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Hungarian farm gate prices drop 9.5% in 2009, terms of trade worsen 3.9%

Farm gate prices in Hungary 9.5% in 2009 as crop prices fell 12.7% and livestock and animal product prices fell 4.6% on 2008, the Central Statistical Office (KSH) reported.

In December alone, crop prices rose 1.6% year-on-year (yr/yr) from a low base after a twelve-month decline of 3.7% in November. December livestock and animal product prices were down 6.0% yr/yr as the twelve-month decline slowed from 7.1% in November. Farmgate prices were down 1.6% yr/yr in December after dropping 5.2% in November.

Farmers' terms of trade worsened 3.9% in 2008 as agricultural input prices fell 5.8%, less than the 9.5% decrease in farmgate prices, KSH reported. Terms of trade fell less than in 2008.

The price of farming investment goods rose 2.9% in 2009 after a 4.8% increase in 2008. The price of goods and services currently used in agriculture fell 7.0% in 2009 after a sharp 16.6% increase in 2008.

Crop prices fell 14.4% for the full year. Cereals prices dipped 14.2%, industrial crop prices were down 14.1%, oil seed prices plunged 25.4%, fresh vegetable prices dropped 6.9% and fruit prices sunk 19.3%.

Livestock and animal product prices rose 13.6%. Prices of cattle for slaughter rose 8.3% and the price of pigs for slaughter climbed 4.4%. Prices of poultry for slaughter dropped 5.6% and milk prices plummeted 22.4%. Egg prices were up 4.8%.

Farmgate prices fell 2.7% combined and agricultural input prices rose 15% on 2007, causing farmers' terms of trade to worsen 15.4%. (MTI – Econews)