31 August 2017

2017- n° 235
In July 2017, overall agricultural prices rose by 1.0% over one year Indices 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).

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N^o 235

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Rise in cereals and oilseed prices
Strong drop in fresh vegetable and fruit prices
Falling animal prices in July, rising milk price over one year
Slight decline in purchase prices of means of production
Revision

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.

graphiqueGraph1 – Producer prices of cereals

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).

graphiqueGraph2 – 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.

graphiqueGraph3 – Producer prices of pigs and large cattle

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.

tableautable1 – Indice of producer prices of agricultural products (IPPAP)

Seasonnaly adjusted * - base and reference 100 in 2010

Indice of producer prices of agricultural products (IPPAP) (Seasonnaly adjusted * - base and reference 100 in 2010) -
			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%.

graphiqueGraph4 – Purchase prices of the means of agricultural production

Sources: INSEE, SSP (ministry in charge of agriculture)

tableautable2 – 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) (Raw data - base and reference 100 in 2010) -
			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)