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Food prices up 5% in 2008: Retailers blame fuel and corn costs, weak dollar

SELINSGROVE, May 08, 2008 (The Daily Item - McClatchy-Tribune Information Services via COMTEX) -- It's nothing to oink at: Wendt's Pork Palace owners Scott and Kathy Wendt say the rising cost of everything from meat to fryer oil is threatening to break their piggy bank.

In the two years since the Penn Township restaurant opened, it's garnered a reputation for succulent charcoal-roasted pork and lip-licking ice cream. But the Wendts are in the same situation as every other independent restaurant owner in America: They find themselves needing to raise menu prices just to stay afloat.

Restaurateurs like the Wendts -- whose operating costs have risen 30 percent since December -- have the same food-buying problem as everyone else.

Soaring fuel and corn costs and the weak dollar have combined to create the perfect retail storm, Weis Markets spokesman Dennis Curtin said.

"Fuel and surging commodity costs have had a significant impact on our costs," Curtin said.

How significant? The U.S. Department of Agriculture says all food prices have increased by between 4 and 5 percent this year, with fats, oils, cereals and bakery products making the biggest jump. That means the $200 bundle of groceries you purchased last year is costing you about $210 today.

It puts a cramp in your stomach if you have a family to feed; it splits your side if food is your livelihood.

If rising food prices weren't bad enough, Wendt's Pork Palace -- like restaurants across the country -- is also faced with zooming overhead.

Scott Wendt on Wednesday stood in front of a heaping pile of charcoal bags. Each week, Wendt slow-roasts eight pigs in his twin outdoor roasters. Depending on which way the wind is blowing, the smell can waft all the way down Route 522 to nearby shops. Charcoal, Wendt says, helps give the meat its signature smoky flavor.

But what five months ago was a $7.25 bag of charcoal is today $9.75, Wendt says. Multiply that by about 35 bags a month, rack and stack it in with the rest of the rising costs (paper products for menus and napkins, straws, utensils and just about everything else under the sun), and Wendt calculates his Pork Palace costs about 30 percent more to run than it did in December.

Two months ago, the Wendts had to increase their prices by about a dime. Now -- faced again, as Scott Wendt said, with the threat of "barely breaking even" -- they might have to give costs another little bump.

"We're running tight," he said.

How to pay less

Your pork sandwich costs 10 cents more, your grocery bill is climbing ("Are you sure you didn't have your thumb on the scale?") and you've ceased even trying to stop the gasoline pump on a round number.

What gives?

According to Tracy Pawelski, spokeswoman for Giant Food Stores, several factors have teamed to lift prices.

"Much of (it) can be attributed to the increasing cost of oil, corn and wheat," she said. "Many farmers are switching fields to corn for use in the making of ethanol instead of using it as feed or for food. At the same time, increased world demand ... for wheat, corn and other commodities is putting pressure on prices here at home."

Weis spokesman Curtin pointed out, though, that while Americans are paying more for their food, at 9.9 percent, they're still using far less of their total incomes than residents of many other countries.

"In some Third World countries that number goes as high as 70 percent," he said.

Lynn James, a food and nutrition expert with the Northumberland County Penn State Cooperative Extension office, said there are a number of things you can do to keep food costs down:

n Plan your meals. Go to www.MyPyramid.gov to see how much you or your family member needs to eat per day for each food group, and to see meal planning ideas. Eating at home more often rather than eating out is less expensive. You can control the fat, salt and portion sizes too, for better nutrition.

n Make a grocery list. Using your weekly meal planner, make a list based on grocery and seasonal specials. This will save you money in reduced trips to the grocery store and help you avoid purchasing items not on your list. For a heart healthy grocery list, go to American Heart Association at http://checkmark.heart.org/.

n Use unit pricing. Unit pricing tags are on most grocery store shelves. If not, divide the cost of the item by either its weight, or amount, such as cost per ounce, pound, or dozen, for example. This is the cost per the unit. Compare the unit cost between like items of different sizes, or different brands. Sometimes it is cheaper to buy a larger amount if you can eat it all or repackage and freeze portions, and sometimes it is not.

n Try meatless protein sources twice a week. Beans, nuts, seeds, canned fish, eggs are less expensive, yet nutritious, protein sources.

n Stock up on nonperishable foods only if you have room and if they are on special. If shopping at discount stores, make sure the food is not past the use-by or expiration date and the can is not dented. These foods may put you at risk for a food-borne illness.

n Decrease purchases of high-fat, high-sugar foods and drinks to fewer than once per week. These foods and drinks are expensive when you consider they offer little nutritional value, and the cost per serving is often high.

n Buy fresh fruits and vegetables in season, canned or frozen when they are not. Spring is a great time to purchase local salad greens, peas and strawberries.

n Plant a garden. Contact your local Penn State Extension office to see when master gardeners are offering classes, or for planting guides or advice.

n E-mail comments to dgessel@dailyitem.com.

To see more of The Daily Item or to subscribe to the newspaper, go to
http://www.dailyitem.com/. Copyright (c) 2008, The Daily Item, Sunbury, Pa.
Distributed by McClatchy-Tribune Information Services. For reprints, email
tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to
847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303,
Glenview, IL 60025, USA.


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Damian Gessel

Copyright (C) 2008 The Daily Item, Sunbury, Pa.

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