Food Prices:

Changes Occurring in the Prices of Selected Food Products

RCED-89-46FS: Published: Oct 31, 1988. Publicly Released: Oct 31, 1988.

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In response to a congressional request, GAO provided information on the effect of the 1988 drought on changes in food prices at the farm, processor, and retail levels for eight selected food products.

GAO found that: (1) between June 1 and August 31, 1988, food prices generally increased more at the farm, processor, and retail levels than they did in the same period in 1987; (2) prices for the selected food items began to increase prior to the drought; (3) food processing and marketing costs were also significant; and (4) the value of farm commodities used in foods consumed at home averaged 30 percent of the retail price, processing costs averaged 31 percent, and retailing 23 percent.

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