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Hungarian farm gate prices drop in March, Q1 terms of trade improve

Farm gate prices in Hungary fell 4.1% yr/yr in March after rising in the previous two months. Crop prices fell 5.4% and livestock and animal product prices fell 1.9% from March 2009, the Central Statistics Office (KSH) reported.

Terms of trade in agriculture improved in Q1 from a year earlier.

Farm gate prices rose yr/yr in January and February after 16 months of decline. Crop prices declined again yr/yr in March after rising in the previous three months. Livestock and animal product prices has declined steadily yr/yr starting January 2009.

Farm gate prices rose 0.2% in the first three months from a year earlier as crop prices rose 1.8% and livestock and animal product prices declined 2.3% in the period.

Agricultural input prices fell 0.7% yr/yr in the first quarter of 2010 and farmers terms of trade improved 0.9% as farm gate prices rose in the period.

The improvement follows a 3.9% deterioration in the terms of trade in 2009 when agricultural input prices fell 5.8%, less than the 9.5% decrease in farm gate prices.

Of agricultural inputs, the price of farming investment goods rose 2.8% in Q1 from a year earlier but the price of goods and services currently used in agriculture fell 1.2% in the period.

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

Farm gate prices fell 9.5% in 2009 as crop prices fell 12.7% and livestock and animal product prices fell 4.6% from 2008. (MTI – Econews)