Why Healthy Food Items Are Frequently More Costly?

It’s not always possible to have a healthy diet, or at least one that is more balanced, as food prices cause significant gaps between rich and poor populations in many nations.

According to a June 2023 British study, The Food Foundation’s Broken Plate report, the cost of good food is typically double that of less healthy food per calorie.

Protesters claim that rising costs have made it more difficult for many households to purchase nutritious food, which has caused them to choose less nutritious, highly processed options.

Given this disparity in price, it is worthwhile to concentrate especially on fresh produce that is high in nutrients, as these are essential to a well-balanced diet.

Vegetables and Fruits

Developed nations are becoming more and more reliant on imports from other countries as more people want year-round access to tropical or out-of-season fruits and vegetables. The result has been a worldwide supply chain that is longer and more intricate.

The United States is a global importer and exporter of fresh produce, ranking among the top importers of these goods. Nonetheless, over the past 20 years, the United States’ imports of fruit and vegetables have climbed by 129% and 155%, respectively, despite the country’s output level being constant over time.

A recent study from the University of Warwick in the United Kingdom found that during a ten-year period, American consumers had paid 40% more for fruit and vegetables due to supply chain fixed costs alone.

“The data very clearly says, there is this fixed high cost for fresh fruit and vegetable, which is not there for other products,” Thijs Van Rens, one of the authors of the Warwick study said. “This market is inefficient in setting the right prices.”

Van Rens countered that ultra-processed foods are getting less expensive because they are less perishable than fresh vegetables. Junk food is inexpensive since it keeps indefinitely. He stated, “You can produce it in bulk, you can buy it in bulk, and you can deliver it when delivery costs are low.”

“There’s a direct correlation between food costs and nutritional value.”

According to a Food Foundation survey, the quantity of vegetables purchased by British families has decreased to its lowest point in fifty years.

The Food Foundation’s Rebecca Tobi, a senior business and investor manager, stated that there is a significant policy vacuum on how legislators are facilitating people’s access to healthier meals. When it comes to what people can purchase, their options are extremely limited, she claimed.

Shortages of Labour

The International Labour Organisation (ILO) states that the number of workers in agriculture is decreasing in the majority of nations, particularly in Europe and the United States.

With its long hours, physical demands, and frequent isolated, rural locations for meagre income, farming and agriculture are no longer popular employment choices for many people.

Developed countries have historically relied on temporary and non-domestic labour as their domestic labour force ages and decreases. Therefore, the stability of the food supply chain as a whole is impacted by any labour shortfall.

According to a poll conducted by the National Farmers’ Union (NFU) in the United Kingdom, a shortage of workers directly caused fruit and vegetables valued at £22 million ($28 million) to be wasted in the first half of 2022 alone.

According to the union, the industry need 70,000 workers in 2022, but only 38,000 visas were available for seasonal workers.

Automation, according to the British government, may lessen the need for foreign labour. Japan and other ageing nations have already made investments in autonomous farming systems.

However, automation requires developers to make larger equipment investments, which could lead to further increases in produce prices.

Similar labour shortages impact American farms, as seen by a sharp rise in the number of H-2A agricultural worker visas that American farmers have requested over the past 20 years.

In the United States, there were approximately 371,000 certified temporary agricultural work positions in 2022, a seven-fold increase from 48,000 in 2005.

Unpredictable Weather

The weather further complicates fruit and vegetable supply systems. Mexico, Brazil, China, India, and Turkey are among of the world’s top exporters of fruit. Furthermore, within the past five years, extreme weather occurrences have affected each and every one of these countries.

Mexico experienced temperatures so high in 2023 that the government is currently using cloud seeding to create an artificial boost in rain. China experienced terrible floods and intense heat in the same season, destroying its crops and causing food shortages.

According to a recent report by the Energy and Climate Intelligence Unit, household expenses in the United Kingdom have grown by an average of £605 ($770) as a result of climate change and the impact on energy costs. Remarkably, the study found that 60% of this rise was due to climate-related costs.

What’s the meaning of it all?

More generally, the World Bank estimates that in 2021 3.14 billion people worldwide, or 42% of the world’s population, would not be able to afford a nutritious meal.

Food costs in the United States increased by a record 11.4% in 2022 and an additional 3.4% in the previous 12 months. In the UK, the average consumer now spends 30% more on food than they did two years ago.

As obesity rates rise sharply worldwide, there is a growing shortage of healthful food.

According to the World Obesity Federation, if nothing is done, it is estimated that 51% of people worldwide may be overweight or obese in the next ten years, with a $4.3 trillion economic cost by 2035.  

Van Rens claimed that only “affluent consumers” who are already somewhat aware of the negative effects their meals have on their health and the environment would benefit from public education about healthy eating practices or food product labelling.

“What most people would pay attention to is food companies reformulating products in a healthier way, or governments lowering the prices of fruit and vegetables through subsidies,” he continued.

(Adapted from CNBC.com)



Categories: Economy & Finance, Entrepreneurship, Strategy, Sustainability, Uncategorized

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