Farm Product Price Index, September 2012

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The Farm Product Price Index (FPPI) fell 1.2% in September compared with September 2011, the first decrease since July 2010. A drop in the overall livestock and animal products index more than offset the slight increase in the crops index.

Chart 1 
The 12-month change in the Farm Product Price Index
Chart 1: The 12-month change in the Farm Product Price Index

Chart description: The 12-month change in the Farm Product Price Index

CSV version of chart 1

The livestock and animal products index fell 3.2% in September compared with September 2011. This was its second consecutive year-over-year decline which followed a growth trend that had started in May 2010.

Declines in the hogs (-20.6%) and the dairy (-2.3%) index were responsible for the decrease in the livestock and animal products index. This was the second consecutive decline for hogs, which has recorded year-over-year increases in 25 of the previous 30 months. After declining since April 2005, breeding stock inventories have generally been rising since October 2011, increasing the supply of market animals.

Moderating the decrease in the livestock and animal products index were gains in eggs (+5.2%), poultry (+3.1%) and cattle and calves (+3.8%).

The crops index rose 0.8% from September 2011, largely the result of the higher oilseed index (+7.6%) which continued a growth trend that had started in September of 2010. Oilseed prices have been supported by increased demand and concerns of dry growing conditions in the United States. Canola, Canada's largest production oilseed, had record exports and volume crushed in Canada over the last crop year (August 1, 2011 to July 31, 2012). Ending stocks on July 31, 2012 had fallen to their lowest level since July 2004, when production for the beginning of that crop year was less than half of what the production was for the 2011/2012 crop year.

The growth in the crops index was tempered by declines in grains, specialty crops, vegetables and potatoes.

Compared with August 2012, the FPPI declined 2.0% as both the livestock and animal products index and the total crops index were lower.

Note to readers

The growth rate of the total Farm Product Price Index (FPPI) is derived from a weighted average of the component indices using a different set of weights in consecutive months; it is not a weighted average of the growth rates of its crop and livestock components. Given this, the growth rate of the composite FPPI can lie outside the growth rate of these components.

Available without charge in CANSIM: tables CANSIM table002-0021 and CANSIM table002-0022.

Definitions, data sources and methods: survey number survey number5040.

The September 2012 issue of Farm Product Price Index, Vol. 12, no. 5 (Catalogue number21-007-X, free), is now available from the Key resource module of our website under Publications.

For more information, contact us (toll-free 1-800-263-1136; infostats@statcan.gc.ca).

To enquire about the concepts, methods or data quality of this release, contact Gail-Ann Breese (204-983-3445; gail-ann.breese@statcan.gc.ca), Agriculture Division.