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Farm gate prices fall 13.0% in June

Twelve-month farm gate prices in Hungary fell 13.0% in June, slowing from a 21.7% decline in May and a 19.9% drop in April, the Central Statistical Office (KSH) said on Thursday. Crop prices dropped 17.5% and livestock and animal product prices decreased 3.4% in June.

In H1 farm gate prices dropped 24.3% from the same period a year earlier as crop prices fell 33.2% and livestock prices decreased 3.8%.

Input prices of agricultural production decreased 5.5% in H1 from the same period a year earlier. Input prices fell 5.0% in Q1 and 6.1% in Q2. As output prices decline slowed to 24.3% in H1 from 28.6% in Q1. Terms of trade improved from -24.8% in Q1 to -19.9% in H1.

The Q2 fall in input costs resulted from a 13.8% fall in seed prices and a 21.4% drop in feed prices. At the same time, prices for fertilizers and veterinary products rose 14.4% and 9.0%, respectively. Current costs for goods and services used for farm operations fell 7.1%, while machinery and building investment costs rose 1.0% and 3.7%, respectively.

Farm gate prices for crops fell 17.5% yr/yr in June and were down 33.2% yr/yr in H1. Prices for cereals fell 22.6% yr/yr in June, albeit from a high base. Crop prices started to decline in August 2008.

Farm gate prices for potatoes rose 20.6% in June from a low base twelve months earlier, and flower prices were up 10.1%. Vegetable and fruit prices fell 3.1% and 23.6%, respectively.

Animal product prices fell 16.6% in June from the same month a year earlier. Milk prices dropped 24.2% and poultry prices were down 5.2%, but prices for cattle and hogs rose 7.1% and 6.5%, respectively. (MTI-Econews)