Documentation
This page provides the following information:
Types of Food Expenditures
ERS Series--Food Expenditures Based on Actual Sales
ERS's analysis of food expenditures provides valuable
information on how consumers spend their food dollar and how their
consumption patterns change over time. ERS derives its aggregate
food expenditure series by estimating current sales or receipts by
each type of store that sells food. Measurement of purchases of
food for at-home use, meal and snack purchases for
food-away-from-home consumption, and alcoholic beverages purchased
by families, individuals, and institutions provides the most direct
measurement of food expenditures.
PCE Series--Food Expenditures Based on Commerce Department
Surveys
Although trends in food expenditures are similar, the ERS food
expenditure series differs from the U.S. Department of Commerce's
aggregate estimates of Personal Consumption Expenditures (PCE)
series. The ERS series shows a lower level of spending for
food than does the PCE series, particularly for food purchased at
grocery stores and other retail outlets for consumption at home.
The ERS estimates of at-home expenditures are lower in part because
they exclude pet food, ice, and prepared foods, which are included
in PCE estimates. ERS estimates also deduct more from grocery store
sales for nonfoods, such as drugs and branded supplies, in
estimating food purchases for at-home consumption.
CE Series--Food Expenditures Based on BLS Survey
ERS also uses data from the Consumer Expenditure Survey (CE) on
household food expenditures. Data from this annual
survey, conducted by the U.S. Department of Labor, Bureau of
Labor Statistics (BLS), provide information on the buying habits of
American consumers by socioeconomic characteristics. The CE is the
only Federal survey that associates the complete range of consumer
expenditures with income and other characteristics of those
consumers. The survey consists of two parts-the Quarterly Interview
Survey and the Diary survey, each with its own questionnaire and
sample. Interview survey data provide information on relatively
large or recurring expenditures, and diary survey data offer
detailed expenditure information on small, frequently purchased
items. ERS uses these data in conjunction with ERS's food
consumption data to study food expenditures and food demand by
American households.
Data Sources
The primary data source for the ERS series is the U.S. Census,
U.S. Department of Commerce, with data first becoming available
from the 1929 Economic Census. Census Bureau reports used in the
ERS series include Industry and Subject Series: Retail Trade (NAICS
44-45), Wholesale Trade (NAICS 42), Accommodations and Food
Services (NAICS 72), and Other Services (NAICS 81). Information on
the dollar amount of sales for food and alcoholic beverages at
different types of retail establishments is available from the
Census Bureau every 5 years.
Each year for which the full, detailed figures are available is
referred to as a census year. Between census years, both
monthly and annual U.S. sales data are calculated by the Census
Bureau based on a sample of the 5-year census respondents. The
monthly and annual sales data are not as detailed as the census
year data, and ERS employs projection techniques to obtain annual
estimates of certain factors for years between census years. The
most recent complete census year available is 2002.
Food At Home Expenditures
Census Bureau reports used to directly measure food-at-home
expenditures include the Retail Trade Report, Services
Annual Survey, Wholesale Trade Report, Annual
Survey of Manufacturers, and Statistical Abstract of the
United States. As measured in census year 2002 data, over 96
percent of food-at-home expenditures is measured by one of these
reports. The remaining 4 percent of food-at-home expenditures is
measured by the commodity reports of USDA's National Agricultural
Statistics Service (NASS), USDA's Census of Agriculture, ACNielsen
annual grocer's survey reported in Progressive Grocer
magazine, and food program data from USDA's Food and Nutrition
Service (FNS).
Food-at-home expenditures include food sales from:
- food stores
- other stores
- home delivery and mail orders
- farmers, manufacturers, and wholesalers, and
- home production and donations.
Food Stores
Grocery stores, NAICS 4451--this industry group consists of
establishments primarily engaged in retailing a general line of
food products.
Specialty food stores, NAICS 44522 (Fish and Seafood Markets),
NAICS 44523 (Fruit and Vegetable Markets), NAICS 44529 (Other
Specialty Food Stores)--this industry group consists of
establishments primarily engaged in retailing specialized lines of
food.
Sales to restaurants, institutions, and others--based on Census
of Retail Trade, Miscellaneous Subjects (includes sales by "other
food stores"). The sales in this category are subtracted from the
total to avoid double counting.
Military outlets, stores, exchanges, canteens--sales are
collected by Nielsen and reported annually by the National
Restaurant Association in Progressive Grocer magazine.
Other Stores
Department Stores, NAICS 4521--this industry group consists of
establishments known as department stores primarily engaged in
retailing a wide range of the following new products with no one
merchandise line predominating: apparel; furniture; appliances and
home furnishings; and selected additional items, such as paint,
hardware, toiletries, cosmetics, photographic equipment, jewelry,
toys, and sporting goods. Merchandise lines are normally arranged
in separate departments.
Other General Merchandise Stores or Mass Merchandisers, NAICS
4529--this industry consists of establishments primarily engaged in
retailing new goods in general merchandise stores (except
department stores).
Warehouse/Wholesale Clubs and Supercenters, NAICS 45291--this
industry consists of establishments known as warehouse clubs,
superstores, or supercenters primarily engaged in retailing a
general line of groceries in combination with general lines of new
merchandise, such as apparel, furniture, and appliances.
All Other General Merchandise Stores, NAICS 45299--this industry
consists of establishments primarily engaged in retailing new goods
in general merchandise stores (except department stores, warehouse
clubs, superstores, and supercenters). These establishments retail
a general line of new merchandise, such as apparel automotive
parts, dry goods, hardware, groceries, housewares or home
furnishings, and other lines in limited amounts, with none of the
lines predominating.
Variety Stores, NAICS 4529901--this industry consists of
establishments primarily engaged in retailing a variety of
merchandise, such as inexpensive apparel and accessories, costume
jewelry, notions, candy, toys, and other items in the low and
popular price ranges. These establishments generally do not carry a
complete line of merchandise, are not departmentalized, do not
offer their own charge service, and do not deliver merchandise.
Gas Stations, NAICS 447--industries in the gasoline stations
subsector retail automotive fuels (e.g., diesel fuel, gasohol,
gasoline) and automotive oils with or without convenience store
items. These establishments have specialized equipment for the
storage and dispensing of automotive fuels.
Health and Personal Care Stores, NAICS 446--industries in the
Health and Personal Care Stores subsector retail health and
personal care merchandise from fixed point-of-sale locations.
Establishments in this subsector are characterized principally by
the products they retail, and some health and personal care stores
may have specialized staff trained in dealing with the products.
Staff may include pharmacists, opticians, and other professionals
engaged in retailing, advising customers, and/or fitting the
product sold to the customer's needs.
Beer, Wine, and Liquor Stores, NAICS 4453--this industry
consists of establishments primarily engaged in retailing packaged
alcoholic beverages, such as ale, beer, wine, and liquor.
Full-Service Restaurants, NAICS 7221--this industry group
consists of establishments primarily engaged in providing food
services to patrons who order and are served while seated (i.e.,
waiter/waitress service) and pay after eating. Establishments that
provide this type of food service to patrons with any combination
of other services, such as take-out services, are classified in
this industry.
Limited-Service Eating Places, NAICS 7222--this industry group
consists of establishments primarily engaged in providing food
services where patrons generally order or select items and pay
before eating. Most establishments do not have waiter/waitress
service, but some provide limited service, such as cooking to order
(i.e., per special request), bringing food to seated customers, or
providing off-site delivery.
Drinking Places, NAICS 7224--this industry group consists of
establishments primarily engaged in preparing and serving alcoholic
beverages for immediate consumption.
Special Food Service or Other Eating Places, NAICS 7223--this
industry group consists of establishments primarily engaged in
providing one of the following food services: (1) at the customer's
location, (2) at a location designated by the customer, or (3) from
motorized vehicles or nonmotorized carts.
Home Delivery and Mail Orders
Electronic Shopping and Mail-Order Houses, NAICS 4541--this
industry group consists of establishments primarily engaged in
retailing all types of merchandise using non-store means, such as
catalogs, toll-free telephone numbers, or electronic media, such as
interactive television or computer. Included in this industry are
establishments primarily engaged in retailing from catalog
showrooms of mail-order houses.
Vending Machines and Other Direct Selling Establishments, NAICS
45439--this industry consists of establishments primarily engaged
in retailing merchandise (except food for immediate consumption and
fuel) via direct sale to the customer by such means as in-house
sales (i.e., party plan merchandising), truck or wagon sales, and
portable stalls (i.e., street vendors).
Farmers, Manufacturers, and Wholesalers
Purchases Directly From Farmers and Fishermen--uses the Census
of Agriculture conducted by NASS, USDA in 1997 and 2002 for dollar
sales in table 2,"Value of agricultural products sold directly to
individuals for human consumption." This amount is updated between
census years by using Consumer Price Index (CPI) changes for each
of the meat categories.
Purchases Directly From Manufacturers--from the Census of
Manufacturers, Annual Survey of Manufacturers, excluding alcoholic
beverages, feed, pet food, and ice.
Purchases by Wholesalers, current year purchases, NAICS 4244,
Wholesale Trade Report--this industry consists of
establishments primarily engaged in the merchant wholesale
distribution of a general line of groceries.
Home Production and Donations
Home Production--based on NASS's annual summary reports Meat
Animals Production, Disposition, and IncomeandMilk Production,
Disposition, and Income, which summarizes the value of home
consumption.
Donations--based on USDA's FNS program division data that
includes annual USDA donations to families, donations from the
Special Supplemental Program for Women, Infants, and Children
(WIC), and special distributions from The Emergency Food Assistance
Program (TEFAP).
Food Away From Home
As measured in census year 2002 data, over 90 percent of
food-away-from home expenditures is directly measured by Census
Bureau data from several reports, including Retail Trade
Report, Services Annual Survey, Statistical Abstract of the United
States, and Census of Services, and from the
Monthly Labor Review, Bureau of Labor Statistics, U.S.
Department of Labor. The remaining 10 percent of
food-away-from-home expenditures is measured by data from food
program data; Bureau of Transportation Statistics; National
Restaurant Association; Veterans Administration; U.S. Department of
Commerce, Personal Consumption Expenditures (PCE); and Bureau of
Labor Statistics.
Food-away-from-home expenditures include food sales from
- eating and drinking places,
- hotels and motels,
- retail stores and direct selling,
- recreational places,
- schools and colleges, and
- all other places.
Eating and Drinking Places
Full-Service Restaurants, NAICS 7221--this industry group
consists of establishments primarily engaged in providing food
services to patrons who order and are served while seated (i.e.,
waiter/waitress service) and pay after eating. Establishments that
provide this type of food service to patrons with any combination
of other services, such as take-out services, are classified in
this industry.
Limited-Service Restaurants, NAICS 7222--this industry group
consists of establishments primarily engaged in providing food
services where patrons generally order or select items and pay
before eating. Most establishments do not have waiter/waitress
service, but some provide limited service, such as cooking to order
(e.g., per special request), bringing food to seated customers, or
providing off-site delivery.
Other Eating Places or Special Food Service, NAICS 7223--this
industry group consists of establishments primarily engaged in
providing one of the following food services: (1) at the customer's
location; (2) at a location designated by the customers; or (3)
from motorized vehicles or nonmotorized carts.
Drinking Places, NAICS 7224--this industry group consists of
establishments primarily engaged in preparing and serving alcoholic
beverages for immediate consumption.
Hotels and Motels
Traveler Accommodation, NAICS 7211--this industry group includes
establishments classified as hotels (except casino hotels) and
motels, casino hotels, and other traveler accommodation.
Retail Stores and Direct Selling
Grocery Stores, NAICS 4451--this industry group consists of
establishments primarily engaged in retailing a general line of
food products.
Specialty Food Stores, NAICS 44522 (fish and seafood markets),
NAICS 44523 (fruit and vegetable markets), NAICS 44529 (other
specialty food stores)--this industry group consists of
establishments primarily engaged in retailing specialized lines of
food.
Department Stores, NAICS 4521--this industry group consists of
establishments known as department stores primarily engaged in
retailing a wide range of the following new products with no one
merchandise line predominating: apparel; furniture; appliances and
home furnishings; and selected additional items, such as paint,
hardware, toiletries, cosmetics, photographic equipment, jewelry,
toys, and sporting goods. Merchandise lines are normally arranged
in separate departments.
Warehouse/Wholesale Clubs and Superstores, NAICS 45291--this
industry consists of establishments known as warehouse clubs,
superstores or supercenters primarily engaged in retailing a
general line of groceries in combination with general lines of new
merchandise, such as apparel, furniture, and appliances.
All Other General Merchandise Stores, NAICS 45299--this industry
consists of establishments primarily engaged in retailing new goods
in general merchandise stores (except department stores, warehouse
clubs, superstores, and supercenters). These establishments retail
a general line of new merchandise, such as apparel automotive
parts, dry goods, hardware, groceries, housewares or home
furnishings, and other lines in limited amounts, with none of the
lines predominating.
Gas Stations, NAICS 447--industries in the Gasoline Stations
subsector retail automotive fuels (e.g., diesel fuel, gasohol,
gasoline) and automotive oils with or without convenience store
items. These establishments have specialized equipment for the
storage and dispensing of automotive fuels.
Health and Personal Care Stores, NAICS 446--industries in the
Health and Personal Care Stores subsector retail health and
personal care merchandise from fixed point-of-sale locations.
Establishments in this subsector are characterized principally by
the products they retail, and some health and personal care stores
may have specialized staff trained in dealing with the products.
Staff may include pharmacists, opticians, and other professionals
engaged in retailing, advising customers, and/or fitting the
product sold to the customer's needs.
Beer, Wine, and Liquor Stores, NAICS 4453--this industry
consists of establishments primarily engaged in retailing packaged
alcoholic beverages, such as ale, beer, wine, and liquor.
Vending Machines and Other Direct Selling Establishments, NAICS
45439--this industry consists of establishments primarily engaged
in retailing merchandise (except food for immediate consumption and
fuel) via direct sale to the customer by such means, as in-house
sales (i.e., party plan merchandising), truck or wagon sales, and
portable stalls (i.e., street vendors).
Food Service Contractors or Contract Feeding, NAICS 72231--this
industry consists of establishments primarily engaged in providing
food service at institutional, governmental, commercial, or
industrial locations of others based on contractual arrangements
with these types of organizations for a specified period. The
establishments of this industry provide food services for the
convenience of the contracting organization or the contracting
organization's customers. The contractual arrangement of these
establishments with contracting organizations may very from type of
facility operated (i.e., cafeteria, restaurant, fast-food eating
place), revenue sharing, and cost structure to providing personnel.
Management staff is always provided by the food service
contractors.
Recreational Places
Motion Picture Theaters, NAICS 512131, NAICS 512132--this
industry consists of establishments primarily engaged in operating
motion picture theaters or exhibiting motion pictures or videos at
film festivals, operating drive-in motion picture theaters, and so
forth.
Bowling Centers, NAICS 713950--this industry consists of
establishments engaged in operating bowling centers. These
establishments often provide food and beverage services.
Sporting and Recreation Camps, NAICS 7212--this industry
consists of establishments primarily engaged in operating
recreational vehicle parks, campgrounds, and vacation camps. These
establishments cater to outdoor enthusiasts and are characterized
by the type of accommodation and by the nature and the range of
recreational facilities and activities provided to their
clients.
Amusement Parks, Arcades and Theme Parks, NAICS 7131, NAICS
71311--this industry consists of establishments primarily engaged
in operating a variety of attractions, such as mechanical rides,
water rides, games, shows, theme exhibits, refreshment stands, and
picnic grounds. These establishments may lease space to others on a
concession basis.
Commercial Sports and Racetracks, NAICS 71121--this industry
consists of (1) sports teams or clubs primarily participating in
live sporting events before a paying audience; (2) establishments
primarily engaged in operating racetracks; (3) independent athletes
engaged in participating in live sporting or racing events before a
paying audience; (4) owners of racing participants, such as cars,
dogs, and horses, primarily engaged in entering them in racing
events or other spectator sports events; and (5) establishments,
such as sports trainers, primarily engaged in providing specialized
services to support participants in sports events or competitions.
The sports teams and clubs included in this industry may or may not
operate in their own arena, stadium, or other facility for
presenting their games or other spectator sports events.
Museums, Zoos, Historical Sites, NAICS 712110, NAICS 712120,
NAICS 712130--this industry consists of establishments primarily
engaged in the preservation and exhibition of objects of
historical, cultural, and/or education value, including buildings,
forts, archeological sites, battlefields, historical ships, pioneer
villages, and exhibitions of live plant and animal life
displays.
Membership Sports and Golf Courses, NAICS 713910, NAICS
713940--this industry consists of establishments primarily engaged
in operating golf courses, along with dining facilities and other
recreational facilities known as country clubs. These
establishments often provide food and beverage services, equipment
rental services, and golf instruction services. This industry also
is made up of establishments primarily engaged in operating fitness
and recreational sports facilities, featuring exercise and other
active physical fitness conditioning or recreational sports
activities, such as swimming, skating, or racquet sports.
Schools and Colleges
Sales from Day Schools are from sales data obtained from
theStatistical Abstract of the United States, Census Bureau.
Sales from Boarding Schools are from sales data obtained from
the Statistical Abstract of the United States, Census
Bureau.
Higher Education Food Sales are based on the number of college
students (full- and part-time), board rates, students living in
university housing, and total-student-meals-per-day-equivalent food
expenditures, Statistical Abstract of the United States,
Census Bureau.
Child Nutrition Subsidies are from FNS, cash and commodity
subsidies for school lunch, school breakfast, and special milk
programs.
All Other Places
Military Exchanges, from National Restaurant Association surveys
and Progressive Grocer magazine annual grocery sales
survey conducted by Nielsen.
Military Clubs, from National Restaurant Association surveys and
Progressive Grocer magazine annual grocery sales survey
conducted by Nielsen.
Veteran's Canteen Service, from Veterans Administration
data.
Organization Hotels and Lodging Houses, NAICS 72131--this
industry consists of establishments primarily engaged in operating
rooming and boarding houses and similar facilities, such as
fraternity houses, sorority houses, off-campus dormitories,
residential clubs, and worker's camps. These establishments provide
temporary or long-term accommodations that may serve as a principal
residence for the period of occupancy; they may also provide
complementary services, such as housekeeping, meals, and laundry
services.
Civic, Social and Fraternal Organizations, NAICS 813410, NAICS
813910, NAICS 813920--this industry consists of establishments
primarily engaged in promoting the civic and social interests,
business interests, or professional interests of their members.
Establishments in this industry may operate bars and restaurants
for their members.
Grocery and Related Product Wholesalers, NAICS 4224--this group
includes grocery and related product wholesalers classified in the
following NAICS industries: general-line grocery, packaged frozen
food, dairy product, poultry and poultry product, confectionery,
fish and seafood, meat and meat product, fresh fruit and vegetable,
and other grocery and related products.
Contract Feeding in Offices, NAICS 7223:
- Food Furnished to Institutions and Group Quarters, including
hospitals, nursing homes, other homes and schools, correctional
institutions, other group quarter, boarding and rooming houses
based on average daily residence (Statistical Abstract of the
United States) and cost per person per day as reported by
institution or Bureau of Labor Statistics' Consumer Expenditure
Survey average.
- Food Furnished to Airlines, airline annual food sales, Bureau
of Transportation Statistics, Air Carrier Financial, Schedule P-6,
Materials Purchased-Passenger Food, quarterly and annual data.
- Food Furnished to Child Day Care, includes FNS reported bonus
commodities and TEFAP foods provided through local emergency
feeding organizations.
- Food Furnished to Distribution Programs, includes FNS reported
bonus commodities and TEFAP foods provided through local emergency
feeding organizations.
Alcoholic Beverages
All alcoholic beverage expenditures measured in the ERS series
are reported in the Census Bureau 2002 data for each establishment
that sells alcoholic beverages and alcoholic drinks. Because the
Census Bureau reports alcoholic beverage sales in only each census
year, projection techniques, described below, are needed for this
series between census years. Alcoholic beverage sales are listed in
the Census reports as "Packaged liquor, wine, and beer" or
"Alcoholic drinks (served at this establishment)."
Level of Measurement by Outlet
Total expenditures for food are derived as the sum of four broad
categories:
(1) Food-at-home expenditures include expenditures on food for
preparing at home and anywhere else-except on the premises where
sold-that is taken home for consumption, including food purchased
at department stores, drug stores, or gas stations.
(2) Food-away-from-home expenditures include expenditures on food
consumed on the premises where it is sold, such as in restaurants
and fast food establishments, including recreation places (movie
theaters, amusement parks, concessions in sports parks,
etc.).
(3) Packaged alcoholic beverages include beer, wine, and liquor
for consumption at home and off the premises where they are
sold.
(4) Alcoholic drinks include alcoholic beverages consumed in bars,
clubs, and other premises where they are sold.
Industry-level production of all goods and services in the U.S.,
Canada, and Mexico is measured using the North American Industry
Classification System (NAICS). For selected individual NAICS
industries, food sales are reported separately by the Census Bureau
for food-at-home and food-away-from-home. These figures are
developed from the Census Bureau's Survey of Establishments and
summarized in its Retail Trade and Merchandise Line Sales
reports.
The categories labeled by ERS as "food at home" and "food away
from home" actually have different labels in the Census reports.
For example, Grocery Stores, NAICS 4451, and Full-Service
Restaurants, NAICS 7221, each contain food sales from both
categories and industry-specific labels are used by the Census
Bureau.
In addition to annual sales data for individual NAICS
establishments that sell food, the individual retailers that
respond to the census questionnaire record their sales for their
establishment by various merchandise lines listed on the
questionnaire. Census data reported by the retail establishment and
information on the distribution of sales between food, alcoholic
beverages, meals, and snacks by type of store are used to determine
the percentage of food sales purchased for food-at-home and
food-away-from-home consumption. These percentages between
food-at-home and food-away-from-home purchases for a given NAICS
code remain constant between census years. In other instances, ERS
classifies the full level of expenditure at a given outlet as food
at home or food away from home. For example, food purchased at
schools and colleges are classified entirely as food away from
home.
Measurement of
Expenditures Between Census Years
Total food expenditures for industry or outlet iin year t,
Yi,t, are given by:
(1) Yi,t = Y Hi,t
+ Y Ai,t
where Y Hi,t and Y
Ai,t are food-at-home and food-away-from-home
expenditures. In a census year, the Census Bureau reports data for
a NAICS industry in detail sufficient for ERS to identify
food-at-home product lines and food-away-from-home product lines,
as noted above; nonfood sales for the industry, Ni,t,
are also reported separately in the census year. For years between
a census year, the Census Bureau reports only the total annual
sales figure, Si,t, for the industry, where
Si,t is the sum of Y Hi,t, Y
Ai,t, and Ni,t. ERS estimates or
projects the figures Ŷ Hi,t and Ŷ
Ai,t for inter-census years using a common
formula shared by many Food Expenditure data series. This common
formula is given by:
(2.1) Ŷ Hi,t =
wHi,0 Si,0
(2.2) Ŷ Ai,t =
wAi,0 Si,0
where wHi,0 is an industry-specific share
of food-at-home expenditures relative to the industry's total sales
(inclusive of nonfood sales) in census year 0, given by (Y
Hi,0)/( Si,0); and
wAi,0 is a census year share of the
industry's food-away-from-home expenditures relative to total
sales, given by (Y Ai,0)/(Si,0).
For example, the 2002 weights for food-at-home expenditures for
certain industries are 72.50 for Grocery Stores (NAICS 4451), 6.62
for Mass Merchandisers (NAICS 4529), 17.45 for Warehouse Clubs and
Superstores (NAICS 45291), 0.15 for Full-Service Restaurants (NAICS
7221), and 0.64 for Limited-Service Restaurants (NAICS 7222). The
2002 weights for food-away-from home expenditures for certain
industries are 97.60 for Limited-Service Restaurants (NAICS 7222),
81.80 for Full-Service Restaurants (NAICS 7221), 1.81 for Grocery
Stores (NAICS 4451), and 14.61 for Variety Stores (NAICS
45299).
Food Expenditures by Source of Funds
A hallmark of the ERS Food Expenditure series is that the U.S.
figures for both food-at-home and food-away-from-home expenditures
add to total food purchases for all final users-consumers,
businesses, and governments (including nonprofit organizations).
Expenditures by these groups or sectors are reported separately in
table 5.
- The food expenditures financed by governments are the sum of
such items as expenditures paid for by the Supplemental Nutrition
Assistance Program (SNAP, formerly the Food Stamp Program) and WIC,
the value of USDA commodity supplemental donations to school meals
and elderly nutrition programs, and the value of food paid for by
government and served in military messes, correctional
institutions, and hospitals and nursing homes.
- The food expenditures financed by businesses are the sum of
such items as the value of food served by airlines and by hospitals
and nursing homes and the value of food furnished to employees by
firms.
The total of food expenditures by all final users in table 5
equals the total of food-at-home and food-away-from-home
expenditures in table 1. Food expenditures by families and
individuals in table 5 are calculated as a residual, deducting the
food expenditure figures for government, business, and the value of
food produced and consumed on farms (value at farm prices) from the
total food expenditures figure from table 1.
Food Expenditures as Shares of
Disposable Personal Income (DPI)
Food expenditures by families and individuals as a share of
disposable personal income are reported annually in
table 7 and in the ERS periodical Amber Waves. Food
expenditures by families and individuals as a share of disposable
personal money income are reported in table 8. The annual
disposable personal income data are reported by U.S. Department of
Commerce, Bureau of Economic Analysis in their National Income and
Product Account Tables, table 2.1 Personal Income and Its
Disposition. The annual data for disposable personal money
income are reported by U.S. Department of Commerce, Survey of
Current Business, table 2.1 and table 1.14, which include
government expenses for military medical insurance, food stamps,
and other Federal, State, and local medical care expenses.
Both table 7 and table 8 report food expenditures by families
and individuals, but the tables differ as to whether or not certain
specific types of household expenditures are counted.
- The figures used in table 8 are the same as the figures
reported in table 5, food expenditures by families and
individuals.
- In contrast, table 7 begins with those figures but adds three
major items-the values of food stamps, WIC vouchers, and food
produced and consumed on farms (listed in a column of table 5
itself)-and certain minor items. These items are components of
disposable personal income, the denominator of the share figures in
table 7, and consistency suggests counting the same types of food
expenditures in the numerator and denominator.
- In contrast, the disposable personal money income figures used
in table 8 exclude those items. The full set of differences between
the treatment of food expenditures in table 7 and table 8 is
reported in
table 9.
Relative Prices of Food at
Three Stages of the System
The prices of food in restaurants and food provided to the food
system by manufacturers and shippers are each expressed relative to
store prices in table 11. The restaurant prices ratio is calculated
as the current-year value of the CPI for food away from home
relative to the current-year value for the CPI for food at home.
Both indexes are reported in table 13.
The manufacturers' and shippers' prices ratio is calculated as
the current-year value of the Producer Price Index (PPI) for
consumer foods to manufacturers selling price relative to the CPI
for food at home. The PPI for consumer foods to manufacturers
selling price uses 1988 as a base year and is calculated by ERS
using data and methods described in "Developing an Integrated
Information System for the Food Sector."
Food Expenditures at
Constant Prices
The food-at-home and food-away-from-home expenditures reported
in table 1 are nominal figures i.e., current-year values not
adjusted for inflation. These two expenditure categories are
reported in constant 1988 dollars in table 12 by deflating a
category by its respective price index, each of which is reported
in the table. The price index for food at home is based on prices
for specific items, including meats, dairy, and related products,
fruits and vegetables, nonalcoholic beverages, and other food at
home. Specific items of the CPI for food away from home include
full-service restaurant meals and snacks, limited-service meals and
snacks, food at employee sites and schools, and food from vending
machines and mobile vendors. These indexes use 1988 as a base year
and are calculated by ERS using data and methods described in Developing an Integrated Information System for
the Food Sector.
Periodic Data
Revisions
The ERS Food Expenditure data series uses data from several
different U.S. Government sources that periodically revise their
individual data series. For example, the Census Bureau updates and
revises their benchmark Economic Census Reports in their Industry
Series and Subject Series every 4-5 years (e.g., in 1997 and 2002).
Other major data series for which revisions can affect certain ERS
Food Expenditure series include the population estimates of the
Census Bureau (used by ERS for food expenditure per capita) and the
national economic accounts of the U.S. Department of Commerce,
Bureau of Economic Analysis. ERS integrates these updates by
revising the ERS Food Expenditure series as updates are released,
which can result in changes to figures for several years at a
time.