A 25% subsidy on fruit and vegetables could save nations’ backs, research finds

Forget the fat tax: Subsidizing fruits and vegetables is the best way to save the country’s waistline, according to a study.

The policy not only takes a few bucks off the weekly shopping list, but could also offer “huge public health benefits,” the researchers say.

Economists at the University of Warwick estimate that a 25% subsidy for fresh fruit and vegetables will result in a 15% increase in sales.

The short shelf life of fresh produce means that fruits and vegetables tend to have higher fixed costs than ready meals and junk foods with longer shelf lives.

With a 25% subsidy, a six pack of Pink Lady apples can be reduced from £2.80 to £2.10, or a 400g box of Essential Waitrose Strawberries can be reduced from £2 to £1.50.

Researchers estimate that UK supermarkets sold around £10.4bn of fresh produce in 2017, meaning the subsidy would cost taxpayers around £2.5bn a year.

By comparison, the NHS currently spends around £6 billion a year on obesity-related diseases and this is expected to rise to £9.7 billion by 2050.

This comes amid government crackdown on obesity, fueled by the near-fatal Covid attack in 2020, which Boris Johnson accused of being overweight.

But many of those policies, including stricter advertising rules and junk food taxes, have been labeled “babysitters” by critics.

Warwick economist Professor Van Rens said: “A grant is in some ways the most market-based and least intrusive intervention you can think of.

“Less is more than just giving friendly advice and not getting us where we need to be.”

Mandatory calorie labeling will be implemented at most restaurants, bars and takeaways in the UK from next month.

And from October, “buy-in” junk food offers will be banned, including “buy one get one free” offers.

A new watershed policy will also be introduced by 2023 that will restrict advertising of foods and beverages high in salt, fat and sugar before 9 PM.

But The Warwick team wondered how effective the policy would be.

Professor Van Rens added: “Obesity is a huge public health problem and we are not going to fix it. We have to get the big kids out”.

The new study, published in the journal Scientific Progress, found that Brits pay an average of 40% more than the cost of producing fruit and vegetables.

Fresh food has a particularly high fixed cost as they are perishable items and therefore need to be refilled more frequently.

This raises the price of fresh produce relative to other unhealthy products sold at close to marginal cost.

Economists looked at detailed data on food purchases between 2004 and 2014 from a US database of 60,000 households with varying income levels.

They used the data to model how much the high cost of fruits and vegetables prevented people from purchasing them frequently.

Research found that people would buy 15% more fruits and vegetables if they were cheaper.

Only three out of ten Brits eat the recommended dose five times a day, namely 400 grams of fruit or vegetables.

Warwick’s team estimates their grants could close the gap by a third.

Professor Van Rens said: ‘If there were no fixed costs, you would expect food to be sold at marginal cost. And the fact that they do not affect diets.

‘The higher price of a product means that people buy less. The question is: how much?

“We see that if the market works well, consumers will buy 15 percent more fruits and vegetables than they do now, which is a huge public health benefit.”

Mr Johnson announced an obesity crackdown in 2020 after being admitted to intensive care with Covid, which he attributed to being overweight.

As part of the plan, new laws restricting the supply of high-fat, sugar and salt-rich foods in medium and large-sized stores are expected to come into effect in October.

Additionally, junk food giants will no longer be able to advertise online and on TV before 9 PM in January 2023.

The prime minister was also advised by the food czar Henry Dimbleby to impose processed foods rich in sugar and salt.

More than a quarter of primary school children are currently overweight or obese, with an increasing rate of four out of every ten ages 11 to 12.

And children in poorer areas are twice as likely to be obese than children in wealthier areas.

Meanwhile, two-thirds of adults are overweight or obese, costing health care £6 billion a year.

The government has pledged to halve childhood obesity by 2030 and to address broad disparities among youth in the most disadvantaged and most disadvantaged areas.

The rules, which took effect in eight months, are expected to force stores with more than 50 employees to phase out offers of foods high in fat, sugar and salt.

They will also be ordered to stop promoting unhealthy food offers at checkouts, store entrances or at the end of aisles.

Bars and restaurants are also affected by the new rules, and free refills of sugary soft drinks are no longer allowed.

Local authorities will have the power to impose sanctions on companies that do not comply with the rules.

The government estimates the regulation will provide £60m in health benefits over 25 years through improved quality of life and longer life through reductions in obesity rates.

HOW SHOULD A BALANCED NUTRITION BE?

According to the NHS, meals should be potatoes, bread, rice, pasta or other starchy carbohydrates, ideally whole grains.

• Eat at least 5 servings of different fruits and vegetables every day. All fresh, frozen, dried and canned fruits and vegetables count

• Basic meals based on potatoes, bread, rice, pasta or other starchy carbohydrates, preferably wholemeal

• 30 grams of fiber per day: This is equivalent to eating all of the following: 5 servings of fruit and vegetables, 2 whole grain biscuits, 2 thick slices of whole wheat bread, and a large baked potato in the crust

• Have some alternatives to milk or dairy products (such as soy drinks) and choose low-fat, low-sugar options

• Eat beans, legumes, fish, eggs, meat and other proteins (including 2 servings of fish per week, one of which is fat)

• Choose unsaturated fats and spreads and consume sparingly.

• Drink 6-8 glasses / glass of water a day

• Adults should have less than 6 g of salt per day and less than 20 g of saturated fat for women and less than 30 g for men.

Source: Eatwell NHS Guide