Canadian Farm Product Price Index falls 7.3% year-over-year in December, the fifth consecutive year-over-year decrease, mainly because of lower crop prices, Statistics Canada says
February 26, 2014
– The Farm Product Price Index (FPPI) was down 7.3% in December from December 2012, mainly because of lower crop prices. This was the fifth consecutive year-over-year decrease, as the decline in the crops index continued to exceed the gain in the overall livestock and animal products index.
The crops index was down 15.5% in December compared with December 2012. The drop in crop prices began in August 2013, following a growth trend that had started in September 2010. The largest decreases were recorded in grains (-25.5%), oilseeds (-13.9%) and fruit (-22.7%). Grain and oilseed prices came under pressure as the United States and world production recovered while Canada harvested record breaking crops for many of the major grains and oilseeds in the fall of 2013.
Apples, Canada's largest fruit crop, returned to more normal production and price levels in 2013, following a 30.6% drop in production in 2012.
The livestock and animal products index rose 2.9% in December from December 2012. On a year-over-year basis, this index advanced at an increasing rate from April to September. Since October, the rates of increase have been declining.
Compared with December 2012, the increase in the December 2013 livestock and animal products index was mainly attributable to cattle and calves (+8.5%) and hogs (+4.6%).
The 12-month advance of the livestock and animal product index was mainly moderated by declines in the poultry (-10.8%) and eggs (-4.4%) index, coinciding with lower feed grain prices.
Compared with November, the FPPI was down 0.1% as both the crops index and the livestock and animal products index continued to decline.