Dive Brief:
- The average cost of a Thanksgiving dinner for 10 increased just one cent this year to $48.91, or less than $5 per person, according to the American Farm Bureau Federation (AFBF).
- The organization conducted an informal survey that looked at the price of turkey, stuffing, sweet potatoes, rolls with butter, peas, cranberries, a veggie tray, pumpkin pie with whipped cream, coffee and milk. Turkeys cost 4% less than last year at about $1.80 per pound. Dinner rolls, sweet potatoes and milk showed slight increases.
- The cost for Thanksgiving is flat this year after a three-year decline. The price of turkey is the lowest it's been since 2010, AFBF said.
Dive Insight:
Turkey is a staple at Thanksgiving for 95% of consumers, the survey found. Customers looking to score a deal have plenty of choices this holiday. Twelve major grocery retailers are offering turkeys at less than the average $1.80 per pound this year, with some going for well under a dollar a pound. Walmart is selling a complete dinner for 10 for about $32.68.
As part of the survey, AFBF also evaluated consumer sentiment toward food production and found 75% of consumers want to know more about how their food is produced. About 88% of respondents said they trust farmers to grow their food.
AFBF points out that Americans enjoy an affordable food supply, but USA Today reports that the price for food has risen 26.8% compared to a 21.9% inflation rate over the last 10 years. High oil prices make it more expensive to ship food, extreme weather and natural disasters cause ingredient shortages and a growing affluent world population has built demand for more expensive food items.
As a result, manufacturers are facing rising costs, which in turn drives up the cost of groceries. Farmers are also feeling the pinch, as AFBF points out, receiving just eight cents on the dollar for food purchases. This year was a particularly stressful growing season for most farmers due to historic floods in spring and an early freeze.
