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Hungary farm gate price rise picks up to 47.5% yr/yr in February

Farm gate prices in Hungary rose 47.5% yr/yr in February, faster than the 39.6% twelve-month increase in January, the Central Statistics Office (KSH) said on Monday.

The increase was from a low base as farm gate prices rose a mere 0.3% yr/yr in February 2010 after a 2% rise in the previous month. The prices fell yr/yr in the rest of H1 2010 before a double-digit growth started in July 2010.

February crop prices were 67.9% higher than twelve months earlier, and livestock and animal products prices were up 13.3% yr/yr, both rising more than the 57.6% and 10.5% respective increases registered in January.

Farm gate prices rose 16.8% for the full year of 2010 after a 9.5% decrease in 2009. Crop prices rose 27.6% last year after a 12.7% drop in 2009 and livestock and animal products prices rose 1.8% after declining 4.6% in the previous year.

Farmers’ terms of trade improved 11.9% in 2010 as agricultural input prices rose well below the rise of farm gate prices, just 4.4% from 2009.

In a breakdown by crop type, KSH said farm gate prices of cereals, including seeds, jumped 100.1% in February from the same month a year earlier. The farm gate price of wheat rose 139% in twelve months to HUF 73,400 per ton in February this year, and maize prices rose 81% to HUF 54,900 per ton.

Oil seed prices were up 61.0%, potato prices increased 68.9% and fruit prices jumped 39.9%.

Among livestock and animal product prices, the price of cattle for slaughter rose 35.3%, and the price of live hogs increased 4.3%. Poultry prices were up 16.2% and milk prices climbed 22.5%, but fresh egg prices dropped 6.5% from a year earlier.

In January-February, farm gate prices rose 42.8% from the same period a year earlier. Livestock and animal product prices were up 12.0%, and crop prices were up 61.3%.