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Rise of Hungary farm gate prices slightly slows in December

Farm gate prices in Hungary rose 29.0% yr/yr in December, slightly slower than the 31.0% twelve-month increase in November, the Central Statistical Office (KSH) said on Monday. Farmers' terms of trade improved in 2010 as farm gate prices rose more than did agricultural input prices.

Among input prices, however, the growth of currently consumed goods picked up to 13.8% yr/yr in Q4, boosted by sharply higher rises in the price of seeds, feed, fertilizer and energy.

December crop prices were 41.7% higher than twelve months earlier, and livestock and animal products prices were up 9.9% yr/yr, both rising less than in November.

Farm gate prices 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. The improvement came after a 3.9% deterioration in the terms of trade in 2009.

Terms of trade improved the most, by 12.2% from a year earlier, in Q4 as a jump of farm gate prices well surpassed the accelerating growth of input prices. The price of goods and services currently consumed in agriculture fell yr/yr in the first half but rose 6.8% in Q3 and by 13.8% in Q4.

Among agricultural input prices, the price of farming investment goods rose 3.2% in 2010 after a 2.9% increase in 2009. The yr/yr price rise slowed to 0.9% in the fourth quarter from 3.8% in Q3 and a peak of 5.5% in Q2 as the yr/yr rise of equipment prices slowed to 0.6% from 9.1% in Q2 and the rise in the price of buildings rose to 1.3% from just 0.4% in both Q1 and Q2 last year. Farming investment goods prices rose 2.9% yr/yr in Q4 2009.

The prices of goods and services currently used in agriculture was 4.6% higher in 2010 than in the previous year after a 7.0% decline in 2009 and a sharp 16.6% increase in 2008.

The price of goods and services currently consumed in agriculture rose 13.8% yr/yr in Q4 2010 after rising 6.8% in Q3 after steady yr/yr declines in the preceding six quarters. The double-digit rise in energy prices has pushed up the current-consumption prices each quarter of 2010. Fertilizer prices started to rise after four quarters of decline in Q3 2010 and the rise picked up to 27.3% in Q4.

Feed prices started to rise yr/yr in Q3, and the pace of increase jumped to 22.6% in Q4. Seed prices were up 15.6% yr/yr in Q4 after six quarters of decline. (MTI-Econews)