WASHINGTON, D.C. — Higher feed costs during the past two years and lower livestock numbers are cited as the key reasons for recent spikes in beef and pork prices, according to the American Farm Bureau Federation’s (AFBF) latest survey.
It conducts its Marketbasket survey every six months to look at retail prices for 16 key items; in the most recent survey released last week, seven of the items rose in price since the beginning of the year and nine items decreased in price.
But it was beef and pork prices that saw the largest increases. At the top was sirloin tip roast, which increased in price to an average of $5.52 per pound, or 27 percent. Ground chuck’s price spiked 17 percent to an average of $4.31 per pound.
"Several beef, pork and dairy products rose in price during the second half of the year, accounting for much of the increase in the Marketbasket," said John Anderson, AFBF’s deputy chief economist.
Overall, though, the average price of all 16 items increased by 2 percent – an increase in line with the Consumer Price Index and in the range most economists predicted last year, Anderson noted.
"As anticipated, food prices have increased moderately – by about 2 percent – during 2014, which is essentially in line with the average rate of inflation over the past 10 years," he explained.
Sliced deli ham also went up significantly, to an average of $5.44 per pound, or 16 percent. The other items with price increases included: bacon, up 9 percent to $5.11 per pound; shredded cheddar, 6 percent to $4.78 per pound; eggs, 7 percent to $1.95 per dozen; and whole milk, 2 percent to $3.78 per gallon.
Items that saw decreases included: russet potatoes, down 15 percent to $2.72 for a 5-pound bag; vegetable oil, 14 percent to $2.69 for a 32-ounce bottle; chicken breast, 12 percent to $3.46 per pound; bagged salad, 10 percent to $2.55 per pound; orange juice, 8 percent to $3.21 per half-gallon; flour, 7 percent to $2.47 for a 5-pound bag; white bread, 6 percent to $1.72 for a 20-ounce loaf; toasted oat cereal, 3 percent to $2.99 for a 9-ounce box; and apples, 2 percent to $1.56 per pound.
All totaled, the 16 items cost $54.62, up about 2 percent. Anderson noted as retail grocery prices have increased gradually over time, the share of the average food dollar America’s farm and ranch families receive continues to drop.
"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 16 percent, according to the (USDA’s) revised Food Dollar Series," he said.
Based on that series, he added, the farmers’ share of the $54.26 Marketbasket is now $8.68.
