In a recent report published by the French agricultural authority, it was revealed that agricultural producer prices in France experienced a substantial decline in April 2023 compared to the previous year. The data showed a year-on-year drop of 6.7%, following a decrease of 1.3% in March 2023.
Despite the decline, the agricultural producer prices remained 22.2% higher than the levels recorded in April 2021. However, excluding fresh fruits and vegetables, the prices continued to fall over the course of one month, experiencing a decrease of 2.0% after a previous drop of 1.9%.
The report also highlighted the decline in input purchase prices, which fell by 1.6% in April 2023 compared to the previous month. However, the year-on-year change showed a significant slowdown, with an increase of only 0.4% compared to a substantial growth of 3.2% and 10.9% in the previous periods. The input purchase prices were still 25.3% higher than in April 2021.
Cereal prices experienced a sharp decline both over the month and year on year. In April 2023, cereal prices fell by 7.0% compared to the previous month, and the year-on-year decline reached 34.8%. Soft wheat prices dropped by 6.7% due to the appreciation of the euro against the dollar and favorable weather conditions. Similarly, maize prices fell significantly by 6.2% due to abundant harvest prospects in Brazil and favorable sowing conditions in the United States. However, despite the decline, cereal prices remained 14.5% higher than in April 2021.
Oil seed prices also witnessed a downward trend, albeit at a slower pace compared to the previous month. In April 2023, oil seed prices decreased by 7.8% compared to March, driven by declining soybean prices (11.1%) and rapeseed prices (8.4%). The ample supply of rapeseed within the European Union contributed to the price drop. Year on year, oil seed prices experienced a significant decline of 54.5% in April 2023.
On the other hand, fresh vegetable and fruit prices continued to rise, showing a year-on-year increase. Animal prices fell over the month but remained significantly higher compared to the previous year. Additionally, egg and milk prices saw a sharp rise year on year.
These developments in agricultural producer prices reflect the complex dynamics of the agricultural sector, influenced by factors such as currency fluctuations, weather conditions, and global supply and demand patterns.
Experts suggest that while the decline in agricultural producer prices may pose challenges for farmers, it could have a positive impact on consumers by potentially leading to lower prices for agricultural products in the market. Authorities continue to monitor the situation closely and explore measures to support farmers during these challenging times.
The next update on agricultural producer prices is expected in the coming months, shedding further light on the ongoing trends in the French agricultural sector.