28 Nov '14, 6pm

Taxpayer Subsidies for Unhealthy Foods

Why do food companies sell junk? Because unhealthy commodities are highly profitable. This is in part because of their low production cost, long shelf-life, and high retail value, which create perverse incentives for industries to market and sell more junk. According to researchers at the University of Cambridge, “Coca-Cola’s net profit margins, for example, are about a quarter of the retail price, making soft drink production, alongside tobacco production, among the most profitable industrial activities in the world.” One of the reasons production costs are so low is that we tax-payers subsidize it. Distinguished UNC Professor of Nutrition Barry Popkin writes: For more than a century, Western governments have invested heavily in lowering the costs of animal products and some basic cash crops [such as sugar]. Accordingly, Western diets have shifted during the past century,...

Full article: http://www.care2.com/greenliving/taxpayer-subsidies-for-u...

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