Economics in Meal Planning

1. Economics in Meal Planning

2. Factors Influencing Food Cost • Americans 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. • Trade policies-cost of imports and exports, agreements on food safety and biotechnology. • Food processing and packaging-fabrication, labor, labeling, research and development. • Marketing-from farmer to consumer costs account for 81% of cost of food. • Type of food store-supermarket, niche market, convenience store, farmer’s market, coops, warehouse or discount stores.

3. Factors in Selecting a Market • Location • Cleanliness • Physical Features • Services and Personnel • Overall Food Quality • Fresh Produce • Meat and Dairy • Delicatessen and Bakery • Breadth of Inventory • Food Prices

4. Determinants of Spending • Number of family members, age • Family income • Where meals are eaten • Supplemental programs • Location of market • Alternative marketing choices • Choice of food within a group

5. Managing Marketing • Prepare a list-organize by store, include amount needed • Maximizing Shopping-timing and shopping decisions • Shopping Aids like unit pricing, open dating, and ingredient labeling

6. Ways of Economize • Eat at home • Check newspapers and advertisements, use coupons • Plan meals the family will eat, use a market list • Use less meat • Determine between scratch preparation and convenience • Limit spending on beverages and snacks • Read labels • Use larger sizes • Avoid home waste

7. Convenience Foods • Defined as fully or partially prepared foods for which significant preparation time, culinary skills, or energy use have been transferred from the consumer’s kitchen to the food processor or distributor • Usually thought to have undergone a large amount of processing-ready prepared, prefabricated, or service ready • Consider cost, eating quality, nutritive value and savings of time and effort

8. Eating Out • According to the Continuing Survey of Food Intakes by Individuals (CSFI II), 57% of individuals eat at least one food away from home per day. • 33% at fast food restaurants 27% at restaurants with table service 25% from grocery or convenience stores • 40-50% of calories and 26 nutrients are provided by food eaten away from home

9. Eating Out Continued • Teenage males and higher income people are most likely to eat away from home • 3-5 year olds et 20% of calories away from home, mostly at friends and day care • 6-19 year olds eat 40% if calories away from home, mostly at school and fast food places • See an increase in consumption of non-citrus juice and soft drinks

10. Quality of Away From Home Eating • 16% of food eaten away from home in 1977-78 • 27% if food eaten away from home in 1995 • Fat 31.5% of calories in home foods 37.6% of calories in foods away from home • Fiber 25% less in foods away from home • Calcium 20% below benchmark in foods away from home while foods at home were at benchmark

11. USDA Food Plans • Published quarterly to help families achieve satisfying nutritious meals at affordable costs. • Four current plans: Thrifty plan has been used as the basis for the Food Stamp Program and is criticized as being nutritionally inadequate if used for long periods of time Low-cost and moderate-cost plans are in line with diet of most families Liberal plan is typical of diet where income permits more spending freedom

12. USDA Food Plans Continued • Cost differences among the food plans Low-cost 30% above thrifty Moderate-cost 25% above low-cost Liberal 20% above moderate

13. February 2008 Food Plan Costs(Weekly)

14. Power Point Author Dr. Jane Ross The University of Vermont Foods and Nutrition Basic Concepts of Food