Index of producer prices of agricultural products: documentation of statistics

The index of producer prices of agricultural products measures developments in producer prices for plant-based and animal products from the viewpoint of the farmer. The index shows by how much the agricultural producer prices have changed compared to the index base period. The index weight structure is based on the agricultural accounts data in national accounts. The base year is changed every five years, when the weight structure and product and data supplier samples are also revised. The index series 2020=100 was introduced from the beginning of 2024.

The population of the index of producer prices of agricultural products comprises all the farms operating in Finland that produce agricultural products for the market.

The statistical unit for the index is the farm. The reporting units include slaughterhouses, dairies, packaging plants, producer organizations, companies in the food industry, and individual farmers. 

The index data are published as index point figures. The monthly, quarterly and annual change percentages calculated on the basis of the indices are also published.

The base period of the index of producer prices of agricultural products is 2020 (2020=100).

The reference period of the index of producer prices of agricultural products is a month.

The geographical reference area of the index of producer prices of agricultural products is the whole of Finland.

The index of producer prices of agricultural products covers the whole of Finland with no regional division. The field of observation of the statistics is plant-based products, animals and animal products produced by farmers in Finland that are sold to other farmers or to operators outside the agricultural sector (excluding households). The commodities included in the index cover the entire population. Prices of low-value products are not separately monitored but their sales values are rolled over to other agricultural commodities in the index weight structure. Thus, the products in the index also represent, due to the weight structure, products not included in the index.

Time series are available for the latest 2020=100 indices starting from the index data for January 2020. The production of the 2020=100, 2010=100, 2005=100 and 2000=100 series will continue until further notice. The 2000=100 series is available at the main category level from January 1995 onwards.

The data are updated once a year in connection with the May release, when the data concerning the milk adjustment payments for the previous reference year are updated in the index. This revision affects the total index, as well as the animal output and milk sub-indices. The data may also be revised for other products if, for example, the source data change significantly retrospectively.

The statistics are published monthly. The index data will be revised in connection with the May release of the year following the reference year. Retrospective changes to the source data may also lead to data revisions.

Sources of error and factors affecting the accuracy of the statistics may include the lack of price data for part of the year (e.g. for fruit and new potatoes), inadequate handling of product quality changes in the index calculation, sampling error, lack of precision in the index weight structure in the event of major structural changes in agricultural production, insufficient coverage of price data collected from data suppliers, inaccurate data, and possible processing errors.

The preliminary monthly indices of producer prices of agricultural products are published 35 days after the end of each month. The preliminary yarly and quarterly indices are published 45 days after the reference period. Revision notice and thus final statistics are published with a delay of 135 days.

The compilation of the index of producer prices of agricultural products is based on a handbook drawn up jointly by the Member States and Eurostat, as well as, to the extent applicable, EU regulations (EU) 2022/2379 and (EU) 2023/1579. The aim of these regulations is to ensure consistent methods and comparable results across different countries. The aforementioned regulations become mandatory only when the base year changes to 2025 (2025=100). 

The old index series are not fully comparable with the index series currently in use because the price definitions used for price subsidies and taxation, for example, have changed.

At the time of Finland’s accession to the European Union in 1995, the calculation method of the index of producer prices of agricultural products was changed. From 1990 until February 2000, the index was calculated taking account of price subsidies but excluding other types of subsidies. There exist two index series for this period. Since the beginning of 1995, agriculture became subject to VAT. Price subsidies for agricultural products were largely abolished from the beginning of the 2000s, and they are not taken into account in the current indices.

Time series of agricultural producer prices from the year 2000 are mostly comparable over time.

The reference period for the indices, i.e., the base year, is 2020. Publication of indices with base years 2015=100, 2010=100, 2005=100, and 2000=100 will continue. Only the index of the most recent base year is genuinely calculated, and the time series of older base years are chained forward with the changes of the newest base year.

The agricultural accounts of national accounts and the weight structure of the agricultural price indices are coherent, except for the on-farm consumption and the change in stocks. This is due to methodological differences in the statistics.

The product price data required for the compilation of the statistics are mainly derived from the statistics on producer prices of agricultural products compiled by the Natural Resources Institute Finland (Luke). The price data from Luke cover around 72 per cent of the index of producer prices of agricultural products, when measured by the index weights. The Luke statistics cover products sold unprocessed and unpacked from farms to industry, packing centres and intermediate businesses; trade between farms is excluded from the statistics. In the index of producer prices of agricultural products, it is assumed that the market price level also applies to trade between farms, such as in the trade of feed grains. As a rule, the Luke statistics cover more than 80 per cent of the monitored product flows for meat, milk, cereals, turnip rape and rape; the coverage for food potatoes is more limited.

In addition, the index of producer prices of agricultural products uses the price statistics of Kasvistieto Oy for monitoring the price of vegetables. These data account for about 16 per cent of the total index. Kasvistieto Oy estimates that in the main product groups its price statistics cover 10 to 40 per cent of the volume of domestic fresh production.
The rest of the price data needed to compile the index are derived from other statistics, or Statistics Finland requests them from data suppliers (e.g. for fodder crops, sugar beet, starch potatoes, some flowers, honey, and furs). Some of the price data for flowers, seedlings and vegetables are derived from the price statistics of the Finnish Glasshouse Growers’ Association. The association members cover half of the total area of Finnish greenhouse production. The price data concerning the products monitored by the Finnish Glasshouse Growers’ Association have a weight of five per cent in the index. The price data collected by Statistics Finland have a weight of less than 7 per cent in the index, and the majority of the data concerns furskins. Statistics Finland collects fur prices from fur auctions, which are the main point of sale for furskins.

The source data for the index of producer prices of agricultural products are collected mainly from Luke’s website. Kasvistieto Oy provides price information on garden vegetables to Luke, who then delivers it to Statistics Finland on a monthly basis. In addition, data are collected directly from data suppliers by means of Statistics Finland’s online survey or by telephone or from other indices.

As a rule, the data of the agricultural price indices are collected on a monthly basis. Price data on products with low price fluctuations are collected quarterly, half-yearly or once a year.

The validated price observations form the statistical data. Temporarily missing price observations are imputed on the basis of changes in the prices of other similar products, or the price of the previous month is used. In the case of permanently missing price observations, a new data supplier is selected from among operators of the same size. The statistics mainly use completed statistics, so the problem of missing observations is not significant.

The index point figures are calculated with the base strategy using the Laspeyres index formula. The observations are aggregated by weighting coefficients for products and data suppliers to higher product group levels and ultimately into the total index. The weighting coefficients are used to estimate index point figures and price changes describing the population.

Reminders are actively sent for missing data. The data are checked during the compilation of the statistics at both observation and aggregate level. Significant or divergent price changes and changes in products are reviewed and additional information is requested from the data supplier, if necessary. The accuracy of the calculated index point figures is assessed by comparing them with the source data and general market information.

Statistics Finland

Economic Statistics

The compilation of statistics is guided by the Statistics Act. The Statistics Act contains provisions on collection of data, processing of data and the obligation to provide data. Besides the Statistics Act, the Data Protection Act and the Act on the Openness of Government Activities are applied to processing of data when producing statistics.

Statistics Finland compiles statistics in line with the EU’s regulations applicable to statistics, which steer the statistical agencies of all EU Member States.  

Further information: Statistical legislation

The production of the statistics is based on a long-term ‘gentlemen’s agreement’ with Eurostat, the Statistical Office of the European Union. The compilation of statistics is also indirectly based on the following acts: Regulation (EC) No 138/2004 of the European Parliament and of the Council on the economic accounts for agriculture, the act on the food and natural resources statistics 27.6.2014/562.

The EU Agricultural Statistics Regulation (EU) 2022/2379 and its implementing regulation (EU) 2023/1579 supplementing agricultural price statistics guide the compilation of agricultural price indices to the extent applicable. However, the mandatory provisions of the regulation apply only to the compilation of indices for the base year 2025 (2025=100).

Only the necessary data that are not available from administrative data sources are collected from data suppliers.

The data protection of data collected for statistical purposes is guaranteed in accordance with the requirements of the Statistics Act (280/2004), the Act on the Openness of Government Activities (621/1999), the EU's General Data Protection Regulation (EU) 2016/679 and the Data Protection Act (1050/2018). The data materials are protected at all stages of processing with the necessary physical and technical solutions. Statistics Finland has compiled detailed directions and instructions for confidential processing of the data. Employees have access only to the data essential for their duties. The premises where unit-level data are processed are not accessible to outsiders. Members of the personnel have signed a pledge of secrecy upon entering the service. Violation of data protection is punishable.

Further information: Data protection | Statistics Finland (stat.fi)

In published statistics, data are reported at a level at which data on an individual data supplier cannot be identified. In the data transmitted to Eurostat, such data are labelled as confidential.

Statistics Finland publishes new statistical data at 8 am on weekdays in its web service. The release times of statistics are given in advance in the release calendar available in the web service. The data are public after they have been updated in the web service.

Further information: Publication principles for statistics at Statistics Finland

The published producer price indices are transmitted quarterly to Eurostat, which publishes them on its website. The index point figures concerning vegetables, fruit and potatoes, and thus also the aggregate series, transmitted to Eurostat differ from those published nationally. The data transmitted to Eurostat are based on seasonal weights for the above products, i.e. they have different weights in the total index in different quarters. However, between years, the weight structure for each quarter remains unchanged. The figures nationally published are calculated using weights whose proportion in the total index for the product concerned remains the same in each quarter.

The release of current news, such as news highlights, is decided on a case-by-case basis.
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Statistical data are published as database tables in the StatFin database. The database is the primary publishing site of data, and new data are updated first there. When releasing statistical data, existing database tables can be updated with new data or completely new database tables can be published.   

In addition to statistical data published in the StatFin database, a release on the key data is usually published in the web service. If the release contains data concerning several reference periods (e.g. monthly and annual data), a review bringing together these data is published in the web service. Database tables updated at the time of publication are listed both in the release and in the review. In some cases, statistical data can also be published as mere database releases in the StatFin database. No release or review is published in connection with these database releases.

Releases and database tables are published in three languages, in Finnish, Swedish and English. The language versions of releases may have more limited content than in Finnish.   

Information about changes in the publication schedules of releases and database tables and about corrections are given as change releases in the web service.

Microdata at the unit level of the statistics are used solely for the production of the statistics, and individuals other than those involved in statistical production do not have access to the microdata.

Revisions – i.e. improvements in the accuracy of statistical data already published – are a normal feature of statistical production and result in improved quality of statistics. The principle is that statistical data are based on the best available data and information concerning the statistical phenomenon. On the other hand, the revisions are communicated as transparently as possible in advance. Advance communication ensures that the users can prepare for the data revisions.

The reason why data in statistical releases become revised is often caused by the data becoming supplemented. Then the new, revised statistical figure is based on a wider information basis and describes the phenomenon more accurately than before.

Revisions of statistical data may also be caused by the calculation method used, such as annual benchmarking or updating of weight structures. Changes of base years and used classifications may also cause revisions to data.

The quality of the index is assessed in several stages of the statistical process. Changes in unit-level data are examined monthly and the correctness of exceptional data is examined. Aggregate level data are also checked.

Quality management requires comprehensive guidance of activities. The quality management framework of the field of statistics is the European Statistics Code of Practice (CoP). The quality criteria of Official Statistics of Finland are also compatible with the European Statistics Code of Practice.

Further information: Quality management | Statistics Finland (stat.fi)

Data are released to all users at the same time. Statistical data may only be handled at Statistics Finland and information on them may be given before release only by persons involved in the production of the statistics concerned or who need the data of the statistics concerned in their own work before the data are published.

Further information: Publication principles for statistics

Unless otherwise separately stated in connection with the product, data or service concerned, Statistics Finland is the producer of the data and the owner of the copyright. The terms of use for statistical data.