Farm Gate Prices Down In May

The agricultural price index for all outputs fell by 0.8% and the API for inputs fell by 1.4% in May 2014 according to a statistical bulletin from Defra. The prices are lower than the same time last year. The API for all outputs is 8.3% lower and the API for all inputs is 3.4% lower than last year.

All crop prices are down on last year at this time. The biggest differences in output prices are with potatoes (46%), fresh fruit (27%), cereals (18%) and fresh vegetables (18%). On the inputs side, energy and lubricant prices are down for the fourth month in a row. Prices fell by 0.3% in May and are 1% lower than a year ago. Animal feed is down 1.9% on the monthly comparison and 31% down on last year. Fertiliser prices are 2.9% lower in May and 9.1% lower than the same time last year.

API Prices Lower Than Last Year

The agricultural price index (API) for all outputs increased by 0.8% while the API for all inputs decreased by 0.4% in April. Prices overall are lower than last year. At the same time last year the price index was 7% higher than this yea for output while inputs were 4.2% higher.

On the outputs side all price indices for crops this year are lower mainly due to a supply shortage due to the poor harvest of 2012. Energy prices fell again. Feed prices increased by 0.7% over the month but are still 11% lower than last year. Fertiliser prices also fell by 2.2% in April but are still 9.1% lower than last year.

Agricultural Prices Down In March And Year

Prices for all outputs rose by 0.6% and the prices of all inputs was unchanged for March 2014. Prices are lower than the same last year. The price for all outputs was 6.9% lower than the same time year. The price for all inputs was 4.5% lower than the same time last year.

Crop prices are down slightly compared with last year. The poor harvest may have been to blame. Some crop prices are significantly down on last year: potatoes down 38%, fresh fruit down 23%, oilseed rape down 22% and cereals down 22%.

Strong demand for top quality fresh fruit led to a price rise of 7.7% in March. Cereals prices increased by 1.2% due to concerns over the future supply of cereals due to the political situation in the Crimea. An increase in global demand for oilseed rape and decrease in supply led to a price rise of 2.3% in March.

Sheep and lamb prices increased by 9.3% in March as supplies decreased pushing up prices. Lower levels of production of mutton and lamb than last year, down 1.8%, resulted in prices 8.7% higher than last year.

On the inputs side, energy and lubricant prices were 2.5% lower in March and 4% lower than last year. Feed prices increased by 0.5% but remain 12% down on last year. Straights rose by 2% due to increased cereal prices while compounds stayed the same.

The price of fertiliser rose by 0.4% in March but is still 8.2% lower than last year. Prices remain steady because most of the spring fertiliser market was already ordered.

API Indices Down On Last Year

The all outputs price index fell by 0.1% in February 2014 and is now 7.1% lower than the same time last year. All inputs price index increased 0.8% in February 2014 and is 4.3% lower than last February.

Sheep and lamb prices rose 5% in February and are 20% higher than last February. Demand at home and abroad and a weaker pound are making exports more competitive on the continent. Fresh fruit prices fell to 27% lower than last February and by 2.2% this February because of high prices due to short supplies after last years poor harvest.

Vegetable prices fell by 5.3% and are 8% down on last year. Cabbages, lettuce and carrots reported a significant fall in prices. The exception was cauliflowers which reported a 32% increase in price during February due to limited supplies which saw price rises.

Fertiliser prices rose 2.4% and are 7% lower than last year. Phosphates and potash prices are improving and nitrogen prices are increasing.

Milk Prices Contribute To Rise In API

The overall agricultural output price index increased by 2.3% in November, the first time it has risen since May 2013. Even though the API output price index rose this November from 118.1 to 120.7 it is still 2.4% lower than November last year. The API for all inputs fell by 0.2% from 112.9 to 112.7 and is 2.1% lower than last year.

The continued increase in milk prices was one of the main contributors to the rise in output prices. Both milk and milk products were still in global demand for the sixth month in a row. Prices are up 15% on last year. Cattle prices are continuing to fall after the high prices seen in the summer.

Input prices haven't changed much. Fertiliser prices are 18% lower than last year but expected shipments of straight nitrogen fertiliser from North Africa were delayed due to regional problems resulting in a slight rise in price.