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Egg, Dairy, Chicken And Beef Prices Decline

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Lower retail prices for several foods, including eggs, whole milk, cheddar cheese, chicken breast, sirloin tip roast and ground chuck, resulted in a decrease in the American Farm Bureau Federation’s Fall Harvest Marketbasket Survey.

The informal survey shows the total cost of 16 food items that can be used to prepare one or more meals was $49.70—down $4.40, or 8 percent—compared to a survey conducted a year ago. Of the 16 items surveyed, 13 decreased and three increased in average price.

Egg prices dropped significantly due to production recovering well from the 2014 avian influenza, according to John Newton, AFBF director, market intelligence. Milk prices are down substantially, particularly compared to record-highs in 2014, due to the current global dairy surplus.

“For all commodities in agriculture there is a lot of product on hand and prices are depressed,” Newton said.

“Dry conditions in the Northeast and Northwest the last few years likely contributed to smaller supplies and higher retail prices for apples,” Newton said.

In addition, he said salad prices are up due to lower output, particularly in California and Arizona.

The year-to-year direction of the marketbasket survey tracks with the federal government’s Consumer Price Index report for food at home. 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.

“Through 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 about 17 percent, according to the Agriculture Department’s revised Food Dollar Series,” Newton said.

Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this $49.70 marketbasket would be approximately $8.45.

AFBF, the nation’s largest general farm organization, began conducting informal quarterly marketbasket surveys of retail food price trends in 1989. The series includes a Spring Picnic survey, Summer Cookout survey, Fall Harvest survey and Thanksgiving survey.

According to USDA, Americans spend just less than 10 percent of their disposable annual income on food, the lowest average of any country in the world. A total of 59 shoppers in 26 states participated in the latest survey, conducted in September.

marketbasket

About the author

Kristen Cloud

Kristen was Editor at The Shelby Report.

2 Comments

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  • Sales is a measurement to look at however, the best measurement for judging retail food chain performance is Comp Purchase Incident which is measured as follows.

    Grocery,fozen &GM units per 1000 customers

    Meat & seafood pounds per 1000 customers

    This takes inflation and deflation out of the measurement

    Charlie Bergh

  • the federal milk market has risen the past 3 months thus increasing the price of milk, not decreasing.

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