On producer prices and price indices in agriculture in 2008

30.04.2009

Compared to the year 2007 producer prices in agriculture in year 2008 reduced by 2.1%, according to the data of Central Statistical Bureau.

Total reduction of prices in agriculture was influenced by the reduction of producer prices in crop production.

Compared to 2007 prices of crop production in 2008 reduced by 13.5%, especially of grain and vegetables.

Compared to the year 2007 total production of grain in European Union in year 2008 increased noticeably – by 21%, of which in Latvia – by 10%. Also volume of grain export increased, average purchase prices of grain in global market reduced, and that, in turn, influenced grain prices in Latvia. As volume of exported grain products in the 2nd half increased more than 3.5 times, if compared to the 1st half, value of one exported ton of grain reduced from LVL 170 to LVL 120, respectively.

The average purchase prices of grain in Latvia have decreased from LVL 123.83 per ton in 2007 to LVL 100.06 per ton in 2008 or by 19.2 %, of which the prices of wheat – from LVL 132.11 to LVL 108.76 per ton or by 17.7%, of rye – from LVL 114.93 to LVL 83.79 per ton or by 27.1%, of barley – from LVL 116.85 to LVL 93.01 per ton or by 20.4%. Average purchase prices of grain in the 2nd half of 2008 reduced from LVL 154.98 per ton to LVL 91.37 or by 41.0%, if compared to the 1st half. Same trend was observed among all main cereal products.

Compared to previous year prices of rape have, in turn, increased – by 29.2%, prices of potatoes grew by 14.0%, of fruit and berries – by 99.5% (of red currant – by 63.1%, of black currant – by 45.5%, of gooseberries – by 165.0%).

Unlike producer price decrease in crop production livestock production witnessed price growth of 10.2%. It was influenced by the price increase of milk, eggs, beef, poultry and pork meat, nevertheless prices of sheep and goat meet reduced (by 5.6%, respectively).

Producer prices of main agricultural products
(LVL per 1 ton)

2007

2008

2008 as % of 2007

Wheat

132.11

108.76

82.3

Rye

114.93

83.79

72.9

Barley

116.85

93.01

79.6

Rape

189.59

244.87

129.2

Potatoes

86.90

99.10

114.0

Vegetables

525.15

394.03

75.0

Meat (live weight):
beef

493.11

603.58

122.4

pork

750.79

918.65

122.4

sheep, goats

929.28

877.23

94.4

poultry

829.81

946.49

114.1

Milk

183.31

191.72

104.6

Eggs, LVL per 100 pieces

4.41

5.17

117.2

Prepared by Agriculture Statistics Section
Tel.67366831
Inita Valaine