-Shannon from Lincoln Park-
If you think it is tough on a college student, try feeding a family of four or five on a minimum wage salary. Your question touches on a huge issue over the last thirty years. In that time, real incomes have stayed flat or declined, meanwhile the cost of healthy food has increased at about 2/3 the rate of inflation while junk food has increased between 15-30% the rate of inflation. As a nation, we spend more today as a percent of income for transportation, housing and insurance, leaving less money for food. With this as a backdrop, here are a couple of reasons why healthy foods cost more, and more importantly, some things you can do about it.
1. The market rewards innovation
The term healthy foods generally refers to mildly-processed products that retain their nutrient value. It not only means farmer's-market produce, but cage-free eggs and milk, organic foods, and sometimes, local produce. The processes for getting these foods from farm-to-fork have not changed substantially in 30 years, nor is there much to change about them. Because of this, there is not much incentive for innovation, and therefore, little to be done about the price of the product. (It is akin to the issue facing symphony orchestras these days...it takes the same number of musicians to play Beethoven's 9th today as it did when he wrote it...costs just keep going up.)
Processed food, on the other hand, has ample opportunity for innovation in manufacturing and production. Food additives that retain the "look and feel" with cheaper ingredients succeed in bringing prices down, as do genetic modifications that change crop yields. Also, we can change the specific amount of a food over time (ever so slightly) without tipping off the customer. (I'm looking at you Clif Bar!!!) Replacing human beings with machines and higher-priced commodity goods with lower-priced ones continue to "innovate" the food industry. Also, we have had a relatively-low-priced energy market for the past 30 years, and processed foods generally require more energy than healthy foods.
2. Government subsidies
As those following the Farm Bill will attest, the federal government subsidizes our nation's farming industry. This largely goes to the large mono-crops of corn, wheat and soy. Because of this, over the past half-century, we have a whole industry of food additives dedicated to increasing the use of corn, soy, and wheat products (high-fructose corn syrup, maltodextrin, mono-sodium glutamate, lecithin). These products generally rely on energy-intesive fertilizers, are machine harvested, and are over-grown due to the subsidy. When one industry has a heavily subsidized product, and another does not, it changes the playing field.
3. And now a word from our sponsor
We have seen the "Got Milk" campaign from the California Milk Processors Board, or the "Incredible Edible Egg" for the American Egg Board. Outside of these, national advertising for food commodities does not match that for branded food products (which admittedly are not all processed, but which largely are). My children see commercials for fruit snacks, chips, and pastry treats far more often than they see them for apples, oats, and leafy greens. This changes expectations at an early age. Apples have not changed in look or taste for hundreds of years (although I highly recommend Grapples or honey crisp apples for some variety), whereas everyone has a new "energy bar", "fruit snack" or "healthy cereal" each year. This captures imagination, and feeds our desire to have more choices. If advertising did not change minds, we would stop doing it...but that has not happened as of yet. That leads us to our final point...
4. Supply and demand
The marketplace always rewards incumbents...those industries that have grown and solidified by following the status quo. Food processors like Tyson, Kraft, and Pepsico have large organizations and significant funding to influence the marketplace. Local farmers or distributors for natural or healthy foods do not have such an advantage. By maintaining a healthy stream of supply, and the margins low, processed food developers can make less money per product than the healthy food supplier. And let's face fact...the processed food tastes good. We never see the cost of that food reflected in the price of purchase (the health care costs for obesity or diabetes), so there is no incentive for that industry to move...unless consumers demand it. This is especially true in corporate meal plans. Many people buy the junk food options, keeping prices low, while fewer people buy the salad bar, meaning they have to charge more to keep the "profit center" active.
So what can you do?
1. For your college meal plan, demand that the provider publish the nutrient content of each product and its price per pound (not calorie). Healthy foods generally cost less per pound, but more per calorie. Also, work with your school to get a look at the way the food service is set up. If individual outlets are individual entities (salad bar separate from burger place), you could see two different businesses competing with each other. The university food service should be one entity, so it should be possible to price the products at market plus markup (the profit and overhead of the provider). Ask that, at the very least, that markup come evenly across the products offered in the university...and at best be assigned on a "per pound" basis.
2. Stay strong in your purchasing decisions. Although a "Hostess Cupcake" gives you more calories per dollar than a kitchen-made soup, apportion your spending to reflect the value. This will require discipline, and a bit of sacrifice. Mix in some great kitchen-made treats, or free-range meat/dairy products and you'll have all the flavor without the health issues.
3. Take advantage of farmer's markets, community-supported agriculture, and other ways of dealing direct with the grower. Prices tend to drop, you have more buying power, and a much better variety of seasonal foods. Then, when you go to the store with the rest of your food budget, you'll have more to spend on good food.
Sources:
Healthy Food Costs vs. Unhealthy Food Costs
The Influence of Taxes and Subsidies on Energy Purchased in an Experimental Purchasing Study
A High Price for Healthy Food
Healthy Food Isn't Necessarily More Expensive Than Junk Food
Junk Food Tax or Health Food Subsidy – Which Results in Healthier Food Purchases?
FoodProcessing.com
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