On Point | Podcast How groceries are priced
Apr 8, 2025
Lauren Shenaridis, an expert in food prices and the supply chain from Colorado State University, and Ted Janicki, a Penn State agricultural economics professor, dive into the intricate world of grocery pricing. They unpack the staggering 23% increase in costs over four years and the factors driving this trend: tariffs, labor dynamics, and supply chain disruptions. The discussion highlights emotional consumer reactions and the implications of food safety regulations. They also address the challenges posed by food deserts and the reliance on immigrant labor in the agricultural sector.
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Listener Anecdotes on Price Hikes
- Listeners share grocery price increases impacting their budgets.
- One listener's bread price rose repeatedly in just 45 days.
Factors Affecting Food Prices
- Food prices are a sum of production, transportation, and retailer operating costs.
- External factors like the pandemic and war in Ukraine also contribute to price fluctuations.
Breakdown of the Food Dollar
- Only about 15% of a dollar spent on food goes back to the farm (farm share).
- The remaining 85% covers marketing, including transportation, retail operations, and spoilage.