Josh Elledge - Chief Executive Angel
You may have read the headlines that we may soon be paying $6 a gallon for milk. The current five-year farm bill, which subsidizes the cost of dairy products with taxpayer dollars, expired on September 30th although aid levels are set through the remainder of the year. Dairy prices shouldn't be affected in 2012. House leaders balked at a $969 billion farm bill from the Senate due to high costs and the rising costs of food stamps included in the proposal.
If the House doesn't pass a new farm bill, we could see the price of milk hit $6 a gallon. Other dairy products like cheese, yogurt, and butter would also be on the rise. Despite consumer concern, House leaders from both sides of the aisle are confident a new bill will be passed during their session.
Whether of not dairy prices jump, there's no question about it; overall food prices have been on the rise – whether you realize it or not. The Department of Agriculture Center for Nutrition Policy and Promotion states that the average family of four with school-age children now pays $1025 a month at the grocery store. This does not include food eaten outside the home, where costs have risen as well.
Prices have risen roughly 3.5% in 2012 according to the Department of Agriculture. This translates to an increase of $35 per month for the average American family. Experts predict that Americans could pay between 3 and 6 percent more for food next year on top of 2012's increases. This hidden penalty may range from $30.75 to $61.50 a month!
There are many reasons for these price increases. Among them are droughts, wholesale price increases on feed for livestock, fuel costs, Washington policies, and inflation in a weak economy. Altogether, it's not been pretty for American families.
Some price increases are easy to recognize. Some are more insidious to consumers trying to hold on to precious dollars. You're probably familiar with the sneakiest way to increase prices on shoppers: shrinking packages. Food marketers have openly stated that it's far easier to sneak past a smaller product offering than raise the price on consumers without them knowing. It takes a careful eye to spot the changes.
We maintain a database of tens of thousands of products from your local stores at SavingsAngel.com ““ matching them with thousands of coupons from your Sunday paper and online to create the scientifically-lowest way of buying the products you love. On a near-weekly basis, we adjust the description of products because the number of ounces drops ““ or clever new products are introduced which contain less food and more packaging.
So, what's a family to do?
Instead of shopping like an average shopper, I advocate applying high value manufacturer coupons (from your Sunday newspaper and the Internet) to the absolute best local sales. With rising food costs, you might think that manufacturers will make couponing less valuable in an effort to ensure their own profits. One industry expert explained it to me this way: “This has been tried in the past and has failed. Coupons are generally very successful for manufacturers who can pay to widely distribute them. When they stop distributing them, however, their competitors ramp up their coupon offers and sales take a hit.”
Wisely using coupons is a proven formula that beats paying shelf prices at any retailer. Most members ofSavingsAngel.comeasily cut their grocery bill in half once they get the hang of our system. Even if you loaded up the five great deals I share each week in my column, you could easily find yourself offsetting increases this year.
The question is, how expensive do groceries need to get before you try something different? Would an extra $40 monthly increase get your attention? $100? $200? Your family needs to continue to eat. At some point, you'll need to try something “un-average.” I invite you to let today be the beginning for your family of a way of shopping that savvy couponers have long enjoyed.
