The American Farm Bureau Federation’s Fall Harvest Marketbasket Survey shows a three percent increase in the total cost of 16 food items over last year’s prices. Foods costing more include bacon, chicken breast, and sliced deli ham, as well as orange juice and flour. The cost of bacon rose the most, up 19 percent to $5.24 per pound. AFBF’s Director of Market Intelligence Dr. John Newton explains the increase.
“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 says. “Bacon is a sexy food item in restaurants and everywhere else, creating an inventory decline and thus a price increase.”
Newton says supply and demand for chicken is also tight, driving prices higher. Lower supplies of oranges are impacting the cost of orange juice, which could be further impacted by recent hurricanes in citrus growing areas. The informal quarterly survey did show four items decreasing in price: eggs, ground chuck, bagged salad and potatoes. The survey shows the farmer’s share of the $51.13 marketbasket would be approximately $8.00.