Southern Indiana Business Report
The temperatures might not be cooling off, but Indiana shoppers will get some relief when they shop for their Fourth of July cookout.
Indiana Farm Bureau released its annual survey of food prices and the latest survey found slightly lower prices for summer staples compared to a year ago.
Indiana Farm Bureau’s annual summer cookout market basket revealed Hoosiers are paying an average of $68.33 for a cookout feeding 10 people this summer, or $6.83 per person – a 2% decrease from 2023.
Indiana’s market basket price is approximately 4% less, or 29 cents less, than the U.S. average price of $7.12 per person. Additionally, the Indiana price is on par with the average price for the Midwest region of $6.83 per person, showing that the Midwest has experienced lower food inflation rates than other regions.
“Inflation is slowing slightly and supply chain issues that have been prevalent for the last few years are slowly getting worked out, so we are seeing a slight decrease in prices compared to last year here in Indiana,” explained INFB Chief Economist Dr. Todd Davis in a press release. “Our location in the central part of the country – closer to where most food is produced – also plays a role in Indiana and other Midwest states coming in lower than the national average.”
The total market basket price of $68.33 includes ground beef, cheese, hamburger buns, pork chops, chicken breasts, pork and beans, potato salad, strawberries, chips, ice cream, cookies and lemonade.
The item that saw the largest increase in price was ground beef, which increased 14% from last year to $13.88 for 2 pounds and was 9% more expensive than the U.S. average cost of $12.77 for 2 pounds.
Cattle herds have declined to the lowest levels since 1961 because of sustained and persistent drought impacting the Southern Plains over the last few years, resulting in higher feeding and operating costs for cattle farmers.
“Fewer animals mean fewer head going to market, causing a tighter supply at the grocery store,” said Davis.
Other items on the shopping list that were slightly more expensive in Indiana than last year include hamburger buns, pork chops, lemonade, potato salad and strawberries. However, strawberries were 16% less in Indiana than they were nationally.
“We’ve heard from specialty growers in central Indiana who had a large early crop this year around the end of May and beginning of June when this survey was conducted, which may have resulted in more affordable strawberries in the state compared to other regions,” noted Dr. Davis.
Cookies, chicken breasts, cheese, ice cream and chips are more affordable in Indiana than last year.
While food prices have slightly decreased this year, overall food costs are still high compared to two or three years ago largely due to general inflation affecting the cost of transportation and transforming what is produced on the farm into what is ready for consumption at the supermarket.
According to the U.S. Department of Agriculture, just 15 cents of every retail food dollar can be attributed to farm production, after accounting for input costs. Using this figure, the farmer’s share of this $68.33 market basket would be slightly more than $10. The rest is for food processing, packaging, transportation, wholesale and retail distribution, and food service preparation.
“Farmers are price takers, not price makers – just like consumers,” said Janis Highley, INFB 2nd vice president. “It is encouraging to see that food prices in Indiana are decreasing slightly from last year, but margins are still tight for farmers due to high supply costs because the amount farmers are being paid isn’t covering that increase in expenses.
But Indiana farmers are committed to streamlining their operations to decrease costs of production as best they can, all while providing safe, affordable food not just for Hoosiers, but for families all over the world.”
The INFB summer cookout market basket survey was conducted in early June by volunteer shoppers across the state who collected prices on specific food items from one of their local grocery stores. Volunteer shoppers were asked to look for the best possible prices, without taking advantage of special promotional coupons or purchase deals.
Indiana’s survey was completed in conjunction with a national survey administered by the American Farm Bureau Federation. More details about AFBF’s national summer cookout market basket results can be found at fb.org.