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Lower Food Costs This Thanksgiving

published: November 26th 2009
source: Los Angeles Times

Americans can be thankful for lower food prices this year as the traditional Thanksgiving meal, including turkey, buttered rolls and pumpkin pie, will cost 4% less than in 2008, a farm group said.

The American Farm Bureau Federation's grocery list of 12 items estimated the average cost of this year's Thanksgiving feast for 10 people will be $42.91, a decrease of $1.70 from last year's $44.61. Thanksgiving is Nov. 26.

"Consumers are benefiting at the grocery store from significantly lower energy prices and the effects of the economic slowdown," said bureau economist Jim Sartwelle.

The largest contributor to the lower-cost Thanksgiving dinner is milk, which is down by 92 cents at $2.86 per gallon. There is a milk surplus due to the recession.

Energy, which is used to transport, package and process foods, has fallen sharply from its 2008 high. Oil is down about 48% from a record $147 per barrel. Shipping, fuel and electricity account for nearly 10% of food costs.

Shoppers will see lower costs for a half pint of whipping cream, down 15 cents at $1.55, and a 12-pack of rolls, down 12 cents at $2.08. A 16-pound turkey will cost $18.65, a decrease of 3 cents per pound, or 48 cents per turkey.

A few items increased in price, including a 14-oz. package of cubed bread stuffing, up 8 cents at $2.65, and a 30-oz. can of pumpkin pie mix, which rose 11 cents to $2.45.

The Farm Bureau survey was first conducted in 1986. More than 200 volunteer shoppers from 35 states participated in this year's survey.

Farmers get 19 cents of each $1 spent on food, according to the U.S. Agriculture Department. The rest goes to shipping, processing, marketing and retailing.