Food Prices Drop for Second Consecutive Quarter
Arizona, April 8, 2009 – For the second time in two quarters, Arizona retail food prices at the supermarket decreased in the first quarter of 2009, according to the latest Arizona Farm Bureau Federation Marketbasket Survey. The informal survey shows the total cost of 16 basic grocery items was $54.43, down $.32 from the fourth quarter of 2008. Comparatively, the American Farm Bureau Federation’s national survey was $47.41, down 5.5 percent or $2.80 cents during the quarter. This first quarter marketbasket for 2009 also reflects updated food items to better represent today’s American shopper.
Since 1989, American Farm Bureau has conducted a Marketbasket Survey of 16 selected food items. New this quarter, Farm Bureau reports average retail prices on 11 of the original and five new or different forms of items to reflect changing consumer demand. Sliced deli ham replaces pork chops; shredded cheddar cheese replaces block; whole fryers became chicken breast while mayonnaise and corn oil were dropped. Two new items round out the list, orange juice and bagged salad. Prices for these items were documented in 2008 allowing for quarterly comparisons of the new list.
“About two years ago, American and Arizona Farm Bureau began working toward an update of the food basket survey due to consumer shifts in food buying, said Jim Sartwelle, an American Farm Bureau economist. “Farm Bureau looked at data from the Food Marketing Institute about how Americans currently shop for groceries, and based on the data determined which items to drop and which to add.”
According to Julie Murphree, Arizona Farm Bureau Public Relations, Marketing and Education Director, food prices fluctuate as does consumer demand. “Despite the current downturn, today’s shoppers appear to be balancing cost and convenience to feed their families.” Murphree also points out that food choices are influenced by cost, convenience or culinary skills. “For example, chicken breast prices average $4.75 per pound compared to whole fryers at $1.34,” says Murphree. “Many consumers prefer the more costly cut due to convenience in preparation and serving, while others see this as an opportunity in today’s economic environment to save by purchasing the whole bird and bringing out the crock pot.”
Of the 16 items surveyed in Arizona, seven decreased, seven increased, and two remained the same price compared to the 2008 fourth-quarter survey. The national survey shows 11 decreased and five increased. While Arizona’s overall marketbasket is still higher than the national average, this is the second consecutive quarter showing a decrease in Arizona food prices.
To access an entire menu focused on those food items down in price in the first quarter and designed around stretching your food dollar, go to www.fillyourplate.org. Look for the “Stretch Your Food Dollar” menu and the additional food savings tips.
In Arizona, orange juice showed the greatest decrease in price down $1.40 to $2.49 for the ½ gallon container; shredded cheese down $1.31 to $3.65 a pound; a 5-pound bag flour down 50 cents to $ 3.19; milk down 20 cents to $2.87 a gallon; boneless chicken breasts down 4 cents to $4.75 a pound; 32 oz bottle of vegetable oil down 3 cents to $4.29; and red delicious apples down 1 cents a pound to $1.46.
And while milk and dairy in general, is an extremely good buy for Arizona consumers, the dairy industry is concerned about current economic conditions. “Given the suddenness and severity of the plunge in farm-level milk prices, a significant number of farmers won’t survive much longer with the milk prices they’re receiving,” said Paul Rovey, Chairman of the Board for United Dairymen of Arizona. “The farm-level milk prices in February were down nearly 50 percent from the beginning of 2008, even though farmers’ input costs, including feed and fuel, are still above historic averages. The economic downturn, growth in world supplies of dairy products, lower international and domestic demand, and high input costs are leaving farmers unable to even cover their input costs.”
Sliced deli ham and ground beef showed the largest retail price increases. Sliced deli ham was up 79 cents to $5.38 a pound and ground beef was up 30 cents to $3.99 a-pound. The other items that increased in price were toasted oat cereal up 24 cents to $3.23 for the 8.9 ounce box; eggs up 20 cents to $1.99 a dozen; bacon up 19 cents to $3.88 a-pound; sirloin tip roast up 14 cents to $4.99 a-pound and American salad mix up 10 cents to $2.99 for the 1 pound bag.
Prices remained the same on a 5-pound bag of russet potatoes for $3.69 and a 20 oz loaf of white bread for $1.59
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 Sartwelle.
Using the “food at home and away from home” percentage across-the-board, the Arizona farmer’s share of this quarter’s $54.43 marketbasket total would be $10.34.
According to USDA, Americans spend approximately 10 to 12 percent of their disposable income on food, the lowest average of any country in the world.
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 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.
Stretch Your Food Dollar Menu V
Arizona Farm Bureau put together a menu to help you stretch your food dollar by utilizing items that have gone down in price. This quarter’s items down in price are orange juice, milk, flour, shredded cheddar cheese, boneless chicken breast, vegetable oil and apples. Items unchanged are potatoes and white bread. Arizona Farm Bureau recommends stocking up on meat items as they are ideally priced. To obtain actual recipes for the “Stretch Your Food Dollar Menu V” go to www.fillyourplate.org and click on the recipe tab.
Menu for the Week:
Sunday: Lemon Chicken
Roasted Potatoes/with seasonings
Baked Apples
Milk or Iced Tea
Monday: Pulled Pork
Wedge Salad
Milk
Tuesday: Chicken Enchiladas
Bread or corn chips
Milk
Wednesday: Easy Mexican Casserole
Mixed green salad
Milk or Iced Tea
Thursday: Chicken Ala King over noodles or rice
Mixed vegetables
Milk or Iced Tea
Friday: Quesadillas (build your own)
Chips and Salsa
Fruit of the season salad
Milk or Iced Tea
Saturday: Grilled hamburgers and hot dogs
Grilled veggie kabobs
Carrot bread with orange juice glaze
Milk or Iced Tea
***You may adjust this suggested menu to your family’s likes and needs*
Shopping list
Dry goods:
Hamburger buns
Hot Dog buns
1 dozen Flour tortillas
1 dozen corn tortillas
1 bag tortilla or corn chips
1 package egg noodles
Produce:
5 lbs potatoes
2 heads iceberg lettuce
1 bag American salad mix
4 or 5 large apples
1 summer squash
1 bell pepper
2 oranges
1 bunch grapes
2 bananas
1 pint strawberries
1 medium yellow onion
Dairy:
2- gallons milk
4-cup bag of shredded cheese
1 dozen eggs
Pantry items you might have on hand:
Minute rice Flour
Corn (canned) Brown sugar
Bacon bits Baking soda
Vegetable oil Baking powder
Salad dressing Sugar
Cinnamon
Meats:
5 lbs pork roast
2 lbs ground beef
1 package hot dogs
3- whole chickens
Misc:
1 can mushroom soup
1 jar salsa
1 pack frozen cobbetts
1 can Rotel tomatoes with chilis
About the 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 480.635.3609
Easter Family Dinner Menu
Stretch your families food dollars on Easter with this dollar saving menu. Make it a family activity and have the kids decorate the cupcakes while you bake the ham.
Baked Ham
Mashed potatoes
Fruit Salad
Baked apples or Waldorf salad
Easter Cupcakes (decorated)
(Easter dinner foods are not on the shopping list)
