Price Spreads from Farm to Consumer: Components of the Marketing Bill

Components of the marketing bill for domestically produced farm food

Year

Total consumer expenditures

Labor¹

Packaging materials

Intercity rail and truck transportation

Fuels and electricity

Corporate profits before taxes

Misc.²

Total marketing bill³

Billion dollars

1967

91.6

25.9

7.3

4.3

--

3.4

21.5

62.4

1968

96.8

28.0

7.6

4.5

--

3.6

22.2

65.9

1969

102.6

30.4

7.9

4.6

--

3.6

21.8

68.3

1970

110.6

32.2

8.2

5.2

2.2

3.6

23.7

75.1

1971

114.6

34.5

8.5

6.0

2.4

3.9

23.2

78.5

1972

122.2

36.6

8.9

6.1

2.5

4.0

24.3

82.4

1973

138.8

39.7

9.4

6.4

2.8

5.4

23.4

87.1

1974

154.6

44.3

11.8

7.5

3.7

6.1

24.8

98.2

1975

167.0

48.3

13.3

8.4

4.6

7.1

29.7

111.4

1976

183.3

53.8

14.5

9.1

5.0

7.7

34.9

125.0

1977

190.9

58.3

15.1

9.7

6.0

8.0

35.6

132.7

1978

216.9

66.2

16.6

10.5

7.1

9.9

37.1

147.4

1979

245.2

75.2

18.6

11.8

8.2

10.0

42.3

166.1

1980

264.4

81.5

21.0

13.0

9.0

9.9

48.3

182.7

1981

287.7

91.0

22.6

14.3

10.0

9.7

58.4

206.0

1982

298.9

96.6

23.7

14.7

11.0

9.4

62.1

217.5

1983

315.0

102.4

24.7

15.4

11.7

9.6

65.9

229.7

1984

332.0

109.3

26.2

15.9

12.5

9.6

68.7

242.2

1985

345.4

115.6

26.9

16.5

13.1

10.4

76.5

259.0

1986

359.6

122.9

27.7

16.8

13.2

10.3

79.9

270.8

1987

375.5

130.0

29.9

17.2

13.6

11.1

83.3

285.1

1988

398.8

137.9

32.6

17.8

14.1

12.0

87.5

301.9

1989

419.4

145.1

35.2

18.6

14.8

12.9

89.0

315.6

1990

449.8

154.0

36.5

19.8

15.2

13.2

104.9

343.6

1991

465.1

160.9

38.1

20.4

16.3

15.2

112.6

363.5

1992

474.5

168.4

40.1

20.6

16.7

15.7

107.9

369.4

1993

489.2

178.0

40.9

21.2

17.2

18.1

104.2

379.6

1994

512.2

186.1

43.3

21.8

17.9

20.9

112.6

402.6

1995

529.5

196.6

48.2

22.3

18.6

19.5

110.5

415.7

1996

546.7

204.6

47.7

22.9

19.6

20.7

109.0

424.5

1997

566.5

216.9

48.7

23.6

20.2

22.3

112.9

444.6

1998

585.0

229.9

50.4

24.4

20.7

25.5

114.5

465.4

1999

625.3

241.5

50.9

25.2

22.0

29.2

134.3

503.1

2000

661.1

252.9

53.5

26.4

23.1

31.1

150.8

537.8

2001

687.5

263.8

55.0

27.5

24.1

32.0

155.1

557.5

2002

709.4

273.1

56.8

28.4

24.9

33.0

160.7

576.9

2003

744.2

285.9

59.5

29.7

26.1

34.6

168.2

604.0

2004

788.9

303.7

63.1

31.6

27.6

35.5

171.9

633.4

-- = Not available.
¹Includes employee wages or salaries and their health and welfare benefits. Also includes estimated earnings of proprietors, partners, and family workers not receiving stated remuneration.
²Includes depreciation, rent, advertising and promotion, interest, taxes, licenses, insurance, professional services, local for-hire transportation, food service in schools, colleges, hospitals, and other institutions, and miscellaneous items. Data for 1967-69 also include fuels and electricity.
³The marketing bill is the difference between the farm value and consumer expenditures for these foods at both food stores and restaurants. Thus, it covers processing, wholesaling, transportation, retailing costs, and profits. Some historical data were revised.
Source: Calculated by ERS based on data from government and private sources.