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In July 2018, agricultual prices increased by +1,2% over one yearIndices of agricultural prices - July 2018

In July 2018, agricultural producer prices accelerated to +1.2% over one year (after +0.4% in June). Excluding fruit and vegetables, they went up by 0.3% over one year and by 1.2% over one month.

In July 2018, agricultural producer prices accelerated to +1.2% over one year (after +0.4% in June). Excluding fruit and vegetables, they went up by 0.3% over one year and by 1.2% over one month.

Acceleration of cereal prices

In July 2018, cereal prices increased by 7.5% over one month after +3.1% in June. Soft wheat prices gained 8.5% after +6.3% in June and +3.8% in May. In three months, they have jumped by 19.6%. Poor weather conditions in major cropping area, especially drought in Europe, raised fear of a global production decline. This context also supported maize prices (+4.2% over one month) and those of certain oilseeds such as rapeseed, whose price rebounded in July to +3.4% after −1.3% in June. Overall, oilseed prices went up 2.6% over one month after −1.2% in June.

Graph1 – Producer prices of cereals

  • Source: INSEE

Fruits and vegetable prices up over one year

In July 2018, fruit prices rose by 12.2% over one year. For some summer fruits, prices went up sharply: apricots (+41.4% over one year), peaches and nectarines (+26.5%). Vegetable prices grew by 13.5% over one year. They were driven by the increase in melon prices (+39.2% over one year) and to a lesser extent by salads prices (+16.3%). Melons demand usually increases with the high temperatures as the ones experienced in July.

Graph2 – Producer prices of fresh vegetables

  • Source: SSP (ministry in charge of agriculture)

Stability of Animal prices over a month

In July 2018, animal prices were stable over a month, after a 0.6% decrease in June. Cattle prices increased by 0.7% over one month, after −0.1% in June. Pigs prices decline went on: −2.6% over one month after −3.3% in June. Over a year, they fell by 17.2%.

Graph3 – Producer prices of pigs and large cattle

  • Source: INSEE

Egg prices down again

In July 2018, egg prices droped by 7.1% after +4.3% in June. Supply exceeded demand, knowing that demand is not very dynamic in the summer. The price of cow's milk was again on the rise over one year (+1.1% in June after + 0.9% in May).

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

Seasonnaly adjusted - base and reference 100 in 2015
Index of producer prices of agricultural products (IPPAP)
Variation as % over
Weights July 2018 a month 3 months a year
Agricultural goods output 1000 104.1 /// /// +1.2
excluding fruits and vegetables 906 104.4 +1.2 +2.3 +0.3
Crop output (excluding fruits and vegetables) 489 108.3 +2.4 +4.9 +3.1
Cereals 152 108.5 +7.5 +14.8 +12.9
of which soft wheat 90 111.5 +8.5 +19.6 +14.0
grain maize 27 104.3 +4.2 +2.8 +5.0
Potatoes 29 125.5 /// /// –23.2
Wines 200 111.2 0.0 –0.3 +5.7
PDO wines 112 117.8 –2.4 –1.8 +6.3
other wines 25 107.4 +12.7 +6.7 +17.5
Oleaginous 40 91.9 +2.6 +3.4 –3.6
Horticultural products 35 101.0 –0.8 +1.6 –0.8
Other crop products 33 99.8 +0.1 +0.6 –4.7
Fruits and vegetables (1) 94 102.4 /// /// +8.2
Fresh vegetables 45 97.4 /// /// +13.5
Fresh fruits 32 110.5 /// /// +12.2
Animal output 417 99.8 –0.3 –1.1 –3.2
Animals 255 97.4 0.0 –0.1 –3.1
of which large cattle 112 98.6 +0.7 +1.1 +0.9
calves 20 102.1 +1.6 +1.3 +4.6
pigs 49 90.0 –2.6 –5.5 –17.2
sheep 14 102.7 +0.6 +2.7 –3.2
poultry 57 97.3 –0.2 +0.1 –1.4
of which chicken 39 97.3 0.0 +0.3 –1.4
Milk 146 105.4 /// +1.2 –1.2
of which cow milk (2) 135 105.8 /// +1.3 –1.2
Eggs 16 87.4 –7.1 –30.1 –21.6
  • /// Absence of meaning due to the nature of these series
  • (1) Including vegetables for industry.
  • (2) The June value of cow milk price index is the estimate of the July one. The previous month variation is the one commented in the text: +1,1% over one year in June 2018.
  • Sources: INSEE, SSP (ministry in charge of agriculture)

Slight rise in purchase prices of means of production over one month

In July 2018, intermediate consumption prices rose by 0.3%. The further decline in energy prices (−0.3% over one month after −0.8%) was more than offset by the rise in fertilizer and amendments prices (+1.7%). Feed prices increased moderately, by +0.2% over one month. Over one year, intermediate consumption prices accelerated (+4.6% after +4.0% in June) in the wake of energy prices (+22.5%).

Prices of capital goods were almost stable over one month (−0.1%) and up 3.3% over one year.

Revision

The variation over one year of IPPAP has been rosen by 0.2 points in June to +0,4%; The one of IPAMPA has been rosen by 0.1 points in June to +3,9%.

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 2015
Indices of purchase prices of the means of agricultural production (IPAMPA)
Variation as % over
Weights July 2018 a month 3 months a year
Total input 1000 102.1 +0.2 +1.0 +4.3
Intermediate consumptions 760 100.7 +0.3 +1.0 +4.6
Energy 93 118.0 –0.3 +4.3 +22.5
Seeds 56 97.3 +0.1 –0.1 +0.5
Fertilisers and soil improvers 107 88.4 +1.7 +0.3 +6.9
Plant protection products 84 99.8 –0.1 +0.3 +1.4
Animal feed 214 97.3 +0.2 +1.0 +1.2
Veterinary expenses 37 106.8 +0.2 +0.2 +2.0
Small equipment and tools 11 101.2 +0.8 0.0 +1.2
Maintenance of materials 88 104.7 –0.1 +0.2 +2.4
Maintenance of buildings 9 104.9 0.0 +0.2 +2.0
Other goods and services 61 101.7 +0.1 +0.1 –0.1
Goods and services contributing to investment 240 106.3 –0.1 +0.9 +3.3
Material 168 105.7 –0.1 +1.2 +2.8
Tractors 71 109.3 –0.2 +2.3 +4.2
Machinery and equipment for cultivation 33 104.7 –0.1 +1.0 +2.4
Machinery and equipment for harvesting 38 102.9 +0.1 0.0 +1.2
Utility vehicles 16 99.8 +0.3 +0.5 –0.3
Buildings 72 107.7 0.0 +0.1 +4.6
  • (1) The repayment of the domestic tax on energy product (TICPE) benefiting farmers has been applied in advance for the year 2018.
  • Sources: INSEE, SSP (ministry in charge of agriculture)