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Food Prices and Selection Options in Food Stores and Markets Serving Low-Income Households

Food Prices and Selection Options in Food Stores and Markets Serving Low-Income Households. Helen H. Jensen, Iowa State University hhjensen@iastate.edu Institute of Medicine March 28, 2012. Evidence on prices. Prices of food vary by region Todd, Leibtag & Penberthy 2011

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Food Prices and Selection Options in Food Stores and Markets Serving Low-Income Households

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  1. Food Prices and Selection Options in Food Stores and Markets Serving Low-Income Households Helen H. Jensen, Iowa State University hhjensen@iastate.edu Institute of Medicine March 28, 2012

  2. Evidence on prices • Prices of food vary by region • Todd, Leibtag & Penberthy 2011 • Nontraditional stores (e.g. supercenters, mass merchandizers) have lower prices on dairy, meat, fruit and vegetables, and grain products; Convenience store prices are higher • Leibtag, Barker & Dutko 2010; Todd, Leibtag & Penberthy 2011 • Lower income households shop at supercenters/discount stores and pay less for food There may be “quality” differences. • Broda, Leibtag & Weinstein 2009

  3. Evidence on prices • Lower income households follow practices to economize on food costs (Leibtag & Kaufman 2003) • Purchase more random weight items (meat, vegetables, fruit) on promotion • Spend higher share of expenditures on private label products • Select less expensive fruits and vegetables

  4. Evidence on prices • African American youth and families in Georgia and Iowa respond to price in decisions on fruit and vegetable consumption (Zhylyevskyy, Jensen et al. 2010) • Fruit and vegetable prices are inversely related to consumption of fruit and vegetables • Other factors (e.g., family and friends) important in determining food choices

  5. Access and Availability • Food Deserts (Ver Ploeg et al., 2009) • Low income area (40% of residents have income less than or equal to 200% poverty) • Without access to vehicle (rural – 7.4% in low income areas) • More than 1 mile from supermarket • Rural areas – Iowa (Fletcher, et al. 2010) • For those with income less than 200% poverty • Own at least one vehicle – 86% • Reliable vehicle (always) available – 62%

  6. Access and Availability • Urban areas – New Orleans (Bodor, et al. 2010) Characteristics of African-American and Mixed-race tracts • African American tracts had less shelf space to fresh fruits and fresh vegetables, less frozen fruits and vegetables • African American neighborhoods had fewer supermarkets

  7. Assessing Adequacy in Markets Serving Low-Income Households • Challenges • Role of incentives to “economize” in food selection • “At risk” households and special needs • Subgroups (elderly, those lacking access to transportation) • Determining appropriate mechanisms for making “adequate” • Additional money resources; management (SNAP-Ed) • Store access; enhance availability of healthy foods • Transportation • Vendors – encourage availability • support for capital equipment (see CACFP recommendations for providers & food sources)

  8. References • Bodor, JN, JC Rice, TA Farley, CM Swalm, D Rose. 2010. Disparities in food access: Does aggregate availability of key foods from other stores offset the relative lack of supermarkets in African-American neighborhoods?” Preventive Medicine 51:63-67. • Broda, C, E Leibtag, DE Weinstein. 2009. The Role of Prices in Measuring the Poor’s Living Standards Journal of Economic Perspectives, 23 (2): 77–97. • Fletcher, C, S Garasky, HH Jensen, R Nielsen. 2010. Transportation Access: A Key Employment Barrier for Rural Low-Income Families. Journal of Poverty, 14:123–144. • Leibtag, E, C Barker, P Dutko. 2010. How Much Lower Are Prices at Discount Stores? An Examination of Retail Food Prices. USDA, Economic Research Report No. (ERR-105). October. • Leibtag, ES,PR Kaufman. 2003. Exploring Food Purchase Behavior of Low-Income Households: How Do They Economize? ERS, USDA. Agriculture Information Bulletin No. 747-07. June. • Todd, JE, E Leibtag, C Penberthy. 2011. Geographic Differences in the Relative Price of Healthy Foods. USDA, Economic Information Bulletin No. (EIB-78). June. • Ver Ploeg, M. et al.2009. Access to Affordable and Nutritious Food--Measuring and Understanding Food Deserts and Their Consequences: Report to Congress Administrative Publication, No. AP-036, USDA, ERS, June. • Zhylyevskyy, O, HH Jensen, SB Garasky, CE Cutrona, FX Gibbons. 2010. Effects of Family, Friends, and Relative Prices on Fruit and Vegetable Consumption by African American Youths. Iowa State University, CARD, 10-WP 515. September.

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