Insee conjoncture

In October 2017, agricultural prices slowed again (+0.3% over one year)Indices of agricultural prices - October 2017

In October 2017, agricultural products prices slowed down again : +0.3% over one year, after +0.8% in september and +1.7% in August. Excluding fruits and vegetables, they accelerated sharply (+0.9% over one year and +1.6% over one month).

In October 2017, agricultural products prices slowed down again : +0.3% over one year, after +0.8% in september and +1.7% in August. Excluding fruits and vegetables, they accelerated sharply (+0.9% over one year and +1.6% over one month).

Moderate increase for soft wheat, decline for grain maize and oilseeds

In October 2017, overall cereal prices did not change much (−0.2% over one month). Soft wheat prices went up slightly (+0.4%) after two months of decrease (−0.5% in September and −5.8% in August). The abundance of Russian supply is still weighing on prices but global demand remains dynamic. Grain maize prices fell by 2.1% in one month as crop yields have been better than expected in the United States and France. Oilseed prices dropped again (−0.7% over one month and over one year −9.0%). The prices of rapeseed were almost unchanged (−0.1%), supported by the decline of the euro against the dollar.

Graph1 – Producer prices of cereals

  • Source: INSEE

Vegetables prices lost more than 11%

In October 2017, fresh vegetables prices fell by 11.4% over a year. It concerned especially salads (−13.4%) and endives (−13.8%) for which supply grew up while demand was sluggish. Fresh fruit Prices rose by 3.1% over a year. The rise is more pronounced for pears (+7.0%) and grapes (+18.1%) than for apples (+ 2.1%).

Graph2 – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

Increase of animal prices

Animal prices bounced back in October (+1.1% over one month after −0.6% in September). Pork prices are stable while cattle prices went up by 1.7%. Climatic conditions in October kept cattle herds in the meadows, limiting the supply to slaughterhouses. Over a year, cattle prices rose 8.6% whereas pigs prices declined by 11,0% and fell back to spring 2016 levels.

Graph3 – Producer prices of pigs and large cattle

  • Source: INSEE

Egg prices soared again

Eggs of French origin are still very much in demand, as the Fipronil crisis has reduced eggs availability in Europe. Their prices increased by 34.7% over one month (+62.9% over one year). The price of cow's milk benefited from the strong demand for butter: it gained 18.4% over one year in September.

table1 – Index of producer prices of agricultural products (IPPAP)

Seasonnaly adjusted * - base and reference 100 in 2010
Index of producer prices of agricultural products (IPPAP)
Variation as % over
Weights Oct 2017 a month 3 months a year
Agricultural goods output 1000 116.2 /// /// +0.3
excluding fruits and vegetables 900 116.8 +1.6 –0.6 +0.9
Crop output (excluding fruits and vegetables) 505 116.8 +1.0 –3.4 –4.2
Cereals 188 97.8 –0.2 –4.9 –3.4
of which soft wheat 112 95.1 +0.4 –5.9 –3.4
grain maize 41 90.1 –2.1 –5.1 –8.3
Potatoes 26 169.5 /// /// –30.5
Wines 177 137.9 +2.1 +2.5 +1.8
protected designation of origin 84 154.1 +2.5 +4.8 +4.7
other wines 23 132.3 +5.3 –1.2 –6.2
Oleaginous 49 94.2 –0.7 –2.4 –9.0
Horticultural products 30 111.3 +1.6 +0.9 +0.5
Other crop products 36 110.1 –0.3 –0.9 +0.8
Fruits and vegetables (1) 100 110.6 /// /// –4.2
Fresh vegetables 53 96.8 /// /// –11.4
Fresh fruits 35 131.1 /// /// +3.1
Animal output 395 116.7 +2.4 +3.1 +8.1
Animals 234 113.6 +1.1 –0.6 +1.1
of which large cattle 96 122.6 +1.7 +3.6 +8.6
calves 26 105.5 +3.0 +6.7 +2.2
pigs 54 105.0 0.0 –10.5 –11.0
sheep 10 117.2 –0.9 –7.0 –1.4
poultry 46 108.9 –0.1 –0.2 –0.2
of which chicken 28 108.8 –0.2 –0.3 +0.1
Milk 147 112.4 /// +1.5 +13.5
of which cow milk (2) 137 112.1 /// +1.4 +14.3
Eggs 15 209.8 +34.7 +74.3 +62.9
  • * cf. methodological note
  • /// Absence of meaning due to the nature of these series
  • (1) Including vegetables for industry.
  • (2) The September value of cow milk price index has been carried forward in October. The previous month variation is the one commented in the text : +18.4% over one year in September 2017
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Purchase prices of means of production went up slightly over a month

Intermediate consumption prices slowed down (+0.2% in October after +0.5% in September). They rose 0.9% over one year (after + 1.1%). Energy prices (+1.6% over one month) and fertilisers and soil improvers prices (+2.1% over one month) increased again while animal feed prices kept declining (−0.7%). Capital goods prices went up 0.5% over one month and increased by 2.3% over a year.

Revision

The variation over one year of IPPAP has been rosen by 0.2 points in September to +0.8%; that of IPAMPA has not changed at +1.3%.

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 Oct 2017 a month 3 months a year
Total input 1000 107.4 +0.2 +0.8 +1.2
Intermediate consumptions 764 106.6 +0.2 +0.9 +0.9
Energy 100 101.4 +1.6 +6.8 +5.4
Seeds 57 106.1 –0.3 +0.2 –1.2
Fertilisers and soil improvers 92 100.7 +2.1 +3.6 +3.2
Plant protection products 78 98.1 0.0 +0.4 –1.1
Animal feed 205 111.3 –0.7 –1.5 –0.6
Veterinary expenses 43 120.4 +0.2 +0.7 +1.4
Small equipment and tools 17 106.7 –0.7 –1.0 –1.9
Maintenance of materials 67 116.0 –0.1 +0.3 +2.0
Maintenance of buildings 9 109.2 0.0 +0.3 +1.9
Other goods and services 97 102.1 +0.1 –0.1 –0.1
Goods and services contributing to investment 236 110.0 +0.5 +0.5 +2.3
Material 186 111.1 +0.5 +0.6 +1.9
Tractors 79 113.9 +1.0 +1.3 +4.1
Machinery and equipment for cultivation 36 112.0 +0.2 +0.4 +1.5
Machinery and equipment for harvesting 42 109.6 +0.3 +0.3 –0.2
Utility vehicles 18 103.6 –0.8 –1.1 –1.0
Buildings 50 105.8 0.0 –0.1 +3.6
  • (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)