toormehinnad

Toormehinnad, meaning "raw prices" in Estonian, is a term used in economics and statistics to describe the prices that producers receive for unprocessed goods before any processing, packaging, or retail margins are added. The concept helps distinguish trends in the valuation of raw materials from the prices paid by consumers for finished products.

Scope and examples: The category typically includes agricultural commodities (grain, vegetables, fruits, milk, meat), forestry outputs (timber, logs), fishery products, and certain mineral or energy feedstocks sold in their raw form. Prices are often observed at production points such as farm gates, fishing ports, sawmills, or mines, and are tracked over time to form price indicators.

Data sources and use: In Estonia, Statistics Estonia (Statistikaamet) and Eurostat compile toormehinnad as part of agricultural and commodity price statistics. They feed into price indices, inform analyses of farm incomes, and help stakeholders understand cost pressures along the supply chain. They are distinct from consumer price indices and from prices for processed goods, which reflect value added through processing and distribution.

Limitations and factors: Raw prices respond to supply-demand dynamics, weather conditions, exchange rates, subsidies, and trade policies, and can be quite volatile. They do not capture processing, logistics, or retail margins, which are relevant for overall inflation and consumer cost experiences.