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Prices on dairy products, eggs, flour skyrocketing across nation

by Gwen ALBERS<br
| March 7, 2008 8:00 PM

Ed Gould last week went to Boundary Trading Co. so he could make one of his wife's favorite desserts - a French pastry with fresh plums and pears.

Like many shoppers, Gould was taken aback by the cost of eggs, which in recent months have jumped by more than 50 percent.

“That's outrageous,” the retired surgeon said about paying $2.28 for a dozen eggs.

Gould, however, understands.

“I know the farmers are paying more for feed,” he said. “I don't think anyone is getting rich, including the chickens.”

The increased cost for eggs is due to an increase in egg exports overseas, according to a published report. There was a huge shipment as a result of the bird flu scare. Plus, cage-free layer eggs are becoming increasing popular in Europe. Therefore, the demand here is greater than the supply, which drives up the price.

Before the egg prices increased, customers could buy them at their local grocery for 89 cents a dozen.

In addition to eggs, the cost of other dairy products are on the rise, said Brett Brown, manager for Safeway in Bonners Ferry.

“We have seen a definite influx pretty much all across the dairy department,” Brown said. “I've heard transportation costs are making everything go up.”

Matt Morgan, manager for Boundary Trading Co., agrees it's due to transportation costs, and the fact that the higher oil prices mean increased costs for packaging.

“Look at milk. It's packaged in a petroleum-based plastic container,” Morgan said. “(In addition), the cost of feed for cattle and chickens has skyrocketed. Bad crops, bad prices. Low crops lead to supply and demand. The price of feed is going back up.”

Also, a combination of unusually poor wheat crops and high demand has driven flour prices to an all-time high, according to another published report. In the past 12 months, flour prices have risen 15 percent to 25 percent across the board.

At Boundary Trading Co., a 10-pound bag of Western Family flour was $3.59 last week. The same size bag of Gold Medal flour was $5.77.

The increase has Charlene Wells of Bonners Ferry considering making her own flour.

“I think about grinding grains for flour to make bread,” Wells said. “I would do it too because it's more nutritious and better for you and the price of flour.”