Hungary farm gate prices up 10.0% in December, climb 19.3% in 2011

Farm gate prices in Hungary rose 10.0% year-on-year in December, slowing from a 11.8% increase in November, the Central Statistics Office (KSH) said on Thursday. Crop prices rose 4.7% during the period. Livestock and animal product prices climbed 20.2% in the twelve months to December.

Farm gate prices in 2011 were up 19.3% from 2010, as crop prices rose 21.6% and livestock and animal products prices rose 15.3% in the period. Farm gate prices fell year-on-year until June 2010 before starting to rise from a low base at a double-digit pace in July 2010. Crop prices rose at a slowing pace over the year, while the increase in livestock and animal product prices showed an upward trend in 2011.

In a breakdown by crop type, KSH said farm gate prices of grains, including seeds, were up 4.2% in December from the same month a year earlier, the increase slowing down from 12.9% in the previous month partly on base effects. The farm gate prices of wheat and maize, at HUF 49,000 and HUF 44,900 per ton, respectively, have fallen slightly from November.

December oil seed prices were up 9.2% yr/yr, potato prices dropped 43.4%, the prices of fresh vegetables fell 13.9%, while fruit prices jumped 23.5% in one year.

Among livestock prices, the price of cattle for slaughter rose 41.8% from December 2010 and the price of live hogs increased 24.1%. Poultry prices were up 14.3%, milk prices climbed 15.2%, and the price of fresh eggs jumped 40.9% from a year earlier.

Among agricultural input prices, up 8.0% in Q4, the prices of goods used in current consumption rose 9.0% from the last quarter of 2010, boosted by higher prices of fertilizers and energy, which rose 16.8% and 14.5%, respectively. The prices of pesticides fell by 2.1% yr/yr. The prices of animal feed rose 9.7% and the prices of seeds were up 10.0% from Q4 2010.

Agricultural investment prices were up just 0.6% in Q4, with machinery prices actually dropping, by 0.6% in one year. Machinery prices were down every quarter in 2011.

Looking at the entire year 2011, input prices rose 12.9% yr/yr as a result of a 14.7% increase in the prices of goods used in current consumption and a 0.8% drop in the prices of goods and services used in investments. Within the category of goods used in current consumption, energy prices were up 12.9% in 2011. Fertilizer prices rose 23.6% after falling 10.9% in 2010. Feed prices increased 27.6% yr/yr in 2011. At the same time, in the category of investments, machinery prices fell 2.7%.

Farmers' terms of trade improved 5.7% in 2011 as agricultural input prices rose 12.9% from the previous year, less than the 19.3% rise in farm gate prices. Terms of trade in 2010 improved 11.9%, more than double this rate.