WASHINGTON,
D.C., April 4, 2005, AgPRonline: Retail prices
for food at the supermarket rose just under 2 percent
in the first quarter of 2005, according to the latest
American Farm Bureau Federation marketbasket survey.
According to the informal survey, the total cost of
16 basic grocery items in the 2005 first quarter was
$39.53, an increase of 66 cents from the 2004 fourth
quarter survey.
Although the survey showed food prices up from the
fourth quarter, they are down slightly from a year ago
and almost exactly the average of the proceeding four
quarters in 2004. “This suggests that the somewhat
volatile situation of the past year may be stabilizing,”
said AFBF Senior Economist Terry Francl. “Not
only were agricultural commodities subject to some fairly
wide price swings due to supply and demand conditions
in 2004, but higher energy prices added to transportation
and processing in the farm-to-retail price spread.”
Despite the slight increase in average prices found
by AFBF, Americans spend just 10 percent of their disposable
income on food annually, the lowest average of any country
in the world.
Of the 16 items surveyed, 12 increased and four decreased
in average price compared to the 2004 fourth quarter
survey.
Flour showed the largest increase, up 22 cents per
5-pound bag to $1.68, followed by bacon, which rose
14 cents per pound to $3.25. Eggs and apples rose 9
cents to $1.08 per dozen and $1.13 per pound, respectively.
Other items that increased in price:
- Whole fryers, up 7 cents per pound, to $1.21;
- Whole milk, up 7 cents per gallon, to $3.05;
- Sirloin tip roast, up 6 cents per pound, to $3.76;
- Toasted oat cereal, up 6 cents to $3.13 for a 10-oz.
box;
- Russet potatoes, up 5 cents to $1.80 per 5-pound
bag;
- Ground chuck, up 3 cents to $2.60 per pound;
- Pork chops, up 1 cent to $3.30 per pound; and
- Cheddar cheese, up 1 cent to $3.77 per pound.
“Meat and dairy products were just slightly higher
in the first quarter, reflecting an ongoing tight supply
and demand situation,” said Francl. Improved exports
for broilers and processed poultry parts as well as
a slightly earlier than usual Easter season –
which always prompts egg demand – played a role
in the increased prices for whole fryers and eggs, according
to Francl.
Items that decreased in price from the fourth quarter
of 2004 were: a 32-oz. jar of mayonnaise, down 9 cents
to $3.18; a 32-oz. bottle of corn oil, down 8 cents
to $2.70; vegetable oil, down 6 cents per 32-oz. bottle
to $2.46; and white bread, down 1 cent per 20-oz. loaf
to $1.43.
Despite steady increases in grocery store average prices
over time, the share of the average food dollar received
by America's farm and ranch families has actually dropped.
“This reflects a long-standing trend,” said
Francl. “Thirty years ago farmers received about
one-third of consumer retail food expenditures. Now
it is only about 22 percent, according to Agriculture
Department statistics.”
Using that across-the-board percentage, the farmer's
share of this quarter's marketbasket average total would
be $8.70.
AFBF, the nation's largest general farm organization,
conducts its informal quarterly marketbasket survey
as a tool to reflect retail food price trends. A total
of 84 volunteer shoppers in 19 states participated in
this latest survey, conducted during the last week of
February and first week of March.
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