Photography gear is expensive. However, thanks to the used market and how good cameras have been for the past decade, for under $1,250, you can buy a really solid food photography camera setup.
£1,000 or about $1,250 doesn't get you many cameras in 2020. However, if you are willing to buy used, you could buy two great lenses and a full-frame professional camera body. Although in this video I talk about Canon equipment, the same products could be purchased from Nikon at a similar price from the 2008 era of photography. I am sure other brands will offer similar specs in the used market; I am just not familiar with them (I have only ever used Canon for 35mm cameras).
For me, a solid food photography setup must include at least a full-frame 35mm camera, a 100mm macro lens, and a 50mm prime lens. If you went for Canon's top lineup of the Canon EF 50mm f/1.2L USM Lens, Canon EF 100mm f/2.8L Macro IS USM Lens, and Canon EOS 5D Mark IV DSLR camera, you would be spending $47,00 all in. Granted, the setup in this video is not as good as this, but unless you are shooting worldwide campaigns, it will certainly see you through. I have also shot several big campaigns in recent years with the kit listed in my video.
What would you go to budget food photography setup be?