US consumers are responding to rising food prices with a variety of cost-reduction behaviors like buying cheaper brands, reducing the amount of non-food items purchased and cutting down on eating out, a Gardner Food and Agricultural Policy survey found.
Summarized by the Illinois Farmdocdaily, the study, done by Maria Kalaitzandonakes and Jonathan Coppess, University of Illinois economists wrote said, “changing the types of foods they purchase was also a commonly reported strategy to reduce costs,” the economists said.
DISPROPORTIONATE EFFECTS
Additionally, the surveyors found that rising food prices were affecting food-insecure households the most. These households reported engaging in more coping mechanisms than consumers on average, including reductions in fruit, vegetables and proteins purchased.
Such changes likely will exacerbate existing nutrition and health disparities among those households, they said.
When asked about the use of 15 possible coping mechanisms, the surveyors found that, on average, consumers indicated they began engaging in 3.4 coping mechanisms in the past month because of rising food prices, they said. Those with very low food security status indicated they engaged in more coping mechanisms.
Those with high or marginal food security status indicated they engaged in 3.2 coping mechanisms, those with low food security status indicated they engaged in 3.4 coping mechanisms, and those with very low food security status engaged in 4.8 coping mechanisms, the economists said.
The most common coping mechanisms consumers engaged in this month were switching to cheaper or store brands (41.2%) and spending less money on non-food items (38.1%), the survey showed. Reducing amounts spent at restaurants (37.9%) also was common.
RESULTS CONSISTENT WITH OTHER STUDIES
The results were in-line with findings from the Consumer Food Insights report, which found reductions in purchasing food away from home. Another common coping mechanism was changing the types of foods they purchase (31.5%).
Importantly, the Gardner study found that 17.3% of those surveyed indicated they had starting cutting the size of meals or skipping meals because there was not enough money for food.
The most commonly decreased food types were red meat, seafood and sweets/snacks, where 51.8%, 48.5% and 48.6% of consumers said they decreased purchasing in the last month, respectively, the report showed.
What’s more, the surveyors found that those with low food security status changed the types of foods they purchased because of rising prices to the detriment of their overall health.
It also is likely the original amounts of those foods purchased is different by food security status, they said. Research shows that food insecurity is associated with poor dietary patterns, including lower intake of fruits and vegetables, so higher food prices likely will be particularly burdensome to these households.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $155.00 to $156.99 per cwt, compared with last week’s range of $156.00 to $158.90. FOB dressed steers, and heifers went for $245.51 to $247.99 per cwt, versus $245.49 to $251.62.
The USDA choice cutout Tuesday was down $1.80 per cwt at $269.64 while select was off $2.10 at $252.39. The choice/select spread widened to $17.25 from $15.95 with 111 loads of fabricated product and 27 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.70 to $1.90 a bushel over the Mar corn contract. Bids in Kansas were steady at $0.85 over the Mar, which settled at $6.67 a bushel, up $0.10 3/4.
The CME Feeder Cattle Index for the seven days ended Monday was $177.53 per cwt, down $0.16. This compares with Tuesday’s Jan contract settlement of $178.95 per cwt, down $0.22, and Mar’s $183.60, up $0.32.