Economics in Meal Planning

Factors Influencing Food Cost Americans spend approximately 13 percent of their disposable income on food which includes food consumed both in and outside the home Crop production-cost, weather conditions. Trade policies-cost of imports and exports, agreements on food safety and biotechnology. Food processing and packaging-fabrication, labor, labeling, research and development. Marketing-from farmer to consumer costs account for 81% of cost of food. Type of food store-supermarket, niche market, convenience store, farmer’s market, coops, warehouse or discount stores.

Factors in Selecting a Market LocationCleanliness Physical Features Services and Personnel Overall Food Quality Fresh Produce Meat and Dairy Delicatessen and Bakery Breadth of Inventory Food Prices

Determinants of Spending Number of family members, age Family income Where meals are eaten Supplemental programs Location of market Alternative marketing choices Choice of food within a group

Managing Marketing Prepare a list-organize by store, include amount needed Maximizing Shopping-timing and shopping decisions Shopping Aids like unit pricing, open dating, and ingredient labeling

Ways of Economize Eat at home Check newspapers and advertisements, use coupons Plan meals the family will eat, use a market list Use less meat Determine between scratch preparation and convenience Limit spending on beverages and snacks Read labels Use larger sizes Avoid home waste

Convenience Foods Defined as fully or partially prepared foods for which significant preparation time, culinary skills, or energy use have been transferred from the consumer’s kitchen to the food processor or distributor Usually thought to have undergone a large amount of processing-ready prepared, prefabricated, or service ready Consider cost, eating quality, nutritive value and savings of time and effort

Eating Out According to the Continuing Survey of Food Intakes by Individuals (CSFI II), 57% of individuals eat at least one food away from home per day. 33% at fast food restaurants 27% at restaurants with table service 27% at restaurants with table service 25% from grocery or convenience stores 25% from grocery or convenience stores 40-50% of calories and 26 nutrients are provided by food eaten away from home

Eating Out Continued Teenage males and higher income people are most likely to eat away from home 3-5 year olds et 20% of calories away from home, mostly at friends and day care 6-19 year olds eat 40% if calories away from home, mostly at school and fast food places See an increase in consumption of non- citrus juice and soft drinks

Quality of Away From Home Eating 16% of food eaten away from home in % if food eaten away from home in 1995 Fat 31.5% of calories in home foods 37.6% of calories in foods away from home 37.6% of calories in foods away from home Fiber 25% less in foods away from home Calcium 20% below benchmark in foods away from home while foods at home were at benchmark

USDA Food Plans Published quarterly to help families achieve satisfying nutritious meals at affordable costs. Four current plans: Thrifty plan has been used as the basis for the Food Stamp Program and is criticized as being nutritionally inadequate if used for long periods of time Thrifty plan has been used as the basis for the Food Stamp Program and is criticized as being nutritionally inadequate if used for long periods of time Low-cost and moderate-cost plans are in line with diet of most families Low-cost and moderate-cost plans are in line with diet of most families Liberal plan is typical of diet where income permits more spending freedom Liberal plan is typical of diet where income permits more spending freedom

USDA Food Plans Continued Cost differences among the food plans Low-cost30% above thrifty Low-cost30% above thrifty Moderate-cost25% above low-cost Moderate-cost25% above low-cost Liberal20% above moderate Liberal20% above moderate

February 2008 Food Plan Costs (Weekly) Thrifty Low- Cost Moderate Cost Liberal Cost Female yr Male yr Family of four

Power Point Author Dr. Jane Ross The University of Vermont Foods and Nutrition Basic Concepts of Food