Hungarian farm gate price rise slows in February

Prices started to grow in January with a 1.7pc yr/yr plus after 16 months of decline. The January figure was revised down on Monday from the preliminary 3.6pc. Crop prices rose 4.4pc yr/yr in January instead of the preliminary 7.5pc while livestock and animal product prices fell an unchanged 2.3pc. The increases were still from a low base, as farm gate prices fell 27.1pc yr/yr in February 2009 after a decline of 27.9pc yr/yr in January 2009. Farm gate prices dropped yr/yr every month between August 2008 and December 2009. The drop slowed to 1.6pc yr/yr in December. Crop prices rose now for the third month in a row with potato and vegetables gaining the most, 11.7pc and 7.0pc respectively, while prices of oil seeds decreased 2.8pc. Cereals cost 1.0pc more than in February 2009. The overall increases came after a 1.6pc twelve-month increase in December, the first twelve-month increase posted since July 2008. Wholesalers bought wheat from farms for HUF 29.30/kg on average after HUF 29.00/kg in January, and maize for HUF 29.60/kg after HUF 29.70/kg in January. Livestock and animal product prices has declined steadily yr/yr starting January 2009. The twelve-month decline accelerated somewhat from January. Farm gate prices fell 9.5pc in 2009 as crop prices fell 12.7pc and livestock and animal product prices fell 4.6pc on 2008.

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