Arizona Retail Food Prices Up at the Beginning of 2008

Arizona Retail Food Prices up at the Beginning of 2008
Arizona food costs up 18% from a year ago; farmers’ input costs as much as 50% higher.
 
Arizona, April 1, 2008 – Retail food prices at the supermarket increased in the first quarter of 2008, according to the latest Arizona Farm Bureau Federation Marketbasket Survey. The informal survey shows the total cost of 16 basic grocery items was $53.53, up more than 8 percent or $4.33 from the fourth quarter of 2007, comparatively the American Farm Bureau Federation survey was $45.03, up about 8 percent or $3.42 during the quarter.  
 
Of the 16 items surveyed in Arizona, ten increased, five decreased and one kept the same average price compared to the 2007 fourth-quarter survey. The national survey shows 11 items increased, four decreased and one stayed the same. Compared to one year ago, the overall cost for the Arizona marketbasket items shows an increase of about 18 percent.
 
To access an entire menu focused on those items down in price and designed around saving on your food budget in addition to more tips on stretching your food dollar, go to www.azfb.org and look for the Fill Your Plate logo on the homepage. Once you select Fill Your Plate you’ll find the “Stretch Your Food Dollar” menu and the additional tips.
 
In Arizona a 5-pound bag of flour showed the largest quarter-to-quarter increase, up $1.13 to $3.69 or 44 percent. Other items that increased in price were:  One pound of bacon, up 93 cents to $3.69 a pound; mild cheddar cheese up 90 cents to $4.82 a pound; ground chuck  up 57 cents to $3.99 a pound; a gallon of whole milk up 50 cents to $4.15; 32 oz corn oil up 48 cents to $3.37; 32 oz. vegetable oil up 32 cents to $3.08; center cut pork chops up 30 cents per pound to $ 5.29; a dozen large eggs up 27 cents to $2.72 and 32 oz. Kraft mayonnaise up 16 cents to $3.72. Nationally, a 5-pound bag of flour also showed the largest price increase, up 69 cents to $2.39 followed by cheddar cheese, up 61 cents to $4.71 per pound.  
 
“The $1.13 increase in a five pound bag of flour reflects the continued strength in the wheat markets,” says Arizona Farm Bureau President Kevin Rogers. “Plus, when looking at all other food market items you recognize that more than a third of the increased food costs this quarter is attributed to your oil-based products including mayonnaise.”
 
In Arizona, russet potatoes showed the greatest decrease in price down 61 cents to $2.25 for a 5-pound bag; whole fryers were down 24 cents to $1.45 a pound; toasted oat cereal, down 17 cents to $3.25 for a 10-oz box; red delicious apples, down 14 cents to $1.62 a pound and a 20-oz loaf of white bread, down 7 cents.
 
Prices remained the same on a sirloin tip roast at $4.99 a pound. Prices remained steady on beef due to local supply and meat processing here in Arizona.
 
While retail grocery prices have gradually increased, the share of the average food dollar that America’s farm and ranch families receive has dropped over time.
 
“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,” said American Farm Bureau Economist Jim Sartwell.
 
Using that percentage across the board, the Arizona farmer’s share of this quarter’s $53.53 marketbasket total would be $11.78.
 
“We’re being hit with high prices like everyone else,” adds Arizona Farm Bureau’s Rogers. “Arizona farmers and ranchers are paying 10 to 50 percent more for a range of inputs and supplies compared to just over a year ago. Fertilizer and fuel top the list with the cost for each up as much as 50 percent. And, our returns are not keeping pace.”
 
Arizona Farm Bureau member, mother of four and educator Leigh Hurst suggests she’s making an even more concerted effort to save on her food budget. “With the rising cost of living and managing a family it’s become more critical than ever to be stewards of our family financial resources.” Aside from the typical recommendations of tracking weekly sales circulars from grocery stores and using coupons, Hurst, who taught in the public school system and is a certified master food preserver, even suggests using food preservation techniques such as canning, drying and freezing. “Plus, I don’t hesitate to stock up when I find a great deal. But remember that a food item on discount is not a bargain if no one will eat it or it spoils before it can be consumed.”
 
The Farm Bureau Marketbasket Survey is unscientific, but serves as a gauge of actual price trends across the state. Bargain shoppers statewide should find individual items at prices comparable to the Farm Bureau survey averages. Shoppers involved in this survey were asked to identify the best in-store price, excluding promotional coupons and special deals.
 
About Arizona Farm Bureau
Arizona Farm Bureau began a quarterly market basket starting the fourth quarter of 2006. The Arizona Farm Bureau is a grassroots organization dedicated to preserving and improving the Agriculture industry through member involvement in education, political activities, programs and services. Go to www.azfb.org to learn more. As a member services organization, individuals can become a member by contacting the Farm Bureau. For information on member benefits call 480.635.3606.
 
 
 
 
 
 
Fourth quarter-2007
 
  
 
 
    First quarter-2008
 
 
 
Arizona
National
 
   Arizona
National
Red Delicious apples
 
 $    1.76
 $    1.27
 
$    1.62
 $     1.40
Russet potatoes, 5 lbs
 $    2.86
 $    2.29
 
   $    2.25
 $     2.47
 
 
 
 
 
 
 
 
Ground Chuck, lb.
 
 $    3.42
 $    2.69
 
$    3.99
 $      2.73
Sirloin tip roast, lb.
 
 $    4.99
 $    3.75
 
$    4.99
 $      3.80
Center cut pork chops, lb.
 $    4.99
 $    3.39
 
$    5.29
$      3.31
Bacon, lb.
 
 
 $    2.76
 $    3.35
 
$    3.69
$      3.35
Whole fryers, lb.
 
 $    1.69
 $    1.28
 
$    1.45
$      1.37
 
 
 
 
 
 
 
 
Whole milk, gallon
 
 $    3.65
 $    3.91
 
$    4.15
$     3.81
Mild cheddar cheese, lb.
 $    3.92
 $    4.10
 
$    4.82
$     4.71
Eggs, one dozen large, Grade A
 $    2.45
 $    1.61
 
$    2.72
$     2.16
 
 
 
 
 
 
 
 
All-purpose flour, 5 lbs.
 $   2.56
 $    1.70
 
$   3.69
 $     2.39
Mazola corn oil, 32 oz.
 $    2.89
 $    2.43
 
$   3.37
 $     3.01
Crisco vegetable oil, 32 oz.
 $    2.76
 $    2.25
 
$   3.08
$     2.63
Kraft mayonnaise, 32 oz.
 $    3.56
 $    2.92
 
$   3.72
$     3.14
 
 
 
 
 
 
 
 
Cheerios, 10-oz. Box
 
 $    3.42
 $    3.05
 
$   3.25
$     2.97
White bread, 20-oz. Loaf
 $    1.52
 $    1.62
 
$   1.45
$     1.78
 
                                    Sidebar:  Tracking Milk and Egg Trends
Organic is 30% higher than regular milk
 
For the first quarter of 2008, shoppers reported the average price for a half-gallon of regular whole milk was $3.09, up 37 cents from the prior quarter. The average price for one gallon of regular whole milk was $4.15, up 50 cents. Comparing per-quart prices, the retail price for whole milk sold in gallon containers was about 25 percent lower compared to half-gallon containers, a typical volume discount long employed by retailers.
 
 The average price for a half-gallon of organic milk was $3.86, up 34 cents compared to the fourth quarter of 2007, or approximately 30 percent higher than the reported retail price for a half-gallon of regular milk ($2.95).
 
Compared to the first quarter of 2007, retail prices for regular milk in gallon and half-gallon containers rose 38 percent and 30 percent respectively during  
 
For the first quarter of 2008, the average price for one dozen regular eggs was $2.45, up 27 cents compared to the last quarter. The average price for “cage-free” eggs increased 50 cents to $3.59 per dozen, around 45 percent more per dozen than regular eggs.