MaltaMedia.com

During the second quarter of 2009, producer prices for agricultural output increased by 8.5 per cent while input prices declined by 5.9 per cent.

The producer price index for agricultural products in the second quarter of 2009 stood at 117.5 points, up by 8.5 per cent, from 108.3 points in the corresponding quarter of 2008. This rise was reflected by contrasting developments in price movements within the sub-sectors of the agricultural industry.

The fresh vegetables price index went up by 19.6 per cent because of a general decrease in the supply of fresh vegetables in the second quarter. As a result, higher producer prices were recorded for tomatoes (+94.6 per cent), cauliflowers (+63.1 per cent), green beans (+41.7 per cent), watermelons (+40.4 per cent) and vegetable marrows (+18.1 per cent).

Similarly, the price of potatoes rose by 30.8 per cent over the comparative quarter resulting from a sharp decline in the supply of this crop. During the second quarter of 2009, the fruit price index decreased by 15.7 per cent.

Lower prices for peaches (-9.2 per cent), strawberries (-12.9 per cent) and figs (-25.4 per cent) were recorded, although citrus fruit prices rose by 42.4 per cent. The animals slaughtering index rose by 8.0 per cent over the comparative period in 2008, as higher prices were registered for poultry (+16.5 per cent), slaughtered pigs (+13.7 per cent), and rabbits (+3.3 per cent).

During this period, producer prices received for poultry and slaughtered pigs rose to compensate the decline in subsidies paid to these producers. Similarly, the animal products index increased by 3.6 per cent on account of higher producer prices fetched for raw milk and eggs.

In the period under review, the input price index for agriculture fell by 5.9 per cent to stand at 120.7 points. Whereas the goods and services index decreased by 7.0 per cent, mainly on account of lower prices paid for animal feed (-15.8 per cent) and motor fuels (-14.0 per cent), the machinery and investment index rose by 10.1 per cent on account of higher prices paid for materials (+17.9 per cent) and buildings (+2.6 per cent).