Egg-Citing News – Food Prices Down for Easter

2017_Spring_Marketbasket_Graphic_vertLower retail prices for several foods, including eggs, ground chuck, sirloin tip roast, chicken breasts and toasted oat cereal resulted in a significant decrease in the American Farm Bureau Federation’s Spring Picnic Marketbasket Survey.

“As expected due to lower farm-gate prices, we have seen continued declines in retail prices for livestock products including eggs, beef, chicken, pork and cheese,” said John Newton, AFBF’s director of market intelligence.
The informal survey showed the total cost of 16 food items that can be used to prepare one or more meals was $50.03, down $3.25 or about 6 percent compared to a year ago. Of the 16 items surveyed, 11 decreased, four increased and one remained the same in average price.

Egg prices are down sharply from a year ago and also are down slightly from the third quarter of 2016.

“Egg prices continue to move back toward long-run average prices following the bird flu of 2014/15,” said Newton. “The Agriculture Department is currently monitoring bird flu detections in the Southeast U.S. If detections continue, retail poultry prices could feel an impact due to lower exports or changes in supply,” he said.

“As farm-gate prices for livestock products have declined and remained lower, prices in the retail meat case have become more competitive,” Newton said.

Retail price changes from a year ago:

  • eggs, down 41percent to $1.32 per dozen
  • toasted oat cereal, down 15 percent to $2.83 for a 9-ounce box
  • sirloin tip roast, down 13 percent to $4.95 per pound
  • ground chuck, down 10 percent to $3.92 per pound
  • chicken breast, down 6 percent to $3.17 per pound
  • apples, down 6 percent to $1.55 per pound
  • flour, down 5 percent to $2.36 for a 5-pound bag
  • shredded cheddar cheese, down 4 percent to $4.10 per pound
  • deli ham, down 3 percent to $5.42 per pound
  • bacon, down 3 percent to $4.65 per pound
  • potatoes, down 1 percent to $2.68 for a 5-pound bag
  • bagged salad, up 6 percent to $2.34 per pound
  • white bread, up 2 percent to $1.72 per 20-ounce loaf
  • orange juice, up 1 percent to $3.22 per half-gallon
  • whole milk, up 1 percent to $3.27 per gallon
  • vegetable oil, no change, $2.55 for a 32-ounce bottle

 

Price checks of alternative milk and egg choices not included in the overall marketbasket survey average revealed the following: 1/2 gallon whole regular milk, $2.10; 1/2 gallon organic milk, $4.20; and one dozen “cage-free” eggs, $3.48.

The year-to-year direction of the marketbasket survey tracks closely with the federal government’s Consumer Price Index (http://www.bls.gov/news.release/cpi.nr0.htm) 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.

“Through 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 about 16 percent, according to the Agriculture Department’s revised Food Dollar Series,” Newton said.

AFBF, the nation’s largest general farm organization, began conducting informal quarterly marketbasket surveys of retail food price trends in 1989. The series includes a spring picnic survey, summer cookout survey, fall harvest survey and Thanksgiving dinner cost survey.

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 117 shoppers in 31 states participated in the latest survey, conducted in March.

Eggs For Your Spring Basket Up, Salad and Orange Juice Down

Lower retail prices for several foods, including salad, orange juice, shredded cheddar, ground chuck, sirloin tip roast, vegetable oil, white bread, ground chuck, deli ham and orange juice, resulted in a slight decrease in the American Farm Bureau Federation’s Spring Picnic Marketbasket Survey.

The informal survey shows the total cost of 16 food items that can be used to prepare one or more meals was $53.28, down $.59 or about 1 percent compared to a survey conducted a year ago. Of the 16 items surveyed, ten decreased and six increased in average price.

CS16_054 Spring Marketbasket Graphic_vert“Egg prices are up sharply from first quarter of 2015, a year ago but are down even more sharply from the third quarter of 2015. This shows the effect of the HPAI (High Pathogenic Avian Influenza) event last year,” said John Anderson, AFBF’s deputy chief economist. “Prices soared in the latter half of last year, but are working their way back down as increasing production has started to catch up with demand, which has moderated prices somewhat,” he said.

Prices on the beef items in the marketbasket – ground chuck and sirloin tip roast – are lower compared with the first quarter of 2015, explained Anderson.  Retail beef prices peaked in early 2015 at record high levels.
“Since then, a combination of increasing beef production, weaker exports, and lower competing meat prices have led to modest price declines,” he said.

Dairy product prices also remain relatively low. At $4.29 for a one-pound bag, shredded cheddar cheese price is at the lowest price in this survey since the third quarter of 2012.  The whole milk price rose almost 3 percent from the third quarter of last year, but that third quarter price was the lowest price in the survey since 2010, noted Anderson.  The whole milk price remains well below the 2015 first-quarter price.
“Apple prices are up quite a bit year-over-year. This is a reversal of retail prices that were historically low in 2015,” said Anderson. Last year, the apple market faced a really tough export environment with labor disruptions at west coast ports as well as an increasingly strong dollar.

“Current retail apple prices are still below some pretty recent years, for example 2011 and 2012,” he said.

Items showing retail price decreases from a year ago included:

  • bagged salad, down 11 percent to $2.20 per pound
  • orange juice, down 8 percent to $3.21 per half-gallon
  • shredded cheddar cheese, down 7 percent to $4.29 per pound
  • whole milk, down 6 percent to $3.23 per gallon
  • ground chuck, down 5 percent to $4.36 per pound
  • vegetable oil, down 5 percent to $2.55 for a 32-ounce bottle
  • white bread, down 3 percent to $1.69 per 20-ounce loaf
  • flour, down 1 percent to $2.49 for a 5-pound bag
  • sirloin tip roast, down 1 percent to $5.65 per pound
  • potatoes, down 1 percent to $2.71 for a 5-pound bag

These items showed modest retail price increase compared to a year ago:

  • apples, up 12 percent to $1.64 per pound
  • eggs, up 9 percent to $2.23 per dozen
  • bacon, up 8 percent to $4.78 per pound
  • toasted oat cereal, up 6 percent to $3.31 for a 9-ounce box
  • chicken breast, up 3 percent to $3.37 per pound
  • deli ham, up 1 percent to $5.57 per pound

Price checks of alternative milk and egg choices not included in the overall marketbasket survey average revealed the following: 1/2 gallon regular milk, $2.13; 1/2 gallon organic milk, $4.32; and one dozen “cage-free” eggs, $3.67.

The year-to-year direction of the marketbasket survey tracks closely with the federal government’s Consumer Price Index (http://www.bls.gov/news.release/cpi.nr0.htm) 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.

“Through 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 about 16 percent, according to the Agriculture Department’s revised Food Dollar Series,” Anderson said.

Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this $53.28 marketbasket would be $8.52.

AFBF, the nation’s largest general farm organization, began conducting informal quarterly marketbasket surveys of retail food price trends in 1989. The series includes a spring picnic survey, summer cookout survey, fall harvest survey and Thanksgiving survey.

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 87 shoppers in 28 states participated in the latest survey, conducted in March.

Dairy and Bacon Prices Down, Apples Too

Lower retail prices for several foods, including whole milk, cheddar cheese, bacon and apples resulted in a slight decrease in the American Farm Bureau Federation’s Fall Harvest Marketbasket Survey.

The informal survey shows the total cost of 16 food items that can be used to prepare one or more meals was $54.14, down $.12 or less than 1 percent compared to a survey conducted a year ago. Of the 16 items surveyed, 10 decreased and six increased in average price.

Higher milk and pork production this year has contributed to the decrease in prices on some key foods.

“Energy prices, which affect everything in the marketbasket, have been quite a bit lower compared to a year ago. Processing, packaging, transportation and retail operations are all fairly energy-intensive,” said John Anderson, AFBF’s deputy chief economist. Lower energy prices account for much of the modest decrease in the marketbasket.

CS15_128 Fall Harvest Marketbasket SurveyThe following items showed retail price decreases from a year ago:

  • whole milk, down 17 percent to $3.14 per gallon
  • bacon, down 11 percent to $4.55 per pound
  • apples, down 7 percent $1.45 per pound
  • shredded cheddar, down 5 percent to $4.56 per pound
  • flour, down 4 percent to $2.37 per five-pound bag
  • bagged salad, down 4 percent to $2.46 per pound
  • vegetable oil, down 3 percent to $2.61 for a 32-ounce bottle
  • Russet potatoes, down 3 percent to $2.64 for a five-pound bag
  • white bread, down 1 percent to $1.69 for a 20-ounce loaf
  • chicken breast, down 1 percent to $3.42 per pound

These items showed modest retail price increases compared to a year ago:

  • eggs, up 56 percent to $3.04 per dozen
  • orange juice, up 7 percent to $3.43 per half-gallon
  • ground chuck, up 6 percent to $4.55 per pound
  • toasted oat cereal, up 3 percent to $3.09 for a nine-ounce box
  • sirloin tip roast, up 3 percent to $5.67 per pound
  • sliced deli ham, up 1 percent to $5.47 per pound

“As expected we saw higher egg prices because we lost so much production earlier this year due to the avian influenza situation in Iowa, Minnesota and some other Midwestern states,” Anderson said.

Price checks of alternative milk and egg choices not included in the overall marketbasket survey average revealed the following: 1/2 gallon regular milk, $2.21; 1/2 gallon organic milk, $4.79; and one dozen “cage-free” eggs, $4.16.

The year-to-year direction of the marketbasket survey tracks closely 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.

 

“Through 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 about 16 percent, according to the Agriculture Department’s revised Food Dollar Series,” Anderson said.

Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this $54.14 marketbasket would be $8.66.

AFBF, the nation’s largest general farm organization, began conducting informal quarterly marketbasket surveys of retail food price trends in 1989. The series includes a Spring Picnic survey, Summer Cookout survey, Fall Harvest survey and Thanksgiving survey.

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 69 shoppers in 24 states participated in the latest survey, conducted in September.

Where Does Your Food Dollar Go?

The American Farm Bureau recently released their semi-annual market basket survey, which shows people are paying a bit for food at the grocery store. Meat prices appear to be the main culprit of price increase. It really should have been an expected increase what with lower production in the beef and pork industry. Prices rose about two percent this year, which, according to the study, is essentially in line with the average rate of inflation over the past 10 years.

Here is a breakdown of the products included in the study.

Items showing retail price increases from a year ago include: 2014_Marketbasket_Survey_October

  • sirloin tip roast, up 27 percent to $5.52 per pound
  • ground chuck, up 17 percent to $4.31 per pound
  • sliced deli ham, up 16 percent to $5.44 per pound
  • bacon, up 9 percent to $5.11 per pound
  • shredded cheddar, up 6 percent to $4.78 per pound
  • eggs, up 7 percent to $1.95 per dozen
  • whole milk, up 2 percent to $3.78 per gallon

Items showing retail price decreases from a year ago include:

  • Russet potatoes, down 15 percent to $2.72 for a five-pound bag
  • vegetable oil, down 14 percent to $2.69 for a 32-ounce bottle
  • chicken breast, down 12 percent to $3.46 per pound
  • bagged salad, down 10 percent to $2.55 per pound
  • orange juice, down 8 percent to $3.21 per half-gallon
  • flour, down 7 percent to $2.47 for a five-pound bag
  • white bread, down 6 percent to $1.72 for a 20-ounce loaf
  • toasted oat cereal, down 3 percent to $2.99 for a 9-ounce box
  • apples, down 2 percent to $1.56 per pound

 

 

Now, before anyone starts blaming farmers for their “costly” bacon cheeseburger, think about this. Did you know farmers only receive about 16 cents of every dollar consumers spend on food? Are you surprised? Now put that in perspective. Where is the other 84 cents being spent? On processing, distribution, marketing, etc.

farmers dollar

The U.S Department of Agriculture runs numbers and keeps close track of what farmers are paying to stay in business and what kind of profit they take away after harvest. Their reports who farmer’s expenses continue to rise (13% since 2011) while farmer’s profits decrease. They are getting about 3.5% less for their products this latter part of 2014 than they did at the beginning of the year. So why do farmers and ranchers continue to run a business this way? Because of their love of the land and livestock, their willingness for hard work and their strong character.

In the end, I hope this will help people keep farmers in mind at the dinner table.

“The farmer is the only man in our economy who buys everything at retail, sells everything at wholesale and pays the freight both ways.” -John F. Kennedy

 

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