Insee conjoncture

In September 2017, agricultural prices rose by 0.6% over one yearIndices of agricultural prices - September 2017

In September 2017, agricultural products prices slowed down : +0.6% over one year after +1,7% in August. Excluding fruit and vegetables, they increased slightly over one year (+0.3%) and went down by 1.4% over one month.

Informations rapides N° 285
No 285
Paru le : 27/10/2017
Prochaine parution le : 28/09/2018 at 12:00 - August 2018

In September 2017, agricultural products prices slowed down : +0.6% over one year after +1,7% in August. Excluding fruit and vegetables, they increased slightly over one year (+0.3%) and went down by 1.4% over one month.

Weaker decline in cereal prices

In September 2017, overall cereal prices continued to decline (−0.5% over one month after −4.2%). Soft wheat prices fell less strongly than the previous month (−0.5% after −5.8 %). The abundant global supply of soft wheat met with a dynamic demand as markets questionned about Russia's export capacity. Grain maïze prices are almost unchanged (+0,1%). Oilseed prices decreased again (−1.1%). Especially rapeseeds prices faltered (−0.4% after +0.7 %), under the impact of the announcement of EU tax duties cuts on Argentine biodiesel imports.

Graph1 – Producer prices of cereals

  • Source: INSEE

Huge drop in potatoes prices

In September 2017, potatoes prices decreased by 34.0 % over a year, due to the sharp decline of the first ware potatoes prices of the 2017-2018 season. Fresh fruit prices rose 4.0% over a year, driven by higher prices for apples (+5.7%) and grapes (+19.0%). Prices for fresh vegetables picked up (+2.5% over a year) following the seasonal products prices rise.

Graph2 – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

Pig prices down, cattle prices up

The price of animals kept on decreasing in September (−0.6% over a month). Pig prices decline accelerated : −6.3% over one month and −10.3% over one year. The reduction of export opportunities, the weakness of domestic demand and the competition between european producers dragged prices down. By contrast, cattle prices continue to rise (+1.6%, +8.2% over a year). They are back to their levels of 2015 fall.

Graph3 – Producer prices of pigs and large cattle

  • Source: INSEE

Soaring egg prices

Eggs of French origin are still very much in demand, due to the crisis of Fipronil. Their prices surged by 23.0% over one month (+ 32.8% over one year). The price of cow's milk rose by 18.0% over one year in August, in line with the strong global 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 Sept 2017 a month 3 months a year
Agricultural goods output 1000 114.0 /// /// +0.6
excluding fruits and vegetables 900 114.7 –1.4 –2.4 +0.3
Crop output (excluding fruits and vegetables) 505 116.0 –2.8 –3.7 –4.1
Cereals 188 98.0 –0.5 –3.4 –0.6
of which soft wheat 112 94.7 –0.5 –4.6 –2.3
grain maize 41 92.0 +0.1 –6.8 –2.9
Potatoes 26 166.0 /// /// –34.0
Wines 177 135.8 +1.9 +0.8 +0.5
protected designation of origin 84 152.0 +3.9 +2.8 +3.0
other wines 23 125.7 –1.9 –5.6 –8.0
Oleaginous 49 94.9 –1.1 –0.5 –5.9
Horticultural products 30 109.6 –0.5 –0.7 –0.5
Other crop products 36 109.6 –0.5 –1.0 +0.5
Fruits and vegetables (1) 100 107.6 /// /// +2.8
Fresh vegetables 53 98.1 /// /// +2.5
Fresh fruits 35 121.5 /// /// +4.0
Animal output 395 113.0 +0.6 –0.8 +6.7
Animals 234 112.4 –0.6 –3.3 +0.8
of which large cattle 96 120.5 +1.6 +0.4 +8.2
calves 26 102.4 +3.6 –0.5 –0.2
pigs 54 105.0 –6.3 –13.2 –10.3
sheep 10 118.3 –3.1 –3.0 +0.8
poultry 46 109.0 –0.1 0.0 –0.3
of which chicken 28 109.0 0.0 0.0 +0.2
Milk 147 109.7 /// +1.4 +14.4
of which cow milk (2) 137 109.5 /// +1.5 +15.6
Eggs 15 155.8 +23.0 +15.5 +32.8
  • * 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 went up slightly over a month

Intermediate consumption prices accelerated (+0.5% in September after +0.2% in August). They are 1.1% above their September 2016 level. This new rise came mainly from energy prices (+3.1% over one month) and fertilisers and soil improvers (+1.3%). However, animal feed decreased again (−0.5%). Capital goods prices were almost stable over one month (+0.1%) and increased by 2.1% year-on-year.

Revision

The variation over one year of IPPAP has been reduced by 0.2 points in August to +1.7%; that of IPAMPA has been rosen by 0.2 points to +0.2%.

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 Sept 2017 a month 3 months a year
Total input 1000 107.2 +0.3 +0.3 +1.3
Intermediate consumptions 764 106.5 +0.5 +0.4 +1.1
Energy 100 99.8 +3.1 +6.1 +8.7
Seeds 57 106.4 +0.2 +0.1 –1.5
Fertilisers and soil improvers 92 98.7 +1.3 –0.7 +0.9
Plant protection products 78 98.1 +0.2 –0.2 –1.1
Animal feed 205 112.1 –0.5 –1.0 –0.2
Veterinary expenses 43 120.1 +0.3 +0.7 +1.3
Small equipment and tools 17 107.5 –0.5 +0.4 –1.6
Maintenance of materials 67 116.1 +0.2 +0.4 +2.1
Maintenance of buildings 9 108.9 0.0 +0.3 +1.8
Other goods and services 97 102.5 –0.1 –0.1 +0.4
Goods and services contributing to investment 236 109.6 +0.1 +0.1 +2.1
Material 186 110.6 +0.1 0.0 +2.0
Tractors 79 112.8 +0.1 –0.1 +3.8
Machinery and equipment for cultivation 36 111.8 0.0 0.0 +0.7
Machinery and equipment for harvesting 42 109.3 0.0 –0.1 +0.8
Utility vehicles 18 104.4 –0.4 +0.2 +0.2
Buildings 50 105.9 0.0 +0.3 +2.8
  • (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)