Drought fails to affect 2Q MO food prices

Though drought has been prevalent in Missouri this summer, the weather conditions did not appear to negatively affect food prices during the second quarter, according to the Missouri Farm Bureau's latest Marketbasket Survey.

The bureau's survey is an informal comparison of 16 predetermined items representative of agricultural commodities used to prepare a variety of meals. The American Farm Bureau also tracks food prices on the same 16 items, according to a news release.

Diane Olson, Missouri Farm Bureau director of promotion and education programs, said the second-quarter total for the 16 items was $45.60, a 98-cent increase compared to the total for the same basket of goods in second-quarter 2011. Second-quarter 2012 prices were down $1.27 compared to first-quarter results of $46.87, according to the release.

Missouri's latest quarterly results were $5.31 less than the national average of $50.91.

In Missouri, prices were higher for ground chuck, chicken breasts and bacon, and prices decreased for sirloin tip roast and sliced deli ham. Delicious apples and russet potatoes also were up in price from the first quarter, while prices dropped for orange juice and salad mix. Pricing was mixed for grain items, including a decrease in the price of toasted oat cereal and bread and an increase in the price of flour and vegetable oil, the release said.

American Farm Bureau economist John Anderson said crops and livestock affected by drought haven't yet entered the consumer food chain.

“The lag between production and actual retail prices realization can be very, very long, and a lot of things can happen to muddy the water,” Anderson said in the release. “In general, drought is a difficult circumstance to deal with, and it will reduce production of some of these items.”