INDIANAPOLIS, Ind. — What a difference a year can make – with egg and cereal prices down by more than $1, grocery store prices in Indiana have dropped by more than 14 percent from last year, according to an informal survey conducted by Indiana Farm Bureau (IFB).

 

IFB is hesitant to call it a historic drop because its annual spring marketbasket survey was updated in 2012 to reflect current shopping practices. Nevertheless, the plunging prices are well beyond the normal 4-5 percent swing from year to year, said Kathleen Dutro, IFB publications managing editor.

 

The national survey by American Farm Bureau Federation (AFBF) also reflected a decline of about 6 percent. Both state and national surveys are performed by volunteer shoppers who visit their local grocery to record prices.

 

AFBF leaders attributed the lower prices in part to lower commodity prices. “As expected, due to lower farmgate prices, we have seen continued declines in retail prices for livestock products, including eggs, beef, chicken, pork and cheese,” said John Newton, AFBF’s director of market intelligence. “As farmgate prices for livestock products have declined and remained lower, prices in the retail meat case have become more competitive.”

 

The lower prices at the grocery store are neither bad nor good news for farmers per se, Dutro said. “We know farm prices are not good and haven’t been for a while, and they have finally worked through the system. But farmers are consumers too, and I’m sure they are happy that eggs are a dollar cheaper,” she noted.

 

In the Indiana marketbasket, the total cost of $45.99 for 16 food items is the lowest since 2012, when the current list was adopted. Last year the total was $52.61.

 

Among those items, the biggest price changes were recorded for cereal, eggs, orange juice and boneless chicken breasts. Cereal was down $1.11 to $2.04 for a 10-ounce box. Eggs were down $1.04 per dozen, to $1.22. Orange juice declined 82 cents to $2.80 for a half-gallon. Boneless chickenbreasts were $2.59 per pound, a 77-cent decrease.

 

“Whether prices rise or fall, it’s important to remember that the farmer’s share of our food dollar remains really low and that it’s changed very little over the past few years,” noted Isabella Chism, IFB second vice president and chair of the INFB Women’s Leadership Committee, which coordinates the survey.

 

“On average, about 16 cents out of every food dollar goes to the farmer, according to the U.S. Department of Agriculture. The remaining 84 percent goes to the other parts of the food industry – those that get that food from the farm to our grocery stores and restaurants.”

 

The largest part of every food dollar goes to foodservice establishments (34.4 cents), such as restaurants, and food processors (15.6 cents), based on research by the USDA in 2015.

 

The results of the marketbasket survey track closely with the U.S. Consumer Price Index report (www.bls.gov/news. release/cpi.nr0.htm). The survey shows the United States continues to have a safe, affordable and high-quality food supply, Newton said.

 

In another year, grocery prices could tell a different story, said Travis Van Horn, communications coordinator with the National Grocers Assoc.

 

“While supermarket profits declined last year mostly due to deflation, there are indicators pointing to growth in 2017. A recent report from Moody’s Investor Service estimates the supermarket sector’s operating profits to grow about 8 percent this year,” Van Horn said.

 

The IFB survey is part of a nationwide survey compiled by the AFBF from data supplied by state Farm Bureaus.

 

AFBF has been conducting the informal quarterly marketbasket survey of retail food price trends since 1989.

 

The series includes a spring survey, summer cookout survey, fall survey and Thanksgiving survey. A total of 117 shoppers (11 from Indiana) in 31 states participated in the latest survey, conducted in March.

 

The survey’s remaining prices compared to a year ago are the following:

 

•Vegetable oil, down 68 cents to $1.79 for a 32-ounce bottle

•Sirloin tip roast, down 67 cents a pound to $4.89

•Whole milk, down 51 cents to $2.27 a gallon

•Ground chuck, down 49 cents to $3.83 a pound

•Potatoes, down 26 cents per 5-pound bag to $2.47

•White bread, down 24 cents per 20-ounce loaf to $1.26

•Bacon, down 17 cents to $4.68 a pound

•Flour, down 16 cents per 5-pound bag to $2.15

•Apples, down 8 cents to $1.79 a pound

•Shredded cheddar cheese, down 4 cents per pound to $4.08

•Sliced deli ham, up 37 cents to $6.02 a pound •Bagged salad mix, up 5 cents to $2.11 a pound