Food Economics

If you do much grocery shopping, you have probably noticed that the cost of food has been rising over the past years. According to research in 1970, an 18 oz. Box of corn flakes cost 38 cents. By 1990, that same box cost $1.99. This year, The Federal Reserve Chairman Ben Bernanke said that most of the new sale price items had their packages reduce in size in order to hide price increases. So why food prices rising so fast and what are are the issues that affect this prices? Millions of people are just barely scraping by as it is, what is going to happen if food prices keep rising rapidly.

On the stuff that people spend money on every day, prices have gone up. Food economics is one of the best examples of this situation. In America meat prices have risen by 138 % since March 2009. Actually high food prices are not a problem just in United States. The truth is entire planet is rapidly approaching to a horrific global food crisis. Over the past year, the global price of food has risen by 37 %. And this has pushed 44 million more people into poverty. Actually not all of the foods prices are rising. The expensive foods are the healthier ones. So, products like cereals, junk foods or fast foods are not expensive because government persuades farmers to produce this kind of crops. But most of the low price products in grocery stores have poor nutritional value. The main problem is in the fruits, meats and vegetables. So the food prices are especially painful if you are trying to eat healthy food. For my opinion,   when food prices continue to rise in United States, it may be painful for many American families, but around the world a rise in food prices can mean the difference between surviving and not surviving.

The entire food economics changed greatly throughout years, moving away from the agricultural economy of the 1930’s to the technological, consumer-driven markets.   Besides this, there are a number of other factors that impact food economics. The most important...