Phoenix, Ariz., July 18, 2007 - Retail food prices at the supermarket increased in the second quarter of 2007, according to the latest American Farm Bureau Federation Marketbasket Survey. The informal survey shows the total cost of 16 basic grocery items in the second quarter of 2007 was $42.95, up about 4 percent or $1.61 from the first quarter of 2007, while the Arizona survey was $48.62, up about 8 percent or $3.82 from the first quarter of 2007, when the first quarterly Arizona Marketbasket survey was conducted. For the last 21 years Arizona Farm Bureau has conducted an annual Thanksgiving Holiday Marketbasket.

Of the 16 items surveyed, 14 increased and one decreased and one stayed the same in a national average price compared to the 2007 first-quarter survey. Arizona's survey shows 12 increased and three decreased and one stayed the same. Interestingly, compared to one year ago, the national overall cost for the marketbasket items showed an increase of about 8 percent (note quarter to quarter, Arizona's increased 8 percent).

"Farm and ranch families in Arizona and across the nation take great pride in providing

the safest, most abundant and most affordable food supply in the world," said Ann Palmer, Arizona Farm Bureau Women's Leadership Committee chair. "While families watch their food dollars at the grocery store, Arizona farmers and ranchers carefully watch their costs to produce healthy and safe food."

Nationally regular whole milk showed the largest quarter-to-quarter price increase, up 34 cents to $3.46 per gallon. Sirloin tip roast increased 27 cents to $3.99 per pound; pork chops increased 22 cents to $3.63 per pound; and ground check increased 20 cents per pound to $2.85. In Arizona center cut pork chops showed the largest price increase, up $1.26 to $5.25 per pound. Whole milk increased by $1.10 cents to $4.09; Red delicious apples increased by 50 cents to $1.49; and Bacon, up 41 cents to $3.40 per pound.

Other national items that increased in price: whole fryers, up 17 cents to $1.28 per pound; apples, up 15 cents to $1.45 per pound; vegetable oil and bread, both up 9 cents to $2.66 for a 32-oz bottle and $1.58 for a 20-ounce loaf, respectively; mayonnaise, up 8 cents to $3.43 for a 32-oz jar; and regular eggs, up 5 cents to $1.56 per dozen. Volunteer shoppers recorded nominal price increases for: cheddar cheese, up 3 cents to $3.72 per pound; flour, up 2 cents to $1.92 for a 5-pound bag; toasted oat cereal and corn oil, up 1 cent each to $2.86 for a 10-oz box and $2.78 for a 32-oz bottle, respectively. Russet potatoes dropped 12 cents to $2.34 for a 5-pound bag. Bacon stayed the same at $3.44 per pound.

"Consumers have no doubt noticed their food dollar stretched a little tighter lately," said American Farm Bureau Federation Economist Jim Sartwelle. "As energy costs have increased, it has become more expensive to process, package, and transport food items for retail sale. In addition, soaring demand overseas for U.S. dairy and meat products has reduced quantities available at home, resulting in retail price increases at the grocery store.

Other Arizona items that increased in price: Russet potatoes, up 23 cents to $2.52 for a 5-pound bag; Sirloin tip roast, up 26 cents to $5.25 per pound; mayonnaise up 40 cents to $3.69 for a 32-oz. jar; corn oil, up 30 cents to $2.99 for a 32-oz. jar; regular eggs, up 20 cents to $1.79 per dozen; white bread and toasted oat cereal up 10 cents each to $1.59 for a 20-oz loaf and $3.49 for a 10-oz box, respectively. Whole fryers increased 6 cents to $1.55 per pound.

In Arizona, vegetable oil decreased in price down 66 cents to $2.79 for a 32 oz jar; cheddar cheese down 40 cents to $2.59 per pound; and ground chuck down 4 cents to $3.65 per pound. All-purpose flour remained the same at $ 2.49 per 5-pound bag.

The Farm Bureau Marketbasket Survey is unscientific, but serves as a gauge of actual price trends across the state. Bargain shoppers statewide should find individual items at prices comparable to the Farm Bureau survey averages. Shoppers involved in this survey were asked to identify the best in-store price, excluding promotional coupons and special deals.

About Arizona Farm Bureau

The Arizona Farm Bureau is a grassroots organization dedicated to preserving and improving the Agriculture industry through member involvement in education, political activities, programs and services. Go to www.azfb.org to learn more. As a member services organization, individuals can become a member by contacting the Farm Bureau. For information on member benefits call 480.635.3606.

First quarter-2007 Second quarter-2007

Arizona National Arizona National

Red Delicious apples $ 0.99 $ 1.30 $ 1.49 $ 1.45

Russett potatoes, 5 lbs $ 2.29 $ 2.46 $ 2.52 $ 2.34

Ground Chuck, lb. $ 3.69 $ 2.65 $ 3.65 $ 2.85

Sirloin tip roast, lb. $ 4.99 $ 3.72 $ 5.25 $ 3.99

Center cut port chops, lb. $ 3.99 $ 3.41 $ 5.25 $ 3.63

Bacon, lb. $ 2.99 $ 3.44 $ 3.40 $ 3.44

Whole fryers, lb. $ 1.49 $ 1.11 $ 1.55 $ 1.28

Whole milk, gallon $ 2.99 $ 3.12 $ 4.09 $ 3.46

Mild cheddar cheese, lb. $ 2.99 $ 3.69 $ 2.59 $ 3.72

Eggs, one dozen large, $ 1.59 $ 1.51 $ 1.79 $ 1.56

Grade A

All-purpose flour 5 lbs. $ 2.49 $ 1.90 $ 2.49 $ 1.92

Mazola corn oil, 32 oz. $ 2.69 $ 2.77 $ 2.99 $ 2.78

Crisco vegetable oil, $ 3.45 $ 2.57 $ 2.79 $ 2.66

32 oz.

Kraft mayonnaise, 32 oz. $ 3.29 $ 3.35 $ 3.69 $ 3.43

Cheerios, 10-oz. Box $ 3.39 $ 2.85 $ 3.49 $ 2.86

White bread, 20-oz. Loaf $ 1.49 $ 1.49 $ 1.59 $ 1.58