Thanksgiving food cost up 6 percent: farm group
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U.S. consumers won’t be thankful for low food prices this year, as shoppers will pay 6 percent more for a traditional Thanksgiving meal that includes turkey, stuffing and pumpkin pie, the largest U.S. farm group said on Thursday.
The American Farm Bureau Federation grocery list of 12 items estimated the average cost of this year’s Thanksgiving feast for a family of 10 will cost $44.61, an increase of $2.35 from last year’s average of $42.26.
“Food prices rode the energy price roller coaster up during the first half of 2008, and as the year winds down, energy prices have moderated somewhat but food prices have not come down,” said Jim Sartwelle, a Farm Bureau economist.
The largest contributor to the overall increase in the cost of the 2008 Thanksgiving dinner will be turkey, which is expected to rise $1.46 to $19.09 for a 16-lb bird. Shoppers also will see higher costs for 12 rolls, up 31 cents to $2.20; 12 ounces of fresh cranberries, up 26 cents to $2.46; and a 30-ounce pumpkin pie mix, rising 21 cents to $2.34.
The only decreases in 2008 will be milk, dropping 10 cents to $3.78 a gallon, and miscellaneous ingredients, down 60 cents to $2.69. A total of 179 volunteer shoppers from 38 states participated in this year’s survey.
Food prices have soared during the last year led by wild swings in the commodity market and energy costs that are passed on to consumers.
As worries about a global recession escalate, commodity prices have plunged from record highs hit earlier this year. But prices on grocery stores shelves have not dropped.
A panel of food-industry economists said last week that wholesale prices used by foodmakers have risen more rapidly than grocery and restaurant prices, leading to even higher expected costs for consumers in the future.
The U.S. Agriculture Department forecast last month that U.S. food prices were headed for their largest increase in two decades this year, lead by higher meat, eggs and poultry costs, despite the recent slide in oil and grain markets.
In its monthly report, USDA said food prices would surge by 5.5 percent in 2008 and 4.5 percent next year. It would be the third year in a row when food prices rose by at least 4 percent. National averages for Thanksgiving meal- AFBF
2003—$36.28
2004—$35.68
2005—$36.78
2006—$38.10
2007—$42.26
2008—$44.61
By Christopher Doering
WASHINGTON (Reuters)
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