Food Economics and Convenience

Chapter 2

Introductory Foods, 13th ed.Bennion and Scheule

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.2

Key Chapter Concepts Trends in food use

How are trends measured? Food waste

Why is food wasted and how can it be controlled? Food Costs

What influences food costs? Convenience foods

What is available and what is the cost and quality?

Introductory Foods, 13th ed.Bennion and Scheule

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.3

Trends in Food Use USDA Disappearance Data

http://www.ers.usda.gov/Data/FoodConsumption/FoodAvailIndex.htm

USDA and HHS “What we eat in America” survey http://

www.ars.usda.gov/main/site_main.htm?modecode=12355000

Introductory Foods, 13th ed.Bennion and Scheule

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.4

USDA Food Disappearance Data When using this data, consider how it was collected.

ADD Total food production Total food imports Beginning of year inventories

SUBTRACT Exported food Food used by “non” food industries – animal feed, etc. Food used for seed (seed for beans, tomatoes, etc.) Year-end inventories

Adjust with estimated food waste

Introductory Foods, 13th ed.Bennion and Scheule

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.5

USDA Food Disappearance Data Since 1970

INCREASE in Meat, fruits, vegetables, flour/cereal products, cheese,

caloric sweeteners, and fat DECREASE in

Beverage milk and eggs

Introductory Foods, 13th ed.Bennion and Scheule

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.6

USDA & HHS Surveys “What we eat in America survey”

Data from nationally representative sample of Americans.

In 2001-2002 data set 9,701 completed a dietary interview

Introductory Foods, 13th ed.Bennion and Scheule

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.7

Data Sources Strengths/weaknesses of the USDA Food

Disappearance Data?

Strengths/weaknesses of the USDA & HHS What we eat in America survey data?

Why might the per capita annual consumption as reported by disappearance data NOT match the survey data?

Introductory Foods, 13th ed.Bennion and Scheule

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.8

Consumer Food Waste Economic impact of waste Storage loss Preparation loss Plate waste

In foodservice settings consider implications on service methods on waste.

Schools Long Term Care Other

Introductory Foods, 13th ed.Bennion and Scheule

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.9

Factors Influencing Food Costs Marketing costs

Examples? What is the farm-value share?

Crop production Trade polices Food processing and packaging

Introductory Foods, 13th ed.Bennion and Scheule

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.10

Food Purchasing Practices Eating out OR cooking at home

About 50% of consumers’ food expense is for food eaten out

Menu prices include cost of labor and more

Introductory Foods, 13th ed.Bennion and Scheule

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.11

Food Purchasing Practices Type of Stores

Specialty stores Food Co-ops Farmers’ markets Convenience stores Warehouse/discount markets Wholesale clubs Supercenters Supermarkets

Introductory Foods, 13th ed.Bennion and Scheule

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.12

Shopping Aids Unit pricing

Cost per ounce Open date labeling Food labeling Computerized checkouts

Introductory Foods, 13th ed.Bennion and Scheule

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.13

Price Conscious Buying Make a complete grocery list before shopping Stock up when your brands are on sale

Use generic brands Comparison shop Redeem coupons Buy fruits and vegetables when in season Assess price per serving Consider cost of convenience foods

Introductory Foods, 13th ed.Bennion and Scheule

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.14

Convenience Foods Ease of preparation Industry developments

Frozen Canned and retort pouches Modified atmosphere

Eating quality Nutritive value

Introductory Foods, 13th ed.Bennion and Scheule

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.15

Special Needs Convenience Foods Food for Space

Role of dietitians, food scientists, and others Military

MRE – Meal, Ready-to-Eat