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Updated: 12 August 2014

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About Agricultural Price Indices

Agricultural Producer Price Indices

The FAO Agricultural Producer Price Indices measure annual changes 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 for each country in FAOSTAT:

  1. Aggregated Producer Price Indices:
  2. Price indices are compiled at the level of commodity groups (Commodity group indices e.g. for cereals, fruits and vegetables, etc.) as well as for all primary crops and livestock products that are produced in a given country (Agriculture Producer Price Index - PIN);

  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. In some cases, in-house estimations are needed to fill in data gaps. 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 period of the indices are 2004-2006. The weight used for the aggregate indices (Agriculture Producer Price Index and Commodity group indices) is the average production value for the years 2004, 2005 and 2006.

Time period: The indices are available from 1991 to the latest year of data availability.

Methodology: The Agriculture Producer Price Index and the Commodity group indices are calculated using the Laspeyres. The index for a given commodity group and year is therefore equal to the value of production at current year prices of the items belonging to the same commodity group, divided by the value at base period prices of the same commodity basket. Formally:

Indext,A = 100. ΣiϵApitqi0 = ΣiϵA pi0qi0 pit
    ΣiϵApi0qi0   ΣiϵApi0qi0 pi0

A is a group of commodities
pit is the price of item i in period t
pi0 is the 3-years average price of item i in base period (2004-2006)
qi0 is the 3-years average quantity of item i produced in base period (2004-2006)

The individual item indices (Simple Price Indices) are calculated by dividing the SLC price in a given year by the SLC price in the base year:

Indext,i = 100.pit

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.