KFB Third Quarter Marketbasket Survey Shows Slight Increase in Food PricesPosted on Nov 5, 2019
(November 7, 2019 - Louisville, KY) The Kentucky Farm Bureau (KFB) Marketbasket Survey results from the third quarter of 2019 indicate an increase to the overall cost of food with substantial price fluctuations of most items. The Marketbasket Survey is taken four times per year at the end of each quarter to monitor overall and categorical trends in food prices across the Commonwealth. The survey gathers the prices of 40 basic food items throughout the state and then averages the numbers into six categories: beef, pork, poultry, dairy, fruits and vegetables, and grains.
The average overall cost of food increased 1.29 percent in the third quarter, rising to $116.37 from $114.87 in the second quarter. The 2019 average marketbasket cost of $116.63 is still lower than the 2018 cost of $116.92.
The national findings, similar to Kentucky findings, from the September Consumer Price Index report show a slight increase in overall food prices. The summary indicates the overall cost of food increased .1 percent after remaining unchanged for the past three months.
Marketbasket Survey specifics:
The third quarter prices of specific items and commodities remained a mixed bag with some items contributing to the overall price increase, while others saw decreases. Except for dairy prices, the third quarter prices of specific commodities varied from the previous quarter.
“Kentucky Farm Bureau and other consumer groups watch commodity markets closely and we have seen food prices remain stable over the last two years,” said Joe Cain, Commodity Division Director for Kentucky Farm Bureau. “Farmers work hard every day to innovate and make the best use of their resources to produce an affordable and abundant food supply.”
Agricultural Economics in Food Prices:
Whether or not U.S. grocery prices fluctuate from one quarterly survey to the next, Kentuckians and all Americans continue to enjoy some of the lowest food prices in the world. Shoppers in the U.S. spend only about seven percent of their disposable income on food each year. Those costs remain far lower than any other country in the world thanks to many of the agricultural efficiencies utilized in America.
Farmers receive a net of just 8 cents on average, for every retail dollar spent on food in the U.S. While the average U.S. farmer produces enough food and fiber to provide for about 154 people – a number that has continuously grown since 1940 when the average was 19 people per farmer.
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