Americans will pay 17% more for July 4 barbecue: Farm Bureau


American consumers can expect to pay 17% more to eat on Independence Day in 2022, according to a new report of the American Farm Bureau Federation (AFBF).

The annual study confirmed that the average cost of a summer barbecue for 10 people would total $69.68, up $10 from 2021.

The study authors evaluated many of Americans’ favorite baked goods. They found that the price of two pounds of ground beef jumped 36% to $11.12, two pounds of boneless skinless chicken breast jumped 33% to $8.99, three pounds of pork chops center cuts climbed 31% to $15.26 and 32 oz pork and beans rose 33% to $2.53.

There will be some respite for food prices for July 4 event hosts, as the cost of two pints of strawberries fell 16% to $4.44, a pound of sliced ​​cheese fell by 13% to $3.53 and a 16-ounce bag of potato chips fell 4% to $4.71.

The Farm Bureau cited continued supply chain disruptions and widespread inflation for the double-digit rise in food costs this year. AFBF Chief Economist Roger Cryan also alluded to the cascading effects of the military conflict in Eastern Europe, as Belarusian and Russian fertilizer exports are limited and much of the food shipments from Ukraine are interrupted.

A man shops at a grocery store in New York on May 31, 2022. (Samira Bouaou/The Epoch Times)

“The rising cost of food and supplies is a very real concern in our country and around the world,” AFBF President Zippy Duvall said in the report. “Food assistance programs and food banks across the United States help those struggling to make ends meet here at home, but the story is quite different around the world as food insecurity escalates. The great impact of a single event in Ukraine shows how much the world depends on stable and productive agriculture.

In May, the food price index rose 10.1% year-on-year, as the cost of typical household staples soared. According to the Consumer Price Index report from the Bureau of Labor Statistics, the price of beef and veal rose 10.2%, pork 13.3%, ham 13.3%, chicken 17.4%, fish and seafood 13.1% and eggs 32.2%. percent.

In addition, the United Nations FAO World Food Price Index (FFPI) job its second consecutive monthly decline in May, down 0.6% from April. However, the monthly measure is still up nearly 23% from the same period in 2021.

As buyers endure the agony of higher prices, farmers are also feeling the pain, Cryan says.

“Despite rising food prices, supply chain disruptions and inflation have made agricultural supplies more expensive; like consumers, farmers are price takers, not decision makers,” Cryan said in a statement. “At the end of the day, in many cases, the higher prices paid to farmers do not cover the increase in their farming expenses. Fuel costs have increased and fertilizer prices have tripled.

Demand destruction has helped fertilizer prices fall sharply 30 percent in the past few weeks since hitting a high of $1,425 per metric ton in May. Southeast Asian producers are seeing buyers refuse to pay these huge prices, according to Green Markets analyst Alexis Maxwell.

In addition, natural gas prices in Europe fell slightly in the second quarter, which helped reduce the cost of ammonia production.

Still, farmer sentiment has plummeted due to soaring costs, according to the Purdue University/CME Group Farm Economics Barometer Underline in May.

The monthly reading dipped to its lowest level since April 2020 due to higher production costs offsetting potential gains from sky-high commodity prices, notes James Mintert, senior barometer researcher and director of the Center for Commercial Agriculture. from Purdue University.

“Despite the strength in commodity prices, weak producer sentiment this month appears to be driven by rapidly rising production costs and uncertainty over the direction of input prices,” Mintert said. . “This combination leaves producers very concerned about the financial performance of their farms.

Rising input costs continue to be the number one concern for producers, with 44% saying it will be the biggest issue for their farm operation in the coming year. In addition, 57% expect agricultural input prices to increase by 30% or more.

Many large companies in the food industry have warned that higher prices will persist due to rising ingredient, labor and transportation costs.

“Inflation is real, and it’s not going to get better in the restaurant business anytime soon,” Shake Shack CEO Randy Garutti said at a June 21 investor conference.

Current economic conditions have 90% of Americans worried about food prices, according to a report released in June. survey conducted by The Harris Poll on behalf of Alpha Foods.

Although production costs remain high, crop prices had a choppy week as many hard agricultural commodities plunged. Wheat recorded a weekly decline of 9% on the Chicago Board of Trade. Corn cratered about 16%, while soybeans fell about 15%.

Andre Moran

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Andrew Moran covers business, economics and finance. He was a writer and journalist for over a decade in Toronto, with bylines on Liberty Nation, Digital Journal and Career Addict. He is also the author of “The War on Cash”.

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