CALIFORNIA BUSINESS MINUTE
Thanksgiving
11-27-08
Hi, I am Tim Johnson and welcome to the California Business Minute.
Menu items for a classic Thanksgiving dinner including turkey, stuffing, cranberries,
pumpkin pie and all the basic trimmings will cost more this year, according to the
American Farm Bureau Federation, AFBF.
AFBFs 23rd annual informal price survey of classic items found on the Thanksgiving Day
dinner table indicates the average cost of this years feast for 10 is $44.61, a $2.35 price
increase from last years average of $42.26 but significantly up from 2006 total of $38.10.
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.
The cost of a 16-pound turkey, at $19.09 or roughly $1.19 per pound, reflects an increase
of 9 cents per pound, or a total of $1.46 per turkey compared to 2007. This is the largest
contributor to the overall increase in the cost of the 2008 Thanksgiving dinner.
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, says Jim Sartwelle, an AFBF economist. Despite that, the components of this classic
Thanksgiving dinner cost less compared to 1988 when the effects of inflation are removed.
Even at these slightly higher prices, the cost per person for this special meal remains lower
than what Americans pay for most value meals at fast-food outlets.
Other items showing a price increase this year were:
A 12-oz. package of brown-n-serve rolls, $2.20;
A 12-oz. package of fresh cranberries, $2.46;
A 30-oz. can of pumpkin pie mix, $2.34;
Two 9-inch pie shells, $2.26;
A 14-oz. package of cubed bread stuffing, $2.57;
A relish tray of carrots and celery, 82 cents;
A half-pint of whipping cream, $1.70;
One pound of green peas, $1.58; and,
Three pounds of sweet potatoes, $3.12.
A combined group of miscellaneous items, including coffee and ingredients necessary to prepare
the meal (onions, eggs, sugar, flour, evaporated milk and butter) dropped in price by 60 cents to
$2.69. A gallon of whole milk dropped 10 cents to $3.78.
Identified by this years review, despite recent retail price increases, American consumers have
enjoyed relatively stable food costs over the years, particularly when adjusted for inflation. This
years average cost of $44.61 is equivalent to $20.65 in 20-year inflation-adjusted dollars. The real
dollar cost of the Thanksgiving dinner has declined more than 8 percent since 1988.
The AFBF survey was first conducted in 1986. While Farm Bureau does not make any statistical
claims about the data, it is an informal gauge of price trends around the nation. A total of 179
volunteer shoppers from 38 states participated in this years survey. Farm Bureaus survey menu
has remained unchanged since 1986 to allow for consistent price comparisons.
I am Tim Johnson and this has been the California Business Minute.
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