Tag >> Food Prices | Highlight HEALTH

Do you read labels at the supermarket? If you do, you may soon notice changes in the ingredients of some of the foods you buy. Food makers are quietly substituting cheaper ingredients in processed foods to offset the high price of commodities.

The Wall Street Journal took note of this trend last weekend, reporting that Food Makers Scrimp on Ingredients In An Effort to Fatten Their Profits [1]. However, that may be overstating their intentions. With high fuel prices driving up the cost of basic ingredients such as sugar and wheat, food companies are are forced to make a choice: raise prices or cut corners. Because competition in the industry is so strong, raising prices is the last thing food companies want to do. Instead, they look to the quality and quantity of the ingredients they use [2]. For example:

Kraft Miracle Whip now contains more water
Nestle snack products now contain less milk
Sara Lee has switched to cheaper wheat for some breads
Mars Inc. is reducing the size of its Funsize candy packs
Hamburger Helper products have reduced the number of spice and ingredient pouches
Some of Hershey’s chocolates are now being made with vegetable oil instead of cocoa butter

While some companies are adding fillers or cheaper ingredients, others are simply trimming manufacturing costs to save money. Food makers that are changing ingredients insist that they aren’t sacrificing quality or nutritional value. That may be hard to swallow, given that they’re reducing ingredient quality and quantity. Although it’s not hard to imagine smaller quantities (and thus lower calories) making a positive impact on health, the WSJ article cited at least one change that doesn’t result in a healthier product: making chocolate with vegetable oil instead of cocoa butter. Indeed, by replacing cocoa butter with vegetable oil, Hershey’s is lowering the overall health benefit of chocolate. Why? Because a number of epidemiologic studies have shown that cocoa, rich in flavonoids, has a number of cardiovascular health benefits [4-5].

The question is, will consumers be sensitive to the nutritional affects of these kinds of changes?

Not really, according to Harry Balzer of the NPD group, a market research and industry tracking firm [3]:

Consumers read labels. About half of all Americans say they routinely read labels on food products. So, I’d say yes, but the question really is ‘are they going to alter their behavior because of the reading the label’. Our experience has been no. Health in this country is really a secondary issue, a secondary concern. The primary concerns are taste, cost and ease.

What can health-concious consumers do? Keep in mind that these changes are occurring in processed foods. Food processing tends to lower the nutritional value of food, and processed foods often have a higher ratio of calories to other essential nutrients than unprocessed foods. Simply by reading this article you’re aware that cheaper ingredients are being used in processed foods — review your labels carefully.

Your best bet? Stick with fresh fruits and vegetables. A diet rich in fresh fruits and vegetables is important for maintaining good health. When fresh produce isn’t available, frozen and canned fruits and vegetables are a good option. Canned vegetables don’t taste as good as fresh and typically aren’t as nutritious, but it’s better than not eating vegetables at all. Fruits and vegetables contain essential vitamins, minerals and fiber, and increased consumption lowers your risk of developing several cancers.

Additional resources can be found in the Nutrition category of the Highlight HEALTH Web Directory.

References

Food Makers Scrimp on Ingredients In an Effort to Fatten Their Profits . The Wall Street Journal. 2008 Aug 23.
Secret ingredient? A cheaper substitute. Marketplace Morning Report, Marketplace, American Public Media. 2008 May 9.
‘Marketplace’ Report: Check Your Spices. Day to Day, Marketplace, American Public Media. 2008 Aug 25.
Engler and Engler. The emerging role of flavonoid-rich cocoa and chocolate in cardiovascular health and disease. Nutr Rev. 2006 Mar;64(3):109-18.
View abstract
Erdman et al. Effects of cocoa flavanols on risk factors for cardiovascular disease. Asia Pac J Clin Nutr. 2008;17 Suppl 1:284-7.
View abstract

As the price at the gas pump continues to climb, so does the cost of diary, grain and meat products. Why? Because increasing fuel prices make it more expensive to grow, harvest, transport, process and package food. Indeed, food costs rose by 4 percent in 2007, the highest annual increase since 1990 [1]. In 2008, the U.S. Department of Agriculture predicts the consumer price index for all food will increase 4.5 to 5.5 percent as retailers continue to pass on fuel costs to consumers [1].

There is, however, an upside to the increasing cost of food. Michael Pollan, author of the book In Defense of Food: An Eater’s Manifesto, argues that as the price of fuel and commodities rise, nutritionally questionable, high-profit ingredients like high-fructose corn syrup will also cost more [2]. And as prices rise, consumer demand for products containing such ingredients will fall.

This is good news for producers of sustainable foods — locally grown produce and locally raised meat — that don’t rely on fossil fuels. Locally grown foods are fresher, better tasting and healthier than food that’s been shipped or flown in from further away (we won’t even discuss heavily processed foods). Sustainable food producers haven’t felt the increasing cost of fuel like factory farms, making them more economically competitive in today’s marketplace. Even so, a recent Ohio State University study found that grocery store shoppers are willing to spend more for locally grown foods [3].

photo credit: alykat

The study was published in the May issue of the American Journal of Agricultural Economics. Researchers evaluated data from 477 surveys at 17 Midwestern locations, including retail grocery stores, on-site farm markets and farmers markets. In the survey, shoppers were presented with two baskets of strawberries under 80 different combinations of price, freshness, farm location and farm type. After presenting the options, shoppers were asked which basket of strawberries they would buy. The average retail shopper was willing to pay 48 cents more for strawberries produced locally (in the study, local meant grown within Ohio). Shoppers at farm markets were willing to pay even more at 92 cents extra. Freshness was also found to be important factor for shoppers. Retail shoppers were willing to pay 54 cents more for fresh produce that was recently harvested. Again, farm market shoppers were willing to pay even more at 73 cents extra.

According to Marvin Batte, Ph.D., a co-author of the study and professor of Agricultural, Environmental and Development Economics at Ohio State University [4]:

Statistically, we sorted out what explains each person choosing one basket over the other. We were able to determine how important price was, how important where the strawberries were produced was and whether the freshness guarantee was a factor. Basically what made the biggest difference was local production.

The Washington Post ran a great story earlier this week about the benefits of fruit and vegetables. To Produce Good Health, Bite Into Fruit and Veggies reveals some of the reasons why these food provide so many health benefits. The article also suggests that fresh fruits and vegetables are inexpensive and more accessible over the summer months:

Scientists are just beginning to fully understand the power of produce. And the start of summer provides a great opportunity to expand your nutritional horizons by sampling the foods that will come into peak season during the coming months. Seasonal fruit and vegetables cost less than produce available at other times of year, so they can help stretch your food dollars.

Nobody likes to pay more for food. But if increased food costs force people to find locally grown alternatives and eat healthier, there is indeed an upside to the high price of food. For more information on farmers markets, family farms and other sources of sustainably grown food in your area where you can buy locally grown produce and grass-fed meats, visit LocalHarvest.org.

What are your concerns about the cost of food? How are you dealing with increasing food prices?