PrintAre Rising Food Prices Affecting What You Eat?
These days it's better to be an egg farmer than to work at the Wall Street firm Bear, Stearns. That's the only conclusion you can draw after reading story after story about rising food prices. But what about the rest of us, the serious eaters who are neither egg farmers nor investment bankers?
Here, according to Andrew Martin and Michael M. Grynbaum of the New York Times, are the cold, hard facts:
Government figures released (a week ago) Friday showed that grocery costs had jumped 5.1 percent in 12 months, the latest in a string of increases. In fact, the nation is undergoing its worst grocery inflation since the early 1990s.
With a few exceptions, nearly every grocery category measured by the Labor Department, which compiles the official inflation numbers, has increased in the last year. Milk is up 17 percent, as are dried beans, peas and lentils. Cheese is up 15 percent, rice and pasta 13 percent, and bread 12 percent.
No food product has gone up as much as eggs, jumping 25 percent since February 2007 and 62 percent in the last two years.
Why is this happening and what does it all mean?
The Whys
Economists say higher food costs are being caused by rising energy prices, a weak dollar that encourages exports of American crops and food products, and soaring prices for farm commodities like milk, corn and wheat.
The sharp increase in egg prices was caused by a confluence of factors, among them a contraction of the industry because of the slump in 2005 and 2006 and a major increase in feed costs. About three-quarters of feed for laying hens is corn, and the price of corn has been driven up in part by government mandates for production of ethanol.
The near-term prognosis for food prices is not good:
Ephraim Leibtag, who tracks food prices for the Department of Agriculture’s Economic Research Service, said that with farm prices remaining near record levels, he was not optimistic that food prices would moderate in 2008. Instead, he predicted that food inflation would be at least as high as in 2007, perhaps higher.
Mr. Leibtag predicted that cereal and baking products would continue to increase because of steep prices for wheat; in fact, the price of cereal and bakery products increased 1.8 percent in February, the largest monthly gain since January 1975.
What Does This Mean for Us?
Restaurants are being forced to raise prices, cut portions, and substitute less expensive ingredients whenever possible. My guess is we're going to be seeing a lot more hangar steak and less porterhouse, shell, and rib cuts. The Wall Street Journal reported about this recently in a story titled Cutback Cuisine.
We're also going to be paying more for food we buy in grocery stores and farmers' markets for awhile.
I hope that consumers feeling the pinch will not turn away from organics and sustainably raised meat and produce because of rising food prices. On so many levels the sustainable food movement is too important to too many people (farmers, investment bankers, and the rest of us) for that to happen. This movement has the potential to eventually change the way everyone eats, and I would hate to see its progress impeded by the overall state of the economy.
So, are you feeling the pinch? Are rising food prices affecting what you eat?
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23 Comments:
The health of my family and the health of the environment is too important for rising food prices to cause changes in the way we eat. I mean, sure, money is an issue for us, so we will clearly have to cut our budget in some ways, but it won't be in the line item for our groceries. We will still buy organic, shop at the Farmer's Market this summer, and continue our CSA subscription.
I might have to buy all of our clothes at Goodwill (instead of just some of them), but we'll be eating good.
sarahbeam at 8:42AM on 03/24/08
I don't know if it is related, but I have noticed over the past few weeks that at Eli Zabar's on Third Ave and 81st, they have literally REMOVED the price tag from a number of items. Case in point: The Eli's brand Very Berry Granola is $7.95 or $8.95 per lb when hand scooped out of the bin. They have pre-filled 1lb bags, which used to sell for the equivalent price, now, with a new label PASTED over the old label, where some one has painstakingly gone through with a permanent maker to black out the old price. The new label has no price on it. Figuring, on top of the bulk bin, same granola, probably the same price...nope, $10.99.
Grant it, Eli's is one of the most ridiculously over priced places to shop, and Eli himself knows his market (Upper East Side), so I am not surprised.
(I have to get his granola when my parents are in town visiting - - they are addicted.) Also given this is the guy who fought tooth and nail to keep greenmarkets off of the east side.
I personally shop at Fairway most of the time and haven't noticed much of a difference in prices lately. It's out of my way, but I make a point of hopping the bus over to the westside, or borrowing my brother's car to go to the Harlem branch. Heaven.
pemabuk at 8:50AM on 03/24/08
I've seen numerous references over many years that a gallon of milk in 1975 was $1.75 and that the cost of eggs was 77 cents. These prices had hardly gone up at all in 30 years or so. IMHO, it's about time prices of these items went up if only to support the farmers themselves, and I'll certainly pay them.
LunaPierCook at 8:51AM on 03/24/08
At least here in NYC, a lot of bakeries and some pizzerias have plastered up signs in their windows notifying customers of price hikes—along with photocopied newspaper stories pointing to rising wheat prices. I've noticed the increases in the grocery stores and have tried to just eat smaller portions so there's leftovers.
Adam Kuban at 9:11AM on 03/24/08
Hello Eaters, this is my first comment here - I've been lurking for quite some time.
Food prices are affecting how I eat and cook, but not always in a bad way. I've found myself becoming more creative and less wasteful. Example: I often buy chicken stock rather than make my own to save myself some effort. However, the price of a box of stock, even at the affordable Trader Joes has now increased to 2.29 in my area of Boston - and at other markets it is getting near 4 dollars. So I've gone to making my own whenever i can . Last night I bought a whole chicken ($6) and rather than discard the bones, I made a good 3-4 dollars out of stock which is now in my fridge.
I can't make the price of items go down, but I can with a little bit of effort and creativity get more out of them. We're going to learn to do things the way previous generations did - less waste, more braising and of course, buying in season and locally will become a neccesity. While the prices are becoming painful , they may force us to do good things we should have done long ago!
potroast at 9:14AM on 03/24/08
BRAVO, POTROAST!!!!!!!!!
bessfour at 9:27AM on 03/24/08
Rising prices will be one of the major turning points into today's consumer economy. We cannot appreciate the wealth we have until it becomes unavailable, due either to a shortage or inaccessibility. It may be tough to swallow in the short term, but as potroast said above, we will (out of necessity) become more responsible, aware and resourceful.
lesliepariseau at 9:49AM on 03/24/08
there is a change in the way I'm doing things in the kitchen now, prices have gotten high enough that I'm cutting the meat in our diets. This has never bothered me but SO is a definate carnivore. Im using meat mostly as a flavoring in meals now, the prices are the reason I told SO but the real reason at least for me is health. I agree with Potroast, less waste and more careful use of availabe resources! But really isn't that what we should have been doing all along?
huney_bumper at 9:50AM on 03/24/08
I've had a similar experience to potroast's. With rising food prices (which were especially more pronounced since I went from shopping at Kroger to shopping at Whole Foods), I have just gotten more careful and creative with what I buy, and I make sure to get the most out of what I buy. In fact, since I have started this process, I actually spend less at Whole Foods than I did at Kroger. (Though I have to be more careful about impulse purchases at Whole Foods.)
buffyholic at 9:51AM on 03/24/08
We've noticed a definite increase in the price of pasta. However, potato prices continue to sink, so an equal exchange of starches is in order. But generally, we tend to eat the same things most of the time, watch for sales and use coupons whenever possible anyway.
The interesting thing I did notice recently is an Italian restaurant/pizza joint that used to post its prices on boards above the take-out counter no longer lists the $$$.
hereandthe at 10:00AM on 03/24/08
As a freelancer (and one who's not too good at budgeting), I have my own small economic crises throughout the year. I don't give up on quality ingredients, but I get the most out of them, and no leftover goes unchanged and uneaten. That sounds grim, but I love playing with leftovers--last night's dinner (after a few Peeps for appetizers) was risotto patties, based on risotto made on Friday, which had in turn contained leftover asparagus that accompanied colcanon earlier in the week. Colcannon also turned into patties, a tendency I must watch. It all kinda works like a meal version of telephone...
BaHa at 10:49AM on 03/24/08
With ritual menu planning and shopping lists, it's still fairly easy to stay on budget. At this point I'm paying maybe $1 more each for milk and eggs. Total added to my groceries for these two items is about $4 if I buy 2 of each. Organic milk is so ridiculously expensive it has never been feasible for my budget. Does it suck? Yes. But I'm not at the breaking point yet. Still manage to keep the grocery budget for 2 weeks to about $100.
Husband works at a local fruit market. Produce is cheaper than meat, even with price increases, and we definately eat more produce-centered meals these days.
darbyalycen206 at 11:06AM on 03/24/08
Here over the other side of the pond in England we have exactly the same issues too. And for my sins I'm writing a book - and a blog - about it - thefrugalcook.blogspot.com so this debate is really interesting.
What I've found over the past couple of months is that I spent - and wasted - a lot more on food than I thought I did by buying too far ahead (things always cropped up to postpone a meal), impulse shopping and buying ingredients 'just in case' I might need them for some future recipe.
I now shop more often but try and ask myself first whether we couldn't feed ourselves from what we already have in the fridge and storecupboard. And more often than not we can.
I agree 100% with Ed's comment about not walking away from small producers at this time, though. But it does need a major adjustment in the way we shop for food. Butchers and meat producers here in the UK have told me that they can barely give their cheaper cuts away
frugalcook at 11:21AM on 03/24/08
These days it's better to be an egg farmer than to work at the Wall Street firm Bear, Stearns.
Oooh, I dunno, Ed. Not to answer your question about food prices (so many above have done that rather well!) but rather to nitpick on this comment, they are still eating okay at Bear, Stearns according to this story in Slate .
Quote:
Because Bear Stearns may be worth only $2 a share, but that doesn't mean that place doesn't still have an amazing salad bar.
Fed Salad
"The feta cheese? Some chick peas. Green peppers? Green peppers. Roasted chicken."
The man ahead of me in the salad line is roughly my age, 29, but his karma feels a decade older. A feeling of powerlessness can make small decisions take on greater meaning, and he is really considering every component of today's lunch.
"You get one more veggie, baby," the woman behind the counter tells him.
It's true. You get four vegetables and one protein for $4.95 at the Bear Stearns cafeteria, an especially generous deal from a firm that, by some estimates, has a net worth in the negative billions. Today's lunch is theoretically subsidized by the Federal Reserve by way of JPMorgan, a disturbing notion for a nation that prides itself on free markets, but one that means little to the man ahead of me.
He has one more veggie to choose and aims to choose it well. "I'll have a few of those raisins," he says at last.
.................................................
Of course he sh*t one has to shovel is different in each industry you mention. :)
(I like the clothes better on Wall St.)
Karen Resta at 12:42PM on 03/24/08
With $10 wheat, there is about 12 cents worth of wheat in the average loaf of bread. Having been involved in agricultural all my married life (34 years) I know first hand how hard it is to make a profit in farming. Although the prices are high right now, the crop is still in the field and I'm certain the price will drop when harvest gets underway. Most farmers HAVE to sell when they deliver the grain to the elevator and won't get that top price. The bank, fuel and fertilizer people all need paid, so the majority don't have the option of holding their crop. We are no longer actively farming, but still have ties to the land - our son has cattle and puts up hay; our daughter is involved with a student farm at Kansas State, is an Ag-Historian and on the state Democratic food and farm counsel. They are 6th generation farmers. As for my husband and me, we are trying to become more self-sufficent. We're planning a big garden, thinking about getting a few chickens (our Vizslas will love that!) and might have my nephew (manager of a grain mill) bring us some flour the next time he comes this way.
dutchgal at 12:48PM on 03/24/08
Definitely. It's also changing where I shop. I don't go to the megamarts anymore if I can help it. The ethnic markets are where it's at. Good prices even if I have to go to several different ones to get all the things I need. I just can't afford the mainstream stores anymore. It's getting ridiculous!
foodiegirl at 12:48PM on 03/24/08
My way of cutting back is going to my parents' house for dinner once a week and taking home leftovers! But seriously, it's been tough seeing prices rise, and my husband is a picky eater, so I still end up buying out-of-season produce for him. No matter what I tell him, he wants to eat what he wants! So, I eat very simple meals to make up for it. He also doesn't understand that I have to go to more than one store to get groceries so we don't spend a fortune.
misseditor at 1:09PM on 03/24/08
Great thread. I haven't changed too much, but I have planted many more veggies this spring. I tend to grow greens, herbs, toms, and cukes each year. This year, I'm adding peas, beans, cabbage, beets, etc., as I figured the cost of additional soil, amendments, plants, etc. outweighed the prices in the markets.
GumbeauxGal at 3:53PM on 03/24/08
I've been following discussions of food prices and shopping local vs supermarkets & I have to jump in here. I live in Toronto (Canada). Every summer/fall I shop at local farmers' markets & the prices are *always* higher than the grocers', sometimes close to twice as high: last year strawberries from the farmers were $5.00-$7.50/qt vs $4.00/qt in supermarkets; corn was $3.50/6 vs $2.00/12 in supermarkets at the height of the season. I still shop farmers as much as I can, but it's not as often or as much as I'd like to or as I have in the past. I know people say 'shop local/organic' at any cost, but one has to weigh practicalities against ideology. Unless Alice Waters wants to pick up my tab, I'll have to compromise somewhere along the line.
hng23 at 6:14PM on 03/24/08
This thread has been inspiring in so many ways. I have to say I'm coming to the same conclusion Michael Pollan came to in his latest book. We eat more plants and occasionally some meat, and it's really hard for me to say that given how much I love meat. And as so many of you pointed out, we can all do this even in the face of rising food prices. It takes a little bit of creativity and a little bit or forethought and preparation, but if you buy and eat smartly, our lives can be filled with delicious food no matter what's going on with food prices.
Ed Levine at 11:13PM on 03/24/08
I'm curious whether rising food prices (if they continue) will affect which sorts of cookbooks will sell - i.e. will the ones whose appeal comes from having eight different types of exotic-or-expensive ingredients be as popular or will the public's taste turn to those less complicated or less aspirational in nature . . .
Karen Resta at 7:13AM on 03/25/08
Who buys food anymore? Seriously, This is a good year to be a hunter - I have my meat for the year set - and a gardener. The only things I typically buy at markets are flour, olive oil, sugar, honey, salt and dairy products. They are probably more expensive, but with a weekly shopping bill of around $25 I really don't notice much.
Yes, I know few people can or want to go to this length, but it can be done. And I think I eat pretty well...
HunterAnglerGardenerCook at 11:32AM on 03/25/08
yes many chances. We eat less meat. Meals have become simpler eg grilled sandwiches smeared with pesto,cheese and turkey slices. buy a lot of frozen vegetables(store brand) to make a vegetable soup with every evening meal. Leftovers are brown bagged. Use coupons and buy one get one free deals. Buy bread on sale and freeze for later use. Make banana bread and corn bread 1X a week to have with all 3 meals.
Mix orange juice with 1/2 water. Live in city (condo living) so no room for hunting or garden. We eat out 1x a week at a local place and make sure we get there early to take advantage of the early bird special. Otherwise we still eat delicious meals.
kamrawenke at 6:05PM on 04/13/08