Dollar’s fall hits home:
Ethnic food stores are finding
it more expensive to buy imports

By Samantha S. Easter
Inside Tucson Business
Published on Monday, April 14, 2008



A table full of bright yellow turmeric and emerald green sprigs of dried mint adorn the back table of Jasmine’s Market at Campbell Avenue and Grant Road. A pyramid of 20-pound burlap sacks full of basmati rice grace the front of the store. Red, yellow, and green cans of hummos and fava beans sit on industrial metal shelves. The aroma of honey-soaked baklava wafts from the back room while paintings of Egyptian markets and the Nile decorate the wall behind the cash register.

Jasmine’s Market, 2532 N. Campbell Ave, is one of roughly two dozen ethnic groceries in Tucson selling spices and packaged goods imported from Europe and Asia. But markets like these have been under increasing stress lately due to falling value of the U.S. dollar against many other world currencies.


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"We get our food and spices from companies that import them from European and Asian countries," said Amer Said, owner of Jasmine’s Market, as he examined boxes of couscous and falafel mix. "When the dollar is weak then the companies pay more, which means that we pay more."

The dollar is currently worth about 64 percent of a Euro (as of April 10). A year ago it was worth 76 percent according to the European Central Bank.

Ethnic markets and groceries are a significant source of food in the United States. A study released by Iowa State University in 2005, found that Americans spend an average of nearly 15 percent of grocery money on ethnic food.

"I think that a lot people come here to try something different," said Sukanya Bhat, owner of India Dunkaan, an Indian grocery store at 2754 N. Campbell Ave., as she leaned on the counter above a large selection of dusty Indian movies. "They try something at an Indian restaurant and want to make it at home."

Amer Said from Jasmine’s Market also attributes the flow of international students from the University of Arizona to the popularity of the ethnic markets.

"We get a lot of students in here looking for food that they got in there native countries," Said said. "I’ve had Lebanese kids in here homesick for baklava and labneh and they are so glad that we stock it."

But while the ebb and flow of customers has remained steady, the level of profit has fallen.

"I haven’t any decrease in the amount of customers but they are buying less and less expensive stuff," Said said. "Last year when someone would buy the good brand of pita, this year they buy generic."

Some blame the fall of the U.S. dollar for the rising cost of European imports.

"With the global market becoming more competitive and the gaining strength of the euro compared to the falling value of the dollar, small business is taking a heavy toll," said LaBrent Chrite, associate dean and director of the Eller MBA Programs at the UA.

Others blame the rise of the euro for the increasing prices.

"Since the companies that I ship from get their supplies from Europe, they are being affected by the rise of the euro. They pass the increase to me. And I pass it to my customer," said Bhat.

While these factors, including the rising cost of shipping food, thanks to the demand for oil, have had an impact on most of the groceries which import from Eastern continents; the way they have responded is different.

"We have to charge more but it hasn’t had an effect on the amount of my customers, yet," said Bhat, who had recently penned-in price increases on computer printouts taped to the cooler doors. "I think they realize that it isn’t my fault that the prices are higher. I haven’t had had many complaints yet."

But some restaurants aren’t willing to increase prices.

"I can’t raise my prices. I’m afraid that if I do, I’ll lose some of my customers," exclaimed Said, between sips of his yogurt soda. "With the recession and the price of gas soaring, I don’t want to add more cost to my customers, so the rising costs eat into my bottom line."

No matter how the stores are responding to the price increases, it is clear to the grocery owners that something will have to give.

"With the prices going up on one end and a loss of profit, my store is being hit with financial problems," Bhat said. "It is hard to still keep a profit while keeping my customers happy."

Samantha S. Easter is a Tucson-based freelance writer.

Ethnic Food Markets in Tucson:

• European Market and Deli, 4500 E. Speedway, (520) 512-0206

• G&L Import Market, 4828 E. 22nd St., (520) 790-9016

• India Dunkaan, 2754 N. Campbell Ave., (520) 321-0408

• India Food and Gifts, 863 E. Grant Road, (520) 624-2474

• Jasmine’s Market, 2745 N. Campbell Ave., (520) 320-3900

• Kimpo Oriental Market, 5595 E. Fifth St., (520) 750-9009

• Mabuhay Filipino Food Store, 2023 S. Craycroft Road, (520) 747-2233

• Moan’s Oriental Market, 2022 S. Craycroft Road, (520) 747-7892

• Roma Imports of America, 627 S. Vine Ave., (520) 792-3173

• Sandyi Oriental Market, 4270 E. Pima St., (520) 320-0389

• 17th Street Market, 810 E. 17th St., (520) 624-8821

• Sun Oriental Market, 2205 S. Craycroft Road, (520) 790-6945

• Tropical Foods, 3506 E. Grant Road, (520) 325-2410

• Caravan Mideastern Foods, 2817 N. Country Club Road, (520) 323-6808

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