The producer prices of cereals swung to brisk growth last year. The price of food potatoes bottomed out in early 2010, then doubled by the turn of the year. The decline in the producer price of milk turned around in the autumn. Meat prices were down, with the exception of lamb. These figures are based on the Producer Prices for Agricultural Products statistics compiled by Tike (Information Centre of the Ministry of Agriculture and Forestry).


Cereal prices surging since last autumn
The producer prices of cereals, turnip rape and rape began to grow last year. The largest relative increase compared with 2009 was seen in the price of oats, up 37 per cent. The second-greatest growth was in the price of turnip rape and rape (+22%). In the case of cereal prices, bread wheat had the most modest increase, up 9 per cent.

Producer prices began to rise last autumn and this trend continued over the turn of the year. In January 2011, farmers were paid more for oats, turnip rape and rape than when prices last peaked (in October 2007 - March 2008). The going price for other cereals in January was 6 - 31 per cent less than during the last price peak.

Producer price of food potatoes has climbed back to the level of summer 2008
Last year, farmers were paid an average of EUR 12 per 100 kilos of food potatoes and EUR 36 per 100 kilos of early potatoes delivered to packaging plants. The price of food potatoes decreased by 18 per cent and that of early potatoes by 38 per cent year-on-year.

The food potato market picked up in the autumn, when producer prices swung to growth. In January 2011, the going price of food potatoes was already EUR 20 per 100 kilos, more than double than in the previous summer. The last time farmers were paid such high producer prices was summer 2008.

Two-year decline in the producer price of milk comes to an end
Last year, producers were paid an average of 36.85 [1] cents per litre of milk, 5 per cent less than in 2009. This was the second year running that the price declined. The average price for 2010 was 14 per cent less than the peak figure for 2008.

The milk market has been upbeat since last autumn, when producer prices began to grow again. In January 2011, the producer price was already 8 per cent higher than a year earlier.

Producer prices of lamb are a bright spot in the meat market
Last year, the nominal prices of beef began to decline after six years of growth. The greatest decrease since the peak prices of 2009 was seen in the case of cow meat, down 6 per cent. Prices of bull and heifer meat decreased by two per cent.

Producer prices of pork and broiler [2] meat  declined for the second year running. Prices were down three per cent on 2009. The previous peak prices were in 2001 for pork and 2008 for broiler meat. Last year, producer prices fell eight per cent short of these peak figures.

Lamb producer prices have been on the rise for the past eight years. Last year, producers were paid EUR 294 per 100 kilos of lamb, four per cent more than in 2009. During the past 10 years, the nominal producer price of lamb has risen by more than a third.

Egg producer prices swing to slight growth  
The producer prices of A-class eggs began to grow slightly last year (+1%) while production grew to record figures. The exception to this was the producer prices of organic eggs, which were down two per cent on 2009. 

The prices of barn eggs and eggs from caged hens peaked in 2008. Last year, the price of eggs from caged hens fell four per cent short of 2008, while barn egg prices were lower by a tenth. Organic egg prices were at their highest in 2009.

Background to the statistics
Data on the producer prices of agricultural products is based on surveys of the first buyers, that is, dairies, slaughterhouses, the agricultural trade, cereal-using industry, as well as egg and potato packagers. The data is collected on a monthly basis.

The statistical tables are available on our Matilda agricultural statistics service on the home page of the Producer Prices of Agricultural Products statistics.

[1] The price does not account for the milk adjustment payments that will be remitted this spring
or for milk production aid.
[2] In this context, pork refers to meat from fattening pigs.

Contact information
Tike, Statistical Services
Researcher Elina Seppälä, tel. +358 20 77 21313
E-mail addresses are in the format: forename.surname@mmmtike.fi