Retail Food Prices Drop → Southern Livestock Standard - The definitive news and information source for the beef segment of the livestock industry.

For the second consecutive quarter - retail food prices have dropped slightly at the grocery store. That’s according to the American Farm Bureau Federation's latest Marketbasket Survey - which shows a 5.5-percent - or $2.80 - decline in prices from the fourth quarter of 2008. The informal survey shows a total cost of $47.41 for 16 basic grocery items that can be used to prepare a meal. When compared with prices in the first quarter of last year - consumers are paying just under one-percent less.

Eleven of the items decreased in price. The remaining items increased in average price compared to the previous survey. Consumers saw the biggest price declines in shredded cheddar cheese - down 70-cents per pound; milk - down 67-cents per gallon; and vegetable oil - 38-cents less for a 32-ounce bottle. Those price breaks account for most of the overall marketbasket decrease. Farm Bureau Economist Jim Sartwelle says continued weak demand overseas for U.S. dairy products combined with increased on-farm production are behind the softening retail prices for cheese and milk. Russet potatoes, eggs, toasted oat cereal, apples, boneless chicken breasts, bacon, white bread and orange juice round out the items that decreased in price.

As for those products increasing in price - ground chuck and sliced deli ham will each cost you eight-cents more per pound; sirloin tip roast is five-cents more per pound; a five pound bag of flour costs an extra nickel; and American salad is up two-cents for a one-pound bag.

If you’ve followed the marketbasket survey - you may notice some changes to the food items included. Sliced deli ham, shredded cheddar cheese, chicken breasts, orange juice and bagged salad are new to the list. They’ve replaced pork chops, block cheddar cheese, whole chicken fryers, mayonnaise and corn oil. Sartwelle says the balance of foods has been adjusted to track more closely with the way Americans currently shop for groceries. Though he says those foods no longer reported are still staples in the American diet. The volunteer shoppers have been gathering data on the new additions since the first quarter of 2008 - so Farm Bureau will be able to provide year-to-year and quarter-to-quarter comparisons on the updated marketbasket of foods.

90 volunteer shoppers in 32 states took part in AFBF's Marketbasket survey for the first quarter of 2009. The survey was conducted in late February and early March.

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Retail Food Prices Drop

published: April 4th 2009
source: American Farm Bureau

home → articles → Marketing | Email to a Friend

Retail Food Prices Drop

published: April 4th 2009source: American Farm Bureau

published: April 4th 2009
source: American Farm Bureau