The True Cost of Cheap Food

I saw a story today defending large mergers like Kroger and Albertsons. What struck me was this quote about how it would lead to lower prices:

“They aim to reduce prices by increasing their leverage with suppliers.”

This claim may seem appealing initially, but it demonstrates a significant disconnect from the challenges we encounter as farmers and community members. It reflects a tone-deaf attitude and a corporate elite clinging to outdated globalization ideals at the expense of American communities.

Global corporatists are attempting to stir controversy over the apparent alignment between Senator JD Vance and FTC Chair Lina Khan, painting it as an unlikely alliance.

In reality, what they truly fear is the potential for bipartisan consensus on antitrust reform. Both Vance and Khan recognize the dangers of unchecked corporate power and market concentration, and their common ground threatens to disrupt the status quo that benefits large corporations at the expense of American farmers and communities. This bipartisan understanding could lead to significant changes in how we approach market fairness and sustainability, challenging the entrenched interests of global corporate interests.

The Hidden Costs to Farmers

When large retailers discuss lowering prices through their leverage over suppliers, they are pressuring farmers to sell for less and encouraging packaged food companies to cheapen ingredients. As a farmer, I understand this pressure firsthand. Our margins are already tight, and when squeezed further, it becomes nearly impossible to sustain our farms. This issue extends beyond farmers. Warehouse workers, truck drivers, and others along the supply chain are also affected, facing increased demands and reduced compensation. Moreover, this approach often leads to a rise in questionable imports at the expense of our local communities. There must be a point where prioritizing ‘cheapness’ at all costs ceases to be the defining criterion for success in our food system. This isn’t just about finances—it affects the lives of those working the land, the health of our communities, and the integrity of our food supply.

Globalization and Consolidation: Threats to Local Food

Pushing for lower prices can drive local farmers out of business. This opens the door for imported foods from countries with lower costs and weaker regulations. This not only weakens our local food systems but also increases the environmental impact of transporting food over long distances. When a few big companies control the market, they limit competition, reduce consumer choices, and concentrate economic power, which hurts everyone.

This statement from Progressive Cattle is telling:

Driving this year-over-year increase were imports from Brazil, up over 500% from the previous year and accounting for two-thirds of the increase in total imports. Imports from Mexico, Australia and Canada also increased 62%, 17% and 14% year-over-year, respectively.

Health Effects and Economic Burden

Cheaper production methods often lead to health problems. To cut costs, producers are compelled to use lower-quality inputs, which can result in food that’s less nutritious and potentially harmful. These practices can also lead to the use of chemicals and additives that might be detrimental to human health as well as the environment. The long-term health effects of consuming such food increases healthcare costs for individuals and society.

We are all becoming aware that ultra-processed foods are associated with increased risk of more than 30 damaging health conditions. These are chronic conditions that make pharmaceutical companies billions.

Costs to Taxpayers

There’s another hidden cost: taxpayer money. Farm subsidies, designed to support struggling farmers, end up propping up large corporate profits. These subsidies are designed to keep food prices low and support farm incomes, but when large corporations benefit disproportionately, it means taxpayer money is indirectly supporting the profits of big companies rather than small, independent farms. This misallocation of resources is unfair and unsustainable.

According to the 2023 farm census by the American Farm Bureau,

….we’ve lost over 140,000 farms in just five years.

This is a staggering number that shows how these pressures are hurting not only farmers, but the health of our communities. We need to consider the broader effects of economic policies and corporate practices.

A New Perspective on America’s Economic Success

Focusing only on lower prices as a measure of success is outdated. It ignores the complex and interconnected nature of our food system and the ways market concentration can harm society. There is a growing awareness among leaders and the public that we need to look at the bigger picture.

Cheap food comes with hidden costs: the erosion of local economies, environmental damage, and the loss of food quality. True economic success should be measured by the health and well-being of our communities, the sustainability of our practices, and the fairness of our economic systems.

The quote defending the Kroger and Albertsons merger highlights a major disconnect between traditional economic thinking and the reality of cheap food’s broader costs. By focusing only on the opiate of lower prices, we ignore the deep impacts on farmers, communities, and the environment. It’s time for a new perspective that values the health and resilience of our food systems and supports local, independent farming. Only then can we build a fair and sustainable future for all.