With gas prices now above the four dollar a gallon mark in Lafayette, it's getting tougher for many people to make ends meet. We're all feeling the pain, and not just at the pump. In fact, one major wallop to your wallet is likely to come at the supermarket.
We wanted to find out why food prices are skyrocketing, and what we can do to ease the pain. We're all seeing higher prices during that weekly grocery run. It's a problem that literally goes all the way back down the food chain.
Pat Palombo just opened a second location of his Adrien's Supermarket in Lafayette, and says consumers, and everyone in the food service industry, is facing the same dilemma.
Palombo says, "the gas prices have really driven up costs in the sense of transportation of goods, the making of the products and getting them to the store level, so it's an unfortunate situation the way things are, but it's something that none of us can do anything about, so we'll just have to go forward and we're doing our best to keep it as economical as possible for our customers."
Chances are you're seeing higher sticker prices on everything in the supermarket, but you might be surprised to find out that much of the problem comes down to this one single item, corn.
This vegetable is at the heart of a controversy involving farmers, environmentalists, the restaurant industry, consumers and congress. The energy independence and security act of 2007 requires that nine million gallons of corn based ethanol be produced by 2009, as a way to wean Americans off fossil fuels.
By the end of this year, almost one third of America's corn crop will be used to produce ethanol. That increased demand for bio-fuel has pushed corn prices 46% higher over the past 12 months, to well over $7:00 a bushel, which has in turn caused massive problems for the livestock industry that relies on corn for feed.
Farmers say feed prices account for 70% of the costs to raise livestock to market, so that's pushing beef, pork, poultry and dairy prices higher every day.
In addition, the Conservation Reserve Program, which pays farmers to leave land fallow, prevents corn farmers from increasing their acreage.
In addition to higher prices for corn fed beef and poultry, there's another reason for the dramatic impact on your weekly budget. You may be surprised to find out that of 10,000 items on the shelves of a typical grocery store, at least 2500 of those items use corn in some form during production or processing.
You'll find corn in baby food, many alcoholic beverages, cereal, cookies and candy, including chocolate, carbonated soft drinks, cooking oil, pancake syrup, cheese spreads, margarine, mayonnaise and mustard, potato chips and even yogurt.
Even many non edible items contain corn in some form, including batteries, computer printer ink, and most types of makeup. Many children's items, like crayons and disposable diapers, contain corn, along with leather and paper products, carpeting, cleaners, and even wallpaper and gypsum wallboard.
In 2003, a pound of ground beef went for a $1.65, while today it will cost you about $3.79.
A one pound pack of chicken breasts cost right around two $2.00 in 2003, today that same pack will cost you somewhere around four $4.49
Dairy prices are also up significantly. A gallon of reduced fat milk cost an average of $2.85 in 2003, now you'll pay more than four $4.00.
That $3.75 you paid for a half gallon of ice cream is also now up to as much a $5.00. And a pound of butter has risen from $2.75 in 2003 to as much as $3.50. And that grocery store staple of a pound of coffee, $2.99 in 2003, $4.99 now.
A few simple shopping tactics can help you save big bucks in the checkout line.
Since it looks like high food prices are here to stay, at least for the time being, there are some smart shopping tactics you can use during your weekly grocery run that can really make a difference in your bottom line. One good place to start is to comparison shop.
There ate two methods you can use. First, compare prices of the items on your grocery list among several stores you frequent, and make one weekly visit to the store that offers the best all around bargains. You'll save time, money and gas.
Second, compare the price of different brands of the same item. Generic, or house brands, which are usually stocked either above or below eye level, will frequently offer the same ingredients and quality, with less flashy packaging and a lower price.
Always take the time to calculate the per unit or per weight cost of an item. Sometimes, two smaller packages of an item will cost less than the huge, so called family size.
They may not seem like much, but taking advantage of supermarket coupons, either in circulars or off the internet, can really add up. One online site to try is www.coolsavings.com.
Don't forget that longstanding advice of always making a list, leaving the children at home, and never going to the store hungry. Making small changes each week can add up to big savings.
Blue Rolfes
