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Agricultural Producers Price Indexthe Second Half of 2014

Issued in : March 2015

(Prices of vegetable crops)

Introduction Prices are considered important economic indicators in all countries regardless of their prevailing

economic and social systems. They are used in various fields in the national economy such as internal

and external commercial transactions, distribution of economic resources among different sectors, setting

long-term policies and analyzing the current economic situation. Prices play an essential role in identifying

the patterns and trends of foreign trade. Both developing and developed countries use prices and its

changing mechanism as a guide to set up an economic distribution for its various investments.

Given the significance of prices, statistical entities and other specialized bodies collect prices data

periodically including all commodities in the market.

Agricultural price data has a direct influence on decisions made by investors in the agricultural field.

Agriculture prices are an instrumental indicator in the economic and social life of farmers due to its effect

on many economic activities. It affects directly farmers’ income and living standards. Data on agricultural

prices helps provide the appropriate indicators that maintain the balance between production cost and

selling price till it reach consumers, preserving the interests of both producers and consumers.

Agricultural price is useful to famers in planning and developing their production, maximize their income

and avoid potential loss.

Agricultural Producer Price Index (APPI) is a significant statistical indicator used in planning and

research, specifically in agricultural fields. Statistical entities and centers are keen to produce the (APPI)

depending on quantities of cultivated crops supplied to agriculture marketing centers and its prices.

The Statistics Centre – Abu Dhabi (SCAD) frequently collects quantities and values of agricultural

products and disseminates the data in accordance with the international methodologies in this field.

1. Relative change in (APPI) for vegetable crops

The APPI for vegetable crops advanced by 2.3% from 115.6 to 118.3 points during the second half of

2014 compared with the first half of 2014.

The rise reflects the net outcome of yearly upward and downward changes in the prices of vegetables

during the Second half of 2014.

Agricultural Producers Price Index During the First and Second Half of 3102 and 2014

(100= 2010)

Relative change Second Half First Half Year

3.6 111.5 107.6 2013

2.3 118.3 115.6 2014

Source: Statistics Centre - Abu Dhabi

Agricultural Producers Price Index by Type of Crop During the First and Second Half of 2014

(100= 2010)

Relative Change Second Half 2014 First Half 2014 Crop

2.3 118.3 115.6 All Products

3.7 134.7 129.9 Tomato

-6.7 98.4 105.5 Beans

-8.2 99.7 108.6 Beets

11.2 121.8 109.5 Cabbage

2.6 118.8 115.8 Cucumber

14.9 0229 80.1 Carrot

12.1 116.4 103.8 Cauliflower

11.0 101.3 91.3 Mallow

5.8 113.0 106.8 Pepper

7.6 153.4 142.5 Eggplant

7.2 104.4 97.4 B.Bean

7.3 114.7 106.9 Marrow

-1.9 112.6 114.8 Onion

-8.2 3828 90.7 Corn

5.5 153.3 145.3 Sweet melon

13.1 ..021 105.8 Turnip

10.3 118.8 107.7 Watermelon

4.4 100.3 96.1 Coriander

3.6 134.8 130.1 Parsley

11.7 122.3 109.5 Potato

-12.1 101.0 114.9 Lettuce

-5.6 .2221 129.8 Garden Rocket


The largest contributors to the increases in the APPI were: Carrot (14.0%), Turnip (13.1%), Cauliflower

(12..%), Potato (11.1%), Cabbage (11.2%), Mallow (..29%), Watermelon (10.3%), Eggplant (7.6%),

Marrow (7.8%), B.Bean (7.2%), Pepper (5.8%), Sweet melon (5.5), Coriander (4.4%), Tomato (3.7%),

Parsley (3.6%),and Cucumber (2.6%) with an overall relative importance of 51%.

Relative Importance and Percentage Change in the APPI for Vegetables that Showed Price Rises During the Second Half of 2014 ) compared with the first half of 2014( (100= 2010)

Ratio of Price Rises (%) Relative importance (%) Crop Ser.

.120 0.04 Carrot 1

13.1 929. Turnip 2

12.1 0.12 Cauliflower 3

..21 0.05 Potato 4

11.2 0.34 Cabbage 5

11.0 0.83 Mallow 6

10.3 0.84 Watermelon 7

7.6 4.66 Eggplant 8

128 7.42 Marrow 9

7.2 929. B.Bean 11

5.8 14.72 Pepper 11

5.5 5.73 Sweet melon 12

4.4 0.08 Coriander 13

3.7 7.11 Tomato 14

3.6 1.38 Parsley 15

2.6 8.07 Cucumber 16


On the other hand the APPI sub-indices declined for a number of crops, including Lettuce, Beets, Corn,

Beans, Garden Rocket, and Onion by 12.1%, 8.2%, 8.2%, 6.1%, 5.6%, and 1.9% respectively, with the

price falls having a combined relative importance of 49%.

Relative Importance and the Rate of Decline for Vegetable Crops Whose Prices Fell During the Second Half of 2014 )compared with the first half of 2014(

(100= 2010)

Ratio of Price Falls (%) Relative Importance (%) Crop Ser.

12.1 2.42 Lettuce 1

322 0.70 Beets 2

8.2 3.60 Corn 3

621 4.95 Beans 4

126 10.00 Garden Rocket 5

1.9 26.95 Onion 6


2. Comparison of APPI for Vegetables Corps - Second Half of 2014 /Second Half of 3102

APPI for vegetable crops increased by 6.1% in the Second half of 2014 compared with the second half of

2013, as the index reached 118.3 points in the Second half of 2014, up from 111.5 points during the

second half of 2013.

The most significant increases in the APPI sub-indices were recorded for Cauliflower (18.2%), Potato

(.620%), Carrot (16.2%), Turnip (16.2%), Parsley (.820%), Sweet melon (11.4%), Coriander (10.5%),

Eggplant (10.3%), Cabbage)10.0), Tomato (6.1%), and Onion (3.0%), with an overall relative importance

of 46%.

Agricultural Producers Price Index During the Second Half of 2013 and Second Half 2014

(100= 2010)

Relative Change 2014 Second Half 2013 Second Half Crop

6.1 118.3 111.5 All Products

6.1 134.7 127.0 Tomato

-11.4 98.4 111.1 Beans

-11.1 99.7 112.1 Beets

10.0 121.8 110.7 Cabbage

-9.1 118.8 130.7 Cucumber

16.2 0229 79.2 Carrot

18.2 116.4 98.5 Cauliflower

-1.1 101.3 102.4 Mallow

-0.7 113.0 113.8 Pepper

10.3 153.4 139.1 Eggplant

-3.6 104.4 108.3 B.Bean

-2.1 114.7 117.2 Marrow

3.0 112.6 109.3 Onion

-12.4 3828 95.1 Corn

11.4 153.3 137.6 Sweet melon

16.2 ..021 103.0 Turnip

-1.6 118.8 120.7 Watermelon

10.5 100.3 90.8 Coriander

13.9 134.8 118.3 Parsley

16.9 122.3 104.6 Potato

-8.3 101.0 110.2 Lettuce

-2.2 .2221 125.3 Garden Rocket


Relative Importance and Percentage Change in the APPI for Vegetables that Showed Price Rises During the Second Half of 2014 )compared with the Second half of 2013(

(100= 2010)

Ratio of Price Rises (%) Relative Importance (%) Crop Ser.

18.2 0.12 Cauliflower 1

16.9 0.05 Potato 2

16.2 0.04 Carrot 3

16.2 929. Turnip 4

13.9 1.38 Parsley 5

11.4 5.73 Sweet melon 6

10.5 0.08 Coriander 7

10.3 4.66 Eggplant 8

10.0 0.34 Cabbage 9

6.1 7.11 Tomato 11

3.0 26.95 Onion 11


By contrast, the sub-index retreated for some crops, including: Corn, Beans, Beets, Cucumber, Lettuce,

B.Bean, Garden Rocket, Marrow, Watermelon, Mallow, and Pepper by 12.4%, 11.4%, 11..%, 9.1%,

8.8%, 3.6%, 2.2%, 2..%, 1.6%, 1.1%, and 0.7% respectively. The overall relative importance of the price

falls was 54%.

Relative Importance and the Rate of Decline for Vegetable Crops Whose Prices Fell During the Second Half of 2014 )compared with the Second half of 2013( (100= 2010)

Ratio of Price Falls (%) Relative Importance (%) Crop Ser.

12.4 3.60 Corn 1

11.4 4.95 Beans 2

..2. 0.70 Beets 3

9.1 8.07 Cucumber 4

8.3 2.42 Lettuce 5

3.6 929. B.Bean 6

2.2 7.42 Garden Rocket 7

2.1 10.00 Marrow 8

1.6 0.84 Watermelon 9

1.1 0.83 Mallow 10

0.7 14.72 Pepper 11


Explanatory Notes

Methodology: The APPI adopts 2010 prices as the base for prices and weights. The used weights are derived from the

price data of vegetables supplied to the agricultural marketing centres.

Data source: The APPI is produced using the price data of agricultural products (vegetables) from Abu Dhabi farmers’ services center and Abu Dhabi Food Control Authority.

APPI Compilation: The APPI is compiled using the Laspeyres method that adopts the base year prices.

9Agricultural Producers Price Index