Farm Product Price Index

Prices received by farmers for their agricultural commodities increased 4.8% in May compared with May 2002, according to data from the Farm Product Price Index (FPPI).

The livestock index rose 6.0% from May 2002, the second monthly year-over-year increase following a decline that began in March 2002. Conversely, the crop index fell 0.8%, the first year-over-year decline since August 2000.

The FPPI (1997=100) stood at 108.2, up 0.7% from April 2003.

The livestock and animal products index rose 1.0% from April to 109.9 in May, with an 8.7% increase in the hog index, more than offsetting a 0.8% decline in the cattle and calf index. Except for a slight decline in March, the livestock and animal product index has been increasing since its low of 98.2 in September 2002.

The hog index jumped 8.7% from April to 82.2 in May. This is the highest the hog index has been since July 2002, when it was 84.9. This is also the first month the hog index has shown a year-over-year increase (+6.1%) since February 2002. Increased movement of pigs and pork from Canada to the U.S. has resulted in tighter supplies of pork in Canada.

The cattle and calf index fell from 125.3 in April to 124.3 in May. The price impact of the detection of bovine spongiform encephalopathy (BSE), or mad cow disease, was dampened because markets operated normally until May 20, when news of the detection broke. On a year-over-year basis, the cattle and calf index was up 5.1%.

The egg index was 101.5 in May, unchanged from April but up 1.2% from May 2002. Year-over-year, the index has been increasing since August 2000.

On a monthly basis, the crop index was down 0.7% in May as all components, except fruits and vegetables (excluding potatoes), recorded declines from April.

Grain and oilseed sub-indexes dropped from April 2003, yet they remained above their May 2002 levels. Grain and oilseed prices slipped in the early part of this year with the expectation of a return to average annual production anticipated this fall.

The only crop sub-indexes to record increases from April 2003 were fruits (+2.0%) and vegetables excluding potatoes (+0.2%). Production of Canada's two largest fruit crops, apples and blueberries, declined in 2002.

Available on CANSIM: tables 002-0021 and 002-0022.

Definitions, data sources and methods: survey number 5040.

The May 2003 issue of Farm Product Price Index, Vol. 3, no. 5 (21-007-XIB, free) is now available on Statistics Canada's Web site (). From the Our products and services page, under Browse our Internet publications, choose Free, then Agriculture.

For general information or to order data, call 1-800-465-1991. To enquire about the concepts, methods or data quality of this release, contact Bernie Rosien (613-951-2441; fax: 613-951-3868; bernie.rosien@statcan.gc.ca) or Gail-Ann Breese (204-983-3445; fax: 204-983-3122; gail-ann.breese@statcan.gc.ca), Agriculture Division.