By TIM THORNBERRY
Kentucky Correspondent

LOUISVILLE, Ky. — Last year, most consumers felt the pinch of the recession in some fashion. Buying groceries, however, was one thing that saw a reduction in prices, according to the annual food price survey conducted by the Kentucky Farm Bureau Assoc. (KFB).
The quarterly survey showed a 5.6 percent decline in 2009. Last December, an examination of 40 popular grocery items cost an average of $105.28, as compared to the $111.63 it would have cost at the beginning of 2009. Prior to this, the last price check had been in October, when prices were an average of 1 cent lower.

According to information from the KFB, “Of the seven food groupings in the survey, only poultry showed significant movement in the last quarter of 2009. The average for five poultry products was up 6.1 percent and was fueled by a 20-cent per-pound hike for chicken breasts and a 33-cent rise for a dozen extra large eggs. Egg prices typically go up during the holiday season due to increased demand for baking.”

The survey also noted a significant drop in milk prices – to which most dairy farmers could attest. The prolonged period of cheaper milk prices ended in the fourth quarter of 2009 with whole milk at $3.05, or 35 cents higher than in October. Even with that year-end increase, the price was still significantly lower than last year’s average at this time, which stood at $3.53.

Some items of note that saw decreases in price over the October survey included sirloin steak, pork chops, ham, butter, ice cream, potatoes and apples. Other higher-priced items included sausage, tomatoes, corn and bread, the KFB reported.

The food price survey has been conducted by the KFB for four decades. The American Farm Bureau Federation (AFBF) does a national survey that was published at about the same time as the Kentucky figures, with similar findings.

The AFBF Marketbasket Survey showed a decrease in supermarket prices for five consecutive quarters, with prices being “significantly lower” than a year ago. The analysis looked at the total cost of 16 food items that can be used to prepare a meal and found the cost to have dropped $3.13 from the third quarter of 2009, to $42.90. That reflected a 15 percent drop, or $7.31, as compared to one year ago.

The survey noted: “Russet potatoes, shredded cheddar cheese, deli ham, flour, bacon and boneless chicken breasts declined the most in dollar value from quarter to quarter.

“Potatoes dropped 47 cents for a five-pound bag to $2.18; shredded cheddar cheese dropped 43 cents per pound to $3.65; sliced deli ham dropped 40 cents per pound to $4.35; flour dropped 38 cents to $2.10 for a five-pound bag; bacon dropped 37 cents to $3 per pound; and boneless chicken breasts dropped 37 cents per pound to $2.71.”

AFBF economist Stefphanie Gambrell said record potatoes and less demand for other items contributed to lower prices.

“The 2009 U.S. potato harvest set a yield record for the sixth consecutive year. As a result, processors paid lower wholesale prices to potato farmers, which in turn benefitted consumers as grocers dropped retail prices,” she said.

“Sluggish consumer demand, particularly for meats and dairy products, also played a role in the lower retail grocery prices reported this quarter.”

 The savings at the store enjoyed by the consumer also equals less money at the farm, a trend that has in a downward direction for years.

“Beginning 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 now stands at just 19 percent, according to Agriculture Department statistics,” Gambrell said.