Increased purchasing cost leads to higher residence hall food prices
September 2, 2008
Nathan Mallow has learned to live with constantly rising food prices and with gas still hovering around $4 a gallon, he has become immune to paying more for life’s necessities.
“You just have to balance what you eat,” said Mallow, a junior history education major. “Food going up is nothing new. You have to learn to limit yourself.”
Like many Americans, some NIU students must deal with this new reality. Food prices in the residence halls have increased for the first time in four years.
“These price changes have been driven by the increased cost to us from our valued and concerned food suppliers,” said Ralph Chaplin, director of residential dining for NIU Housing and Dining. “The increases that they have had to make are a result of increased worldwide demand for food products … obviously high energy prices … and also speculative commodity funds.”
NIU price increases seem to be in line with national averages.
“Over the last year, July 2007 to July 2008, food prices have gone up about 7.1 percent,” said Carl Campbell, associate professor and assistant chair of economics. “If you look at all items other than food, it’s up 4.8 percent.”
The last six months have been particularly hard on Americans’ pocketbooks.
“From July 2007 to January 2008, food prices were up 2.5 percent,” Campbell said. “From January 2008 until July 2008, it’s gone up 4.5 percent.” But good news may be on the way, he said.
“In terms of the worldwide demand, the higher prices lead farmers to plant more,” thereby increasing the food supply, Campbell said. “Recently, gas prices are going down, so that’s probably going to help.”
It may take time, he said, but food prices will eventually stabilize and then decrease.
Chaplin stressed that Housing and Dining has worked very hard to keep food prices stable the past four years.
“Price increases that took place were based upon the changes in cost to us, and not any type of percentage formula,” he said. “We continue to work with our suppliers to be sure that the high quality products that we want to make available to our customers are available at reasonable costs.”
Bryce Merrill, a senior corporate communications major, doesn’t live in the residence halls anymore, but said the increases will be felt by NIU students.
“It definitely makes it tight if you have a budget, for sure,” he said. “Let’s face it: Most college students are on a budget.”