Developments in Farm to Retail Price Spreads for Food Products in 1980

The rise in food prices in 1980 was the smallest in 3 years and well below the inflation rate for all prices in the economy. For domestically produced foods, both the farm value and food-industry charges for processing and marketing rose less than in 1979, limiting the retail price rise. However, retail prices for fish and imported foods, particularly sugar, rose more sharply. The farm to retail price spread rose more than the farm value of foods and was the principal contributor to the increase in food prices. As in past years, about a third of consumer expenditures for domestically produced foods paid for the farm value of foods and the rest was needed to pay for the marketing bill