1. Food Economics and Convenience Chapter 2

2. Introductory Foods, 13 th 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?

3. Introductory Foods, 13 th 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/F oodAvailIndex.htm http://www.ers.usda.gov/Data/FoodConsumption/F oodAvailIndex.htm USDA and HHS “What we eat in America” survey http://www.ars.usda.gov/main/site_main.htm?mode code=12355000 http://www.ars.usda.gov/main/site_main.htm?mode code=12355000

4. Introductory Foods, 13 th 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

5. Introductory Foods, 13 th 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

6. Introductory Foods, 13 th 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

7. Introductory Foods, 13 th 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?

8. Introductory Foods, 13 th 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

9. Introductory Foods, 13 th 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

10. Introductory Foods, 13 th 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

11. Introductory Foods, 13 th 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

12. Introductory Foods, 13 th 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

13. Introductory Foods, 13 th 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

14. Introductory Foods, 13 th 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

15. Introductory Foods, 13 th 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