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American Focus > Blog > Health and Wellness > Raising prices on junk food and cutting costs for produce could reshape Australian diets
Health and Wellness

Raising prices on junk food and cutting costs for produce could reshape Australian diets

Last updated: July 14, 2025 11:05 am
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Raising prices on junk food and cutting costs for produce could reshape Australian diets
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The George Institute for Global Health has recently conducted a study that sheds light on the impact of food taxes and subsidies on Australian diets. The study, published in Nature Food, highlights the potential benefits of making healthy foods more affordable and ultra-processed foods more expensive in order to improve overall health and reduce chronic diseases.

Poor diets, characterized by excessive consumption of foods high in added salt and sugar, have been linked to a significant number of premature deaths globally. These deaths are often attributed to cardiovascular disease, cancer, and type 2 diabetes. In response to this public health crisis, the World Health Organization recommends fiscal policies such as taxes on sugary drinks and subsidies for fresh produce as effective tools to combat diet-related diseases.

The study conducted by The George Institute for Global Health analyzed grocery purchasing patterns from 10,000 households over a five-year period to understand how consumers’ food choices are influenced by price. The researchers found that a 20% decrease in the price of fresh fruits and vegetables led to a 20% increase in purchasing, while a 20% increase in the price of sugary drinks resulted in a 24% decrease in purchasing. These effects were consistent across different socio-economic groups, highlighting the significant impact of pricing on dietary choices.

Tazman Davies, a researcher involved in the study, emphasized the importance of making healthy foods more affordable, especially in light of the current cost-of-living crisis in Australia. The study also suggests that the government’s subsidy of fresh produce in remote stores has the potential to significantly improve diets in these communities. By expanding this subsidy to other high-need areas, policymakers could further incentivize healthier eating patterns and reduce the burden of chronic diseases at a population level.

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The introduction of levies on sugary drinks, as implemented in over 100 countries, has been shown to effectively lower sugar consumption. Implementing a similar measure in Australia could not only reduce sugar intake but also generate revenue to fund subsidies for nutritious foods.

The study analyzed household food purchasing data over five years and found that lower prices on healthy foods and higher prices on unhealthy foods can influence consumer behavior significantly. By understanding the relationship between pricing and food choices, policymakers can design more effective strategies to promote healthy eating habits and combat diet-related diseases.

In conclusion, the study by The George Institute for Global Health highlights the importance of food taxes and subsidies in reshaping Australian diets and improving public health. By making healthy foods more affordable and less healthy foods more expensive, policymakers can encourage healthier eating habits and reduce the burden of chronic diseases in the population.

TAGGED:AustralianCostscuttingDietsFoodJunkPricesProduceRaisingreshape
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