(Indianapolis, IN) – Hoosiers gathering around the table for Thanksgiving dinner won’t see much change in the cost of their holiday meal.
Indiana Farm Bureau’s annual Thanksgiving market basket survey shows Hoosiers are paying an average of $53.62 for Thanksgiving dinner for 10 people, or $5.36 per person – an increase of 0.6%, or 3 cents per person, from last year.
From a national perspective, Indiana’s market basket price is approximately 3% lower, 16 cents less, than the U.S. average price of $55.18, or $5.81 per person.
According to the latest U.S. Bureau of Labor Statistics Consumer Price Index, food at home prices have increased by 2.7% year-over-year, mirroring Thanksgiving food costs in Indiana and highlighting the impacts of supply and demand.
According to INFB Chief Economist Dr. Todd Davis, although overall food inflation has decreased, a driver of the marginal increase in price of this year’s basket is the increase in price of some produce, including carrots and celery for a veggie tray (43 cent increase), sweet potatoes (30 cent increase), pumpkin pie filling (24 cent increase) and peas (14 cent increase).
“Fresh produce markets can be very volatile, and many of these items saw an increase in wholesale and retail prices nationally,” Dr. Davis explained. “Those retail prices reflect an increase in factors beyond the farm gate, including transportation, labor, fuel, packaging and more that contribute to the overall increased cost of the product.”
However, many items in the market basket are less expensive for Hoosiers compared to last year, most notably cranberries and stuffing. Rolls, whole milk, whipping cream and the star of the Thanksgiving table, the turkey, were all slightly less than last year. Shoppers can expect to pay approximately $1.32 per pound for a whole turkey in Indiana, or $21.09 for a 16-pound bird, which is about 2% less expensive than the national average of $21.50.
Indiana ranks fourth in turkey production, with more than 8.4 million turkeys in the state, according to the latest U.S. Department of Agriculture’s (USDA) National Agricultural Statistics Service.
“It is important to remember that the turkey accounts for about 39% of the Thanksgiving dinner,” said Dr. Davis. “And with Indiana in the heart of turkey production and retail turkey prices down, it isn’t surprising that the turkey is more affordable this year, specifically here in Indiana. The concentration of turkey production in this region provides lower processing and marketing costs, which gets the turkey from the farm to the Thanksgiving table efficiently.
Additionally, frozen turkey has become more of a seasonal item that has a higher supply during the holiday season, making it a bit more affordable.”
In addition to the turkey, stuffing, pumpkin pie filling, sweet potatoes, rolls, peas, whole milk and whipping cream are all less expensive than the national average. Only pie shells, cranberries and the veggie tray are more expensive in Indiana this year than they are nationally.
According to the USDA, just 15.9 cents of every retail food dollar can be attributed to farm production, after accounting for input costs. Using this figure, the farmer’s share of this $53.62 market basket would be approximately $8.53. The rest is for food processing, packaging, transportation, wholesale and retail distribution, and food service preparation.
“Farmers are continuously finding ways to be agile and streamline their operation to produce healthy food families depend on for a holiday meal, despite key issues such as rising input and labor costs,” said Janis Highley, INFB 2nd vice president.
“Many consumers don’t realize that farmers are price-takers, just like them. We don’t set the prices, and the amount farmers are being paid doesn’t cover the increase of their input expenses.”
The total market basket price of $53.62 includes a 16-pound turkey, stuffing, sweet potatoes, rolls, peas, a carrot and celery veggie tray, whole milk, cranberries, whipping cream, ingredients for pumpkin pie and miscellaneous baking items.
The INFB Thanksgiving market basket survey was conducted in early November by volunteer shoppers across the state who collected prices on specific food items from one of their local grocery stores before most holiday sales went into effect.
Volunteer shoppers were asked to look for the best possible prices, without taking advantage of special promotional coupons or purchase deals. Indiana’s survey is completed in conjunction with a national survey administered by the American Farm Bureau Federation.
More details about AFBF’s national Thanksgiving market basket results can be found here.
(Indiana Farm Bureau press release)
