Food Prices In Perspective

Abstract: A USDA report summarizes the causes of food price inflation. Retail food prices in the United States rose over90% annually from 1973 to 1979. Increases in prices result from higher farm-level commodity prices and higher marketingcosts. Food production costs, trade policies, food marketing costs, and structural changes are controllable in varying degrees. Control of fluctuations due to weather and the biological nature of food production processes is unlikely. Consumers are partially responsible for food priceincreases through rising incomes and changing lifestyles. Reduction of the upward movement in food prices will requirea long-term effort. The Government, food industry, and consumers can slow price increases by 1) supporting programsto reduce inflation rate; 2) encouraging price competition; 3) encouraging consumer nutrition education; 4) stabilizing trade flows; 5) reviewing regulations; 6) eliminating labor practices and policies that limit savings; 7) encouraging new technology, especially packaging, adoption.

Retail food prices in the United States rose an average of over 9 percent annually from 1973 to 1979. The reasons these increases occurred and what can be done to slow the rate of increase are examined. They also provide an overview of the food delivery system. Substantially reducing the upward movement in food prices will require the same long-term effort needed to reduce general inflation. In addition, actions to reduce the volatility in commodity prices and commodity trade flows also appear needed.

Excerpt from Food Prices in Perspective: A Summary Analysis Retail food prices in the United States rose an average of over 9 percent annually from 1973 to 1979. Examining why these increases occurred and what can be done to slow their rate of increase is the subject of this report. The authors conclude that substantially reducing the upward movement in food prices is going to require the same long-term effort needed for doing so in the economy generally. In addition, actions to reduce the volatility in commodity prices appear needed. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Extract: This paper puts the food price situation into historical perspective and reviews the 1979 USDA food price forecast.