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Vendors increase cost of food

Housing and Food searches for best buys to benefit students

By Lee Ann Holman

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Published: Wednesday, September 3, 2008

Updated: Saturday, December 13, 2008

2008-09-03_Food_DOM_Caleb.Miller.jpg

Caleb Miller

Microbiology senior Diane Jung receives change from a transaction with Melissa Garcia at Littlefield Patio Cafe on Tuesday afternoon.

Despite the soaring price of food across the state and nation, UT's Division of Housing and Food Service is trying to keep costs down in campus cafeterias.

The consumer price index for all food is 6 percent higher now than it was in July 2007, according to the Texas Department of Agriculture.

"Texas farmers and ranchers are working hard to keep costs down so American families do not go broke while shopping at the grocery store or eating at the cafeteria," said Bryan Black, a spokesman for the Texas Department of Agriculture. "However, until we see solutions to the skyrocketing prices on fuel and feed, high food costs will likely continue."

The consumer price index calculates inflation by measuring how much the cost of a basket of fixed items changes over time.

Scott Meyer, associate director of the Division of Housing and Food Service, said UT is trying to keep cafeteria prices reasonable for students despite the cost increase. The division raised prices at the buffet-style dining halls by 20 cents at the beginning of August.

"We've been able to hold food costs down by really going out searching and looking for bulk buys," Meyer said.

The division is self-supporting, so it does not receive any money from the state or student fees, Meyer said. The division operates its own residence halls, food service, business, custodial, maintenance and information systems departments and has approximately 1,000 full- and part-time employees.

The division has seen an increase of 26 to 30 percent on products they use most, such as frying oil and cheese. According to a report by the Department of Agriculture, cheese prices have risen nearly 15 percent since last year.

"Vendors have started to increase prices, too. Frito-Lay wants us to pay 29 percent more for their chips," Meyer said. "I pay more for a bottle of Coke to resell it than [if I were to] go to H-E-B and buy it, because I have to buy it directly from Coke."

Meyer said the division has also offset costs during the year by raising prices in the retail sections of the food markets yearly or by not offering a particular item.

The Texas Department of Agriculture reports that egg prices have gone up 16.3 percent in the last year, and fresh vegetables, cereals and bakery products are up 12 percent. The price of dairy products has risen 8.1 percent, and coffee, juices and drinks cost 8 percent more than they did last year.

Chris Carrillo-Spano, director of Austin Independent School District's Nutrition and Food Services, said the district is coping with a double-digit increase in food costs by looking at all areas of their operation and maximizing resources by watching inventories closely, reducing waste and cutting staff.

"Students will not have to pay more for meals this school year," Carrillo-Spano said. "We raised meal prices last school year, and we didn't feel that our families could afford another increase this year, especially since they are also feeling the effects of high food and gas prices."

Carrillo-Spano said the district cannot deal with rising food prices in the future and will increase meal prices next year.

"Food prices are not predicted to go down in the near future, and some say that they will not return to 2006-2007 levels for another couple of years," she said. "It will be challenging for everyone moving forward."

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