Economic Impact of Proper Diets zy on Farm and Marketing Resources zyx Michael Finke Luther Tweeten Wen Chern Diet is a factor in three primary health concerns: obesity, cancer, and heart disease. Although con- sumption trends during the 1980s showed Ameri- cans replacing foods that raise the risk of heart disease, the statistics on obesity remain disap- pointing. Despite reducing consumption of many foods high in cholesterol and saturated fat, US adults gained 3.6 kg in mean body weight in the 1980s. Proportions of adults classified as obese (120% or more of recommended body weight) in- creased 8% during the 1980s. Disappearance data show an increase in calorie consumption of 8.8% over this period, while fat continued to con- stitute approximately 42% of energy intake through 1990.2 Physical activity appears to have decreased zyxwvuts .374 Obesity creates direct and indirect health care costs estimated at $68.8 billion annu- Over the past 20 years, changes in the public’s perceptions of diet and health have altered food ally.~ zyxwvutsr ...................................................... Requests for reprints should be sent to L. Tweeten, Dept. of Agri- cultural Economics and Rural Sociology, 2120 Fyffe Rd., The Ohio State University, Columbus, OH 43210-1067. consumption patterns. Research linking heart dis- ease and cancer with the consumption of saturated fats has led to a decreasing preference for red meat, eggs, whole milk, and other foods.6.7 Cur- rently, the notion of decreasing the consumption of all fats and added sweeteners, increasing the consumption of complex carbohydrates and fiber, and reducing overall calories has gained favor in the popular press and public nutrition education alike. New USDA guidelines call for a 14% reduc- tion by the year 2000 in the number of Americans who are obese, to be realized primarily through a restructured diet that encourages less consumption overall, but with an increasing share of grains, fruits, and vegetables.3 The USDA food pyramid and other public education measures are aimed at combating diet related health problems. potential economic impact on demand in the farm and food marketing sectors if Americans consume a more optimal diet. Reducing levels of obesity, cancer, and heart disease will require an alter- ation in both the mix and level of total calories consumed. Nutritionists cannot specify any one diet as uniquely optimal. This fact coupled with The objective of this study is to estimate the ............................................................................................................... The authors are, respectively, Graduate Associate, Anderson Professor, and Professor, Department of Agricultural Economics, The Ohio State University, Columbus. ............................................................................................................... Agribusiness, Vol. 12, No. 3, 201-207 (1996) zyxwvut 0 1996 by John Wiley & Sons, Inc. zyxwvuts 201 CCC 0742-4477/96/030201-07