Minnesota Ag Connection - National/World News - AFBF Marketbasket: Bacon, Chicken, OJ All Cost More at Store

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AFBF Marketbasket: Bacon, Chicken, OJ All Cost More at Store
USAgNet - 09/26/2017

Higher retail prices for several foods, including bacon, chicken breast, orange juice, sliced deli ham and flour resulted in a slight increase 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 $51.13, up $1.43, or about 3 percent, compared to a survey conducted a year ago. Of the 16 items surveyed, 12 increased and four decreased in average price.

Several foods showed significant retail price increases from a year ago, including bacon, chicken breast and orange juice, according to Dr. John Newton, AFBF's director of market intelligence.

"Bacon was up significantly because of the lower inventory and higher prices of pork bellies. We saw a rally in wholesale bacon prices this summer and fall which is being reflected at the retail level," Newton said. "Bacon is a sexy food item in restaurants and everywhere else, creating an inventory decline and thus a price increase."

Consumers saw a slight decline in egg prices, as supplies are fully rebuilt from what they were a few years ago. Price checks of alternative milk choices not included in the overall marketbasket survey average revealed that a 1/2 gallon regular milk cost $2.07 and 1/2 gallon organic milk was $4.27.

For many food items, 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 81 shoppers in 25 states participated in the latest survey, conducted in September.

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