Canada's FPPI Sinks 8.9% From Last Year

OTTAWA - Sep 7/05 - SNS -- Agricultural commodity prices are in obvious decline in Canada this year, with average prices farmers received for their commodities falling 8.9% below last year's levels in June, according to Statistics Canada.

Overall, producers received prices for crops that were 19.2% below levels in June 2004, continuing a downward trend in year-over-year price changes that began in September 2003, according to the Farm Product Price Index (FPPI), Statistics Canada said. Farmers received lower prices for grains, oilseeds, special crops and fruit.

Prices for livestock and animal products were 0.5% lower in June than they were a year earlier. This was the second consecutive decline in the overall livestock and animal products index following year-over-year increases since June 2004.

Lower hog and egg prices drove the total livestock and animal product index down, while prices rose in June for cattle and calves, poultry and dairy. Gains ranged from 2.7% for poultry to 8.0% for cattle and calves over year earlier levels.

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