Supply and demand is one economic factor that changes the price of food over time.
When walking down the supermarket aisle, it's impossible to overlook the ever-changing price of food. According to the Food Timeline, in 1970, an 18 oz. box of corn flakes cost 38 cents. By 1990, that same box cost $1.99 on average. The entire landscape of food economics changed greatly throughout the eras, moving away from the agricultural economy of the 1930s to the technological, consumer-driven market. Besides this transformation, there are a number of other factors that impact food economics.
Production and Supply
As technological improvements came to farms, the owners produced more food and transported it to market more effectively. However, fast production does not always mean better prices. The commercial market is fierce, and the cost of maintaining farms significant. To offset this, some countries like the United States provide farm subsidies in order to stabilize farm production and the food market. Additionally, research continues searching for ways to improve food yields in the face of an ever-growing population.
Consumer Demand
The tastes of people around the world change from era to era, particularly when exposed to new cultures or ideas. For example, in the 1980s America began embracing sushi and other Asian-fusion foods. According to Food & Wine Magazine, from 1988-1998 the number of sushi bars quintupled in the United States. Similarly, with the focus on healthy eating, as of 2010 the market for organic foods grew to $14 billion.
Global Warming
When weather damages crops, the cost of that loss increases the prices consumers pay. Scientists study the issue of global warming for it's inevitable long-term effect on food economics. Dramatic climate changes impact yields, and therefore the food supply. To offset this, farms started investing in technological measures that help minimize loss. This additional cost for upgrades also figures into the final price of food.
Preparation Time
Time is money. Another economic factor affecting food lies in the hands of the home cook. In determining selection, many cooks consider how much time it takes to locate and prepare specific items. This particular tendency made fast food and instant mixes increasingly popular, especially in homes where two people work outside the house.
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