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    15
    Aug
    2012
    11:46am, EDT

    Drought expected to take toll at checkout

    Grocery stores around the nation may soon see a ripple effect of the drought, with animal-based, perishable foods costs increasing by nearly 5 percent in the coming year. NBC's Janet Shamlian reports

    By Janet Shamlian, NBC News

    FORT WORTH, Texas –  At a grocery store in Fort Worth, shoppers walk the aisles with coupons in their hands and off-brand products in their carts. A still-recovering economy has many looking to save a few dollars on their food bill, a job that is expected to become more difficult before year's end.  

    See our full drought coverage here. And on Wednesday, Aug. 15, watch NBC News, CNBC, MSNBC, The Weather Channel and Telemundo for daylong, network-wide coverage of the drought.

    The lingering and pervasive drought that's taking its toll on farmers and ranchers across America's heartland now is expected to soon impact families across the country in the form of higher prices at the market.  

    How much higher is a tough question.  


    Rising costs
    While the USDA predicts a 3 to 5 percent increase on everything from cereal to steak, some economists believe price hikes will come closer to 10 percent.

     

     

    One study suggests a family of four will spend $600 more in 2013 to buy the same products they purchased last year.  

    "I'll be more careful about how much I buy so there's no waste and be careful what I buy," one woman told me as she was choosing oranges in the produce section.   

    Slideshow: America's farmland baking in drought

    Drought conditions plague much of the United States after a summer of scorching temperatures and a lack of rain. The dryness is affecting America's farmland, threatening crops like soybean and corn.

    Launch slideshow

    The pictures of wilted crops and hungry cattle – so prevalent this summer – tell us beef and corn will affected. But experts say even items like chips and peanut butter will be more expensive at this time next year.  

    “I think we’re going to see price increase across the board,” said Bernard Weinstein, an economist at Southern Methodist University. “Because corn, in particular, is such a ubiquitous product – it’s used in the manufacture of most processed foods. “

    So the ripple effect will mean price hikes down every aisle – on products like cereal and chips.


    Follow @NBCNewsUS

    "I will try to find the best price because we don't have a lot of extra money to spend on groceries," said one woman visiting from Ohio and shopping with her daughter.

    The biggest hikes are expected to be on some of the staples – dairy, eggs, poultry, pork and beef.

    However, beef prices may actually ease a bit in the short term, as ranchers who can't afford to feed their cattle are selling them off early – so there's a healthy supply hitting the market now.

    But next year at this time, there will likely be shortages.  So things like hamburger meat, sometimes considered a budget-friendly meal, may soon be priced more like steak.  

    North Carolina, the second largest poultry producer in the nation, is facing big challenges as the price of grain rises. NBC's Anne Thompson reports.

    ‘You’ve got to eat’
    Talking to shoppers in this Texas market, they're aware of what's coming and resigned to it.  

    "Food is not a discretionary item," one man said as he put a carton of eggs in his basket. "You've got to eat."  

    From farmers’ pastures to our own kitchen tables, the drought of 2012 will exact a high toll.

    More coverage of the drought: 

    Drought sends Mississippi into ‘uncharted territory’ 

    ‘Best year ever’ for some farmers outside drought region   

    Forced to sell cattle during drought, dairy farmers ‘just keep praying’ for rain

    Americans tell their story of #Drought2012 

    In drought-stricken Wisconsin, farmers helping farmers  

    Emergency well drilling brings relief to farmers stricken by drought

    Have you been affected by the worst drought in more than 50 years? Share your photos with us on Instagram, Tumblr or Twitter with the tag #Drought2012. You can also upload your photos in the box below. 

    73 comments

    This drought should expose the real believers in capitalism. Do they really believe in the free market? Do they reject all government regulation or do they merely reject regulations on themselves? A free market without government interference does not prop up growers who lose their crops to extreme …

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    Explore related topics: commodities, economy, corn, featured, food-prices, janet-shamlian, droughtof2012
  • 25
    Jul
    2012
    7:47am, EDT

    1940s housewife showed how to tame high grocery prices

    Robert Wheeler / Time & Life Pictures

    Ann Cox Williams poses with a week's worth of groceries in 1947.

    By Eve Tahmincioglu

    With drought gripping the nation, grocery prices are expected to head higher soon even as many are facing economic hard times. A new generation of home economists, armed with mobile applications and Internet couponing sites, is driving renewed interest in frugal consumption.

    In these tough times it's comforting to know that generations before us have faced similar challenges and responded in similar ways -- without all the technology, of course.

    A 1947 issue of Life magazine, in a package of stories on “High Prices,” profiled Atlanta housewife Ann Cox Williams, who was held up as a superstar saver for feeding her family on just $12.50 a week.

    The author of the article called Williams “the 1947 heroine of the Battle of the Budget,” saying she:

    allows herself $12.50 a week to buy all her groceries except milk. On this she manages to feed herself, her husband, her four-year-old twins and even the family cat. The job takes considerable doing. Mrs. Williams is an avid student of grocery ads and shop windows. She limits herself to one shopping expedition a week, at which she weights every penny against the family’s full week appetite. She serves no meat at lunch and limits her evening entrees to such items as meat loaf, hamburgers and chili. Yet she manages to provide two desserts daily and such frills as cookies for a party.

    “If all American housewives had the spunk and ingenuity of the woman on this page -- Mrs. Hamilton Williams of Atlanta, Ga. -- inflation would be less of a swear word,” said the article, which showed Williams shopping, studying the newspaper and preparing cookies for a PTA party.

    Courtesy of Williams family

    Ann Williams with her twin daughters Marcy and Kappy in an image from the 1940s. "My twin sister and I were identical, and at the young ages even we couldn't tell who is who in pictures," said Kappy Williams Bowers.

    The spunk and ingenuity needed to save money today has changed a lot, thanks to things like cyber coupons and mobile deal alerts; not to mention the fact that more women work today and don’t have the time to devote to finding the best deals that Williams had.

    But the basics of saving money haven’t changed much -- cut back and spend less.

    “The more things change the more they stay the same,” said Doug Bachtel,  a professor of consumer economics at the University of Georgia’s College of Family and Consumer Sciences.

    “There is something ingrained in American society about penny pinching,” he noted, and many see the thrifty as “wise people who don’t spend frivolously.”

    Unfortunately, he added, U.S. consumers these days have found it hard to emulate such budgeters thanks to a mantra of consumption fueled by easy credit; endless supplies of food, a lot of it unhealthy; and television and the Internet that has influenced the young and old to spend, spend, spend.

    “Kids today get a $20 lunch box and want their mothers to stick in some high-priced sexy food,” he explained, “not just a peanut butter and jelly sandwich.”

    Indeed, Williams daughter Kappy Bowers, who was a toddler when she was included in the Life Magazine photo spread, said the world has changed a lot since her mother was profiled in the piece. And she also admitted she wasn’t as budget-minded as her parents when raising her kids.

    “I am distressed by the things now, living to get things as opposed living to enjoy life,” she stressed.

    Bowers doesn’t remember the Life story being published but has vague recollections of the photo shoot. She also doesn’t remember feeling like her mother was doing something out of the ordinary when she was growing up.

    “Mom made all of our clothes -- even our winter coats and rainwear. I don't think we had a store-bought dress until we were 10 or 11,” she recalled.  “I loved my mom dearly, but I learned to sew in self defense.  Our prom dresses were always marked down and somewhat remade bridesmaids dresses -- need I say more? We were regular visitors to the Atlanta Junior League shop for used clothes.”

    Her father, a high school teacher, was also a penny pincher. “Dad would gas up the current wreck of a car we were driving and we would head out on Saturday and Sunday afternoons to the rich part of town where we would check out the trash at the curb for things for our home and the lake place,” she said.

    The "lake place" referred to a cabin the family built, furnished with items from the junkyard, including a used toilet and a metal shower stall that had a habit of shocking its users.

    Williams’ Life magazine spread was recently resurrected in a story published in Reminisce Magazine.

     “The remarkable frugality is what piqued our interest," said John Burlingham, senior editor for the magazine. "We were curious to learn more about this judicious housewife and felt our readers would be, too.”

    For some consumers today, the frugal lifestyle has become far more than a curiosity.

    Melissa Garcia could very well be the budget-battle heroine of our day.

    Known as the “Consumer Queen” online, she has two kids, ages 12 and 15, and a husband with a degenerative disease who is unable to work, so savings money is a priority.

    The main difference she sees today compared with Williams’ time has been the explosion of the dual-parent working family. “It’s not just the stay-at-home mom clipping coupons anymore,” she said.

    Today, she continued, working mothers and fathers have become savvier and take advantage of deals they can find via the Web. “You can get them on your mobile phone, on Facebook and Twitter,” she said. “It’s more accessible to people.”

    For consumers who are struggling, she suggested you “rethink what you buy. More spouses and families need to be more honest with each other and with their kids. They don’t understand what saving money is because they’ve been given everything they want in life.”

    In her family she talks with her kids, letting them know when it’s time to stretch the budget for the week.

    Some of her tips on purchases include buying fruits and vegetables in season; investing in a standing freezer to store things when they go on sale; and stockpiling things such as canned foods, cleaning supplies and even tooth brushes.

    The key, she advised, is convincing yourself that living within your means and saving money isn’t some unattainable goal.

    Even in 1947, consumers were shocked at Williams’ budgeting prowess.

    The Life magazine piece stated that when Williams' story was shared in the local paper, “less enterprising housewives sent in letters of disbelief that any family could eat so cheaply.”

    But her daughter can vouch for it.

    Williams died last year at age 95, and the one thing that stands out in Bowers’ mind most is: “I never felt deprived.”

    She does remember being the only family in the neighborhood without a television, but she added, “We played games. I was very happy.”

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    155 comments

    According to the CPI calculator, 12.50 in 1947 is worth 128.63 today, not really that impressive of a feat.

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  • 3
    Apr
    2012
    7:20am, EDT

    Best and worst supermarkets -- shoppers tell all

    Wegmans

    Wegmans, with 79 stores in the Eastern U.S., ranked No. 1 in a Consumer Reports survey of readers.

    By Allison Linn, NBC News

    Wegmans and Trader Joe's are the nation's favorite supermarket chains while Pathmark and Wal-Mart rank at the bottom in a Consumer Reports survey released Tuesday.

    Wegmans, which has stores in New York and several other East Coast states, topped the list, with Trader Joe’s and Publix close behind, according to the survey, compiled based on feedback from 24,203 readers.

    Pathmark, a chain based in the Northeast, Wal-Mart Supercenter and Shaw's ranked lowest on the list.

    All of the top picks received very high marks for service and cleanliness. Pathmark and Wal-Mart received the lowest marks for service, but Wal-Mart got excellent rankings for its prices.

    But even at the most highly rated stores, readers still found plenty to criticize.

    In general, the most common complaint was a shortage of checkout lanes. About one-fourth of the people who surveyed had that complaint.

    Other gripes had to do with customer service. Readers complained about congested or cluttered aisles, advertised specials that were out of stock and inept bagging.

    Rising grocery prices also appeared to be weighing heavily on people’s minds. Forty-three percent of those surveyed said they had switched grocers because they were looking for lower prices.

    The stores with the five highest ratings were:

    1. Wegmans
    2. Trader Joe’s
    3. Publix
    4. Fareway Stores
    5. Costco

    The stores that received the lowest ratings were:

    1. Pathmark
    2. Wal-Mart Supercenter
    3. Shaw’s
    4. A&P
    5. Jewel-Osco

     

    Consumer Reports' Tod Marks reviews grocery shoppers' biggest complaints, the shopping traps to avoid, and his techniques for saving while you shop.

    Consumer Reports also offered a few tips for cutting your grocery bill, no matter where you shop.

    Beware of sneaky signs: Just because something says “5 for $5” doesn’t mean you have to buy that many items.

    Watch for the 9s: Just because something is $6.99 (or even 99 cents) doesn’t mean it’s a bargain.

    Look around: Consumer Reports noted that vendors pay dearly to be right in your line of vision. Look for items that are high or low on the shelf, or those that aren’t featured at the end of the aisle. You may get a better deal.

    308 comments

    Mark my word. People waiting in these long check out lines will be Walmarts biggest downfall. It doesn't seem to worry Walmart at all. They could care less.

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  • 17
    Nov
    2011
    7:21am, EST

    Your grocery bill is getting higher, and higher

    Getty Images

    Grocery bill going up? You're not alone

    By Allison Linn, NBC News

    Paula McGowan has cut out soda, switched to store brands for other foods and even sent her boyfriend hunting for deer so she can put food on the table.

    Still, she finds herself struggling with higher food prices.

    “It’s milk, bread, just the basic stuff,” she said. “We’re looking at basics and it’s all going up.”

    After two years in which overall food prices barely budged, groceries are getting more expensive.

    The price of food at home is projected to rise by 4 to 5 percent this year, and another 2 to 3 percent next year, according to the Agriculture Department. That’s adding another financial worry for many people already living with tight budgets thanks to the weak economy and high jobless rate.

    The percentage of people who say they had enough money to buy food in the last 12 months fell to its lowest level in three years, according to a Gallup poll released this month.

    The vast majority of Americans surveyed — 79.4 percent — said they have been able to buy the food they need. But that doesn’t mean it’s easy.

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    McGowan, 44, lives with her boyfriend in Versailles, Ky. Her job in information technology has been stable, but her boyfriend has had bouts of unemployment and now runs his own lawn mowing business. That’s making it difficult to keep up with rising costs.

    “I literally live paycheck to paycheck,” she said.

    McGowan isn’t alone. Nearly one-third of Americans say rising food and gas prices are making it difficult to save money, according to a recent poll from Country Financial.

    When she goes to the grocery store, McGowan said she brings a detailed list, coupons and a strict budget. She buys low-cost but filling food like rice and pasta in bulk and relies on cheaper protein like eggs to stretch the couple’s meals.

    “For us, having bacon on a Sunday morning is a luxury,” she said.

    She’s counting on deer hunting season to provide them with meat for the winter.

    Ricky Volpe, a research economist with the USDA’s Economic Service, said there are many reasons food prices are rising.

    Some crops have been hurt by bad weather, and a surge in fuel prices has made it more expensive to produce and transport food.

    In addition, he said, the weak dollar and growing overseas demand for meat are pushing up the prices of beef, pork and dairy products.

    Some foods, including beef, are in shorter supply because ranchers cut back on how much they were producing when the economy weakened and now must play catch-up. The price of beef was 10 percent higher this September than it was a year ago, according to government data.

    For many food producers, it’s a combination of things.

    “Companies can usually handle one or two of their commodities ticking up,” said Ryland Maltsbarger, senior economist with the agriculture service at IHS Global Insight. “But when you get labor costs on top of transportation costs on top of commodity costs on top of a few other costs … it all plays into it.”

    There are ways to save money.

    For example, Volpe noted that while the price of fresh fruits and vegetables has gone up considerably, prices for canned or frozen produce aren’t going up as quickly. Fresh fruits and vegetables costs 7.6 percent more in September than a year earlier, while processed produce prices were up by 4 percent over that same period.

    Also, while beef prices have gone up substantially, chicken farmers have been able to respond more quickly to increased demand, so poultry prices aren’t expected to rise as fast. Poultry prices were up 3 percent in September over a year ago.

    As the holidays approach, food costs add another challenge for people on a budget. The American Farm Bureau is projecting that a turkey dinner will cost 13 percent more this year than last year.

    McGowan said she planned ahead for Thanksgiving last year, when she got a $10 Butterball coupon from ordering office supplies and a $25 grocery gift card from her employer.

    Those funds went toward a turkey that’s already in her freezer. Now she only has to budget for side dishes and oil – to deep-fry the bird.

    505 comments

    The author of this article says food prices have barely budged in the last two years? Where does she live? Milk has gone up almost a dollar a gallon in the last two years. Meat,oil,eggs- everything has gone up. If they haven't gone up, the sizes of the packages have gone down- "New convenience siz …

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    Explore related topics: economy, retail, featured, food-prices
  • 5
    May
    2011
    2:57pm, EDT

    Do you live in a 'food desert'? Online tool can tell you

    USDA

    By Ryan MacClanathan, contributor

    Nearly 13.5 million Americans live in areas where it is hard to find healthy food and fresh produce for a reasonable price.

    The U.S. Department of Agriculture calls these regions "food deserts," and it has created a new tool that uses Census data to map out these areas. The tool allows users to enter specific addresses or zoom in to get street-level mapping.

    A food desert (shown in pink above) is an area where at least 500 people or 33 percent of the population have no access to a supermarket or large grocery store within one mile in urban areas or 10 miles in rural areas. About 10 percent of the 65,000 census tracts in the United States meet this definition.

    The USDA hopes the tool will assist efforts to expand the availability of nutritious food in food deserts and low-income communities, which is part of first lady Michele Obama's push to address the epidemic of childhood obesity.

    Comment

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  • 2
    Mar
    2011
    1:34pm, EST

    Can you build a better burger for less?

    By Ryan MacClanathan, contributor

    Americans certainly love their hamburgers, ordering 2.2 billion of the artery-clogging sandwiches at restaurants last year, according to the NPD Group market research firm.

    At about $7.50 a pop, that totals billions in national spending for something that even the least-skilled cook can create.

    While the humble beef sandwich is usually the cheapest option on the menu, how much will you save by preparing your own at home? Our friends at Walletpop.com ran the numbers on the ingredients and at $2.20 for a homemade burger vs. $7.49 for Applebee’s version (plus tax and tip), they determined that, yes, homemade burgers are the frugal choice.

    Here’s what they calculated:

    • 7 ounces of ground beef (weight pre-cooked): $1.04.
    • One leaf of lettuce: 2 cents
    • One slice of tomato: 8 cents
    • Two  pickles: 60 cents
    • One slice of onion: 5 cents
    • One bun: 41 cents

    Clearly, grilling your own burger is much more economical, even factoring the cost of your time and the additional expense of french fries, but will it taste better?

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Eve Tahmincioglu writes the popular "Your Career" column for MSNBC.com and her blog www.careerdiva.net, covers a broad range of career and labor issues. Her blog was named one of the top ten career blogs by Forbes, US News & World Report and CareerBuilder. Last year, she was named one of the top online business columnist in the country by the Society of American Business Editors and Writers. She's al …

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