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Updated: 08 August 2012


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About Agricultural Price Indices

Agricultural Producer Price Indices

The FAO indices of agricultural producer prices measure the average annual change over time in the selling prices received by farmers (prices at the farm-gate or at the first point of sale. The indices are constructed using price data in Standardised Local Currency (SLC).

There are two categories of producer price indices available in FAOSTAT:

  1. Agriculture Producer Price Index
  2. This is an aggregate index for all primary crops and livestock products. For a country, the aggregate would include all primary crops and livestock products that are produced in that country, and for which both production and producer price data are available.

  3. Single item indices
  4. Price indices are also available for individual commodities, subject to data availability. Examples of these include:
    1. Wheat Producer Price Index
    2. Rice, paddy Producer Price Index
    3. Maize Producer Price Index

Data source: The main source of data for producer prices and production is the data reported by countries to FAO. This data is available in FAOSTAT in the Prices and Production data domains.

Coverage of countries: The indices are available for all countries for which both price and production data are disseminated in FAOSTAT.

Reference year: The base years of the indices are 2004-2006. The weight used for the aggregate index (Agriculture Producer Price Index) is the average production value for the years 2004, 2005 and 2006.

Time period: The indices are available from 1999 to the latest year of data availability.

Methodology: The Agriculture Producer Price Index is calculated by the Laspeyres formula. The index is calculated by summing the SLC price for a given year multiplied by production quantity in base year for all items in the aggregate and dividing by the sum of the SLC price in the base year multiplied by production quantity for the base year for the same items.

Index = Σ (PitQio) x 100
 
 
  Σ (PioQio) 

The individual item indices are calculated by dividing the SLC price in a given year by the SLC price in the base year.

Index = Σ (Pit) x 100
 
 
  Σ (Pio) 

where:
Pit = price of item i in period t
Pio = price of item i in base year
Qio = quantity of item i produced in base year

Price Index Links

Monthly commodities prices and indices [The World Bank], http://data.worldbank.org/data-catalog/commodity-price-data

Statistics on retail prices and indices [International Labour Organization], http://laborsta.ilo.org/data_topic_E.html

Primary Commodity Prices and Price Indices [IMF], http://www.imf.org/external/np/res/commod/index.asp

The Monthly Bulletin of Statistics [United Nations], http://unstats.un.org/unsd/mbs/app/DataSearchTable.aspx

FAO Food Price Index [FAO], http://www.fao.org/worldfoodsituation/wfs-home/en/

General Disclaimer

The designations employed and the presentation of materials in FAOSTAT do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or its authorities, or concerning the delimination of its frontiers or boundaries.

Where the designation "country" or "area" appears on this internet site, it covers countries, territories or areas.

The data of the FAOSTAT database shown on this internet site are copyrighted by the Food and Agriculture Organization of the United Nations and are provided for your internal use only. They may not be re-disseminated in any form without written permission of the FAO Statistics Division.

All references to FAOSTAT data will have to be mentioned with the proper URL and the access date.