Farm Product Price Index

Prices received by farmers for their agricultural commodities decreased 8.7% in July from July 2002, according to data from the Farm Product Price Index (FPPI).

The livestock index fell 12.8% from July 2002, the fifteenth monthly year-to-year decrease in the last 17 months. The crop index fell 3.9%, only the second month the crop index has fallen on a year-over-year basis, since September 2000.

The FPPI (1997=100) stood at 95.4 in July, down 6.0% from June.

The livestock and animal products index fell 9.7% from June to 89.1 in July, with a 29.6% decline in the cattle and calf index. The cattle sector came to a virtual halt on May 20 when a cow in Alberta tested positive for bovine spongiform encephalopathy (BSE or mad cow disease). The United States, along with other countries, moved quickly to shut the border to ruminants and all associated products. The loss of crucial markets resulted in oversupply, which depressed prices for all cattle, be they slaughter animals, feeders or calves.

The hog index dropped 3.3% from June, to 86.2, in July. Despite this decline, the hog index remained well above the September 2002 to April 2003 period, when it ranged between 60.6 and 78.9. Increased movement of pigs and pork from Canada to the United States has resulted in tighter supplies of pork in Canada during this extended period.

The poultry and egg indexes remained unchanged from June to July, while the dairy index decreased 0.1%. On a year-over-year basis, the poultry, egg, and dairy indexes increased 5.1%, 0.7% and 6.2%, respectively. The egg index has been increasing year-over-year since August 2000, while the dairy index has climbed since May 2002, and poultry, since March 2003.

On a month-to-month basis, the crop index was down 2.6% in July, as all of the components except potatoes (+8.3%) recorded declines from June.

While the potato index jumped from 147.1 in June 2003 to 159.3 in July, it remained well below the July 2002 level of 234.5. Specialty crop, grain and oilseed prices have slipped since January of this year as a return to average annual production is anticipated this fall.

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

Definitions, data sources and methods: survey number 5040.

The July 2003 issue of Farm Product Price Index, Vol. 3, no. 7 (21-007-XIB, free) is now available on Statistics Canada's website. 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), Agriculture Division.