The informal survey shows the total cost of 16 food items that can be used to prepare one or more meals was $54.26, up $1.06 or about 2 percent compared to a survey conducted about a year ago. Of the 16 items surveyed, seven increased and nine decreased in average price.
“Several beef, pork and dairy products rose in price during the second half of the year, accounting for much of the increase in the marketbasket,” said John Anderson, AFBF’s deputy chief economist. “As anticipated, food prices have increased moderately – by about 2 percent – during 2014, which is essentially in line with the average rate of inflation over the past 10 years.”
Items showing retail price increases from a year ago include:
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
Price checks of alternative milk and egg choices not included in the overall marketbasket survey average revealed the following: 1/2 gallon regular milk, $2.51; 1/2 gallon rBST-free milk, $3.31; 1/2 gallon organic milk, $4.05; and 1 dozen “cage-free” eggs, $3.65.
“On the retail side, we’re seeing higher beef prices which can be attributed to lower production,” Anderson said. “Consumers can expect to pay a little more for their bacon cheeseburgers as we look toward the end of the year.”
The year-to-year direction of the marketbasket survey tracks closely with the federal government’s Consumer Price Index (http://www.bls.gov/cpi/) 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 farmers’ share of the $54.26 marketbasket is $8.68.
AFBF, the nation’s largest general farm organization, conducted an informal quarterly marketbasket survey of retail food price trends from 1989 to 2012. In 2013, the marketbasket series was updated to include two semi-annual surveys of “everyday” food items, a summer cookout survey and the annual 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 27 states participated in the latest survey, conducted in September.
