What’s the REAL Price of Junk Food?
Warning! Rant Ahead.
Have you ever wondered why healthy foods like fruits and vegetables are more expensive than junk food? Or if there's anything you can do about it?
Think about it for a minute. That bunch of carrots for sale in the grocery store is basically yanked out of the ground in some remote location, hosed off, thrown in a truck, and delivered to your grocery store. Sure, that costs money. The land, the seeds, the pesticides, the water, all the labor, the transportation, the grocery store itself—none of this comes cheap. It costs even more, apparently, if you want to leave the pesticides out and go organic.
Now consider the humble Twinkie. As Michael Pollan puts it:
“ Compared with a bunch of carrots, a package of Twinkies, to take one iconic processed foodlike substance as an example, is a highly complicated, high-tech piece of manufacture, involving no fewer than 39 ingredients, many themselves elaborately manufactured, as well as the packaging and a hefty marketing budget. So how can the supermarket possibly sell a pair of these synthetic cream-filled pseudocakes for less than a bunch of roots?”
Good question. Especially these days, when a global economic meltdown is making the cost of healthy eating even more of an issue for many people. Just how does your supermarket sell Twinkies and other “junk” foods so cheaply?
Well, there is a reason, and as you might expect, it’s got a lot more to do with special-interest politics than with the law of supply and demand, or any legitimate reason.
In a nutshell, here’s the situation: the same government that hands out funds for research on the obesity epidemic and scrambles to find money to treat obesity-related diseases with one hand has been busy for years handing out money to subsidize the Twinkie, and most of the other junk food you’ll find on the shelves in your local supermarket, with its other hand.
I don’t want to take up space in this blog on either a detailed explanation of this situation and how we got into it, or on a rant about the evils of corporate irresponsibility in the food industry and the complicity of government bureaucracies in helping to create our obesity-promoting food environment with ill-considered public policies. If you want to know the details of this strange case of how the government has been using one hand to thwart the other, Michael Pollan does a pretty good job of outlining the general picture in this article . And you can get a more detailed look at the history of this problem and all the other ways it has influenced our current situation in Food Politics, a very interesting book by Marion Nestle.
I’d rather think about ways to correct this situation, so that healthy foods become more affordable and junk foods become the “luxury items” that most of us pass up.
Honesty and Integrity in Food Pricing: A Modest Proposal
Here’s an interesting idea that’s been circulating around lately in various groups concerned about both healthy eating and social responsibility.
The idea is that we should put a few mathematicians and economists in a room and have them figure out what all the junk food produced with subsidized crops should really cost if there were no subsidies. Then we should make the retailers include this “real” price on their price tag, along with the actual selling price.
At the same time, we could have the numbers people start figuring out what it really costs to produce, distribute, and consume all food products. Right now, many of those costs just aren’t taken into account at all. The prices we pay just don’t include things like the added health care costs likely to be associated with frequent use of certain products; the future costs of dealing with problems like soil erosion, pollution, or destruction of forests and other natural resources; or even what the items we buy would cost if they were produced under conditions that provided a true living wage for workers and fair compensation to communities where unfair trade practices have debilitated local economies.
At some point, these actual costs really do have to be paid—either by future generations, or in present human suffering that could be avoided. So, it simply makes good moral and practical sense that we should start keeping track of these “real” costs, and making decisions that take them into account, both on the individual level, and on the social/governmental level.
We may not be able to get “exact” numbers, but we can at least get a pretty good idea of which products generate the biggest difference between selling price and true social cost.
It would probably take a while to see whether this information would actually change buying habits enough to force changes in either government policy or in the commercial food production and marketing industry.
Personally, though, I think that one immediate benefit of implementing this kind of “truth in pricing” policy, even if we don’t actually change the prices that people actually pay at the grocery store right away, is that it would immediately become clear that the “worst offenders” are pretty much the same items that cause the biggest problems for people trying to lose weight and live a healthy lifestyle. If knowledge is power, this might be just the ticket we need to start generating some big changes, on lots of different levels.
Maybe food producers wouldn't be so eager to jump on the junk food bandwagon if they thought their customers were aware of just what a bad deal it really is.
And knowing the true cost of that “great deal” that gives you 2 sausage biscuits with eggs and cheese for $3 just might make it a little easier for us to say “No” to those 900 calories and 54 grams of fat, and yes to a nice homemade omelet with local eggs and fresh veggies.
Some brave companies, like Original Beans are even taking this concept of truth in pricing seriously enough to actually change their prices. But it's not clear yet whether they'll be rewarded for this courageous step. That's up to us.
OK, rant over.
What do you think? Would knowing the “real cost” of the items in your grocery store make a difference to you in what you selected? Do you think food labels ought to include this kind of information?
Have you ever wondered why healthy foods like fruits and vegetables are more expensive than junk food? Or if there's anything you can do about it?
Think about it for a minute. That bunch of carrots for sale in the grocery store is basically yanked out of the ground in some remote location, hosed off, thrown in a truck, and delivered to your grocery store. Sure, that costs money. The land, the seeds, the pesticides, the water, all the labor, the transportation, the grocery store itself—none of this comes cheap. It costs even more, apparently, if you want to leave the pesticides out and go organic.
Now consider the humble Twinkie. As Michael Pollan puts it:
“ Compared with a bunch of carrots, a package of Twinkies, to take one iconic processed foodlike substance as an example, is a highly complicated, high-tech piece of manufacture, involving no fewer than 39 ingredients, many themselves elaborately manufactured, as well as the packaging and a hefty marketing budget. So how can the supermarket possibly sell a pair of these synthetic cream-filled pseudocakes for less than a bunch of roots?”
Good question. Especially these days, when a global economic meltdown is making the cost of healthy eating even more of an issue for many people. Just how does your supermarket sell Twinkies and other “junk” foods so cheaply?
Well, there is a reason, and as you might expect, it’s got a lot more to do with special-interest politics than with the law of supply and demand, or any legitimate reason.
In a nutshell, here’s the situation: the same government that hands out funds for research on the obesity epidemic and scrambles to find money to treat obesity-related diseases with one hand has been busy for years handing out money to subsidize the Twinkie, and most of the other junk food you’ll find on the shelves in your local supermarket, with its other hand.
I don’t want to take up space in this blog on either a detailed explanation of this situation and how we got into it, or on a rant about the evils of corporate irresponsibility in the food industry and the complicity of government bureaucracies in helping to create our obesity-promoting food environment with ill-considered public policies. If you want to know the details of this strange case of how the government has been using one hand to thwart the other, Michael Pollan does a pretty good job of outlining the general picture in this article . And you can get a more detailed look at the history of this problem and all the other ways it has influenced our current situation in Food Politics, a very interesting book by Marion Nestle.
I’d rather think about ways to correct this situation, so that healthy foods become more affordable and junk foods become the “luxury items” that most of us pass up.
Honesty and Integrity in Food Pricing: A Modest Proposal
Here’s an interesting idea that’s been circulating around lately in various groups concerned about both healthy eating and social responsibility.
The idea is that we should put a few mathematicians and economists in a room and have them figure out what all the junk food produced with subsidized crops should really cost if there were no subsidies. Then we should make the retailers include this “real” price on their price tag, along with the actual selling price.
At the same time, we could have the numbers people start figuring out what it really costs to produce, distribute, and consume all food products. Right now, many of those costs just aren’t taken into account at all. The prices we pay just don’t include things like the added health care costs likely to be associated with frequent use of certain products; the future costs of dealing with problems like soil erosion, pollution, or destruction of forests and other natural resources; or even what the items we buy would cost if they were produced under conditions that provided a true living wage for workers and fair compensation to communities where unfair trade practices have debilitated local economies.
At some point, these actual costs really do have to be paid—either by future generations, or in present human suffering that could be avoided. So, it simply makes good moral and practical sense that we should start keeping track of these “real” costs, and making decisions that take them into account, both on the individual level, and on the social/governmental level.
We may not be able to get “exact” numbers, but we can at least get a pretty good idea of which products generate the biggest difference between selling price and true social cost.
It would probably take a while to see whether this information would actually change buying habits enough to force changes in either government policy or in the commercial food production and marketing industry.
Personally, though, I think that one immediate benefit of implementing this kind of “truth in pricing” policy, even if we don’t actually change the prices that people actually pay at the grocery store right away, is that it would immediately become clear that the “worst offenders” are pretty much the same items that cause the biggest problems for people trying to lose weight and live a healthy lifestyle. If knowledge is power, this might be just the ticket we need to start generating some big changes, on lots of different levels.
Maybe food producers wouldn't be so eager to jump on the junk food bandwagon if they thought their customers were aware of just what a bad deal it really is.
And knowing the true cost of that “great deal” that gives you 2 sausage biscuits with eggs and cheese for $3 just might make it a little easier for us to say “No” to those 900 calories and 54 grams of fat, and yes to a nice homemade omelet with local eggs and fresh veggies.
Some brave companies, like Original Beans are even taking this concept of truth in pricing seriously enough to actually change their prices. But it's not clear yet whether they'll be rewarded for this courageous step. That's up to us.
OK, rant over.
What do you think? Would knowing the “real cost” of the items in your grocery store make a difference to you in what you selected? Do you think food labels ought to include this kind of information?
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Comments
JoAnn - 3/31/2010 9:14:01 AM
There are so many issues on so many levels on the topic of farming. We are just "small": less than 20 acres. We cannot afford machines, so we hire local people to pick the fruit. But at least they get paid, which is more than I can say for us. My husband works an additional full time job to support our family and provide health insurance.
We are not 100% organic because of diseases that kill off the whole blueberry plant. We have never used pesiticides. Because we are a family-run farm, we presume that we would not want others to eat anything that isn't safe / good for us to eat. That is a big deal for my husband. Natural is always better...
As has been said--there are so many levels of issues surrounding our food and what we put into our bodies. Unfortunately, there seems to be a large part of the population that has lost an understanding of the process of growing food.
We also deal with a lot of stealing where people come to U-pick and eat their way through the field while they are here. {I'd like to see that happen at the local grocery store where you eat the food as you put it in your cart. Then you only pay for what you haven't eaten yet!}
Enough said for now. I personally do not know any family farms run by rich people. They may have land (but we pay for that too!) and fresh air and space to roam, but there is a cost to doing what we do. The only reason most keep doing it (for next to nothing) is that they love what they do. - 2/16/2010 3:35:20 PM
The types and quantities of crops change as the markets change. Not too long ago, organic farming was not a money making venture. So, few farmers and fewer large-production farmers did much of this type of farming. This changed when the American consumer puts their money into organic produce. Organic farming is now more profitable to more farmers; and therefore, more farmers are producing this type of crop in large quantities. If more American's asked for carrots and not Twinkies, more farmers could make money farming root crops. If the organic farming example does not provide enough evidence for you, what about the huge increase in farmers planting corn which is then process into ethanol; the end result of that crop has nothing to do with a food crop (health or not healthy).
Trust me when I tell you farmers are not trying to plant crops that are likely to end up in high calorie-density foods. They are planting crops to make money and take care of their families.
So, if you spend your dollar on healthy foods, the American farmer will feel that impact and change their crops to fit the market trends.
- 1/28/2010 1:55:47 PM
My brother spends on average about 20 bucks or more on Fast Food a week...( 2-4 visits.) On top of that he often buys snack stuff at 7-11 after work when nothing else is open. Nutty BuddyDrum Stick, a bag of nuts or chips, and a slurpee coming close to 10 bucks every day. He is really getting very fat these days and I cringe with pain at the shame of his costly waste. But alas it is HIS money and none of my business so I keep my mouth shut.
While I (unemployed) struggle to stretch out 50 bucks for a whole weeks worth of healthy groceries...and remarkable do so. If I went coupon clipping and price shopping I bet I could do even more. - 4/1/2009 1:43:34 PM
Because I grew up in a household with pretty lousy eating habits (my mother, who died of a heart attack at 56, never met a vegetable she liked) I am especially conscious of my own habits and, when it was within my control, those of my daughter (who at 17 never eats at home and lives, from what I can tell, on a steady diet of pizza slices and Starbucks' crappucinos).
What I think is really missing from these families is not money, but education, not just food preparation/nutrition education but education of the tastebuds. When I'm really thirsty, I drink water, not juice or pop (wine and beer are consumed for entirely different reasons). I know that white bread is cheaper than whole grain, but a peanut butter sandwich on whole grain bread is tastier and much more filling than peanut butter on white bread, so there is no necessity for an extra sandwich or additional snack. I'm not even going to suggest substituting carrot sticks and celery for potato chips where the kids are concerned - kids are kids and would generally rather have chips, but perhaps there are too many snacks being consumed because the meals are not filling enough. Weiners, for such a fatty food, do a surprisingly poor job of filling a belly, especially on a white bread bun.
I have always assumed that I spent more on my food than some other families because I bought better food, but when I do the math I see that's not necessarily the case. I make my own granola and yogurt, which I have for breakfast with a banana and frozen blueberries. I make large batches of soups and casseroles so I can pack a lunch every day, the cost of which is minimal. Just this morning I made a pot of broccoli and cauliflower soup with romano cheese, which will provide me with at least 5 meals. Total cost, less than 5 bucks. The way I eat is something I learned as an adult. I had to train my tastebuds to appreciate real food because it was used to Rice-a –roni and Shake and Bake, but once I got used to eating properly and actually saving money through bulk food preparation and feeling positive health effects of a decent diet I realized that could cheerfully never eat a 1500 calorie fast food meal again.
- 3/17/2009 1:41:23 PM
People where I live are aware of another real cost of many foods because so many local farms are being foreclosed upon after generations of being working family businesses: so even fresh produce has a hidden price when stores buy from food supplyers who sell foreign produce and ignore the local farmers in favor of corporate resources. - 3/10/2009 2:16:22 AM
Rachel - 3/8/2009 12:00:08 PM
Rachel - 3/8/2009 12:00:03 PM
While I'm considered a big weirdo for sending brown bag lunches daily, my kids are ALL normal weight and also do not have any behavioral problems. They do not get Twinkie sugar bombs in their lunches and think it's pretty normal to eat ants on a log for snacks....they are definitely in the minority locally.
It upsets me that I have to pay more for organic, but I do. It irritates me to no end that our government continues to subsidize only certain farmers...not the ones growing the organic goodies we want (at least that's the case here)....but I do my part by going to the farmers markets and grow my own.
I don't enjoy the fact that grocery shopping is done primarily in the outer edges of the grocery mart but I understand that's how it is. Big business does't run my kitchen! - 3/8/2009 11:18:45 AM
Yup, You went and got me started. It took two hours of my life and some change… I couldn’t help myself… but still I won’t post it all here…
My full ‘rant in reply’ is on my SparkPage for anyone interested but the short of it is that I think this issue is just a small portion of the greater global crisis we find ourselves in and in my mind that is linked in titanium to what I keep seeing on this board, and well, almost everywhere else for that matter. The problem here isn’t “the government” its people who live in democracies, Americans and others, who divorce themselves of the responsibility for what they allow their governments to do.
If for some reason you want to see the full path of my reasoning and reply yourself just hit the picture under my username and you’ll find the blog-post there.
Otherwise to sum up… I agree that there is a need for Americans to know the true cost of the products they use. They need to know what it costs taxpayers in subsidies and health care. They need to know what it costs consumers in damage to their personal health and higher costs. And they need to know also what it costs in damage to the environment and our ability to be energy independent.
We need to know though, not so that we can add yet another layer of regulation and manipulation to the situation, but so that we have the information and ammunition we need to take down the outdated manipulations of the past.
And personally, I would not add it to food labels. Mainly because they are so full of the information we need to keep us alive that cluttering things up with PSA’s (public service announcements) would make labels more confusing and even less useful. Too many people use them not just to improve their health for the future but more importantly just to stay alive, right now, and from day to day. I think labels are already pushed to the limit just serving people with the basic facts about content, people with food allergies, diabetes, hypertension, low kidney function and so forth. I can’t imagine the redesign that has room for advocacy as well.
Still, as I said, I think identifying true cost/price is a worthy project for those with the resources.
In the meantime, I think it’s even more important for the rest of us truly engage in civic life and stand up to meet our responsibilities as citizens to every extent that we can.
We have met ‘The Government’ and they is US.
I honestly believe that. If Americans don’t start emulating the ideals of our founders and take responsibility for our own government then the country is going on the scrapheap of history and I shudder to think of what will happen next.
I’d like to believe our generation won’t be the one that fails to meet the challenge. I hope that we can do better than this. - 3/8/2009 6:39:06 AM
However, I am not sure that posting the "real cost" of items would influence my decision to buy. I've tended to be influenced by price and probably always will be, but part of this lifestyle change has included moving away from that and not always going for the best bargain (i.e. big tubs of buttered movie popcorn with unlimited refills) if it means serious overeating.
Dean, I love your blogs and articles! - 3/7/2009 8:08:29 PM
And if you want to rant about the government's inconsistency you need to look no farther than tobacco. We're still subsidizing tobacco farmers at the same time that we're telling people not to smoke! - 3/7/2009 5:43:34 PM
I have to laugh at myself sometimes. I'll say, heck no, 99 cents a pound is way too much for cantaloupe. But five minutes later, oh, look, chips are three for five dollars! "On Sale!!!"
Well, duh. Those chips are in, what, 7-oz bags? 10-oz? Now do the math. OK, girlie, set down the chips and splurge on that cantaloupe. - 3/7/2009 12:23:36 PM
But most people I know don't see beyond cost and convenience, even if they can afford to pay more.
Personally, I would welcome the idea of knowing the real price of food items, and basing my choices on them.
But I don't think there are many who would. Come to think of it, maybe I need a new circle of friends - lol! - 3/7/2009 3:18:55 AM
I do find it interesting that talk is being batted around about a so-called Obesity Tax. In other words, making junk food and even good food that happens to be high-caloric (such as a restaurant dessert made with all natural ingredients) more expensive by levying a tax. Isn't that ironic - have the government subsidize products to make them cheaper, then tax then to make them less appealing from a financial point of view. LOL - 3/6/2009 5:00:39 PM
You lose me when you want to calculate the "full" cost of foods. Junk food doesn't cause obesity. Overeating and lack of exercise cause it. I love junk food but without it, I'll binge on anything that tastes good. It's not the companies' fault that I'm over-weight. It's mine. Is it right to force companies to account for the lazy behavior of their consumers.
The problem, the FUNDAMENTAL problem with most of us who are over-weight is that we don't take responsibility for our own actions over the long-term. Those who care about the origins of foods will usually find a way to figure it out. Those that don't wouldn't bother to read an "actual cost" label. In fact, it might encourage them to buy more thinking it's a pretty good deal. And with Twinkies rumored to be sturdy enough to last through a nuclear war, they could choose to stockpile A LOT more unhealthy foods due to new labeling. - 3/6/2009 1:59:32 PM
In my town, the farmer's market seems to think that they can charge even more outrageous prices than the supermarkets for produce. Not much incentive to buy there when you have limited money. - 3/6/2009 12:30:47 PM
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