Paradigm Shifted

Unless you live in a cave (and grow your own food), you’ve probably noticed that food prices have risen a bit in the past few years.  I think it’s a good thing, personally, if it makes us think harder about what we spend our money on.

Americans spend a much smaller percentage of their budgets on food costs, compared to the rest of the world.  At the same time, we spend more proportionately on discretionary spending (ie, luxury goods) than the rest of the world.   So even with the higher cost of food, we’re still spending less than anyone else.

So why has the price of food gone up?  There are a number of reasons.  We’ve seen declines in supply of various staple foods because of lower production, failure of crops, etc.  We’ve seen farmers switch from food crops to commodity crops (ie, corn for ethanol).  We’ve seen oil prices rise, which increases the cost of transportation.  And we’ve seen demand rise sharply, as incomes and populations increase.

What can you do to combat the rising cost?  Well, there’s the traditional method – clip coupons, place the grocery game, etc.  Or, you can adjust your whole approach to food and your diet:

Go vegetarian. Vegetarian staples cost less than meat.  They are also healthier for you.  If giving up meat altogether is too much, considering cutting it out once a week or more.

Go seasonal. Buying food out of season is expensive.  This is because the food comes from much further away, and the cost of shipping is built in.  Out-of-season food is also not very fresh, and thus not really good.

Go basic. Purchasing a few major staples and building meals around them can be economical.  If you buy beans or grains in bulk, for example, you can see significant savings.  These dry goods will also store well, so as produce goes on sale, you can plan meals around the vegetables that fit your budget at the time.

Go green. Plant a container garden.  Your local garden store will have kits that you can place in your window.  You’ll have fresh tomatoes or peppers all summer.

Go local. Locally produced food is cheap and plentiful.  Visit your local farmers’ markets and check out the options.  You’ll also reap the benefit of fresh and often organic produce as well.

There is no consensus as to whether we’ll continue to see prices rise, or if they’ll level out, or even drop.  There is some indication that they are leveling out this year in some areas (ie, milk) but will continue to rise in other areas (ie, rice).  That leaves us with trying to find more sustainable ways to maintain our lifestyles.