Insee conjoncture

In August 2017, overall agricultural prices rose by 1.9% over one yearIndices of agricultural prices - August 2017

In August 2017, overall agricultural products prices increased by 1.9% over one year, at a faster pace than in July (+1,2%). Excluding fruits and vegetables, they decreased by 0.9% over one month and rose by 2.7% over one year.

In August 2017, overall agricultural products prices increased by 1.9% over one year, at a faster pace than in July (+1,2%). Excluding fruits and vegetables, they decreased by 0.9% over one month and rose by 2.7% over one year.

Cereal prices dropped back

In August 2017, overall cereal prices declined over a month by 4,2% after increasing the last two monthes. The decrease is stronger for soft wheat (−5,8%) than grain maïze (−3,2%). Expectations of very good crops, particularly around the Black Sea, pushed down prices. Their fall was accentuated by the appreciation of the euro against the dollar.

Oilseed prices did not change much in a month (−0,5%). Sunflower prices went down sharply (−3,8%), and the decline was even sharper for soy (−6,2%), due, for the latter, to better weather conditions in the United States. In contrast, rape prices still rose slightly (+0,7%).

Graph1 – Producer prices of cereals

  • Source: INSEE

Further drop in fresh fruit and vegetable prices

In August 2017, fresh fruit and vegetable prices continued to go down over one year (−7,0%), due to the abundance of supply linked to excellent sun conditions. In particuliar, apricot (−39,3% over one year) and tomato (−22,5%) prices fell strongly. The market is less unbalanced for peaches and nectarines (−3,8%). Also for climatic reasons, the acceleration of the melon maturity at the beginning of the summer resulted in a lower supply in August and a rally of its price (+17,1% over one year after −38,2% in July).

Graph2 – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

Falling pig price

Animal prices kept on decreasing overall in August (−1.0%, +2.1% over one year). Indeed, pig price fell for the fourth month in a row. It has thus declined by 15.3% since April 2017 and decreased by 1.3% over one year. This trend reversal is partly due to the retreat in Chinese demand. However, large cattle price increased over the month (+0.3%) and accelerated over one year (+5.9% after 4.8%).

Graph3 – Producer prices of pigs and large cattle

  • Source: INSEE

Vigourous rise in milk and eggs prices

Cow's milk price increased by 19.1% over one year in July and egg price soared by over 33.9% in August. Strong global demand for butter explains the further increase in milk price. The demand for French eggs was stimulated by the "fipronil crisis".

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 August 2017 a month 3 months a year
Agricultural goods output 1000 114.7 /// /// +1.9
excluding fruits and vegetables 900 116.5 –0.9 –1.2 +2.7
Crop output (excluding fruits and vegetables) 505 119.5 –1.3 –0.3 –1.0
Cereals 188 98.5 –4.2 –0.2 –2.7
of which soft wheat 112 95.2 –5.8 0.0 –5.0
grain maize 41 91.9 –3.2 –8.6 –4.2
Potatoes 26 243.6 /// /// –0.7
Wines 177 133.5 –1.2 –0.4 0.0
protected designation of origin 84 146.7 –1.0 –0.7 +0.8
other wines 23 128.1 –4.3 –0.5 –4.8
Oleaginous 49 96.0 –0.5 –1.9 –2.2
Horticultural products 30 110.2 –0.1 –0.5 0.0
Other crop products 36 110.2 –0.1 –0.8 +0.9
Fruits and vegetables (1) 100 98.2 /// /// –7.0
Fresh vegetables 53 90.9 /// /// –7.8
Fresh fruits 35 105.5 /// /// –7.2
Animal output 395 112.7 –0.4 –2.3 +8.4
Animals 234 113.1 –1.0 –3.9 +2.1
of which large cattle 96 118.6 +0.3 –1.1 +5.9
calves 26 98.8 –0.1 –6.3 –2.9
pigs 54 112.0 –4.5 –12.9 –1.3
sheep 10 122.1 –3.1 +6.4 +3.6
poultry 46 109.1 0.0 +0.6 –0.1
of which chicken 28 109.0 –0.1 +0.8 0.0
Milk 147 110.7 /// +1.2 +17.6
of which cow milk (2) 137 110.6 /// +1.3 +19.2
Eggs 15 126.7 +5.2 –8.1 +33.9
  • * cf. methodological note
  • /// Absence of meaning due to the nature of these series
  • (1) Including vegetables for industry.
  • (2) The July value of cow milk price indice has been carried forward in August.
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Purchase prices of means of production remained stable over a month

In August 2017, intermediate consumption prices were virtually stable compared to the previous month (−0.1%, +0.7% over a year). Energy prices increased more sharply than in July, a rise partly offset by a further drop in aimal feed prices. Prices of capital goods declined over the month (−0.3%) and slowed over one year (+1.8% after +2.1% in July).

Revision

The variation over one year of IPPAP has been raised by 0.2 points in July to +1,2%; that of IPAMPA has not changed.

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 August 2017 a month 3 months a year
Total input 1000 106.7 0.0 –0.8 +0.9
Intermediate consumptions 764 106.0 +0.1 –1.0 +0.7
Energy 100 96.8 +2.0 –0.7 +6.8
Seeds 57 106.2 +0.2 –0.3 –1.7
Fertilisers and soil improvers 92 97.5 –0.1 –5.9 –1.0
Plant protection products 78 97.9 0.0 –0.5 –1.2
Animal feed 205 112.6 –0.4 –0.7 0.0
Veterinary expenses 43 119.7 –0.3 +0.2 +1.0
Small equipment and tools 17 107.6 +0.1 +0.3 –1.1
Maintenance of materials 67 115.9 +0.3 +0.4 +1.9
Maintenance of buildings 9 108.6 0.0 +0.1 +1.5
Other goods and services 97 102.6 0.0 +0.1 +0.4
Goods and services contributing to investment 236 109.1 –0.3 –0.4 +1.8
Material 186 110.0 –0.4 –0.5 +1.6
Tractors 79 111.7 –0.6 –1.0 +2.9
Machinery and equipment for cultivation 36 111.5 0.0 –0.3 +0.8
Machinery and equipment for harvesting 42 109.0 –0.3 –0.5 +0.6
Utility vehicles 18 105.1 +0.3 +1.0 +1.4
Buildings 50 105.6 0.0 +0.4 +2.6
  • (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)