The other day I was reading a post by Stonehead, and thinking how it relates to food available to me here in Amsterdam and my own family Thanksgiving plans.
At the supermarket, which is more important, quality or price?
This was the question I was asked in a survey recently. Indeed, like Stonehead mentioned in his post, here in The Netherlands most people are saying price is more important now. This is mentioned from time to time in the media here. The bad economy is taking it’s toll everywhere, and everyone is trying to save money on food at the supermarket.
What really gets me however is the black and white nature of this question. You must choose between A and B. You must accept the underlying logic that if you pay more you will get higher quality, and conversely in if you pay less it will be lower quality. You have to accept that all food comes from the supermarket. You have to believe the price you pay for your food at the cash register is the true cost of production.
In my case for example, more than 80% of my food comes from the local farmers market. Most of what I buy at the supermarket are non food items. Thanks to the structure of food subsidies, what I buy at the market is generally cheaper, and also of much better quality in my opinion.
So think about answering this question in terms of purchasing a roll of kitchen paper towels. If I choose the 19 cent roll over the 29 cent roll, does that mean I’m choosing price over quality? Is this a quality or a marketing decision? Am I giving up something by buying the scratchier, less absorbent and unbleached paper? In this case at least, I don’t see any advantages in buying the more expensive item, and in fact prefer many of the qualities of the cheaper one. In fact, I’m dissatisfied with the quality of most of the paper towels in the supermarket. In fact I’m dissatisfied with the quality of most things in the supermarket. How can anyone assert I’m choosing quality over price? In the end, I’m buying what the supermarket chooses to sell me.
Even if I buy food at the supermarket, I always have the same feeling. There’s hardly ever any quality available for purchase, and the idea of paying more money to get something better is not sensible.
In fact, another study in The Netherlands recently showed people who go to discount supermarkets in order to save money, don’t really end up saving any money in the end. This is because where they might save money on a specific item, they make up for it by buying something else they don’t need or at too high of a price.
Thanksgiving Turkey
Okay, on to Thanksgiving. I live in Amsterdam, but all of my family is in the US. This year we’re going to visit family for the Thanksgiving holidays.
In fact we frequently visit family for Thanksgiving, and there’s often tension over the food. Steph and I are vegetarian, and most of the others don’t have any real idea of what a vegetarian meal consists of. If we do nothing, we’ll be served specially prepared vegetarian bread stuffing cooked apart from the turkey and a spoonful of cranberry sauce, and the topic of discussion for the entire meal will be that it doesn’t look like we have enough to eat and do we like the stuffing they cooked specially for us? If we cook our own meal, it comes under intense scrutiny and the subject of ongoing negotiations. There will be 9 other non-vegetarians at the meal to share with. If we cook something too tasty we will be in competition with them for our own dinner, and if we cook too much vegetarian food it will be our fault for flaunting our own food over that of the others and making too many leftovers that get wasted.
Then comes the topic of the Thanksgiving turkey.
As I’ve done the last few years, I’ve suggested getting a fresh turkey from a local small farmer. It was pretty hard to find these turkeys a few years ago, but they are becoming more common in the US now. These have to be ordered some weeks in advance, and I offered to look around for one. Since Steph and I are the vegetarians, it’s not for us, so it’s nothing that’s being forced on anyone. It’s just an offer. Of course a fresh turkey needs to be basted as it cooks, and will come out a little drier, because it’s not injected with all the juicy chemicals of a Costco Butterball turkey. It will cook a little differently, and doesn’t have the built in plastic thermometer, so you have to use a normal meat thermometer. The cost? Well, I looked into this, and the larger sized turkeys from a local farmer were nearly $200. $200 for a turkey?
Well, $200 for the turkey is too much, and if it doesn’t cook or taste right, dinner will be ruined. It might taste weird.
Steph and I are spending something in excess of $2000 for our plane tickets, hotel, rental car and so on. The two other families coming are spending pretty much the same; they don’t have as far to travel but are with kids. It’s honestly more than any of us can afford, and a huge waste of fossil fuels. It upsets me a little every time we make the trip to the US. $200 for a turkey is too much? I might have even been willing to pay for it, if it truly came down to the cost. I think as much as anything, it’s more sort of meat eaters versus vegetarians thing or something.
It doesn’t bother me. Steph and I are the vegetarians. It was just an offer. It’s their meal. We weren’t going to eat it anyway. DO I SOUND ANNOYED?!
The Tesco £1.99 Value Chicken
Stonehead mentioned this in his post I linked to above, and a few years ago this triggered a wave of protests across Europe over cheap chicken in supermarkets. There’s hardly a supermarket left that dares to offer chicken at that price around here.
Basically what happened was factory chicken farms were starting to become more common in Europe, and Tesco could make more money off selling the cheapest chickens, and so stopped selling the others. Basically, the whole factory farm industry was very heavily subsidized in the first place. They buy feed from subsidized farmers, transported with subsidized transport and so on. The farmers then raise the birds very intensively and inhumanely, in very unsanitary conditions, ignoring all safety and environmental considerations. But then, after all that, by selling to their customers in volume, Tesco is in the position to demand the farmers lower their prices below their cost of production.
What’s really important here, is besides quality, health and safety issues, this is all only possible because of the massive government subsidies and policy support behind it. In fact, this is the most expensive and energy intensive way to raise chickens. It’s also the most unhealthy for people, chickens and the environment.
Since this consumer revolt never took place in the US, this is very much the model behind how poultry is raised there. It might not seem like it to consumers now, but $200 is not all that an unreasonable price to pay for a turkey. Paying the ‘real’ price for a Costco Butterball turkey in the US would likely be many times it’s actual sale price. It wouldn’t surprise me if the actual, unsubsidised, cost of a Butterball turkey were closer to $500 or more. Local and small farmers have to unfairly compete against this.
The Subsidies
The EU spends about half of their budget on food subsidies, and the proportion in the US is similar. It’s true the US has spent a lot of money on bank bailouts and wars recently, and this probably dwarfs food subsidies. Under ‘normal’ circumstances, food subsidies are one of the largest, if not the single largest, government expense in the US.
Not only do governments subsidize their own food production for their own people, but a large portion of foreign aid costs are because trade policies first destroy local agriculture, then make them dependent on food aid.
So as Americans get ready to vote, and many other countries are debating solving their budget problems through cuts or taxes on the middle class or wealthy, think about this. In most places, the largest part of tax burden is disproportionately on the lower incomes. Of the money that is collected in taxes, the bulk of it will go to subsidize food.
The food that’s produced with these subsidies is the most expensive and energy intensive food in the world to produce, and will be sold at the lowest price to people who can’t afford anything else. Either that or it will be given away as food aid. It will be distributed in a way that disadvantages farmers, but benefits the larger supermarket and distribution chains, food and agricultural companies and other patent holders, owned by the wealthiest people. It will in turn create a dependency on more cheap subsidized food, resulting in more taxes and more energy consumption.
Many people think in the era of austerity measures that if government spending is going down, it must be going down on food too. This is simply not the case. This is government spending the wealthiest don’t object to, because it’s a tax on the poor and middle class, that primarily benefits the wealthy.
So the next time you go shopping at the supermarket, ask yourself the question. Which is more important, quality or price?
I live in the US. I’m pretty sure our Farm Bill is where the subsidies come from. About 75% of the Farm Bill actually isn’t subsidies for farms. It is nutritional subsidies. Most of that is the SNAP program (which used to be called food stamps). So most of our farm bill is to give low income people a better ability to buy food. I don’t think our farm subsidies are anywhere close to half our budget. Wikipedia thinks our subsidies are $20 billion and our total budget is about $3.7 trillion. So less than one percent if those numbers are right. My problem with our subsidies is that they subsidize junk food and they don’t subsidize healthy food. I’m not even talking about how it is grown, just what they subsidize. And don’t even get me started on subsidizing corn for ethanol. I just don’t get that. The inputs on corn is just too high for the energy you get back.
You would love our Thanksgivings. We did have free range local turkeys at our last one (though I don’t know how many we have had them at, I only knew that time because it came with a painful story about getting it). We usually have about 25-30 people and everyone is given a color. So the normal bases are covered, but you are allowed to color outside the lines. I’ve been given red. It will have as many red things from my garden as I can come up with, and of course cranberry sauce that isn’t from my garden. We have so many food allergies, some vegetarians, some who keep semi kosher, that we don’t worry about any of it. We just label all the dishes with the ingredients. Eat what you want. Ignore what you can’t eat. Everyone including the vegetarians go home well fed. My kids aren’t turkey fans so rarely eat the turkey anyway. Though we do always have a stuffing without meat and a stuffing inside the bird. Everyone seems to love stuffing.
I live in Tasmania Australia and in Australia we have 2 major supermarkets that are insidiously in charge of all of our food. We don’t have a lot of farmers markets and farmers are at the beck and call of the supermarkets who keep lowering prices on staple food to entice shoppers away from the smaller local supermarkets…their aim is insidious and its to hold the market completely in their hands…lately they have been removing home branded products from their shelves and replacing them with “own brand” items…also many of the mainstream products are suddenly being removed from shelves or dropped to less attractive shelving and their own products are replacing them or being placed in prime “eye space”. Soon we will only have the 2 supermarket giants and we won’t have ANY choice over where our food comes from. Most of their own brand ranges come from cheap overseas imports and our farmers will be left out in the cold. Pay a bit more for good home grown food people before you don’t have a choice about what you get any more.
That was a really nice comment Daphne! It’s also really nice to hear from you again. Before I say anything else, I want to most importantly wish you and your family happy holidays.
I found the Wikipedia pages I think you were referring to:
http://en.wikipedia.org/wiki/Agricultural_subsidy
http://en.wikipedia.org/wiki/United_States_farm_bill
http://en.wikipedia.org/wiki/Supplemental_Nutrition_Assistance_Program
Yes, in terms of direct subsidy payments to farmers, I think you are right. About 1% of the current budget. In terms of the percentage of Farm Bill expenses going to SNAP, the Wikipedia page clearly says this $20 billion are direct payments to farmers, so SNAP is something else. Ethanol is also something else.
It’s also true the EU pays far more to it’s farmers in direct payments than the US does.
The problem with the US is farm subsidies are far more complex than this. A lot of these subsidies take the form of contracts and purchases.
For example, for the ethanol program, the US subsidizes huge purchases of corn, which in turn reduces supply and forces up prices, meaning farmers can benefit from this.
School lunches and SNAP are another example, like you said these often involve junk food, and these serve the purpose of consuming agriculture excesses and reducing supply.
There are also contracts given to the large seed companies, for example to develop a new variety of corn or a new pesticide. These contracts have the effect of putting subsidized products on the market.
Also farm subsidies can take the form of tax breaks and deductions, and these can mean a lot of money, especially to those who are already wealthy.
It can all be a lot more complicated than even this, and to be honest I’m not an expert.
As to the actual percentage of the US budget that goes towards farming, this is also a complex question. The US government does not keep to a balanced budget, and this removes a lot of the incentive for identifying the most expensive parts of the budget and dealing with them. In Europe, our budgets are not perfectly balanced, but it is easier to identify the big expenses and assign percentages to them.
If farming is more than 40% of the EU budget (according to Wikipedia), it’s just a guess, but it wouldn’t surprise me if the figure were closer to 50% in the US, once you remove all the anomalies like interest on the national debt, defence, bank bailouts and so on, and took into account all the government contracts and programs that distort the agriculture market.
Hi Narf,
Thanks for the comment!
I don’t know a lot about Australia’s farmer subsidies, but I understand they are low or non-existent, leading to an unfair situation for your farmers concerning imports.
It sounds like you and I have similar problems with our supermarkets. I think it’s really getting to be a problem in a lot of places.
I completely agree about the value of buying local — while you still can!
Hi Patrick. Can you buy a roll of paper towels in Amsterdam for 19 to 20 cents?
*29 cents I meant to type.
Hi Cynthia,
Yes, the price I gave was sort of meant to be in euros. In US$ it would be a few cents higher.
We have smaller rolls here, and tend to be less deluxe than those sold in the US. They are often made from recycled and/or unbleached paper. This picture has a full sized roll in it:
http://nl.wikipedia.org/wiki/Keukenrol
They are usually sold in packages of 2 or 4, and typically go for around 20 or 25 euro cents per roll. You can find them on sale for less, and at the convenience store for more.
Very thoughtful post. U.S. agricultural subsidies are quite complicated, but I don’t think they are nearly the size of our budget as you think. We spend a tremendous amount of money on our military and oil/gas subsidies, far more than I believe most European countries do proportionally, leaving us with a lot less for domestic issues. I wish we spent more on agricultural subsidies for small and medium-sized farmers, along with subsidies to give them the ability to install renewable power on their land. Unfortunately, when most politicians in the U.S. talk about cutting the budget, they want to take it out of these very programs, including the SNAP program, rather than cutting the military. I hope that with the re-election of President Obama that the members of Congress shift towards having a more environmentally, socially, and economically sustainable attitude.
As for the Thanksgiving meal, it’s really too bad that your family can’t get more creative. I eat very little meat in general and on Thanksgiving usually only eat a teeny bit of turkey for the heck of it. But in my family, there’s usually there’s so many vegetarian things on the table, including apples and sweet potatoes, mashed potatoes, broccoli, spinach, rolls, cranberry sauce (if it’s homemade, it’s vegetarian), and corn that you could be plenty full without eating any meat. My mom has become vegetarian and we’ve hardly had to change dinner for her.
Hi Shannon,
Thanks for the comment. Sorry I’m slow to reply, I’ve been away from my computer for a few days.
I too hope Obama can improve some of those programs like SNAP, as well as make agricultural subsidies more oriented towards environmentally friendly and healthy foods.
Your Thanksgiving sounds great! I hope you have happy holidays.
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