The Food Crisis Comes Home: Empty Food Banks, Rising Costs, Hungrier Nation

Food First Backgrounder, Fall 2008, Vol. 14, No. 3

The food crisis is worsening. The UN World Food Program predicts a jump in the number of hungry people in the world from 860 million to more than one billion people—one of every six people in the world. Retail prices of food in the U.S. increased four percent last year, driven by a combination of speculation, high oil prices, agrofuel consumption, a weak dollar, climatic events, and historically low grain reserves. The USDA projects that price increases will total another three to four percent in 2008; the steepest increase in 17 years. The 35 million food-insecure people in the U.S. who are most affected by the food price crisis may be joined by 50 million others living at or near the poverty level.

Over 28 million people—a national record—have been driven into the food stamp program. Nationally, food banks are seeing more demand while donations have dropped precipitously.

The double whammy of a declining economy and escalating food and energy prices is squeezing the poor and the middle class alike, and is not being addressed in a meaningful way by politicians or the presidential candidates. Over 28 million people—a national record—have been driven into the food stamp program. Nationally, food banks are seeing more demand while donations have dropped precipitously. Farmers are being pinched by increased input costs, while poor consumers are left to scramble for their next meal. Solving this food crisis at home will require a fundamental restructuring of our food system.

Food Banks—Canaries in the Mineshaft

Prices are up, but just how bad is the food crisis in the U.S.? Recent trends in the nation’s food banks are a good indicator: there is less food available, it is more expensive, and the lines outside food banks are growing. The California Association of Food Banks says food banks are at the “beginning of a crisis.” As the number of hungry people in the U.S. has grown, food banks have increasingly taken up the slack where government food stamps and federal school and nutrition programs have left off. Recent inflation of food and fuel prices has forced a 30% increase in the number of people visiting food pantries. Feeding America (formerly called America’s Second Harvest) distributes 2 billion tons of donated food annually to 200 national food banks. Their recent survey of 180 member food banks found that 99% reported a significant increase in the number of people served this year over last. Local food donations are down nationally about nine percent, while USDA bonus food has declined by $200 million. These “Bonus” commodities are distributed by the USDA when food stocks are high or commodity prices are low, responding to market conditions rather than actual need. The California Association of Food Banks confirms such declines in USDA food, and cites a drop from 97 million pounds of “bonus” food in 2002 to only 39 million in 2007.

As a result of high prices and low USDA stocks, food banks are cutting back, substituting foods they offer, and changing their operating structures. For example, price increases have forced the San Francisco and Contra Costa Food Banks to cut back on rice and pasta. Across the nation food banks are using cheaper sources of protein and calcium. At the Second Harvest Food Bank of Santa Clara & San Mateo County, California, yogurt and cottage cheese are now being offered instead of milk. Some staples are being replaced with local perishable produce. Both Maine and Vermont food banks are expanding gleaning to remove unwanted, edible produce from fields after harvest. Until now such gleaning projects have not been widespread. Increasing transportation costs are also pinching Food Banks. The Vermont Food Bank, which has witnessed a 27% increase in transportation costs over the year, is planning to open five regional branches to cut costs. Rising transportation expenses have caused Community Food Banks of South Dakota to expand local food purchases.

Price increases of both food and transportation are forcing many food banks across the nation to consider raising the price that food pantries and soup kitchens pay to “shop” at food banks. At Second Harvest Food Bank of Santa Clara & San Mateo Counties, food is now free; but they may have to begin charging a fee per pound. Judy Stermer of the Vermont Food Bank said that increasing food bank prices could drive many agencies away.

• BK14_3 The Food Crisis Comes Home_Fall2008