Over the years, such marketing costs have had a persistent tendency to rise, regardless of whether farm prices were rising or falling. The effect on retail prices of increases in marketing costs can, and often do, exceed the effect of a reduction in farm prices. These general trends are reflected in USDA data. Farm value has held at a relatively steady level over the years, while the marketing bill has risen. Farm value has declined continuously as a percentage of total consumer expenditures, while labor has risen continuously.
Labor is by far the largest and most influential component of the consumer's food dollar.
Higher labor costs reflect increased food industry employment stimulated by consumer demand for convenience foods that require significant processing. This demand for convenience has reverberated throughout the food sector. The increase in labor costs has three main sources. First, food industry employment has continuously grown. For example, food industry employment grew 14.5 percent during the 1990's.