Economics in Meal PlanningEconomics in Meal Planning

Factors Influencing Food CostFactors Influencing Food CostAmericans 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.Crop production-cost, weather conditions.

Trade policies-cost of imports and exports, Trade policies-cost of imports and exports, agreements on food safety and biotechnology.agreements on food safety and biotechnology.

Food processing and packaging-fabrication, labor, Food processing and packaging-fabrication, labor, labeling, research and development.labeling, research and development.

Marketing-from farmer to consumer costs account for Marketing-from farmer to consumer costs account for 81% of cost of food.81% of cost of food.

Type of food store-supermarket, niche market, Type of food store-supermarket, niche market, convenience store, farmer’s market, coops, convenience store, farmer’s market, coops, warehouse or discount stores.warehouse or discount stores.

Factors in Selecting a MarketFactors in Selecting a Market

LocationLocation

CleanlinessCleanliness

Physical FeaturesPhysical Features

Services and PersonnelServices and Personnel

Overall Food QualityOverall Food Quality

Fresh ProduceFresh Produce

Meat and DairyMeat and Dairy

Delicatessen and BakeryDelicatessen and Bakery

Breadth of InventoryBreadth of Inventory

Food PricesFood Prices

Determinants of SpendingDeterminants of Spending

Number of family members, ageNumber of family members, age

Family incomeFamily income

Where meals are eatenWhere meals are eaten

Supplemental programsSupplemental programs

Location of marketLocation of market

Alternative marketing choicesAlternative marketing choices

Choice of food within a groupChoice of food within a group

Managing MarketingManaging Marketing

Prepare a list-organize by store, include Prepare a list-organize by store, include amount neededamount needed

Maximizing Shopping-timing and shopping Maximizing Shopping-timing and shopping decisionsdecisions

Shopping Aids like unit pricing, open Shopping Aids like unit pricing, open dating, and ingredient labelingdating, and ingredient labeling

Ways of EconomizeWays of EconomizeEat at homeEat at home

Check newspapers and advertisements, use Check newspapers and advertisements, use couponscoupons

Plan meals the family will eat, use a market listPlan meals the family will eat, use a market list

Use less meatUse less meat

Determine between scratch preparation and Determine between scratch preparation and convenienceconvenience

Limit spending on beverages and snacksLimit spending on beverages and snacks

Read labelsRead labels

Use larger sizesUse larger sizes

Avoid home wasteAvoid home waste

Convenience FoodsConvenience Foods

Defined as fully or partially prepared foods for Defined as fully or partially prepared foods for which significant preparation time, culinary which significant preparation time, culinary skills, or energy use have been transferred skills, or energy use have been transferred from the consumer’s kitchen to the food from the consumer’s kitchen to the food processor or distributorprocessor or distributor

Usually thought to have undergone a large Usually thought to have undergone a large amount of processing-ready prepared, amount of processing-ready prepared, prefabricated, or service readyprefabricated, or service ready

Consider cost, eating quality, nutritive value Consider cost, eating quality, nutritive value and savings of time and effortand savings of time and effort

Eating OutEating Out

According to the Continuing Survey of According to the Continuing Survey of Food Intakes by Individuals (CSFI II), Food Intakes by Individuals (CSFI II), 57% of individuals eat at least one food 57% of individuals eat at least one food away from home per day.away from home per day.

33% at fast food restaurants33% at fast food restaurants

27% at restaurants with table service27% at restaurants with table service

25% from grocery or convenience 25% from grocery or convenience storesstores

40-50% of calories and 26 nutrients are 40-50% of calories and 26 nutrients are provided by food eaten away from homeprovided by food eaten away from home

Eating Out ContinuedEating Out ContinuedTeenage males and higher income people Teenage males and higher income people are most likely to eat away from homeare most likely to eat away from home

3-5 year olds et 20% of calories away from 3-5 year olds et 20% of calories away from home, mostly at friends and day carehome, mostly at friends and day care

6-19 year olds eat 40% if calories away 6-19 year olds eat 40% if calories away from home, mostly at school and fast food from home, mostly at school and fast food placesplaces

See an increase in consumption of non-See an increase in consumption of non-citrus juice and soft drinkscitrus juice and soft drinks

Quality of Away From Home Quality of Away From Home EatingEating

16% of food eaten away from home in 1977-7816% of food eaten away from home in 1977-78

27% if food eaten away from home in 199527% if food eaten away from home in 1995

Fat 31.5% of calories in home foodsFat 31.5% of calories in home foods

37.6% of calories in foods away from home37.6% of calories in foods away from home

Fiber 25% less in foods away from homeFiber 25% less in foods away from home

Calcium 20% below benchmark in foods away Calcium 20% below benchmark in foods away from home while foods at home were at from home while foods at home were at benchmarkbenchmark

USDA Food PlansUSDA Food PlansPublished quarterly to help families achieve Published quarterly to help families achieve satisfying nutritious meals at affordable costs.satisfying nutritious meals at affordable costs.

Four current plans:Four current plans:

Thrifty plan has been used as the basis for the Thrifty plan has been used as the basis for the Food Stamp Program and is criticized as being Food Stamp Program and is criticized as being nutritionally inadequate if used for long periods nutritionally inadequate if used for long periods of timeof time

Low-cost and moderate-cost plans are in line Low-cost and moderate-cost plans are in line with diet of most families with diet of most families

Liberal plan is typical of diet where income Liberal plan is typical of diet where income permits more spending freedompermits more spending freedom

USDA Food Plans ContinuedUSDA Food Plans Continued

Cost differences among the food plansCost differences among the food plans

Low-costLow-cost 30% above thrifty30% above thrifty

Moderate-costModerate-cost 25% above low-cost25% above low-cost

LiberalLiberal 20% above moderate20% above moderate

February 2008 Food Plan CostsFebruary 2008 Food Plan Costs(Weekly)(Weekly)

ThriftyThrifty Low-Low-CostCost

Moderate Moderate CostCost

Liberal Liberal CostCost

Female Female 19-50 yr19-50 yr

33.8033.80 42.5042.50 51.6051.60 66.6066.60

Male Male

19-50 yr19-50 yr

37.8037.80 48.5048.50 60.3060.30 73.4073.40

Family of Family of fourfour

131.60131.60 170.00170.00 211.50211.50 257.00257.00

Power Point Author

Dr. Jane RossDr. Jane Ross

The University of Vermont

Foods and Nutrition

Basic Concepts of Food