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Farmgate prices increase 2.5% in June

Agricultural producer prices were 2.5% higher in June 2017 than in the corresponding month of the previous year, comprised of a 3.1% decrease in the price of crop products and a 13% rise in the price of live animals and animal products, according to a first release of monthly data from the Central Statistical Office (KSH).

In June 2017 compared to June 2016, cereals prices were down by 7.2%. The price of fruits rose by 18%, while vegetable prices fell by 0.8%. While the price of tomatoes rose by 31% (along with a volume increase of more than 20%), potatoes were 22% cheaper.

The producer price level of live animals rose by 8.7%, and that of animal products by 23%.

The price of pigs for slaughter increased by 19% to HUF 451 per kilo, the highest procurement price in the past few years.

The price of chickens for slaughter was reduced by 2.8%. In the last five months, the procurement price of chickens for slaughter stagnated at around HUF 250 per kilo.

Milk prices went up by 32% year-on-year in June.

First-half comparison

In January–June 2017 compared to the same six-month period of the previous year, agricultural producer prices increased by 2.1%. Within this, the price of crop products was cut by 3.0% and that of live animals and animal products rose by 12%.

Vegetables prices were down by 4.2% and fruit prices up by 9.6%. The price of potatoes decreased by 7.4%.

The price of pigs for slaughter rose by 25%, and milk prices by 24%.

The input prices of agricultural production were lowered by 1.2%, which resulted from a 1.6% decrease in the price level of intermediate consumption and a 1.7% rise in the price level of agricultural investments, KSH figures show.

As farmgate prices rose while input prices fell, farmersʼ terms of trade improved by 3.3% in the period.