Food prices rose 4.5% during the 12 months ending Feb. 29, according to the federal government's Consumer Price Index. That's about double the typical annual increase, said Ephraim Leibtag, an economist with the U.S. Department of Agriculture's Economic Research Service.
Milk and eggs especially have risen sharply over the past 12 months -- 25.6% and 23.9%, respectively.
Over the past five years, a dozen eggs increased about a dollar, while a gallon of milk rose $1.18, according to the Bureau of Labor Statistics -- U.S. urban average.
The reasons vary. Some, such as the rising cost of fuel, affect every food delivered by truck. Other factors are specific to certain industries, such as bad weather in Florida that weakened supplies of tomatoes and caused a price spike in January.
And the fast-growing ethanol industry, which turns corn into fuel, affects a range of foods.
Whatever the reason, shoppers like Sara and Ruben Estrada of Fresno balk at what they now have to pay to feed their four children.
"I notice them a lot: milk, bread and produce," Ruben Estrada said. "It's all going up, so what can you do?"
The Estradas, whose children range from 8 months to 10 years old, shop mostly at discounter Costco. They grumble at paying $4.50 for a gallon of organic milk, which lasts them just two or three days.
Leibtag said the doubling of fuel costs is the latest culprit.
Crude oil, which cost $60 a barrel a year ago, surged to a record-breaking $111 last week. That means higher fuel bills for producers and retailers, and those are increasingly passed along to the consumer, Leibtag said.
Here's what else is going on with your food:
Milk and dairy
"There is a worldwide shortage of milk and dairy products at the moment," said Leslie Butler, an agricultural economist at UC Davis.
Drought in New Zealand and Australia means those countries are having trouble keeping up with worldwide demand, he said. Demand for dairy products in China and India -- which have their own dairy industries -- has outstripped domestic supply.
That means the world is looking to the United States for powdered milk, butter and cheese. A weak dollar makes American milk products even more attractive, Butler said.
All of that means higher prices for milk, ice cream and other dairy products at the grocery store, he said.
Wheat products
Pasta, bread and any other products with wheat as a main ingredient also are getting more expensive.
Wheat producers around the globe have produced smaller crops, with drought in Australia, weather problems in the United States and other issues, said Jerry Norton, grains analyst with the U.S. Department of Agriculture's World Agricultural Outlook Board.
And worldwide consumption of wheat products is on the rise, he said.
The result is a 30-year low in global supply.
Meat and eggs
Animal feed has seen huge price increases lately, said Butler, the UC Davis agricultural economist.
Corn and soybeans, two of the few good sources of protein available for animal feed, are being diverted to make biofuels such as ethanol, driving up the cost of everything from meat to eggs, he said.
Leibtag said the price of meat has leveled off lately as producers send animals to slaughter earlier rather than pay to feed them longer, but that respite will be short-lived.
The price of eggs rose more steeply than others, with a disconnect between supply and demand for eggs causing the price to jump 82% over the past five years.
Randy Pesciotta, vice president at New Jersey-based Urner Barry publications, which report commodity prices, said American egg producers need to add 3 million chickens a year to keep pace with growing human population. But lately, flocks are shrinking.
Egg-laying chickens are getting so expensive to feed that farmers are scaling back, he said.
Egg producers also face added pressures while building new chicken houses, including new environmental regulations and influence by animal rights groups, he said. That's making farmers reluctant to add new flocks, he said.
Produce
Fruit and vegetable prices are particularly volatile, said Julia Stewart, spokeswoman for the Newark, Del.-based Produce Marketing Association, a trade group representing everyone from produce growers to retailers.
"Produce is simply a risky business," she said. "We are at the [mercy] of Mother Nature."
Floods, drought and other problems can cause shortages that drive up prices at any time, she said.
For example, bad weather in Florida led to a price spike this winter, said Fresno-based California Tomato Farmers President Ed Beckman.
As for Red Delicious apples, the higher prices stem mostly from dropping supplies as customers favor other varieties and producers turn to new ones, said Todd Fryhover of the Washington Apple Commission.
Fewer suppliers means less competition, and the rising cost of labor and fuel also play a role, he said.
The reasons behind climbing prices don't make shopping any easier for consumers like Joan Dailey of Fresno.
"I think it's depressing to have to pay so much for basic food," she said. "I don't buy as much. I cut down on milk. ... I'm just learning to eat less."
The reporter can be reached at bclough@fresnobee.com or (559)441-6431.
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