Economic Marketing and INFORMATION 
FOR INDIANA
FARMERS
Lafayette,  Indiana
November 23,   1951
Prepared by members of the Agricultural Staff of Purdue University
Are Food Prices Too High ?
A CONCERTED EFFORT
is underway these
days to make food producers, processors and distributors the "whipping boys"
of inflation. The motivating force behind this move
is more political than it is
economic.
Everyone agrees that the
threat of inflation which
we face is serious, and that
something must be done
about it. We disagree on
what must be done about
it.
The majority of us like
inflation, as it influences
our incomes. We squawk
loudly when inflation is reflected in the cost of things
we buy. Even when we
bid against each other
with our increased incomes
and thereby force prices of
certain consumer's goods
up, we still "squawk."
Consumers buy food
more frequently than any other single item. There-
ore, a change in the price of food registers more
often with the public than a change in the price of
Qny other single commodity. The price of household
furnishings rose more from June, 1950, to June, 1951,
•nan did the price of food at retail, but people buy
ousehold furnishings so infrequently that we didn't
' much about that increase in price.
since all of us buy meat,  it's  not difficult to
by
EARL L.  BUTZ, Agricultural Economics
But
9    a lot of popular support when  one asserts that
^at prices are too high and must be "rolled back."
And h
e can  make  political   capital   with   everybody
^xcept a small minority of meat producers) by infer-
n9 that meat producers and processors are "gouging
,he public."
Such
Food Production Is Up
assertions are without foundation in fact.   Peo
ple who believe that meat
prices, for example, are
high because producers are
striking, or because processors and distributors are
taking an undue profit,
simply are not aware of
the facts.
In   1950, Americans ate
144   pounds  of  meat  per
person (excluding fish and
poultry).    This   was   more
than they ate in 1949.   Indications at this time are
that they will eat approximately     144    pounds    of
meat  per person  in   1951.
This   compares   with    126
pounds per person in 1935-
39.   In 1950 Americans ate
32  pounds  of poultry per
person,   and   1951   indications   are   that  this  figure
will   be  about  35  pounds
per person.   This compares
with   20  pounds   in   1935-
39,   or  an   increase  of  75
percent.
Let's take beef, which  is supposed to  be  in short
supply.   In 1950, we ate 63 pounds of beef per person.   Indications are that we will eat nearly the same
amount in  1951.   This compares with 55 pounds per
person in 1935-39, or a gain of 14 percent.
It is true that sirloin steaks at $1.25 a pound seem
high to us. However, that price is not set by the cattle producer or meat processor. Steaks are selling at
that price today because so many Americans have so
much more money, and are bidding against each other for the available supply of meat. The American
people today are eating from 10 to 12 percent more
meat per person than they did in 1939.
There is no shortage of protein in this country. If
anybody gets tired of paying $1.25 for steak, he can
find an excellent source of protein in other meats.
Dressed frying chickens sell at around 60 cents a
pound.   And most of us get along pretty well eating