Friday, April 9, 2010

Just in from Washington

Retail Staple Food Prices Increase Slightly in First Quarter
WASHINGTON– Retail food prices at the supermarket showed a modest increase during the first quarter of 2010, according to the latest American Farm Bureau Federation Marketbasket Survey.

The informal survey shows the total cost of 16 food items that can be used to prepare a meal was $45.54, up $2.64 or 6 percent higher compared to the fourth quarter of 2009. The total average price for the 16 items dropped by $1.87 or about 4 percent less compared to one year ago. Of the 16 items surveyed, 14 increased and two decreased in average price compared to the prior quarter.

Shredded cheddar cheese, deli ham, apples, vegetable oil, bacon, boneless chicken breasts and eggs increased the most in dollar value from quarter-to-quarter.

Shredded cheddar cheese increased 62 cents to $4.26 per pound; sliced deli ham increased 48 cents to $4.83 per pound; apples increased 25 cents to $1.50 per pound; vegetable oil increased 23 cents to $2.74; bacon and boneless chicken breasts increased 22 cents to $3.22 and $2.93 per pound, respectively; and eggs increased 19 cents to $1.74 per dozen.

“Improved demand for milk and dairy products here at home and from export markets was the driving factor behind higher retail prices found by our volunteer shoppers during the first quarter of the year,” said AFBF Economist John Anderson. “Higher retail prices for some meats were due to reduced supplies,” Anderson said.

Other items that increased in price quarter-to-quarter were flour, up 16 cents to $2.26 for a 5-pound bag; whole milk, up 11 cents to $3.15 per gallon; bagged salad, up 10 cents to $2.67 for a 1-pound bag; sirloin tip roast, up 9 cents to $3.69 per pound; Russet potatoes, up 8 cents to $2.26 for a five-pound bag; orange juice, up 5 cents for a half-gallon to $2.98; and toasted oat cereal, up 2 cents to $2.97 for a 9-ounce box.

Compared to a year ago, eggs increased 16 percent; apples increased 11 percent and toasted oat cereal increased 2 percent.

Two foods declined slightly in price compared to the prior quarter: white bread, down 11 cents to $1.71 for a 20-oz. loaf; and ground chuck, down 6 cents to $2.63 per pound.

Several items from the meat case decreased in price compared to one year ago: chicken breasts (down 13 percent), ground chuck (down 10.5 percent) and sirloin tip roast (down 7.5 percent).

The year-to-year direction of the marketbasket survey tracks with the federal government’s Consumer Price Index ( report for food at home. As retail grocery prices have increased gradually over time, the share of the average food dollar that America’s farm and ranch families receive has dropped.

“From about the mid-1970s, farmers received about one-third of consumer retail food expenditures for food eaten at home and away from home, on average. Since then, that figure has decreased steadily and is now just 19 percent, according to Agriculture Department statistics,” Anderson said.

Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this quarter’s $45.54 marketbasket would be $8.65.

AFBF, the nation’s largest general farm organization, has been conducting the informal quarterly marketbasket survey of retail food price trends since 1989. The mix of foods in the marketbasket was updated during the first quarter of 2008.

According to USDA, Americans spend just under 10 percent of their disposable annual income on food, the lowest average of any country in the world. A total of 73 shoppers in 30 states participated in the latest survey, conducted in early March.

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