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Are You Affected by Rising Food Prices?

20080120Wheat.jpg

2007 was a breakout year for agricultural commodities like corn, wheat, and soy. According to this piece on Market Oracle, a key indicator of the U.S. commodities market rose 31 percent last year—compared to single-digit growth in the greater domestic economy. Corn prices finished the year at an 11-year high, while soybeans were at a 34-year high. Such trends are, of course, driving up food prices; in May of last year Sustainable Table covered this very issue. But are we really feeling the effects?

In my neighborhood in Brooklyn we regularly shop at one of the two local health food stores, which are the only stores nearby offering organic produce. However, it is impossible to leave either store without spending more than $20 on one meal's groceries. Now, granted we are buying organic, but a meal's worth of groceries costing me more than $20 makes it feel like it's almost worth going out to a restaurant instead. At least I wouldn't have to cook or clean.

And restaurants, too, seem to have gotten more expensive lately. A coworker was telling me about his recent meal at Becco, where $21.95 gets you the Sinfonia Di Pasta, basically a fancy all-you-can-eat deal. My gut reaction was, wow, that's a really good deal. $21.95 isn't bad for a restaurant of Becco's quality. But now that I've had some time to mull it over, I am actually astounded at that price for pasta, even if it is house-made and all-you-can-eat. (How much pasta can you eat?)

But how much of this is attributable to the crazy real estate market here in New York City, and how much to the soaring prices of agricultural commodities? It's hard to say, but my hunch is that it's a bit of both. With growing demand for food from booming populations in India and China, and worldwide shortages owing to global warming, the dwindling of available arable land, and increased biofuel production, the trend is only expected to continue.

Serious Eaters, are you feeling the crunch at the checkout line? Have you noticed your weekly food bill increase over the past year? Let us know in the comments below. Relatedly, see what one week's worth of food will set you back in a bunch of different places throughout the world.

20 Comments:

I am totally noticing it. Mostly with fruits and vegetables. Admittedly, in living in Manhattan, prices are going to be higher anyhow, but it's getting ridiculous. Supermarkets and Fresh Direct cost a fortune. As example, a head of cabbage via Fresh Direct this week cost me $6.02. That's right. A head of cabbage! You know? The vegetable of the thrifty? SIX dollars! Corner fruit and vegetable stands are cheaper, but the quality is often questionable, at least in my neighborhood. We have a farmer's market by my office, and their apples are much cheaper than the supermarket/FD, but everything else is way more expensive. It's frustrating. I'm eating a dinner of broccoli and rice, with a pear and apple for dessert and it costs five bucks. Which is less than some McDonald's combo meals. And which is why I totally understand why so many lower income people end up eating so much darned fast food.

Meat prices are also noticeably higher. I don't eat that much meat though, so it's not quite as compelling an issue for me.

My food bill has most definitely gone up dramatically. I think if this trend continues, it's going to be increasingly difficult for people of low to moderate income. It's already difficult to put delicious and nutritious food on the table,but when you add the skyrocketing prices, it makes that perservative and sugar-laden convenienve food that much more attractive.

Urgh. Sorry, Jamie, but first I must say that the link to the blog you listed with the photos, which does not give proper credit to the author and photographer who wrote and published the book kind of freaks me out. "It might have come from the BBC" was the comment as to the origin. Not good enough.

Credit where credit is due, please. Particularly when the book is one that should be fairly well-known to those discussing food culture if they are presenting themselves as knowing what they are talking about.

Here is a link to a NPR story on the book . I believe there was also a Newsweek story around that time, and a BBC online article. Peter Menzel and Faith D'Aluisio wrote and photographed the book.

End of rant.

As far as your question goes, yes. I have seen a difference in my weekly grocery bill lately. I've heard that not only the cost of agricultural commodities but the cost of crude oil is affecting the costs of food and that it is not something we can expect to see change soon.

Following my own advice I'll make the correction to not Newsweek but Time magazine covered the book. This link is to Part One - I believe there are more parts if one searches.

My weekly budget for groceries has doubled in the last four months and it is an across the board increase. Thankfully, I haven't seen a huge increase in the cost of my bread flours, yet...

This is why I hate the whole ethanol fuel push. Not only is ehtanol fuel less efficient than regular dino-fuel, but it also pushes food prices higher. Corn now has a new buyer with gas companies. And this doesn't only affect corn prices, but prices on livestock as most of their feed is corn-based.

does it reduce dependence on foreign fuel? perhaps, but I wonder if it reduces it any more than a hybrid vehicle would.

We also - in a Dallas exurb - have noticed the push higher (maybe exacerbated by the period post-influx of big box stores and closing of grocery stores). This is a small anecdote, but last night the husband voted for Thai and I insisted I'd make curry, something we ate during our lean years because of the cost/quantity. In short, I spent more than we would have spent doing carry out because of the increased cost of things like fresh vegetables and meat products. We've almost stopped eating beef, and the days when organic bananas were affordable are long gone. When we moved here from Chicago, everything seemed so cheap - I can't imagine city costs now.

Oddly, enough I have not noticed it...I even just double checked a few items and they are the same price as last year. For example, my free range Maverick Ranch chicken is still $6.99 a pound. However, I shop at a discount natural grocer (Vitamin Cottage) and they tend to have the lowest prices around. We spend about $100 (plus/minus $20) per week on organic & free range groceries for 2 people and a baby (he doesn't eat much yet). Beef never gets added into this total as we buy it in the fall from a local farm and that goes in our freezer. The beef we buy is grass fed, so feed doesn't factor into that price either. My dad claims his eggs and milk are more expensive, but I don't know if that is a recent change or just a big difference from when he was a kid (he is 79).

Any commodity the government subsidizes to burn as fuel, (or for any reason), is going to go up in price, and the increase is going to show up in realted commidities and other products sooner or later.

I wish we could find a way to render politicians and beauracrats into fuel? I'd gladly pay higher prices in exchange for that!

I wish we could find a way to render politicians and beauracrats into fuel? I'd gladly pay higher prices in exchange for that!

srhcb at 11:20AM on 01/21/08

Yeah, me too. The problem is that politicians and bureaucrats grow faster than corn doused with top-grade fertilizer on a summer's day in Indiana. Render one into fuel and another pops right up as replacement, with the same innate characteristics.

if we paid the costs of the growth and preparation of food, we would see some major changes in how we eat. Corporate America has a concept called unit budgeting and as much as I hate corp america, if we applied the concept to the food we eat and how it gets to us, we would pay a lot more, and eat a lot less.

If we used unit budgeting we might start eating insects.

Yes I have noticed it... but food here in Puerto Rico is usually more expensive than it is in the US, sometimes even Manhattan, and without the variety. Everything needs to be shipped in - with the exception for local produce - certain tubers, vegetables and fruits. I just paid last week $8 for a pound of strawberries. I almost left them at the register.

It's amazing how choosing to eat healthier and more naturally also increases your food bill. The more natural it is, the more expensive it is. How come??? Don't all those chemicals cost money to produce???

Madelyn
KarmaFreeCooking

I don't really pay attention to my food budget. I buy expensive (to most people) food and I feel perfectly comfortable paying whatever it takes for quality, sustainability, and taste. I'm not rich, I just don't need to spend my disposable income on things--cars, lawn mowers (ugh), computers, clothes--whatever. I'd rather feed myself well. I think it depends on what one considers important. If it's important to Americans to eat well, we're going to have to get used to spending more on food and less on unnecessary products.

Any item that is not seasonal will be carrying a higher price tag, simply because of the transportation costs and, if used, fertilizers manufactured with petro-chemical products. Locally grown items here remain fair in price, cilantro 3 bunches @ $ 0.99, green and red leafed lettuce $0.88 per head, cabbage $0.25 per pound, olio neuvo (EVOO) $24/liter. These are super market prices and the farmers markets will be in the same range, +/- depending on the season/product. Located on the central coast of california.

I'm in Chicago and I've noticed it in my beloved Trader Joe's. Even with the increase, Trader Joe's is still better than regular grocery stores. What I have started doing is buying my veggies from a vegetable market. I can't wait until the summer because I have vowed to support the local farmers' markets. I am really mourning the hard time the citrus crops had a few months back. The lemons now are just pitiful and expensive! Yesterday I stopped in a traditional grocery store - two for $.99! They weren't even big!

my husband and I have certainly noticed it, even here in rural western Michigan. we visit our local Spartan Store, and shop the perimeter (you know, produce, bread, meat, dairy, avoiding the processed food like the plague). our food costs have probably gone up 10-15% in the last 6 months, and my income sure hasn't gone up that much!

which means we: buy less meat and dairy, but more potatoes, onions, beans, rice and pasta. When we do buy meat, it's the larger cuts from the butcher's counter, not the pre-packaged pre-cut stuff. If the farmer's market is open, I'm there. if it's U-pick season at any of the local farms, i'm there. if i can make it from scratch at home, I do. i grow as many veggies and herbs in my home garden as I can, as well.

skyrocketting food prices are turning me into a locavore.

It's probably bad to admit but I really don't know. I tend to buy the same things over and over and rarely shop at the grocery store where prices are stamped on a little tag and hard for you to avoid. When I ask for a pound of olives, a half pound of feta, a quarter pound of kefalograviera and a quarter of kasseri, I can't tell you if it's more this time than it was the last time, when I might have gotten a different cheese or skipped the olives. I buy 2 loaves of bread from the bread stand, maybe it's more, maybe not. I buy what I buy regardless of what it costs so I don't know if the total bill has gone up. We have almost completely given up on beef and switched to much more bison, which I know is more expensive but the nutritional profile is too attractive to resist, so I'm sure our costs have gone up in that respect.

overall, I buy much less produce in the winter because a) it's very expensive and b) it's not very good quality. We rely more on frozen and canned, supplementing with only a few fresh things like cukes, celery and carrots and of course potatoes. I guess my answer is I haven't noticed when talking about food shopping.

But going out to eat seems to cost more than ever, so we have seriously curtailed our dining out and now treat it as more special, something we MIGHT do once a week, maybe once every 2 weeks instead of 2-3 times a week. I'm more motivated to make something out of what we have on hand, even if it's just tuna-noodle casserole than go out and spend $55 on dinner for two, which seems to be the average price we're paying now.

Yes, I am definitely affected. I've never been one to mind paying more for quality, but my limits are being tested. There are fewer fresh veggies in my house, and I put serious thought into whether it makes financial sense to try out that new recipe. It's depressing.

It's hurting me badly. I am disabled, order groceries online and have them delivered. Last week, I ordered 5 or 6 onions (vidalia, red & white - large). When I looked at the list with prices, I was astounded. The onions came to $17!!! I changed my order and got a bag of yellow onions and one red. That's just one example, but the overall picture is almost that bad. Scary.

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