California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

The ingredients for the typical Thanksgiving dinner this year will cost more than last,
as surveyed by the American Farm Bureau Federation. The national average price of
the basic items for a dinner for 10 is $42.26, a $4.16 price increase from last year’s
average of $38.10, according to the Farm Bureau’s survey.

The reason behind this increase is due to two factors. The inventory of birds in cold
storage is relatively small this year which has increased prices. The increase in energy
costs for transportation and processing over the past year is also a factor behind higher
retail prices.

For example, the cost of a 16-pound turkey, at $17.63 or roughly $1.10 per pound, reflects
an increase of 12 cents per pound, or a total of $1.93 per turkey compared to 2006. Other
items showing a price increase this year included: a gallon of whole milk, $3.88; a 30-oz.
can of pumpkin pie mix, $2.13; three pounds of sweet potatoes, $3.08; two 9-inch pie
shells, $2.08; a 12-oz. package of brown-n-serve rolls, $1.89; a half-pint of whipping
cream, $1.56; and a 12-oz. package of fresh cranberries, $2.20. A combined group of
miscellaneous items, including coffee and ingredients necessary to prepare the meal
(onions, eggs, sugar, flour, evaporated milk and butter) increased in price by 66 cents
to $3.29. Two items decreased slightly in price this year: a 14-oz. package of cube stuffing,
$2.40, and a relish tray of carrots and celery, 66 cents. A pound of green peas remained the
same in price at $1.46.

In 1986, the same ingredients cost an average of $28.74, but this year’s average cost is
$42.26 and that ain’t no jive- turkey. Oh well, Happy Thanksgiving

I am Tim Johnson and this has been the California Business Minute.