In December 2017, agricultural prices fell by 0.3% over one yearIndices of agricultural prices - December 2017

In December 2017, agricultural products prices slipped back by 0.3% over one year (after +0.3%). Excluding fruits and vegetables, they were stable over one year and almost unchanged over one month (−0.1%).

Information : in accordance with the European directives, index of producer prices of agricultural products and indices of purchase prices of the means of agricultural production will be disseminated in reference year 2015=100 from March 6th 2018, release date of January 2018 results. Additional information (only in French) about changes of the base year indices is available on the Web page of these indicators (flag : Documentation).

In December 2017, agricultural products prices slipped back by 0.3% over one year (after +0.3%). Excluding fruits and vegetables, they were stable over one year and almost unchanged over one month (−0.1%).

Decline in prices for cereals and oilseeds

In December 2017, cereals prices decreased by 1.2% as a result of the 2.3% fall of soft wheat prices. Demand has slowed while supply remained plentiful and crop forecasts were being revised upwards. Grain maize prices gained 1.2% because of drought-related worries in Argentina. Oilseeds prices went down 3.2% after +2.5% in November. The decline is due to an increase in palm oil stocks in Malaysia and a report that expected 2017 Canadian canola production to reach a record level.

Graph1 – Producer prices of cereals

  • Source: INSEE

Fresh vegetables prices down, fresh fruits up

In December 2017, fresh vegetables prices dropped by 12.5% over a year due to cauliflower (−25.1%) and salad prices (−7.9%). Prices for fresh fruit increased by 10.4% over a year, especially kiwifruit (+32.7%), clementines (+17.3%) and apples prices (+7.6%).

Graph2 – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

Steady prices for animals

Animal prices were nearly unchanged (−-0.1%) in December 2017. Adjusted for seasonal variations, pig prices rose by +0.6% over one month but were still down by 9.7 over one year. Cattle prices decreased by 0.7% over one month. Yet, they have grown by 4.4% over one year.

Graph3 – Producer prices of pigs and large cattle

  • Source: INSEE

Egg prices in sharp increase over a year

Soaring egg prices following the fipronil crisis fade in December 2017, with prices rising by 1.7% in one month after +22.0% in November. Over a year, they jumped by 58.7%. Following the recovery in global demand for dairy products and particularly the soaring prices of fat, the price of cow's milk rose 14.0% over a year in November.

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 Dec 2017 a month 3 months a year
Agricultural goods output 1000 117.3 /// /// –0.3
excluding fruits and vegetables 900 118.4 –0.1 +3.0 0.0
Crop output (excluding fruits and vegetables) 505 117.3 –0.3 +1.5 –4.9
Cereals 188 96.6 –1.2 –1.4 –5.7
of which soft wheat 112 92.7 –2.3 –2.1 –6.8
grain maize 41 92.8 +1.2 +0.9 –7.4
Potatoes 26 171.4 /// /// –31.4
Wines 177 141.7 +1.2 +5.0 +4.6
protected designation of origin 84 159.1 +1.7 +5.9 +7.5
other wines 23 141.9 +1.9 +13.0 +2.5
Oleaginous 49 93.5 –3.2 –1.5 –14.7
Horticultural products 30 111.5 +0.3 +1.7 –0.1
Other crop products 36 104.2 –3.9 –4.6 –5.3
Fruits and vegetables (1) 100 107.4 /// /// –2.1
Fresh vegetables 53 91.3 /// /// –12.5
Fresh fruits 35 130.4 /// /// +10.4
Animal output 395 119.8 +0.1 +5.1 +6.8
Animals 234 114.5 –0.1 +1.9 –0.3
of which large cattle 96 121.6 –0.7 +0.9 +4.4
calves 26 111.1 +2.2 +8.5 +3.0
pigs 54 108.6 +0.6 +3.4 –9.7
sheep 10 119.2 +0.6 +0.8 +2.2
poultry 46 107.9 –0.7 –1.0 –1.0
of which chicken 28 107.7 –0.8 –1.2 –1.1
Milk 147 114.2 /// +1.6 +11.2
of which cow milk (2) 137 114.1 /// +1.8 +11.9
Eggs 15 260.3 +1.7 +67.1 +58.7
  • * cf. methodological note
  • /// Absence of meaning due to the nature of these series
  • (1) Including vegetables for industry.
  • (2) The November value of cow milk price index has been carried forward in December. The previous month variation is the one commented in the text: +14.0% over one year in November 2017.
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Slowdown in purchase prices of means of production over a year

Intermediate consumption prices were almost stable in December 2017 (−0.1% after +0.3%). Energy prices slowed down: +0.1% over one month after +3.0% in November. They gained 2.4% over a year after +10.5% in November. Fertilizers and amendments prices went up by 0.5% over one month while animal feeds prices decreased by 0.3%. Capital goods prices were nearly unchanged in December (+0.1% after +0.2%) and increased by 2.6% over one year.

Revision

The variation over one year of IPPAP is unchanged in november 2017 at +0.3%; that of IPAMPA has been rosen by 0.2 points to +1.7%.

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 Dec 2017 a month 3 months a year
Total input 1000 107.8 –0.1 +0.6 +0.7
Intermediate consumptions 764 106.9 –0.1 +0.5 +0.1
Energy 100 104.4 +0.1 +4.6 +2.4
Seeds 57 105.6 –0.3 –0.8 –0.8
Fertilisers and soil improvers 92 102.5 +0.5 +3.9 +1.7
Plant protection products 78 96.5 –1.2 –1.6 –1.7
Animal feed 205 110.5 –0.3 –1.3 –1.5
Veterinary expenses 43 120.5 +0.1 +0.2 +1.5
Small equipment and tools 17 106.8 –0.8 –0.7 –1.1
Maintenance of materials 67 116.2 +0.1 +0.1 +2.0
Maintenance of buildings 9 109.4 0.0 +0.3 +1.6
Other goods and services 97 102.4 0.0 +0.3 +0.1
Goods and services contributing to investment 236 110.7 +0.1 +1.0 +2.6
Material 186 111.6 +0.1 +0.9 +2.2
Tractors 79 114.2 –0.3 +1.2 +4.2
Machinery and equipment for cultivation 36 113.0 +0.4 +1.1 +2.0
Machinery and equipment for harvesting 42 110.0 –0.1 +0.5 +0.1
Utility vehicles 18 104.5 +0.4 +0.1 –0.6
Buildings 50 107.0 0.0 +1.0 +3.8
  • (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)