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 PAGE FOUR - WisconsinReport.com - FEBRUARY 2, 2004
STORIES IN THE FEBRUARY 2, 2004 ISSUE

Market Basket Price Declines
Retail beef prices drop
as cattle prices tumble

FEBRUARY 2, 2004 - Declines in retail beef prices indicate a response in the marketplace to the discovery of a BSE-positive dairy cow in the state of Washington in December, which resulted in cattle prices plummeting in January, according to the latest Wisconsin Farm Bureau Federation's Market Basket survey.

The January Market Basket showed lower beef prices were among the food items leading to 75-cent decrease from the previous month, as the average cost for the 40 items in the monthly survey declined from $76.84 to $76.09.

The average price of ground beef decreased eight cents from $2.20 to $2.12 a pound over the previous month, round steak decreased nine cents from $3.41 to $3.32 per pound, and chuck roast dropped nine cents to $2.88. However, the average cost of $8.32 for the three products surveyed still remains $1.06 higher than the retail beef prices from last January's survey.

"The price decline to beef producers and to consumers is mostly from the halt in beef exports.  We're pleased domestic consumer demand for U.S. beef products remains strong and consumers are confident in our food safety protection system," said Tom Thieding, executive director of Public Relations for the Farm Bureau.

The Farm Bureau said retail beef prices hit a record high in December, but should continue to decline in the upcoming months as lower farm and wholesale prices get passed through the consumers.  The price paid to Wisconsin beef producers has dropped as much as 20 percent in the last month.

Pork prices showed mixed results from the previous survey. Ham increased seven cents a pound to $1.78. The average cost for a pound of pork roast, which increased from $2.20 to $2.33, was off set by a 14 cent per-pound drop in the average January price for pork chops. The average price for whole chickens and chicken breasts dropped 7-cents from $3.51 to $3.44 per pound since the December price survey. Bologna also recorded a significant change dropping 13 cents to $2.57 a pound.

Regarding dairy products, the January Market Basket showed slight price declines for a gallon of whole milk and two-percent milk. A pound of cheddar cheese also dropped four cents to $3.05. However, the average cost for a pound of butter showed a strong increase, rising from $2.42 to $2.61 a pound. Farm milk prices dropped by seven percent in December, but prices are forecast to be stable through 2004.

Wisconsin potatoes showed an increase of 21 cents from $2.21 to $2.38 for a ten-pound bag, reversing a decline from the December 2003 survey. Fresh produce growers in warmer areas of the country have not experienced devastating freezes as the price for a pound of tomatoes dropped slightly while a head of lettuce declined from $1.57 to $1.20.

Prices for grain-based products remained stable with the exception of an 18-oz. box of corn flakes, which dropped from $2.74 to $2.57. Baking staples showed increases over the previous month as a five-pound bag of flour increased from $1.44 to $1.56, and four pounds of sugar increased from $1.60to $1.71.

The average cost of the 40 food items for January 2003 was $72.70, or $3.39 lower than this year. Shoppers paid more for beef, pork, chicken, dairy, and fruits and vegetables, and less for grainbased products compared to the previous year.

Communities surveyed by Farm Bureau volunteer market reporters were 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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