Producer prices of agricultural products were 8.4% higher in May 2021 than in May 2020, with a similarly strong increase last seen in June 2019. As reported by the Federal Statistical Office (Destatis), prices rose by 2.4% compared with the previous month of April 2021.
Prices for crop products up 15.6
As in the previous month, the price increase for crop products in May 2021 was mainly due to higher prices for cereals (+26.7% compared to May 2020). For vegetable and horticultural products, the y-o-y price increase in May 2021 was 17.8%. Among other factors, this was again driven by higher prices for plants and flowers (+17.4%). This development was due to a shortage of supply and continued high demand. In the case of vegetables (+18.2%), prices for tomatoes (+31.9%) and asparagus (+23.6%) in particular rose compared with the same month a year ago.
Fruit prices increased by 26.3%, mainly due to the +53.5% increase in strawberry prices. For strawberries, the comparatively cold weather led to significant delays in ripening. As a result, the start of the season started two weeks later than in 2020, which in turn led to limited supply and increased prices for strawberries in May 2021.
For table potatoes, on the other hand, prices have already been falling year-on-year since September 2019, with prices 53.2% lower in May 2021 and 54.5% lower in April 2021. The extensive supply due to the higher harvest volume compared to the previous year is likely responsible for this.
Methodological Notes
The index of producer prices of agricultural products measures the development of the selling prices of agriculture in Germany and thus shows price developments at the first economic stage.