Americans brace for a costly Thanksgiving this year, with increases in the price of turkey, potatoes, stuffing, canned pumpkin and more. The U.S. government estimates food prices will be up 9.5% to 10.5% this year.
The U.S. government estimates food prices will be up 9.5% to 10.5% this year; historically, they've risen only 2% annually.
Wholesale turkey prices are at record highs after a difficult year for U.S. flocks. A particularly deadly strain of avian flu — first reported in February on an Indiana turkey farm — has wiped out 49 million turkeys and other poultry in 46 states this year, according to the U.S. Centers for Disease Control.
And not every producer was equally affected. Butterball — which supplies around one-third of Thanksgiving turkeys — said avian flu impacted only about 1% of its production because of security measures it put in place after the last big bout of flu in 2015. Egg prices would have been higher even without the flu, Anderson said, because of the rising cost of the corn and soybean meal used for chicken feed. Ukraine is normally a major exporter of corn, and the loss of that supply has caused global prices to soar.
Craig Carlson, the CEO of Chicago-based Carlson Produce Consulting, said frost and a wet spring severely stunted potato growth this year. Growers also raised prices to compensate for the higher cost of seeds, fertilizer, diesel fuel and machinery. Production costs are up as much as 35% for some growers this year, an increase they can’t always recoup, Carlson said.
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