Canadian Farm Price Index Down in December

OTTAWA - Mar 8/04 - SNS -- Prices received by Canadian farmers were generally lower in December, slipping below levels prevailing in November of 2003 and plunging beneath prices which prevailed in December of 2002.

Data released by Statistics Canada revealed the farm product price index (FPPI) finished December at a preliminary calculation of 92.5 points, down from a revised 94 points for November.

Statistics Canada noted , "Both the December crop and livestock and animal products indexes declined on a year-over-year basis. This marks the sixth consecutive monthly drop in the crop index and the seventh consecutive decline in the livestock index.

"A return to more normal grain production last fall following two consecutive droughts in many parts of Western Canada, has put downward pressure on crop prices. The livestock index continues to be affected by the positive test for bovine spongiform encephalopathy (BSE or mad cow disease) in Alberta last May."

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