Finding affordable food

This short BBC article reports on a new study from the World Cancer Research Fund which claims that it is possible to eat a healthy diet even when family budgets are stretched close to breaking point.

“Increases in food prices, and pressures on the family budget because of continuing economic problems, may prompt people to buy less fruit and vegetables because they think they are too expensive and are worried about wastage.”

Canny consumers can save money by buying fruits and vegetables in season, making good use of price offers and searching for cheaper frozen vegetables and canned fruit.

The article links to some important AS micro issues:

The causes of higher global food prices (agflation)
Food affordability and effective demand
The impact of agflation on different income groups
Value judgements about which foods count as healthy - indeed which might be termed as merit goods
Possible information failures about the nutritional values of food, private and external costs of diet choices, portion control
The search costs of finding the best value
Consumer and producer surplus
The economic and social justifications for different types of government intervention.

Direct from the report:

For people on a budget, Nathalie’s Five a Day for less than £1 menu is:

1. Banana (with porridge) for breakfast costs 14p

2. Apple (for mid morning snack) costs 22p

3. Baked beans (on a jacket potato) costs 29p

4. Frozen peas costs 8p

5. Frozen sweetcorn (with the frozen peas, grilled fish and new potatoes for dinner) costs 7p

Total cost: 80p