California Ag Network

Tag: Thanksgiving

  • Farm Bureau Thanksgiving Survey Shows Average Cost of Holiday Meal Up One Cent From Last Year

    The American Farm Bureau Federation’s 34th annual survey of classic items found on the Thanksgiving Day dinner table indicates the average cost of this year’s feast for 10 is $48.91, or less than $5.00 per person. This is a 1-cent increase from last year’s average of $48.90.

    The centerpiece on most Thanksgiving tables – the turkey – costs slightly less than last year, at $20.80 for a 16-pound bird. That’s roughly $1.30 per pound, down 4% from last year. The survey results show that retail turkey prices are the lowest since 2010.

    The shopping list for Farm Bureau’s informal survey includes turkey, stuffing, sweet potatoes, rolls with butter, peas, cranberries, a veggie tray, pumpkin pie with whipped cream, and coffee and milk, all in quantities sufficient to serve a family of 10 with plenty for leftovers.

    Although the overall average cost of the meal was about the same this year, there were some price changes for individual items. In addition to turkey, foods that showed slight price declines include cubed bread stuffing and canned pumpkin pie mix. Foods showing modest increases this year included dinner rolls, sweet potatoes and milk. After adjusting for inflation, the cost of this year’s Thanksgiving dinner is $19.13, down slightly from last year.

    Despite the growing popularity of prepared foods, the vast majority of Americans, 92%, celebrate Thanksgiving at home or at a family member’s home and most cook their entire meal at home, according to the survey.

    More than 250 volunteer shoppers checked prices at grocery stores in 38 states for this year’s survey. Farm Bureau volunteer shoppers are asked to look for the best possible prices, without taking advantage of special promotional coupons or purchase deals.

    The AFBF Thanksgiving dinner survey was first conducted in 1986. The informal survey provides a record of comparative holiday meal costs over the years. Farm Bureau’s classic survey menu has remained unchanged since 1986 to allow for consistent price comparisons.

    By The American Farm Bureau Federation

  • Low Wholesale Turkey Prices in 2017 Should Translate to Lower Costs for Consumers This Thanksgiving

    Washington, D. C., (November 9, 2017) – Thanksgiving is one of the most popular holidays in America and turkeys are the undisputed centerpiece of the traditional feast. Over 240 million turkeys were raised in 2016, and it is estimated that nearly 50 million of those birds are consumed on Thanksgiving Day. Prices for whole turkeys vary from year to year, and movements in wholesale prices at the farm level do not always translate into price movements at the retail level. Fortunately for consumers, Thanksgiving season often marks the low point for the retail mark up for whole turkeys. This year, low wholesale prices are likely a good sign for price-conscious consumers.

    Wholesale whole turkey prices fell in 2017, relative to 2016, and have remained below historical averages since January, indicating that demand may not be keeping up with current supply levels. Typically, wholesale turkey prices have a seasonal trend, with prices climbing from their bottom level in the beginning of the year to a peak near Thanksgiving. This year, whole turkey prices have not increased as in years past and have dipped further throughout the summer. The average price for a whole frozen hen in August was just under 97 cents per pound, 3 percent below January and 19 percent below August 2016. As of the fourth week of September, prices had fallen farther to 96 cents. The last time wholesale prices were below $1 per pound as late as September was in 2010.

    Do low wholesale prices indicate lower retail prices? Not always. Research in the October Livestock, Dairy, and Poultry Outlook newsletter looked at movements in wholesale and retail turkey prices leading up to the Thanksgiving holiday. While wholesale and retail price movements are strongly correlated on a yearly basis, seasonal factors can disrupt this correlation. During the Thanksgiving holiday season, retail turkey prices are commonly near annual low points. The percentage markup from wholesale to retail price also declines to a low point during that period. The average markup between January 2014 and September 2017 was 42 percent. The November average markup over the same period was just 13 percent. The data indicate that competition between retailers for Thanksgiving business may lead to lower costs for consumers even as wholesale prices rise. Because wholesale prices have remained low late into the year, retail prices may fall below previous years or the trend of low retail markups in November may be disrupted.