October 10, 2007

 

US retail food prices up 7 percent on-year

 

 

Compared with one year ago, the overall cost for the 16 market basket items showed an increase of about 7 percent, according to the latest American Farm Bureau Federation Marketbasket Survey.

 

The survey also showed retail food prices at the supermarket increased slightly in the third quarter of 2007.

 

The informal survey shows the total cost of 16 basic grocery items in the third quarter was US$ 44.03, up about 2 percent or US$ 1.08 from the second quarter.

 

Of the 16 items surveyed, eight increased, seven decreased and one stayed the same in average price, the AFBF said.

 

For the second quarter in a row, regular whole milk showed the largest quarter-to-quarter price increase, up 48 cents to US$ 3.94 per gallon, followed by cheddar cheese, which rose 35 cents a pound to US$ 4.07, the survey showed. 

 

Pork chops showed the greatest drop in price, down 24 cents to US$ 3.39 a pound. However, bacon was up 16 cents to US$ 3.60 a pound;

 

Sirloin tip roast fell 13 cents to US$ 3.86; ground chuck and eggs down 4 cents each to US$ 2.81 per pound, US$ 1.51 a dozen respectively;

 

Whole chicken fryers stayed the same in price at US$ 1.28 a pound.

 

Dairy products continue to increase in price," said AFBF Economist Jim Sartwelle, in a Farm Bureau release. "Strong competition from overseas consumers for US milk products has helped drive prices to current levels.

 

"On the other hand, it was a pretty tough summer for beef and pork demand here at home. This is reflected in the third-quarter price slide for sirloin tip roast, ground beef and pork chops," he added.

 

As retail grocery prices have gradually increased, the share of the average food dollar that US farm and ranch families receive has dropped over time, the AFBF said.

 

"In the mid-1970s, farmers received about one-third of consumer retail food expenditures on average. That figure has decreased steadily over time and is now just 22 percent , according to Agriculture Department statistics," Sartwelle said.

 

AFBF, the nation's largest general farm organisation, conducts its informal quarterly marketbasket survey as a tool to reflect retail food price trends.

 

According to USDA statistics, US citizens spend a little less than 10 percent of their disposable income on food annually, the lowest average of any country in the world.