Food prices rising | Natural Resource Report
WASHINGTON, D.C., September 13, 2011 – Strong global demand, especially for pork and other protein-rich foods, was a primary driver behind higher retail prices at the supermarket during the third quarter of 2011, 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 $53.12, up $1.95 or about 4 percent compared to the second quarter of 2011. Of the 16 items surveyed, 13 increased, two decreased and one remained the same in average price compared to the prior quarter.
“Global demand for meat and dairy products remains strong and continues to influence retail prices here in the U.S.,” said AFBF Economist John Anderson. “Many nations around the world rely on America to provide the food they need to improve their standard of living, particularly through the addition of protein to the diet. Strengthened demand for meats began in 2009, continued through 2010 and remains important as we look ahead to the close of 2011.”
Other factors also came into play.
“On-farm production costs for energy, fertilizer and fuel continue on an upward trend but those costs are largely borne by farmers and ranchers. But, in addition, after food leaves the farm or ranch, higher costs for transportation, marketing, processing and storage are added,” Anderson explained. “As long as these costs remain elevated, consumers will continue to feel it in the form of higher food prices at the supermarket.”
Meat and dairy products accounted for about 40 percent of the quarter-to-quarter retail price increase. Boneless chicken breasts increased 24 cents to $3.33 per pound, bacon rose 23 cents to $4.41 per pound, sliced deli ham was up 17 cents to $5.43 per pound, shredded cheddar increased 14 cents to $4.70 per pound and whole milk was up 4 cents to $3.66 per gallon.
Other items that increased in price compared to the second quarter were Russet potatoes, up 36 cents to $3.43 for a 5-pound bag; Red Delicious apples, up 27 cents to $1.83 per pound; flour, up 21 cents to $2.73 for a 5-pound bag; vegetable oil, up 20 cents to $3.21 for a 32-ounce bottle; eggs, up 13 cents to $1.78 for one dozen; orange juice, up 10 cents to $3.28 for a half-gallon; bagged salad, up 6 cents to $2.73 for 1-pound bag; and bread, up 2 cents to $1.88 for a 20-ounce loaf.
via Food prices rising | Natural Resource Report.