Young Research & Publishing Inc.

Investment Research Since 1978

The Rising Costs of Thanksgiving

By

Every year the Farm Bureau puts out a report on the price of Thanksgiving dinner. This year, no surprise, the price of Thanksgiving has increased again.

thanksgiving graphic_1

From the Farm Bureau:

 

WASHINGTON, D.C., November 19, 2015 — The American Farm Bureau Federation’s 30th annual informal price survey of classic items found on the Thanksgiving Day dinner table indicates the average cost of this year’s feast for 10 is $50.11, a 70-cent increase from last year’s average of $49.41.

The big ticket item – a 16-pound turkey – came in at a total of $23.04 this year. That’s roughly $1.44 per pound, an increase of less than 9 cents per pound, or a total of $1.39 per whole turkey, compared to 2014.

“Retail prices seem to have stabilized quite a bit for turkey, which is the centerpiece of the meal in our marketbasket,” AFBF Deputy Chief Economist John Anderson said. “There were some production disruptions earlier this year due to the highly pathogenic Avian influenza outbreak in the Midwest. Turkey production is down this year but not dramatically. Our survey shows a modest increase in turkey prices compared to last year. But we’re now starting to see retailers feature turkeys aggressively for the holiday. According to USDA retail price reports, featured prices fell sharply just last week and were actually lower than last year,” he added.

The AFBF survey shopping list includes turkey, bread stuffing, sweet potatoes, rolls with butter, peas, cranberries, a relish tray of carrots and celery, pumpkin pie with whipped cream, and beverages of coffee and milk, all in quantities sufficient to serve a family of 10. There is also plenty for leftovers.

Foods showing the largest increases this year in addition to turkey were pumpkin pie mix, a dozen brown-n-serve rolls, cubed bread stuffing and pie shells. A 30-ounce can of pumpkin pie mix was $3.20; a 14-ounce package of cubed bread stuffing, $2.61; and two nine-inch pie shells, $2.47.

“Despite concerns earlier this fall about pumpkin production due to wet weather, the supply of canned product will be adequate for this holiday season,” Anderson said.

Items that declined modestly in price were mainly dairy items including one gallon of whole milk, $3.25; a combined group of miscellaneous items, including coffee and ingredients necessary to prepare the meal (butter, evaporated milk, onions, eggs, sugar and flour), $3.18; a half pint of whipping cream, $1.94; and 12 ounces of fresh cranberries, $2.29. A one-pound relish tray of carrots and celery (79 cents) and one pound of green peas ($1.52) also decreased slightly in price.

The average cost of the dinner has remained around $49 since 2011. This year’s survey totaled over $50 for the first time.

“America’s farmers and ranchers are able to provide a bounty of food for a classic Thanksgiving dinner that many of us look forward to all year,” Anderson said. “We are fortunate to be able to provide a special holiday meal for 10 people for just over $5 per serving.”

The following two tabs change content below.

E.J. Smith

Editor-in-Chief
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com.