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  food prices, spreads & margins

Food prices, spreads and margins influence the decisions of buyers and sellers in food markets, and are themselves the result of the interactions of market participants. ERS conducts research on prices of individual food items, forecasts the Consumer Price Index (CPI) for food, and estimates farm-to-retail price spreads.

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Food Marketing Costs at a Glance—In 2000, U.S. consumers spent $661.1 billion on food, excluding imports and seafood. Estimated marketing costs for domestic farm foods in 2000 totaled $537.8 billion, or 81 percent of consumer expenditures. From 1990 to 2000, consumer expenditures for farm foods rose $211.3 billion. In the same period, marketing costs rose 57 percent and accounted for most of the 47-percent rise in consumer spending. Labor costs of manufacturers, wholesalers, retailers, and eating places totaled $253 billion in 2000 and accounted for nearly 40 percent of total consumer food expenditures.

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updated: March 19, 2002

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