Canada -- Farm Product Price Index

OTTAWA - Mar 7/05 - SNS -- Canadian farmers received less for what they produced in December than was the case one year earlier, though average prices were slightly better than during November, according to Statistics Canada.

Overall, producers received prices for crops that were 17.4% below levels in December 2003, continuing a downward trend in year-over-year price changes that began in July 2003, according to the Farm Product Price Index (FPPI). Farmers received lower prices for grains, oilseeds and specialty crops.

On the other hand, prices for livestock and animal products were 7.7% higher in December 2004 than they were a year earlier. This was the seventh consecutive year-over-year increase in the overall livestock and animal products index. Prior to this series of gains, prices for livestock and animal products had been falling for 12 consecutive months.

Prices rose in December for all livestock and animal product indexes. Gains ranged from 2.3% for cattle and calves to 28.8% for hogs.

On a monthly basis, prices farmers received for their commodities edged up 0.9% in December from November, the first overall increase since May. Again, this gain occurred on the strength of rising prices for livestock and animal products.

The FPPI (1997=100) stood at 93.0 in December, up from a revised November index of 92.2. It was the first increase since May when the index stood at 104.8.

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