Monday, February 25, 2008

food prices on the rise

I have noticed while pushing my cart through the grocery two times a week that costs for food have risen in the past year, eggs have shot up in price from $1 to $2.60 a dozen, making me long for the day when I can raise my own Chanticleer chickens.

Luckily for our family's pocketbook, I have actually spent less money on groceries due to implementing the pantry system of shopping, originally found in Amy Dacyczyn's Tightwad Gazette book. By combining sale items with coupons and building up to a 12 week supply of shelf items bought cheaply, you can save 40% or more on your bill. Some folks think that it is too much work, or the sale items are things they don't need, but even make-everything-from-scratch folks use yeast and flour, and who doesn't use shampoo and toothpaste? (if you don't, please don't come too close) Now we are getting official word from the government and the food industry that prices will continue to rise, making cost-cutting efforts at home all the more worthwhile.

“I think we need to tell the American consumer that [prices] are going up. We’re seeing cost increases that we’ve never seen in our business.”
The comments highlighted ...that rising agricultural prices have reached a stage at which the impact will be felt not only on fresh food but will also filter through the supply chain and raise the cost of processed food.
US agriculture officials forecast that food inflation will rise this year at an annual rate of 3-4 per cent, warning that the risks were skewed to the upside. Last year, food inflation rose 4 per cent, the highest annual rate since 1990.
... wheat prices had previously moved from $3 to $5 a bushel without significant pain for consumers. “But now the wheat price has jumped to nearly $20 a bushel. These large increases will show up [in consumer prices].”


Some links to sites I utilize:

My sorority sister Genna's site specializing in saving at Harris Teeter and Lowes: grocery deals and meals. Since her first day of marriage she has kept all her shopping on spreadsheets so she can honestly say that she has saved $20,000 in groceries over the past 9 years.

coupon mom is a free site that gives breakdowns of each store and combining sale items with coupons. I tried the $1 for a month deal at the grocery game site, but found that the lists didn't come out until a few days after the sale fliers, resulting in finding empty shelves when I started shopping. Often items that were supposedly "on sale" were not, leaving me frustrated. Using a fee service encouraged me to shop at lots of stores "to get my money's worth" resulting in long shopping days and cranky kids. Quickly I realized my error and have since settled on Kroger and Harris Teeter as my weekly stops on Monday and Wednesday. I especially like to pick up a pretty bouquet of flowers at Kroger from the discount bin and HT is known as "the balloon store" to my younger ones for good reason. Most grocery stores have savings friendly sites so you can click on items from the flyer and print out a list from home.

The thrill of seeing "You saved 45%" on the bottom of your receipt, or hearing from the cashier, "Wow! You really know how to work those coupons girl!" is enough for me and the little effort I put into it is so worth it to our bottom line.

Try it, and I promise you will get hooked.

4 comments:

Barbara said...

I have noticed prices rising too, Kat. With our recent trend toward eating fewer processed foods (prompted by my son's recently-diagnosed GERD) I have been spending at least $30 a week more on groceries. That REALLY adds up fast and something's going to have to give. I haven't figured out what though. Most of the foods I buy don't have coupons, because they are produce, meat and dairy items. I think I'm going to have to resort to more budget recipes. Sadly, there are not many resources out there. Maybe more will be popping up soon.

Karen said...

p://transcripts.cnn.com/TRANSCRIPTS/0802/11/gb.01.html

This is a transcript of a Glen Beck show where they discussed the wheat crops in the US. Glen Beck is a talk show host on CNN.. on the conservative side.

peter said...

I think the Government should maintain an effective Supply Chain Management Services which help the farmers. Government should provide them discount on farming material and plantation.so that the farmers can improve there productivity.

Anonymous said...

If you have a stock account like a IRA pension fund, you can hedge against the price of grains by buying the exchange traded fund...DBA....which is purchased just like a stock any time of the day and it covers wheat,corn,soy and sugar. So as your food prices go up, your DBA will also go up. Put a trailing stop loss under it so that if it begins to fall too much, the stop will sell your position without your having to watch it. Some authors recomment a trailing stop loss of 6% since you do not want to get sold out of it needlessly by the computer since each trade costs fees.