U.S. consumers can expect to pay around 17 percent more for their favorite Independence Day cookout foods compared to last year, according to research by the American Farm Bureau Federation.
The average cost of a summer cookout is expected to be around $69.68 for 10 people, up about $10 from the previous year. Possible reasons include increases in food and gas prices resulting from supply chain disruptions, inflation, and the war in Ukraine.
Both farmers and consumers are affected by the heightened price points. Those in the agricultural industry are particularly troubled by Russian and Belarusian fertilizer constraints and countries reducing exports to protect domestic supplies because of global food security worries, according to the Federation.
"Despite higher food prices, the supply chain disruptions and inflation have made farm supplies more expensive; like consumers, farmers are price-takers, not price-makers," Federation chief economist Roger Cryan said in a statement. "Bottom line, in many cases the higher prices farmers are being paid aren't covering the increase in their farm expenses. The cost of fuel is up, and fertilizer prices have tripled."
Ground beef saw a 36 percent price increase year-to-year on the retail side. Yet, the Agriculture Department’s Producer Price Index found that, compared to last year, farm-level cattle prices are up 17.5 percent but wholesale beef prices are down 14 percent. The price differences between retail, farm-level, and wholesale pricing have made it difficult to predict profit margins.
“The big impact of a single event in Ukraine shows how dependent the world is on stable, productive agriculture," said Federation president Zippy Duvall.
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Image: American Farm Bureau Federation