« Shiller on Housing Prices | Main | Strange proposed regulations »

Why does America have inferior raw ingredients?

Mostafa Sabet, a reader, writes:

I agree with your point [TC: my link] about raw ingredients and wonder why the richest nation in the world has such crappy raw ingredients?  We can afford it and obviously people can tell the difference.  Sure it won't affect the McDonalds' and freezer section food, but why does it go all the way downstream unless you pay exorbitant amounts of money for it?  When I was in Egypt, not exactly first world, the raw ingredients were far superior to the ones here.  Any ideas? 

A tough question, I see a few major hypotheses:

1. Things are changing rapidly, just visit Wegmans.  OK, but why has it taken so long?  And of course the revolution remains far from complete.

2. It is an exogenous demand-side question.  Americans have bad taste in food, just as the Chinese have bad taste in lounge music.  Why, for that matter, do the Japanese like karaoke so much?  Why do the Scots serve deep-fried Mars candy bars?  Note that more detailed versions of this hypothesis blame the British connection, Protestantism, and possibly the rule of law as well.

3. Food transportation in the U.S. exhibits economies of scale to an unprecedented degree.  The relative price of canned and frozen and mass-branded goods is thus especially low here.  This discriminates against both quality and freshness.

4. U.S. agricultural is so efficient that large farms replace small farms.  At the margin this raises the marginal cost of "artisanal production" of gourmet items.  The more heavily subsidized European agriculture has preserved many more small farms, which favors quality artisanal production.

5. It can take hours to make a really good mole sauce.  America has high wages, nighttime shopping, plus the best TV shows in the world.  The opportunity cost of good cooking and fine, slow dining is very high here. 

Posted by Tyler Cowen on January 28, 2005 at 07:48 AM in Food and Drink | Permalink

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c66b253ef00e550834d5b8833

Listed below are links to weblogs that reference Why does America have inferior raw ingredients?:

» America has "inferior" food? from Tom Rants
Tyler Cowen at Marginal Revolution has been pondering the question of why America has inferior raw ingredients for cooking compared even to developing countries. He had a list of reasons of which number 3 (efficient transportation) and number 4 (effic... [Read More]

Tracked on Jan 28, 2005 11:24:52 AM

» Poor Food from Don't sweat the small stuff
This post gives a few hypotheses about why they think American raw ingredients are so bad. I can certainly attest to the fact that the fresh produce and raw ingredients are far inferior to the quality in Australia. It was certainly one of the most supr... [Read More]

Tracked on Jan 28, 2005 10:13:46 PM

» Poor Food from Don't sweat the small stuff
This post gives a few hypotheses about why they think American raw ingredients are so bad. I can certainly attest to the fact that the fresh produce and raw ingredients are far inferior to the quality in Australia. It was certainly one of the most supr... [Read More]

Tracked on Jan 28, 2005 10:13:58 PM

» GROCERY STORE BLOGGING from Begging To Differ
On the heels of Greg's grocery store thoughts here and here I point you to a couple of Marginal Revolution grocery posts:1. Tyler Cowen's speculation about why American raw ingredients are so inferior. 2. The coming of Wegmans, a store... [Read More]

Tracked on Feb 2, 2005 11:33:09 AM