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Enhancing Food Security <strong>and</strong> Physical Activity <strong>for</strong> Māori, Pacific <strong>and</strong> Low-income Peoplesstrongly influences <strong>food</strong> choice. 3 4 Research in Australia has found that the difference in<strong>food</strong> purchasing by household income, where low-income households purchase lesshealthy diets, was related in part to concerns about <strong>food</strong> cost. 5 The findings suggestedthat concern about cost of <strong>food</strong> is one of the main factors contributing to the relationshipbetween low socio-economic status <strong>and</strong> less healthy diets.As well as the actual cost of <strong>food</strong>, the relative cost of healthy compared with less healthy<strong>food</strong> is important. It is the greater expense of healthy <strong>food</strong> that acts as a barrier to itspurchase compared with cheaper less healthy <strong>food</strong>. There have been various estimatesof the price differential between healthy <strong>and</strong> less healthy <strong>food</strong>s. In the US, high energydensity <strong>food</strong>s have been found to be the least expensive source of energy. 6 Healthier<strong>food</strong>s in the lowest quintile of energy density, such as fruit <strong>and</strong> vegetables, costUS$18.16 per 1,000kCal compared with US$1.76 per 1,000kCal <strong>for</strong> those in the highestquintile of energy density, such as butter or margarine, oils, chocolate, cookies <strong>and</strong>chips. Over a two-year period from 2004 to 2006, the least energy dense <strong>food</strong>sincreased in price by 19.5 percent, whereas the high energy density <strong>food</strong>s decreased inprice by 1.8 percent. 6 Looking at the US consumer price index over a longer time periodprovides even starker comparisons. Between 1989 <strong>and</strong> 2005, the real price of fruit <strong>and</strong>vegetables rose 74.6 percent while fats <strong>and</strong> oils fell 26.5 percent <strong>and</strong> sugars <strong>and</strong> sweetsfell 33.1 percent. 7In 2007, New Zeal<strong>and</strong>ers spent an average 16 percent of their weekly householdexpenditure on <strong>food</strong>. 8 Since then, <strong>food</strong> prices have continued to increase. According tothe Food Price Index, <strong>food</strong> prices increased 9.5 percent from January 2008 toJanuary 2009. 9 For the year to January 2009, fruit <strong>and</strong> vegetable prices increased13.4 percent, bread increased 20.8 percent, <strong>and</strong> the price <strong>for</strong> meat/poultry/fish increased11.8 percent. This was substantially greater than the general Consumer Price Index,which rose 3.4 percent over the year to December 2008. 10 This rapid rise in <strong>food</strong> priceshas been associated with reports of increasing numbers of whānau/families seeking11 12emergency <strong>food</strong> supplies from <strong>food</strong> banks, indicating that this is contributing toworsening <strong>food</strong> <strong>security</strong> in New Zeal<strong>and</strong>.The variation in price by <strong>food</strong> type seen in the US is reflected in a New Zeal<strong>and</strong> study ofthe comparative cost of healthier <strong>and</strong> less healthy <strong>food</strong>s. 13 Analysis of the cost of ahealthier versus less healthy <strong>food</strong> basket found that certain <strong>food</strong> categories showedgreater variation in cost between the healthier <strong>and</strong> less healthy options, namely meat<strong>and</strong> poultry (healthier options 27 percent more expensive), butter <strong>and</strong> margarine(44 percent), <strong>and</strong> cheese (19 percent). Overall, the healthier basket cost 7 percent moreper week (excluding fruit <strong>and</strong> vegetables).The cost of healthy <strong>food</strong> is there<strong>for</strong>e an important issue <strong>for</strong> low-income households. Thischapter explores the potential role of the <strong>food</strong> industry in relation to reducing the cost ofhealthy <strong>food</strong>. Key players in the <strong>food</strong> industry in New Zeal<strong>and</strong> have indicated awillingness to promote health by becoming signatories of the Food Industry Accord, <strong>and</strong>the subsequent development of the Food Industry Group. 14 This arose from anacknowledgement that obesity is an issue in New Zeal<strong>and</strong>, <strong>and</strong> the mission of the FoodIndustry Group was to encourage the creation of commercially successful products <strong>and</strong>services that contribute to health. While the Food Industry Accord does not focus on<strong>food</strong> <strong>security</strong>, <strong>food</strong> in<strong>security</strong> has been linked to obesity, <strong>and</strong> it sets a precedent <strong>for</strong> therole of the industry in an issue of public health significance.105

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