WASHINGTON—A recent Marketbasket Survey conducted by the American Farm Bureau Federation (AFBF) reveals retail food prices at the supermarket increased 4 percent from first quarter 2010, which means consumer will be shelling out about $47.20 to purchase 16 food items that can be used to prepare one or more meals.
The average price for the 16 items increased about 2 percent compared to one year ago, and of the 16 items surveyed, nine increased and seven decreased in average price compared to the prior quarter.
Sirloin tip roast, sliced deli ham, bacon, boneless chicken breasts and ground chuck increased the most in dollar value since the first quarter. Sirloin tip roast and sliced deli ham increased 41 cents to $4.10 and $5.24 per pound, respectively; bacon increased 33 cents to $3.53 per pound; boneless chicken breasts increased 32 cents to $3.25 per pound; and ground chuck increased 26 cents to $2.89 per pound.
“Consumers are paying a bit more for most meats at the grocery store on average this quarter,” said AFBF Economist John Anderson. “As livestock producers of all types have reduced the size of their herds, wholesale meat supplies have tightened up, which is now affecting consumers.”
Other items that saw price increases were bagged salad, up 13 cents to $2.80 for a 1-pound bag; flour, up 9 cents to $2.35 for a 5-pound bag; bread, up 5 cents to $1.76 for a 20-ounce loaf; and orange juice, up 2 cents for a half-gallon to $3. Eggs increased 14 percent; bacon increased 11 percent and sliced deli ham increased 9 percent, compared to one year ago.
Seven foods dropped in price compared to first quarter: Russet potatoes, down 25 cents to $2.51 for a 5-pound bag; eggs, down 21 cents to $1.53 per dozen; vegetable oil, down 13 cents to $2.61 for a 32-oz. bottle; shredded cheddar cheese, down 10 cents to $4.16 for one pound; whole milk, down 9 cents to $3.06 per gallon; apples, down 4 cents to $1.46 per pound; and toasted oat cereal, down 2 cents to $2.95 for a 9-oz. box.
Several of the items showed year-to-year declines, including potatoes, 9 percent; vegetable oil, 8 percent; shredded cheddar cheese, 3 percent; and flour, 3 percent.
“The economic recovery continues to be very slow,” Anderson said. “Where retail food prices will head in the next quarter or two is uncertain and depends to some degree on whether or not consumer confidence remains soft or begins a strong rebound.”
He noted as retail grocery prices have increased over time, the share of the average food dollar that U.S. farmers and ranchers receive has dropped. Beginning in the mid-1970s, farmers received about one-third of consumer retail food expenditures for food eaten at home and away from home. That figure has decreased to just 19 percent, according to USDA statistics.
Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this quarter’s $47.20 marketbasket would be $8.97.
