Food Prices Drop Once Again; 11.4% below Arizona's Price Peak During the Third Quarter 2008
Arizona, July 8, 2009 – For three consecutive quarters, Arizona retail food prices at the supermarket decreased in the second 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 $50.89, down 6.5 percent or $3.54 from the first quarter of 2009. Comparatively, the American Farm Bureau Federation’s national survey was $46.29, down 2 percent or $1.12 cents during the quarter. This second quarter marketbasket for 2009 reflects food items that represent today’s American shopper.
According to Julie Murphree, Arizona Farm Bureau Public Relations, Marketing and Education Director, “As demand continues to decrease you see the most dramatic price drops in meats, milk and eggs. These are the foods with the least processing costs.” Murphree also points out that food choices are influenced by cost, convenience or culinary choices. “For example, chicken breast prices average $3.49 per pound compared to whole fryers at $1.34,” says Murphree. “Even today, 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, 13 decreased and three increased compared to the 2009 first-quarter survey. The national survey shows 10 decreased and five increased, and one remained the same. While Arizona’s overall marketbasket is still higher than the national average, this is the third consecutive quarter showing a decrease in Arizona food prices.
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In Arizona, boneless chicken breast showed the greatest decrease in price down $1.26 to $3.49 a pound; Russet potatoes down $1.18 to $2.51 a 5-pound bag; a 32 ounce bottle of vegetable oil down 93 cents to $3.36; deli ham down 40 cents to $4.98 a pound; 5-pound bag of flour down 39 cents to $2.80; sirloin tip roast down 35 cents to $4.64 a pound; whole milk down 30 cents to $2.57 a gallon; 1 dozen eggs down 27 cents to $1.72; ground beef down 25 cents to $ 3.74 a pound; bacon down 19 cents to $3.69 a pound; red delicious apples down 6 cents a pound to $1.40; 1 pound bag of salad mix down 4 cents to $2.95 and toasted oat cereal down 2 cents for the 8.9 ounce box to $3.21.
Shredded cheddar cheese and orange juice showed the largest retail price increases. Shredded cheddar cheese was up $1.22 to $4.87 a pound; orange juice was up 84 cents to $3.33 a half gallon. The one other item that increased in price was the 20 ounce loaf of white bread up 4 cents to $1.63.
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 Jim Sartwelle, 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 $50.89 marketbasket total would be $9.67.
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.
