Arizona Food Prices Trend Upward in 1st Quarter
Arizona, April 6, 2011 – Arizona retail food prices at the supermarket are up in the first quarter of 2011, according to the latest Arizona Farm Bureau Federation Market Basket Survey. The informal survey shows the total cost of 16 basic grocery items was $47.85, up $2.41 or about 5% higher than the fourth quarter of 2010. Comparatively, the American Farm Bureau Federation’s national survey was $49.07, up $2.10 cents or 4% higher compared to the fourth quarter of 2010.
The Farm Bureau Market Basket Survey is unscientific, but serves as a gauge of actual price trends across the state. Arizona’s bargain shoppers statewide should find individual items at prices comparable to the Farm Bureau survey averages and certainly cheaper with discounts and in-store specials. Arizona Farm Bureau seeks to identify the best in-store price, excluding promotional coupons and special deals.
This Arizona first quarter Market Basket is up $1.89 or 4% compared to one year ago at this time.
Energy was the largest contributor to increased inflation in February, according to the Consumer Price Index (CPI) released March 17. Fuel oil was up 5.8 percent in February and a whopping 27.1 percent for the year, making it far and away the most inflationary item in the index. While the CPI’s increase in food prices, 2.3 percent over the previous 12 months was modest compared to energy, food landed in the No. 2 spot in the index.
While consumers are feeling the inflationary sting at the gas pump and grocery store, farmers are feeling it on the farm. Government figures show farmers this spring will pay almost 85 percent more than they paid in 2000 just to plant their crops.
“To feed the majority of Americans, crop and livestock agriculture must continually become more efficient, and in many cases, larger to spread energy and labor costs across more acres to help stabilize prices at the grocery store,” said John Boelts, vegetable farmer from Yuma, Arizona. Boelts, who said the cost for refueling one large tillage tractor can be more than $600, explained that labor and energy are the two operating costs that must be controlled.
Energy prices are expected to remain high and volatile in 2011. This could be another factor pressuring retail food prices to move higher in the coming year.
“Amidst today’s raising food prices, you may want to consider using “Stretch Your Food Dollar” menus and recipes,” said Julie Murphree, Arizona Farm Bureau Public Relations, Marketing and Education Director. “Maximize the use of the “Stretch Your Food Dollar” menu as a springboard to create your own menu and create meals around the items down in price. If potatoes are down in price, think of the different ways your family likes potatoes, then create a meal around that.”
To access an entire menu focused on those food items down in price in the fourth quarter and designed around stretching your food dollar, go to www.fillyourplate.org. Look for the latest “Stretch Your Food Dollar” menu and the additional food savings tips.
Of the 16 items surveyed in Arizona, six decreased and ten increased, compared to the 2010 fourth quarter survey. The national survey shows 13 increased, two decreased, and one stayed the same.
In Arizona, off-the-shelf prices for whole milk showed the greatest decrease in price down 38 cents to $2.04 a gallon; sliced deli ham down 36 cents to $4.55 a pound; orange juice down 31 cents to $2.84 for a half-gallon; eggs down 5 cents to $1.59 a dozen; apples down 4 cents to $1.29 a pound; boneless chicken breast is down 3 cents to $3.23 a pound.
Bacon showed the largest price increase up $1.11 to $4.79 a pound. The other items that increased in price were russet potatoes up 67 cents to $2.61 for the 5-pound bag; ground chuck up 42 cents to $3.72 a pound; toasted oat cereal up 34 cents to $2.85 for the 8.9-oz box; white bread up 27 cents to $1.66 a 20-oz loaf; shredded cheddar cheese up 24 cents to $4.37 a pound; a 32-oz bottle of vegetable oil up 21 cents to $2.23; a bag of salad mix up 14 cents to $2.81 a pound; sirloin roast up 11 cents to $5.03 a pound; and a 5-pound bag of flour up 7 cents to $2.24.
As retail grocery prices have gradually increased over time, the share of the average food dollar that America’s farm and ranch families receive has dropped. “In the mid-1970s, farmers received about one-third of consumer retail food expenditures for food eaten at home and away from home, on average. That figure has decreased steadily over time and is now just 19 percent, according to Agriculture Department statistics,” explains John Anderson, American Farm Bureau Economist.
Using the “food at home and away from home” percentage across-the-board, the Arizona farmer’s share of this quarter’s $47.85 Market Basket total would be $9.09.
