Animals 234 114.4 –1.5 –3.4 +2.9
of which large cattle 96 118.3 –1.4 –1.1 +4.8
calves 26 99.0 –3.8 –8.5 –3.2
pigs 54 117.3 –3.1 –11.3 +2.7
sheep 10 126.0 +3.4 +13.6 +10.1
poultry 46 109.1 +0.1 +1.1 0.0
of which chicken 28 109.1 +0.1 +1.9 +0.2
Milk 147 108.2 /// –1.5 +14.9
of which cow milk (2) 137 107.9 /// –1.6 +16.1
Eggs 15 120.4 –10.7 –15.9 +15.3
  • * 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 June value of cow milk price indice has been carried forward in July.
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Slight decline in purchase prices of means of production

En July 2017, intermediate consumption prices still decreased (−0.2% after −0.9%), mainly reflecting a further drop in fertilisers prices (−1.5%), partly offset by a rebound in energy prices (+0.9%). Capital goods prices, virtually stable in July (−0.1%), increased by 2.2% over one year.

Revision

The variation over one year of IPPAP has been lowered by 0.3 points in June to +2,9%; that of IPAMPA has been raised by 0.1 points to +0.3%.

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 July 2017 a month Weights June 2017
Total input 1000 106.7 –0.2 –1.2 +0.7
Intermediate consumptions 764 105.9 –0.2 –1.9 +0.2
Energy 100 94.9 +0.9 –6.0 +2.9
Seeds 57 106.0 –0.4 –0.5 –2.0
Fertilisers and soil improvers 92 97.6 –1.5 –7.7 –2.7
Plant protection products 78 97.9 –0.5 –0.4 –1.2
Animal feed 205 113.0 –0.2 –0.7 +0.4
Veterinary expenses 43 120.0 +0.3 +0.4 +1.4
Small equipment and tools 17 107.5 +0.3 +0.5 –1.6
Maintenance of materials 67 115.6 0.0 +0.3 +1.6
Maintenance of buildings 9 108.5 0.0 0.0 +1.5
Other goods and services 97 102.7 +0.1 0.0 +0.5
Goods and services contributing to investment 236 109.5 –0.1 +1.0 +2.2
Material 186 110.6 –0.1 +1.1 +2.3
Tractors 79 112.7 –0.4 +2.2 +3.8
Machinery and equipment for cultivation 36 111.5 –0.3 +0.2 +1.5
Machinery and equipment for harvesting 42 109.5 –0.1 +0.1 +1.4
Utility vehicles 18 105.0 +0.8 +0.5 +0.7
Buildings 50 105.2 0.0 +0.4 +2.0
  • (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)