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American Food Prices Trending Lower
USAgNet - 09/27/2016

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 from prior years, particularly compared to record-highs in 2014, due to the current global dairy surplus.

"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 in the West, particularly in California and Arizona.

Price checks of alternative milk and egg choices not included in the overall marketbasket survey average revealed the following: 1/2 gallon regular milk, $1.86; 1/2 gallon organic milk, $4.26; and one dozen “cage-free” eggs, $3.48.

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.

According to USDA, Americans spend just under 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.

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