Food Prices Climb

Food Prices Climb

For the second time in three years, food prices increased in late 2010. Many consumers may see an increase in the amount they are paying for food at the grocery store.
In January 2011, a price index compiled by the United Nations Food and Agriculture Organization that tracks 55 food commodities for export hit its highest level since tracking began in 1990. Countries not dependent on food imports are less affected by global volatility. Still, food prices are expected to rise two to three percent in the United States in 2011.
Four main factors are seen as driving prices higher: weather, higher demand, smaller yields and crops diverted to biofuels. For example, heavy rains in Australia damaged wheat to the extent that much of its usually high-quality crop has been downgraded to feed.

Closer to home, the Wisconsin Farm Bureau’s informal survey shows the total cost of 16 food items that can be used to prepare one or more meals was $45.61at the end of 2010. It marked an increase of 48 cents, or one percent, from September’s $45.13 Market basket price. 

Eggs, shredded cheddar cheese, ground chuck, vegetable oil, potatoes and toasted oat cereal were the items that saw the largest percentage increases in price compared to the prior quarter.