American consumers have seen food prices spike at the grocery store, but they may not be aware that U.S. food prices are the lowest when compared to other countries. U.S. farmers, ranchers and the government are doing a better job keeping our food prices down.
In a recent U.S. Department of Agriculture (USDA) Economic Research Service report, the average American spent 6.6 percent of their household budget on groceries for home or 11 percent when eating out costs are factored in. Topping the chart is Pakistan, who shelled out 47.7 percent of their household budget on food costs, according to Drovers CattleNetwork.
The United Kingdom ranked second lowest on the chart indicating a trend that wealthier countries spend less compared to poorer countries, but that doesn’t always hold true. Food prices depend on various inputs, such as eating out trends, food preferences, regional food prices and subsidies structures.
Europe’s tax system on food, U.S. government farm subsidies and farmers and ranchers’ conservative farming on less land, but able to grow more food—all help to lower the price of food.