Growers Bids Finish 2007-08 on Firm Note

OTTAWA - Sep 24/08 - SNS -- Canadian farmers experienced a modest improvement in average prices they were paid in July, according to Statistics Canada.

Prices edged up 0.1% from June to July 2008, as a slight increase in the livestock and animal products index was offset by a 2.6% decline in the crops index. This was the second monthly decrease in the crops index since October 2007.

On an annual basis, prices received by producers for crops were up 39.5% in July compared with July 2007, maintaining double-digit increases which had begun in November 2006. Crop prices have found support from continued demand and uncertainty over new crop production.

The overall July prices for livestock and animal products increased 3.9% over their July 2007 level. This was the first year-to-year increase in the livestock index since August 2007 as all livestock commodities posted increases except hogs, which have been influenced by the North American supply, higher feed costs and the stronger Canadian dollar. During this 12-month period, the Canadian dollar rose 3.6% against the US dollar.

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