Cut to the Chase -- Making ‘Cents’ of It All

By Diane Olson

Benjamin Franklin said it best, "A penny saved is a penny earned." As a child, I can remember when a penny would actually buy something. My family owned a general store in a small southwest Missouri town. Penny candy was one of the store’s staples. A wide array of colorfully wrapped choices could be purchased for just one cent.

In today’s economic climate, shoppers are aware of the importance of every cent. Groceries, gasoline, clothing…every purchase is scrutinized for assurance each expenditure is maximizing available resources.

Food is one of the necessities of life, and spending the food dollar wisely is becoming increasingly important for most households. Wise shoppers are mastering the skills of meal planning, bargain shopping, couponing, and the art of leftovers.

The American Farm Bureau Federation recently released the results of the 2011 First Quarter Marketbasket Survey. This long-standing program collects food prices across the nation on 16 commonly used foods representative of major commodities.

The good news is Missouri prices were significantly less than the national average, $44.62 compared to $49.07 for a savings of $4.45. The not so good news is Missouri food prices increased over the same time last year. Compared to the first quarter of 2010, local shoppers paid more for 11 and less for five of the listed items.

The most significant price increases were found at the meat and dairy counters. All meat items surveyed, except sliced deli ham, cost more than last year. Ground chuck increased $0.41 to $3.05 per pound and bacon increased $0.29 to $3.80 per pound. All surveyed meat prices were less in Missouri than across the country.

Year over year, the price of a gallon of whole milk increased $0.12 to $3.57; vegetable oil (32 oz.) increased $0.27 to $2.69; and Russet potatoes (5 pounds) were up $0.29, ringing in at $2.70. A dozen Grade A large eggs dropped by $0.29 to $1.44; one pound of deli sliced ham dropped by $0.19 to $4.80; and a 5-pound bag of flour dropped $0.24 to $1.80.

Food prices fluctuate. Economic predictions call for retail food prices to rise modestly throughout the year. Tighter wholesale meat supplies are causing the price of meat to increase. Smaller livestock herds and poultry flocks contributed to price increases this quarter.

Energy prices are expected to remain high throughout the year. This factor continues to impact the cost of producing, processing, packaging and transporting food.

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(Diane Olson, of Jefferson City, Mo., is the director of promotion & education for the Missouri Farm Bureau, the state’s largest farm organization.)