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Food prices and consumer demand: differences across income levels and ethnic groups

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Authors:
Summary:

This New Zealand study estimated the effects of price changes on consumer demand for major commonly consumed food groups, by income and ethnicity, using food expenditure data from national household economic surveys in 2007/08 and 2009/10 and Food Price Index data from 2007 and 2010. According to the study’s calculations, targeted food pricing policies have the potential to alter the diets and nutritional health of low-income and priority ethnic groups, such as Māori, to a greater extent compared with those of high-income and majority ethnic groups. This New Zealand study estimated the effects of price changes on consumer demand for major commonly consumed food groups, by income and ethnicity, using food expenditure data from national household economic surveys in 2007/08 and 2009/10 and Food Price Index data from 2007 and 2010. According to the study’s calculations, targeted food pricing policies have the potential to alter the diets and nutritional health of low-income and priority ethnic groups, such as Māori, to a greater extent compared with those of high-income and majority ethnic groups.

Comment:
Although I found the terminology in the article a little difficult to follow, the authors provide practical solutions. For example, the fact that low-income households and Māori are more sensitive to price changes could be translated into ‘a 10% subsidy on vegetables leading to a 6% increase in consumption by the [more wealthy], but an even greater 11% increase in consumption among the lowest income households’.
Reference: PLoS One 2013;8(10):e75934
Independent commentary by Dr. Matire Hardwood

Dr Matire Harwood (Ngapuhi) has worked in Hauora Māori, primary health and rehabilitation settings as clinician and researcher since graduating from Auckland Medical School in 1994. She also holds positions on a number of boards, committees and advisory groups including the Health Research Council. Matire lives in Auckland with her whānau including partner Haunui and two young children Te Rangiura and Waimarie.

Research Review publications are intended for New Zealand health professionals.

Disclaimer: This publication is not intended as a replacement for regular medical education but to assist in the process. The reviews are a summarised interpretation of the published study and reflect the opinion of the writer rather than those of the research group or scientific journal. It is suggested readers review the full trial data before forming a final conclusion on its merits.

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