Thursday, March 27, 2008

Despite rising food prices, farmers' share of food dollar still falling

Food prices are on the rise in supermarkets across the country, and while that seems like good news for farmers and ranchers, they actually are seeing even less of the profits, according to an informal survey. The retail price of food has increased about 8 percent from the fourth quarter of 2007 to the first quarter of 2008, according to American Farm Bureau Federation Marketbasket Survey.

"The informal survey shows the total cost of 16 basic grocery items in the first quarter of 2008 was $45.03, up about 8 percent or $3.42 from the fourth quarter of 2007," according to a news release. "Of the 16 items surveyed, 11 increased, four decreased and one stayed the same in average price compared to the 2007 fourth-quarter survey. Compared to one year ago, the overall cost for the market basket items showed an increase of about 9 percent."

The products with rising prices were a 5-pound bag of flour, cheddar cheese, corn oil, a dozen large eggs, vegetable oil, mayonnaise, Russet potatoes, a 20-oz. loaf of white bread, apples, whole fryer chickens, and ground chuck. The products with falling prices were whole milk, pork chops, a 9-oz. box of toasted oat cereal, and sirloin tip roast. The price of bacon remained the same.

Despite the rise in grocery prices, farmers and ranchers are seeing less and less of the cut.“In the mid-1970s, farmers received about one-third of consumer retail food expenditures on average. That figure has decreased steadily over time and is now just 22 percent, according to Agriculture Department statistics,” Jim Sartwelle, an AFBF economist, said. The AFBF estimates that the farmer's share of the $45.03 grocery bill would be be $9.90. (Read more)

1 comment:

Troy said...

Most consumers don't realize how little of their food dollars actually get back to the producers that grew it. It's important that every producer do their part to share the positive story of agriculture with consumers. Copy the link into your browser, or click on my name to see how Farm Bureau's Young Farmers and Ranchers are spreading the word.