food cost Archives - Best Food Facts

Are Organic Foods Worth the Extra Cost?

Best Food Facts — Tue, 09 Dec 2014 15:49:17 +0000

The choice between organic and conventional foods has always been a hot topic for individuals striving to live a healthy lifestyle. One limiting factor for some is the cost of organic food, and we recently received a question on whether organic food is worth the extra cost. We’ve addressed the topic of organic and conventional foods from several angles. Read on to see what our experts have to say.

Many of us choose organic foods because they are nutritious and delicious, but whether they’re healthier than conventionally-grown foods is a matter of debate. A study published in the Annals of Internal Medicine by Stanford University found that fruits and veggies labeled organic were no more nutritious than conventionally-grown fruits and veggies, on average. Check out our previous post on the study here.

Dr. Ruth MacDonald has also answered a question pertaining to the chemical use in non-organic food. According to Dr. MacDonald, “There is a widely held thought that conventionally-grown fruits and vegetables are loaded with pesticide and herbicide (chemical) residue. This is simply not supported by facts. The FDA and USDA routinely monitor the food supply for chemical residues and post results on their websites.”

We created a post about the Environmental Working Group’s Dirty Dozen and Clean 15, providing a visual to help you understand the use of pesticides on crops and what our experts say. Drs. Carl Winter and Francisco Diez-Gonzalez rated whether organic food is better for human health here.

In short, studies have shown that organic food is not any more nutritious than conventionally-grown fruits and veggies, and concerns about chemical residue on conventionally-grown fruits and veggies is unwarranted. So whether organic food is worth the extra cost is entirely up to you!

Regardless of whether you choose to eat organic or conventionally-grown fruits and veggies, Dr. Julie Albrecht says the most important thing to remember is this: “Always rinse all fruits and veggies, no matter whether they are organic or not!”

_{“Small deluxe organic box” by Jessica Spengler is licensed under CC BY 2.0.}

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“Americans pay less for their food than consumers in any other country.”

Best Food Facts — Tue, 22 Oct 2013 23:00:42 +0000

Because the United States has such a large, affluent population, we spend more on food ($833 billion in 2007) than all other countries except China. But the average American spent only 6 percent of their money on food purchases, which is the lowest in the world.

While the average U.S. consumer spent $2,762 for food in 2007, which is one of the higher levels globally, only 9.8 percent of their disposable income was spent on food and beverage.

Because of inflation, a growing population, and increased consumption per person, the total amount Americans spend on food increases in most years. The last year total U.S. food expenditures were down was 1949.

_{True or Not? “Americans pay less for their food than consumers in any other country.”}

Ronald Plain, PhD says:

Do Americans pay less for food than any other country? Although the numbers vary from one data set to another, and from year to year (depending somewhat on food prices but mostly on exchange rates), the answer depends not so much on the year of comparison or whose numbers are used, as on the precise meaning of the question. I present three alternatives.

Q1 Do Americans, in total, spend less on food than citizens of other countries?

No. Because the U.S. has a large and affluent population, in total, Americans spend more on food than all other countries except China. According to World Bank data, the U.S. spent $833 billion buying food in 2007, far more than the $11.6 billion spent in 2007 by the 4.5 million residents of Singapore, for example. China spent slightly over $1 trillion on food in 2007 to feed their population of 1.3 billion people. The Japanese were third in total national expenditure on food spending $665 billion in 2007. Germany and France ranked fourth and fifth, respectively.

Source: 1,2,3

Q2 Do Americans spend less per person on food than the citizens of other countries?

Yes and No. The average American spent $2762 for food in 2007, which is one of the higher levels in the world. For many people in poor countries, total expenditures for all items are lower than what Americans spend on food. For example, in 2007 the per capita income in Bangladesh averaged only $470. Americans did spend less per person buying food in 2007 than did residents of Japan ($5215), France ($4929), Germany ($3899), and the United Kingdom ($3090); but far more than residents of Morocco ($813), Philippines ($586), India ($299) and Vietnam ($278).

Source: 1,2,3

Q3 Do Americans spend a smaller percent of their income on food than citizens of other countries?

Yes. In 2007, only 6.0% of expenditures by the average American were to buy food. That is the lowest in the world according to the World Bank. By comparison, the French spent 12.7% and Russians 27.1% of their respective 2007 expenditures on food. As a general rule, the wealthier the nation, the smaller the share of income spent on food.

Food as portion of
Nation total expenditures

Nation Food as portion of total expenditures

U.S.A. 6.0%

United Kingdom 7.6%

Singapore 7.8%

Germany 10.0%

France 12.7%

Japan 13.8%

Hungary 14.5%

South Korea 14.6%

Czech Republic 14.6%

South Africa 19.0%

Mexico 21.1%

Chile 22.5%

Turkey 23.3%

Brazil 24.0%

Colombia 24.9%

Bulgaria 26.0%

Russia 27.1%

India 31.5%

Romania 31.5%

China 34.0%

Morocco 35.3%

Vietnam 36.1%

Philippines 36.2%

Ukraine 39.6%

Indonesia 43.3%

Source: World Bank, Euromonitor, 2008

A related question is: Are Americans spending more on food today than they did in the past? Again the precise meaning of the question is important. I offer four alternatives.

Q4 Are Americans spending more, in total, on food and beverages than in the past?

Yes. According to USDA, in 2007, Americans spent a record $997.3 billion on food and beverages. Because of inflation, a growing population, and increased consumption per person (just check people’s waistlines), total food expenditures by Americans increase in most years. The last year total U.S. food expenditures were down was 1949.

Source: USDA/ERS: Food CPI, Prices and Expenditures: Food Expenditures by Families and Individuals as a Share of Disposable Personal Income.

Q5 Are Americans spending more per person on food and beverages than in the past?

Yes. In 2007, the average American spent a record $3,310 on food and beverages. Because of inflation, food expenditures increase in most years. The last year U.S. per capita food expenditures were down was 1992.

Source: USDA/ERS: Food CPI, Prices and Expenditures: Food Expenditures by Families and Individuals as a Share of Disposable Personal Income.

Q6 Adjusted for inflation, are Americans spending more per person on food than in the past?

Yes. Even adjusted for inflation, U.S. per capita food expenditures are rising. The last year inflation adjusted U.S. per capita spending on food was less than the year before was 2000.

Source: USDA/ERS: Food CPI, Prices and Expenditures: Food Expenditures by Families and Individuals as a Share of Disposable Personal Income.

Q7 Are Americans spending a larger share of their disposable income on food than in the past?

No. In 2007, Americans spent 9.8% of their disposable income on food and beverages. It has been lower only once, 9.7% in 2004.

U.S. Food Expenditures as a Share of Disposable Income, 1929-2007

Year Percent | Year Percent | Year Percent

1929 23.4 1956 18.1 1983 12.5

1930 24.2 1957 18.4 1984 11.9

1931 23.0 1958 18.4 1985 11.7

1932 23.0 1959 17.8 1986 11.6

1933 25.2 1960 17.5 1987 11.5

1934 24.2 1961 17.1 1988 11.0

1935 23.4 1962 16.5 1989 10.9

1936 21.8 1963 16.0 1990 11.1

1937 21.5 1964 15.4 1991 11.2

1938 22.1 1965 15.1 1992 10.6

1939 21.3 1966 14.8 1993 10.8

1940 20.7 1967 14.1 1994 10.7

1941 19.4 1968 13.8 1995 10.6

1942 18.6 1969 13.7 1996 10.4

1943 18.6 1970 13.9 1997 10.4

1944 18.4 1971 13.4 1998 10.1

1945 19.2 1972 13.5 1999 10.2

1946 21.6 1973 13.3 2000 9.9

1947 23.5 1974 13.6 2001 9.9

1948 22.3 1975 13.8 2002 9.8

1949 22.1 1976 13.6 2003 9.8

1950 20.6 1977 13.4 2004 9.7

1951 20.9 1978 13.4 2005 9.8

1952 20.8 1979 13.4 2006 9.8

1953 19.9 1980 13.2 2007 9.8

1954 19.6 1981 13.0

1955 18.6 1982 12.6

Source: USDA/ERS: Food CPI, Prices and Expenditures: Food Expenditures by Families and Individuals as a Share of Disposable Personal Income.

Another question that often arises is: How do people in poor countries spend so little on food and survive? In part, they buy less food because they raise more of what they eat. In part, they eat less food per person. But much of the difference is in the type of food they buy. People in poor countries tend to eat out less, buy much less high cost foods such as meat, and buy much less prepared foods. Affluent people eat at restaurants. Poor people eat at home. Affluent people buy bread. Poor people buy flour.

_{Sources of Data}

_{Population by country: World Development Indicators database, World Bank, revised 24 April 2009.}

_{Per capita income by country: World Development Indicators database, World Bank, revised 24 April 2009.}

_{Food expenditures as share of total expenditures by country: World Bank, Euromonitor, 2008}

_{U.S. food expenditures by year: USDA/ERS: Food CPI, Prices and Expenditures: Food Expenditures by Families and Individuals as a Share of Disposable Personal Income.}

_{Image: “110303_CNPP_LSC_0018” by U.S. Department of Agricultureis licensed under CC BY 2.0.}

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What Causes the Price of Food to Rise?

Best Food Facts — Fri, 08 Feb 2013 19:47:37 +0000

Are you concerned about food prices? Last year, we looked at how drought affects the price of food, and unfortunately, many parts of the United States are still experiencing drought conditions. On average, Americans spend about 10 percent of their income on food, according to the Bureau of Labor Statistics. But what affects food prices each year? To answer this question, we reached out to Dr. Marc F. Bellemare, Assistant Professor, Sanford School of Public Policy, Duke University.

What affects world food prices?

Dr. Bellemare:

Episodes of extreme temperature drive increases in food prices. There’s a clear causal relationship between climate and food prices and crop yields. Drought and temperature are correlated. However, more than drought, it’s actually episodes of extreme temperature which result in higher food prices.

Drought is a really poor predictor of crop losses. What’s a very good predictor of crop losses is temperature patterns. The more days you have temperatures above 28 degrees C (82 degrees F), the worse you can expect crops to fare, which increases food prices. Proceedings of the National Academy of Sciences actually show when temperatures rise above about 28 degrees C, you see a sharp drop in crop yields for about every major commodity, be it maize (corn), soybeans, wheat or rice.

Does the price of oil affect food prices?

Dr. Bellemare:

Yes, the price of oil also affects food prices. When we buy food, we’re not just buying the commodity – we’re paying for transportation and labor costs. We have to pay people to grow it and harvest it, along with transportation and processing. The price of oil affects transportation costs, which then affects the price of food.

Does the price of land affect food prices?

Dr. Bellemare:

The price of land does affect food prices. Land is one of the core inputs in the production of food. However, I don’t think land is as much of an important driver of food prices lately. Really, it’s transportation costs, labor costs, and a little bit of scarcity.

If food prices are high in other parts of the world, will that affect food prices in the United States?

Dr. Bellemare:

The two are correlated; there’s no denying that if the price of food rises in the rest of the world, it will also affect prices in the United States. However, the causal direction of what’s going on is the opposite. When we have poor crops here in the United States, we can expect prices to go up in the rest of the world. As a reaction to those higher food prices in the United States, what happens in foreign countries, where food security is not what it could be, food prices tend to increase. When those countries impose export bans or restrictions on free trade to make sure they have enough food for their own citizens, the unintended consequence is that they tend to drive food prices up even more. It can become a spiraling bubble. In that sense, food prices elsewhere might affect what’s going on here in the United States, but it would be a far-reaching consequence.

Is there a solution to increasing food prices?

Dr. Bellemare:

We need to come up with drought- and extreme temperature-resilient grains and feeds with better technologies. These technologies are genetically modified (GMO) crops, and unfortunately, many people have a knee-jerk reaction when they hear that term. But, perhaps the solution to hunger is through biotechnology and GMO crops.

Here are some tips on how to handle rising food prices from Dr. Helen Jensen, an economics professor at Iowa State University: How are American Consumers Handling Rising Food Costs?

_{“110303_CNPP_LSC_0161” by USDA is licensed under CC BY.}

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Nation	Food as portion of total expenditures
U.S.A.	6.0%
United Kingdom	7.6%
Singapore	7.8%
Germany	10.0%
France	12.7%
Japan	13.8%
Hungary	14.5%
South Korea	14.6%
Czech Republic	14.6%
South Africa	19.0%
Mexico	21.1%
Chile	22.5%
Turkey	23.3%
Brazil	24.0%
Colombia	24.9%
Bulgaria	26.0%
Russia	27.1%
India	31.5%
Romania	31.5%
China	34.0%
Morocco	35.3%
Vietnam	36.1%
Philippines	36.2%
Ukraine	39.6%
Indonesia	43.3%

Year	Percent	\|	Year	Percent	\|	Year	Percent
1929	23.4		1956	18.1		1983	12.5
1930	24.2		1957	18.4		1984	11.9
1931	23.0		1958	18.4		1985	11.7
1932	23.0		1959	17.8		1986	11.6
1933	25.2		1960	17.5		1987	11.5
1934	24.2		1961	17.1		1988	11.0
1935	23.4		1962	16.5		1989	10.9
1936	21.8		1963	16.0		1990	11.1
1937	21.5		1964	15.4		1991	11.2
1938	22.1		1965	15.1		1992	10.6
1939	21.3		1966	14.8		1993	10.8
1940	20.7		1967	14.1		1994	10.7
1941	19.4		1968	13.8		1995	10.6
1942	18.6		1969	13.7		1996	10.4
1943	18.6		1970	13.9		1997	10.4
1944	18.4		1971	13.4		1998	10.1
1945	19.2		1972	13.5		1999	10.2
1946	21.6		1973	13.3		2000	9.9
1947	23.5		1974	13.6		2001	9.9
1948	22.3		1975	13.8		2002	9.8
1949	22.1		1976	13.6		2003	9.8
1950	20.6		1977	13.4		2004	9.7
1951	20.9		1978	13.4		2005	9.8
1952	20.8		1979	13.4		2006	9.8
1953	19.9		1980	13.2		2007	9.8
1954	19.6		1981	13.0
1955	18.6		1982	12.6