Survey: Food Prices Falling

JEFFERSON CITY - Consumers paid less for many food items during the final months of 2009. The fourth quarter saw food prices for at least 16 typical items drop from the previous quarter. According to a Missouri Farm Bureau quarterly survey, held in conjunction with a national American Farm Bureau Marketbasket Survey that tracks price trends for 16 grocery items, prices dropped $3.47 for Missourians and $3.13 nationally.

Farm Bureau conducts a survey each quarter on the same 16 food items, representing a cross section of agricultural commodities utilized in preparing a variety of meals.

"Price declines occurred in 11 items and increased for five," said Diane Olson, Missouri Farm Bureau director of promotion and education programs. "The greatest quarter-to-quarter price drops were noted in deli sliced ham, shredded cheddar cheese, bagged salad mix and boneless chicken breasts."

Those price drops were substantial compared to a year ago. Missouri shoppers paid $42.47 for these items in the fourth quarter, a drop of $3.47 from the third quarter price of $45.94. The fourth quarter 2008 price was $49.54, a year-to-year price drop of $7.07.
Milk made up almost a dollar in the year-to-year difference. One gallon of whole milk dropped 21 cents from the third quarter to a price of $2.66. The same time last year, the average milk price was $3.62 per gallon.

"Sluggish retail demand, particularly for dairy products and meats, coupled with lower wholesale prices paid to producers, contributed to the decline in retail food prices reported for the fourth quarter," said Olson.

According to the U.S. Department of Agriculture, the average price farmers received for their products compared to a year ago, remained flat or showed negligible changes. "Prices in the grocery store are beyond the control of farmers and ranchers. Prices may increase and decrease, but it is important to be reminded of the farmer's role in our
safe and affordable food supply," said Olson.