Study: Rising costs lead to cuts in food spending

NEW YORK Nearly six out of 10 Americans say they have had to cut back on the quantity or quality of food they buy because of increasing prices, according to The 2008 Hormel Hunger Survey, conducted by Hormel Foods.

According to the study, which is third annual for Hormel, more than four out of five Americans (84%) are concerned about rising food prices. Four out of 10 are very concerned.

"Hunger in the United States is a serious issue. We hope this research will elevate the issue and prompt discussions about how we can all work together to help feed America's families," said Jeffrey Ettinger, chairman, president and ceo of Hormel Foods.

Rising food costs have lead many Americans to change their food buying habits. Nineteen percent of those surveyed said they have been forced to choose between buying food or gas. In addition, more than half of the 800 adults interviewed are taking multiple steps to reduce food costs, such as using coupons, buying more generic or store brands, eating at home more often, buying less expensive cuts of meat and buying more of less expensive staples such as rice and potatoes.

"It is estimated that more than 100 million people in the world have been forced into poverty and hunger because of the dramatic increase in food prices," said Benjamin Senauer, a professor of applied economics at the University of Minnesota, author and researcher. "Millions of American families' food budgets have been stretched to the limit and beyond. Food stamp enrollment is up and food banks are seeing unprecedented demand."