Economic and Marketing Information for Indiana Farmers (Oct. 29, 1971) |
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Economic and Marketing Information FOR INDIANA FARMERS Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana October 29, 1971 Food Consumption and Prices: The 1960's and Beyond WHEN THE AMERICAN housewife complains of inflation, food prices are usually uppermost in her mind. This is because food is a major item in the family budget and also because food prices are highly visible to the consumer—in the newspapers and in the food retail store. Recently, the housewife has been hearing that rising food prices have been a major reason for large jumps in the cost of living. Is this reputation of food prices as a leader in inflation deserved? What has been the record of the 1960's, a period of first relatively stable prices and then accelerating inflation? One thing is clear. Consumer prices for food and other products have not been increasing las rapidly as consumers' income. The after-tax income of consumers rose 96 per cent between I960 and 1970. Allowing for price increases, this still gave consumers a 65 per cent increase in purchasing power over the past decade. Food prices did increase substantially in the 1960's, but less rapidly than the prices of other goods and services. For the 1960-70 period the price of food for home consumption increased 27 per cent. This was less than the 31 per cent rise in the cost of all other products over the same period. However, the cost of food in restaurants and institutions did increase faster in this period than either the general cost of living or food for home consumption. During the relatively stable price period in the first part of the decade, when the cost of living was rising less than 2 per cent per year, food prices were rising faster than prices of other goods and services. Then, in the 1966- 70 period, food prices rose less rapidly than the general rate of inflation. So the answer to the question, "Did food prices rise more rapidly than other prices in the 1960's?", depends upon where the food was eaten (at home or away from home) and which years are J. N. Ubl, Agricultural Economics being considered. Retail food prices seemed to fuel inflation in the first half of the decade but dampened price rises somewhat in the last half of the 1960's. Food's contribution to Inflation in the past decade also varied by products. In the early years, pork and fresh fruit and vegetable prices were instrumental in rising food prices. In the 1966-70 period, prices of beef, fish, dairy products and fresh produce rose more rapidly than prices of other foods. Over the decade, meat prices were the most significant factor in rising food prices while- poultry products, eggs and processed fruits and vegetables were important in holding down the rise in food prices. Retail food prices have been running counter to the general cost of living in recent months. During the last months of 1970 and January of 1971, food prices were quite stable while the cost of living was increasing at an annual rate of 4.8 per cent. Food prices rose rapidly in early spring of this year because of short supplies of fresh produce, while the overall gain in the cost of living moderated. The summer price rises leading to President Nixon's wage-price freeze were largely on non-food items. Retail food prices have stablized this fall because of large pork and egg supplies. For the year, food retail prices are expected to rise 3 per cent over 1970 levels, compared to the AVi per cent / mis Because of a lack of funds and reassessment of priorities, Economic and Marketing Information for Indiana Farmers is indefinitely suspended with this issue. "Marketing Guides" will continue as a news release to Indiana media. Look for the "guides" near the end of the month in your local newspaper. Table 1. Per capita consumption of ftxxl, 1947-69 Pounds consumed per capita 1947-49 195"-59 1967-69 Meat 111 lf.i Beef, veal 61 69 83 Pork 63 SS 60 Lamb 4 4 . Poultry 22 33 46 Chicken 1') 26 38 Turkey 3 6 s Eggs 47 15 ,0 Fish 13 1 5 14 Dairy products 412 396 562 Fats and Oils 15 ■is 53 Animal 25 22 17 Vegetable .'0 .v, 56 Fruits, melons 205 171 155 Vegetables 225 19<; .'00 Potatoes l 20 100 10C Flour, cereal products l l 14s 144 All food 1,547 1,453 1,445 Sonne US. Department of ARrxulrurc. rise in 1970. However, prices for food eaten away-from-home will rise v>mc- what more rapidly, so that all food prices may rise 31 .' to -i per cent this year. Consumption Trends Per capita consumption of all food did not change materially during the 1960s as shown in Table 1. Consumers ate more beef, poultry and vegetable fats while the- consumption of eggs, milk, animal fats, and fruits continued to decline. Consumption of pork, lamb, fish, vegetables and cereal products did not change significantly over the decade. Per capita consumption of fix id is increasing about 1 per cent this year. These gains will lx- centered in the consumption of pork, beef and fruit. Less chicken, fish and dairy products are being consumed than last year Food Expenditures Americans spent $114 billion for food in 1970 (Table 2). This figure will probably reach $120 billion this year. Cooperative Extension Work in Agriculture and Home Economics, State of Indiana, Purdue University and U. S. Deportment of Agriculture Cooperating. H. G. Diesslin, Director, Lafayette, Ind. Issued in furtherance of the Acts of May 8 and June 30, .914.
Object Description
Title | Economic and Marketing Information for Indiana Farmers (Oct. 29, 1971) |
Purdue Identification Number | UA14-13-econ197110 |
Date of Original | 1971 |
Publisher | Purdue University. Agricultural Extension Service |
Subjects (LCSH) |
Farm produce--Indiana--Marketing Agriculture--Economic aspects--Indiana |
Genre | Periodical |
Collection Title | Extension Economic & Marketing Information (Purdue University. Agricultural Extension) |
Rights | Copyright Purdue University. All rights reserved. |
Coverage | United States - Indiana |
Type | text |
Format | JP2 |
Language | eng |
Repository | Purdue University Libraries |
Date Digitized | 05/04/2015 |
Digitization Specifications | Original scanned at 400 ppi on a BookEye 3 scanner using Opus software. Display images generated in Contentdm as JP2000s; file format for archival copy is uncompressed TIF format. |
URI | UA14-13-econ197110.tif |
Description
Title | Economic and Marketing Information for Indiana Farmers (Oct. 29, 1971) |
Purdue Identification Number | UA14-13-econ197110 |
Transcript | Economic and Marketing Information FOR INDIANA FARMERS Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana October 29, 1971 Food Consumption and Prices: The 1960's and Beyond WHEN THE AMERICAN housewife complains of inflation, food prices are usually uppermost in her mind. This is because food is a major item in the family budget and also because food prices are highly visible to the consumer—in the newspapers and in the food retail store. Recently, the housewife has been hearing that rising food prices have been a major reason for large jumps in the cost of living. Is this reputation of food prices as a leader in inflation deserved? What has been the record of the 1960's, a period of first relatively stable prices and then accelerating inflation? One thing is clear. Consumer prices for food and other products have not been increasing las rapidly as consumers' income. The after-tax income of consumers rose 96 per cent between I960 and 1970. Allowing for price increases, this still gave consumers a 65 per cent increase in purchasing power over the past decade. Food prices did increase substantially in the 1960's, but less rapidly than the prices of other goods and services. For the 1960-70 period the price of food for home consumption increased 27 per cent. This was less than the 31 per cent rise in the cost of all other products over the same period. However, the cost of food in restaurants and institutions did increase faster in this period than either the general cost of living or food for home consumption. During the relatively stable price period in the first part of the decade, when the cost of living was rising less than 2 per cent per year, food prices were rising faster than prices of other goods and services. Then, in the 1966- 70 period, food prices rose less rapidly than the general rate of inflation. So the answer to the question, "Did food prices rise more rapidly than other prices in the 1960's?", depends upon where the food was eaten (at home or away from home) and which years are J. N. Ubl, Agricultural Economics being considered. Retail food prices seemed to fuel inflation in the first half of the decade but dampened price rises somewhat in the last half of the 1960's. Food's contribution to Inflation in the past decade also varied by products. In the early years, pork and fresh fruit and vegetable prices were instrumental in rising food prices. In the 1966-70 period, prices of beef, fish, dairy products and fresh produce rose more rapidly than prices of other foods. Over the decade, meat prices were the most significant factor in rising food prices while- poultry products, eggs and processed fruits and vegetables were important in holding down the rise in food prices. Retail food prices have been running counter to the general cost of living in recent months. During the last months of 1970 and January of 1971, food prices were quite stable while the cost of living was increasing at an annual rate of 4.8 per cent. Food prices rose rapidly in early spring of this year because of short supplies of fresh produce, while the overall gain in the cost of living moderated. The summer price rises leading to President Nixon's wage-price freeze were largely on non-food items. Retail food prices have stablized this fall because of large pork and egg supplies. For the year, food retail prices are expected to rise 3 per cent over 1970 levels, compared to the AVi per cent / mis Because of a lack of funds and reassessment of priorities, Economic and Marketing Information for Indiana Farmers is indefinitely suspended with this issue. "Marketing Guides" will continue as a news release to Indiana media. Look for the "guides" near the end of the month in your local newspaper. Table 1. Per capita consumption of ftxxl, 1947-69 Pounds consumed per capita 1947-49 195"-59 1967-69 Meat 111 lf.i Beef, veal 61 69 83 Pork 63 SS 60 Lamb 4 4 . Poultry 22 33 46 Chicken 1') 26 38 Turkey 3 6 s Eggs 47 15 ,0 Fish 13 1 5 14 Dairy products 412 396 562 Fats and Oils 15 ■is 53 Animal 25 22 17 Vegetable .'0 .v, 56 Fruits, melons 205 171 155 Vegetables 225 19<; .'00 Potatoes l 20 100 10C Flour, cereal products l l 14s 144 All food 1,547 1,453 1,445 Sonne US. Department of ARrxulrurc. rise in 1970. However, prices for food eaten away-from-home will rise v>mc- what more rapidly, so that all food prices may rise 31 .' to -i per cent this year. Consumption Trends Per capita consumption of all food did not change materially during the 1960s as shown in Table 1. Consumers ate more beef, poultry and vegetable fats while the- consumption of eggs, milk, animal fats, and fruits continued to decline. Consumption of pork, lamb, fish, vegetables and cereal products did not change significantly over the decade. Per capita consumption of fix id is increasing about 1 per cent this year. These gains will lx- centered in the consumption of pork, beef and fruit. Less chicken, fish and dairy products are being consumed than last year Food Expenditures Americans spent $114 billion for food in 1970 (Table 2). This figure will probably reach $120 billion this year. Cooperative Extension Work in Agriculture and Home Economics, State of Indiana, Purdue University and U. S. Deportment of Agriculture Cooperating. H. G. Diesslin, Director, Lafayette, Ind. Issued in furtherance of the Acts of May 8 and June 30, .914. |
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