Dive Brief:
- Food sales declined in the first weeks of November, with post-election uncertainty likely the cause of decreased consumers’ willingness to pay retailer prices, according to Oklahoma State University’s latest Food Demand Survery (FooDs).
- Completed just a few days after Election Day, the survey found that chicken wings saw the biggest loss, with a 19.5% decline to $2.07 per pound. This was followed by steak, with a 13.4% drop to $6.77 per pound. Meanwhile non-meat foods saw even larger declines, with willingness-to-pay for beans and rice dropping just over 37% month-over-month, and pasta dropping almost 35% in the same period.
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There was a higher willingness-to-pay for meat items labeled “semi-free range” — as much as 50 cents per pound — than items labeled “semi-confinement.” Consumers indicated they were willing to pay $3.78 per pound for the former, but only $3.28 per pound for the latter.
Dive Insight:
President-elect Donald Trump hasn’t said much on food-specific issues as of yet, so there’s no evidence that his presidency will affect food prices once he takes office. But as he is somewhat of a political wild card, the industry is watching him closely.
Trump has talked some about key policies that impact grocery retailers and food and beverage manufacturers, including international trade agreements, immigration and tax reform. Until he devises a clear plan for his administration, uncertainty is likely to dominate and prices may continue to fluctuate.
One part of a tax plan Trump spoke about a couple of months ago included a strategy to slash the power of the “FDA Food Police,” which could have an affect on pricing as it touches the planting, hygiene, production, and processing of food. Soon after those details appeared on his campaign website, they were taken down, so its not clear if he actually supports the plan.
Most economists expect most prices to stabilize once the post-election dust settles.