A matter of perspective

by Diane Olson

Perspective! Remember being 17 and thinking 25 was old? Or being 25 and thinking 50 was for those who could hardly manage on their own? A few birthdays can change our perspective.

Prior to being a parent, I was filled with child rearing advice. Being shocked when I would see dirty ears and unhappy little ones, I thought parents should do something? Upon becoming a parent, however, I realized the only way ears would remain clean was if automatic washers were embedded, and about the unhappiness… well, it was part of the cycle. Perspective!

Speaking of perspective, in reviewing the Marketbasket Survey for the third quarter of 2005, it too is a matter of perspective. Put simply, National prices dropped slightly while Missouri prices rose slightly, but food prices in Missouri were still lower than the National average.

Huh? Yes, American Farm Bureau’s Quarterly Marketbasket Survey of 16 basic grocery items found a slight drop in the third quarter nationwide to $39.96, a 55 cent decrease from the second quarter survey. Missouri’s prices, at $37.30, were 81 cents higher than the statewide average from the second quarter survey, but third quarter totals in Missouri are still $2.66 less than the national average.

In Missouri, four items decreased in price, six increased and six remained constant. Declining were ground chuck, bacon, eggs and bread. Remaining constant were whole fryers, cheddar cheese, potatoes, wheat cereal, corn oil and mayonnaise. Increasing were sirloin tip roast, center cut pork chops, milk, apples, flour and vegetable oil.

The fluctuations typically reflect seasonal price patterns. In some cases, the commodity price was lower during the spring and summer with grocery store prices just now catching up. Wheat and corn harvest have proven relatively good, although projections were for low yields. Thus we find lower or flat prices for items such as bread and corn oil. The same is true in meat prices which parallel a downward trend in livestock prices earlier this year.

Food prices remain very affordable. We must place things in perspective to appreciate our safe, abundant and affordable food supply. Consumers in America spend about 10 percent of their disposable income on food, while consumers in some other countries spend over 50 percent.

From the producer’s perspective, farmers receive only 22 percent of the consumer retail food expenditure. Looking back 30 years, farmers received about one-third of consumer retail food expenditures. With increased production costs, the farmer’s share continues to drop.

From my perspective, we in America are fortunate! Thanks to our farmers, we have a stable food supply at affordable prices despite price fluctuations.

(Diane Olson, of Jefferson City, is the director of promotion and education for the Missouri Farm Bureau, the state’s largest farm organization.)