The agricultural output price index has risen 1.3% in April 2017 compared to the previous month, according to newly-released Central Statistics Office (CSO) figures.
The agricultural input price index increased by 0.1% over the same period. As a result, the terms of trade index rose by 1.2% in April 2017.
On an annual basis, the agricultural output price index was up 8.9% in April 2017 compared with the year before, in April 2016. The agricultural input price index dropped by 0.8% in April 2017 compared with the previous April.
Chart source: CSO
In terms of what this means, the indices monitor trends in prices paid to farmers for their produce (output) and in costs paid by farmers for purchases of input goods and services. An EU-harmonised methodology set-up is used to make up the price indices.
The prices that the CSO used to compile the data are based on the market price without deducting bonuses, taxes or levies – except for deductible value-added tax and third-party levies.
Standardised prices were used by the statistics agency for milk and cereals to make sure that products of identical quality are priced in successive periods of time. In the case of milk for manufacturing, this led to pricing at a fixed fat and protein content. Standardised cereal prices were based on the harvest price at a moisture content of 20%.