Frequently Asked Questions
By Althea Zanecosky, MS, RD, LDN
Mid-Atlantic Dairy Association
June 2008
Q: Rising food prices are take a bigger bite out of my paycheck. Is it possible to eat well without breaking the bank?
A: With the rising cost of eggs, meat, milk, and produce contributing to the biggest jump in food prices in 17 years, consumers are feeling the pinch!
Food prices are rising for a number of reasons. A growing middle class in Latin America and Asia can afford more meat and milk, which has driven up demand for grain to feed cattle and hogs. A drought in Australia in 2006 reduced the supply of milk available to Asia, further pushing up the cost. Rising global demand for U.S. wheat and poor harvests in other wheat-producing countries caused wheat prices to soar to record levels last year.
Demand for grain-derived ethanol, driven by government incentives, has helped push up corn and soybean prices, which in turn have raised the cost of many products derived from those crops. To top it off, rising fuel costs are making it more expensive to transport food from the producers to stores and restaurants.
According to the most recent government consumer expenditure figures, the average family of four in the U.S. spends more than $8,000 on food each year. During a five-year period those Americans would spend more than $40,000 on food, more than the average $30,000 on a car purchase. Many consumers put in hours of in-depth study when buying a car, making sure they get a good deal, but often don’t give much thought to examining their food spending.
Shoppers are looking for creative ways to save money on food. Many people are now opting for cheaper ingredients and private-label or store brand goods and leaning more heavily on discount grocers. Eating a healthy diet on a budget is getting harder, but it's not impossible. Here are other tips for reducing food costs:
- Eat in. This sounds obvious, but people spend a bundle dining out. That not only includes sit-down dinners, but pizza deliveries, Chinese takeout and lunch in the company cafeteria. An American family of four spends an average of $3,362 on meals outside the home. One estimate showed that an in-home meal costs about a third of a meal purchased away from home. You don’t need to eliminate dinners out for celebrations; instead try to reduce the eating out caused by lack of meal planning. 3-Every-Day Dairy Connect is one way to help. Check out this Web site for a helpful shopping list, new product information, exclusive coupon offers, delicious new recipes and customized tools that can help make healthy eating easier!
- Buy what's on sale and stock up. Supermarket sales typically run in 12-week cycles, and prices vary widely over that time. When you run out of something, restock from your own pantry full of discounted food instead of paying whatever the grocery store is charging that week. If possible, investing in an extra freezer to stockpile frozen foods can quickly pay for itself; consider buying a used freezer. Eight and 16-ounce chunks of cheese freeze well! Plan your menus ahead based on what's on sale. Meat and fish are typically some of the higher-cost items in price per ounce, so check grocery ads, purchase what's on sale, and cook accordingly.
- Know prices. Keep a price list (a notepad list of grocery prices) and you’ll know if the deals advertised in the supermarket flier are good prices. You don't need to note all the items you buy – just the ones you buy repeatedly. Stock up when products are on sale, like 10 single-serve containers of yogurt for $5.
- Use the grocery savings trio. Weekly sales, coupons and loyalty cards are three ways to get good deals on foodstuff. Use them together to obtain many items priced half-off or more.
- Don’t cut out the milk. When it comes to getting your money's worth, no other beverage comes close to providing the nutritional value of milk. Even though food costs are on the rise, dietitians advise consumers to spend their dollars wisely to provide the best nutrition for their families. Research and price analyses support milk as one of the least expensive calcium sources, especially when compared to other non-dairy, calcium-fortified foods. Penny per penny, milk's package of nine essential nutrients makes it one of the most nutrient-rich beverages you can drink.
Check out the U.S. Department of Agriculture’s Recipes and Tips for Healthy, Thrifty Meals for more ideas and information.