agriculture * food * energy * environment
6 Jan
Retail food prices at the supermarket increased slightly during the fourth quarter of 2010, according to the latest American Farm Bureau Federation Marketbasket Survey.
The informal survey shows the total cost of 16 food items that can be used to prepare one or more meals was $46.97, up 80 cents or about 2 percent compared to the third quarter of 2010. Of the 16 items surveyed, nine increased, six decreased and one remained the same in average price compared to the prior quarter. The total average price for the 16 items was up $4.07 (about 10 percent) compared to one year ago.
Bacon, eggs, whole milk, sliced deli ham and bread increased the most in dollar value compared to the third quarter, according to the survey.
Bacon increased 68 cents to $4.32 per pound; eggs and whole milk increased 19 cents to $1.60 per dozen and $3.35 per gallon, respectively; sliced deli ham increased 18 cents to $4.84 per pound; and bread increased 14 cents to $1.75 for a 20-ounce loaf.
“Hearty breakfast lovers felt the pinch in the fourth quarter of 2010,” said AFBF Economist John Anderson. “Increased consumer demand for meats and dairy products that began in 2009 continued through the fourth quarter of 2010. Wholesale meat supplies remained tight in the fourth quarter of the year, due to smaller livestock herds and poultry flocks, which also contributed to the retail price increases our volunteer shoppers reported.”
Here in Nebraska, another report, released by the Nebraska Appleseed Center for Law in the Public Interest, said that the cost of providing for basic needs such as housing, food, and clothing, has increased for families over the last two years in Nebraska. The new report “The Self Sufficiency Standard for Nebraska 2010″ was released this week by the Nebraska Appleseed Center for Law in the Public Interest.
“The Self-Sufficiency Standard for Nebraska 2010″ measures how much money a family of a certain composition in a given county in Nebraska must earn to meet their basic needs, without public or private assistance. Basic needs include: housing, child care, food, transportation, health care, miscellaneous expenses (clothing, telephone, household items), and taxes (minus federal and state tax credits). Most cost estimates are based on current market rates.
The study reveals that there is not one county in Nebraska where a single parent earning minimum wage can meet their family’s basic needs, according to Rebecca Gould, Executive Director at Nebraska Appleseed.
The findings coincide with the latest U.S. Census report that found the number of poor people in the U.S. is millions higher than previously known, with 1 in 6 Americans — many of them 65 and older — struggling in poverty due to rising medical care and other costs.
According to the Associated Press, government aid programs such as tax credits and food stamps kept many people out of poverty, helping to ensure the poverty rate did not balloon even higher during the recession in 2009.
Under a new revised census formula, the Associated Press reported that overall poverty in 2009 stood at 15.7 percent, or 47.8 million people. That’s compared to the official 2009 rate of 14.3 percent, or 43.6 million, that was reported by the Census Bureau last September.
Across all demographic groups, Americans 65 and older sustained the largest increases in poverty under the revised formula — nearly doubling to 16.1 percent. As a whole, working-age adults 18-64 also saw increases in poverty, as well as whites and Hispanics. Children, blacks and unmarried couples were less likely to be considered poor under the new measure.
Due to new adjustments for geographical variations in costs of living, people residing in the suburbs, the Northeast and West were the regions mostly likely to have poor people — nearly 1 in 5 in the West, the Associated Press reported.
The Self-Sufficiency Standard for Nebraska 2010 was produced for Nebraska Appleseed and the Nebraska Children and Families Foundation. The Standard was calculated and written by Dr. Diana Pearce at the University of Washington Center for Women’s Welfare. The Self Sufficiency Standard and supporting documents can be accessed on-line at NeAppleseed.org/lowincome.
Other items in the American Farm Bureau Federation Marketbasket Survey that increased in price since the third quarter were sirloin tip roast, up 9 cents to $3.95 per pound; shredded cheddar cheese, up 7 cents to $4.16 per pound; toasted oat cereal and vegetable oil, up 4 cents each to $2.88 for a 9-ounce box and 32-ounce bottle, respectively.
Most items showing an increase in retail price from quarter-to-quarter also showed year-to-year increases. Compared to one year ago, bacon was up 44 percent, eggs were up 4 percent, whole milk was up 10 percent and sliced deli ham was up 11 percent.
“Increasing our nation’s livestock herd to meet the growing demand for meat and dairy products takes time, so we are likely to see retail prices continue to increase for some foods throughout 2011,” Anderson said.
Six foods decreased slightly in price compared to the prior quarter: boneless chicken breasts, down 34 cents to $3.10 per pound; flour, down 16 cents to $1.99 for a 5-pound bag; Russet potatoes, down 13 cents to $2.50 for a 5-pound bag; ground chuck, down 10 cents to $2.83 per pound; and bagged salad, down 6 cents to $2.69 per pound.
Orange juice remained the same in price at $2.97 for a half-gallon.
As retail grocery prices have increased gradually over time, the share of the average food dollar that America’s farm and ranch families receive has dropped, according to Anderson of the Farm Bureau.
“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. Since then, that figure has decreased steadily and is now just over 20 percent, according to Agriculture Department statistics,” Anderson said.
Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this quarter’s $46.97 marketbasket would be $9.39.
According to USDA, Americans spend just under 10 percent of their disposable annual income on food, the lowest average of any country in the world. A total of 92 shoppers in 29 states participated in the latest survey, conducted in late October/early November.
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