Farmgate prices rise 5.6% in 2017

EU

Agricultural producer prices were 5.1% higher in December 2017 than in the corresponding month of 2016, made up of increases of 6.0% in prices of crop products and 3.8% in prices of live animals and animal products. In 2017 as a whole, farmgate prices were 5.6% higher than a year earlier, a first release of data from the Central Statistical Office (KSH) shows.

In December 2017 compared to December 2016, cereal prices increased by 9.2%, within which the price of wheat rose 6.9% and that of maize was 9.9% higher. The average price of fruit rose 21%, within which apples became 26% and grapes 12% dearer.

The producer price level of live animals decreased by 2.3% in December. The price of poultry for slaughter went up by 2.7%, while that of pigs for slaughter was 7.2% lower.

The price of animal products rose by 17%. Milk prices were up by 15% and eggs prices by 33% year-on-year in December.

In the full year January–December 2017, compared to 2016, agricultural producer prices rose by 5.6%, within which the price of crop products increased 3.3% and that of live animals and animal products was 9.3% higher.

The price of cereals rose by 4.9% in 2017. Vegetable prices fell by 0.3%, within which potato prices fell by 7.5%, while the price of fruit increased by 20% in total.

The price of pigs for slaughter went up by 11%, and that of poultry for slaughter by 1.8% in 2017. Milk prices rose by 24%.

Input prices stay level

The input prices of agricultural production were a marginal 0.1% higher in 2017, which resulted from a 0.4% decrease in the price level of intermediate consumption and a 3.0% rise in the price level of agricultural investments.

The largest declines were recorded in fertilizers and animal feed prices, down 6.6% in the former and 3.2% in the latter case. Fertilizer prices in the third quarter of 2017 were the lowest over the past six years; however, they started to increase by the end of the year, and were 6.8% higher in Q4 than in the previous quarter.

The price of plant protection products rose slightly in 2017, being 0.4% higher than in the previous year.

Energy and lubricant prices were up by 5.7%, mainly influenced by an 8.1% rise in motor fuel prices. Maintenance costs of buildings and machinery increased by 5.5% and 2.6%, respectively, and veterinary medicinal products were 1.9% more expensive in 2017.

The value of the terms of trade (the agricultural producer price index divided by the agricultural input price index) was 105.5%.

The KSH will publish agricultural producer prices for January 2018 on March 13.

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