Drop in Farm Milk Prices Start
to Show Up in Grocery Stores
MADISON (August 9, 2004) - Retail prices for dairy products showed significant declines in July according to the Wisconsin Farm Bureau Federation's recent Market Basket Survey released today. The check of the cost of groceries showed only a six-cent increase for the 40 food items included in the monthly survey. The average rose from $79.69 in June to $79.75 in July.
"We're starting to see the drop in farm milk prices reflected in prices for dairy products at the retail level," said Tom Thieding, WFBF Executive Director of Public Relations. "Farm milk prices have declined since the record high in May, and it takes one to two months for those price changes to work through to the consumer," according to Thieding.
"There's no need for farmers to apologize about the prices they've been getting this year. Consumers should know that farmers need prices at profitable levels in order to pay their bills, reinvest in their businesses and provide the basic needs for their families," Thieding said.
Cheese prices produced the biggest drop among dairy products as a pound of cheddar cheese declined 19 cents from $3.64 to $3.45. Retail fluid milk prices also reversed their strong increase recorded in the June survey. A gallon of whole milk declined nine cents from $3.16 to $3.07. Retail butter prices declined for thesecond straight month, moving down three-cents to $3.44 per pound. Pizza prices also reflected the weakening
demand for cheese as a 12-inch cheese pizza cost 14 cents less from the previous month, $4.06 to $3.92.
In May, Wisconsin dairy farmers received an average of $21.50 for 100 pounds of milk (about elevengallons). That price has now dropped to $15.30 in July, a decline of 29 percent. From January to May, the farmmilk price increased 57 percent.
From January to June, retail fluid milk prices increases 17 percent, cheese increased 20 percent, andbutter jumped 32 percent.
On average, prices for the three surveyed beef products were down one cent from the previous month.Round steak dropped 12-cents from $3.54 to $3.42 per pound. But increases for ground beef and chuck roastoffset the decline in round steak prices. Ground beef increased six cents from $2.18 to $2.24 per pound and chuck roast rose from $2.88 to $2.93.
Cattle prices are still above 80 cents a pound, and have softened a bit as the summer grilling season winds down.
The four pork products included in the survey dropped three cents from $11.78 to $11.75. This total isslightly misleading because prices for three of the four items actually increased during July. Pork chops were thebiggest factor behind the net decline as the price dropped 24 cents from $3.29 to $3.05 per pound. However onthe plus side, bacon increased nine cents to $4.36 a pound, pork roast gained nine cents to $2.26 per pound,and ham rose four cents to $2.10.
Chicken products also recorded an overall gain in July. The price for whole chickens decreased 3-cents from $1.16 to $1.13 per pound. But chicken breasts increased 22 cents to $2.21 per pound. Egg inventories appear to be rising again as the price declined five cents to an average of 99 cents per dozen.
Potatoes prices made another increase in July. The cost for a 10-pound bag rose 18 cents going from $2.35 to $2.53. Tomatoes are in plentiful supply during the peak summer growing months as the per-pound cost dropped 12 cents to $1.34.
Compared to a year ago, the Market Basket in July was $5.05 less at $74.64. Shoppers are paying more for all food groups compared to a year ago.
Communities surveyed by Farm Bureau volunteer market reporters include: Appleton, Ashland, Eau Claire, Fond du Lac, Grafton, Green Bay, Janesville, La Crosse, Ladysmith, Lancaster, Madison, Manitowoc, Marshfield, Medford, Mequon, Milwaukee, Oshkosh, Portage, Racine, Shawano, Sheboygan, Stevens Point, Watertown, Waukesha, Wausau and West Bend.
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