Indiana Ag Connection - 2009 Thanksgiving Dinner is More Affordable for Hoosiers

Indiana Ag News Headlines

2009 Thanksgiving Dinner is More Affordable for Hoosiers
Indiana Ag Connection - 11/23/2009

For the third year in a row, the cost of a traditional Thanksgiving dinner has decreased for Hoosiers, according to an informal statewide survey of grocery store prices coordinated by Indiana Farm Bureau.

Indiana Farm Bureau's annual survey of local prices for basic food items found on the Thanksgiving Day dinner table showed that the average cost of this year's dinner for 10 is $43.93, down $1.64 from last year's average of $45.57 and $3.27 from 2007's average of $47.63. A nationwide survey conducted by the American Farm Bureau Federation (Indiana's data is factored into the national survey) showed an average total cost of $42.92, a $1.70 decrease from last year.

Neither the national nor Indiana surveys is scientific. They are instead snapshots of prices on basic items during a given time period.

In Indiana, 22 volunteer shoppers picked a grocery store in their area and collected prices from actual items on the official list. They were asked to look for the best possible prices but not use promotional coupons or purchase deals such as "Spend $50 and receive a free turkey." Nationally, more than 200 shoppers in 35 states participated.

"Americans are blessed with abundance of safe and affordable food," said IFB Second Vice President Isabella Chism. "As we celebrate Thanksgiving, it's appropriate to remember the significant contribution that Hoosier farmers make to our nation's wellbeing."

The Thanksgiving shopping list includes turkey, stuffing, sweet potatoes, rolls with butter, peas, cranberries, a relish tray of carrots and celery, pumpkin pie with whipped cream, as well as coffee and milk, all in quantities sufficient to serve a family of 10.

Because turkey is by far the largest ticket item, the cost of the total meal is usually driven by the price of the bird. On the Indiana survey, the cost of turkey dropped from $1.33 per pound to $1.26 per pound, making this year's average price for a 16-pound bird $20.16.

While the 7 cents/pound drop is good news for Hoosiers, the state total is still higher than the AFBF national survey, which showed an average price of $1.16 per pound ($18.65 for a 16-pound bird), down 3 cents per pound.

"Consistent with the retail food price declines seen throughout the year, consumers will pay just a bit less for their Thanksgiving feast this year," said Jim Sartwelle, an economist with the American Farm Bureau Federation. "Consumers are benefiting at the grocery store from significantly lower energy prices and the effects of the economic slowdown. Again this year, the cost per person for this special meal is less than a typical 'value meal' at a fast-food outlet," Sartwelle added.

Many grocery stores offer specials or coupons on turkey to entice consumers into the store, hoping they will do the rest of their holiday grocery shopping there as well. These special deals are not reflected in the Farm Bureau survey. So, depending on the individual retail store's pricing decision, consumers may be paying even less for turkey this year than last.

Half of the items on the Indiana shopping list decreased from last year. Aside from turkey, by far the biggest decrease was for a gallon of whole milk, which dropped by 81 cents to $2.65 per gallon.

Other items showing a decrease were a dozen rolls, down 5 cents to $1.80; a 1-pound relish tray of carrots and celery, which dropped by 5 cents to 78 cents; and a 14-ounce package of stuffing, which dropped by 2 cents to $2.41. A combined group of miscellaneous items including coffee and ingredients necessary to prepare the meal (onions, eggs, sugar, flour, evaporated milk and butter) dropped by 19 cents to $2.50.

The remaining items increased slightly in price: a 16-ounce package of frozen peas, which rose by 20 cents to $1.63; 3 pounds of sweet potatoes, which increased by 15 cents to $3.12; a 12-ounce package of fresh cranberries, which rose by 7 cents to $2.50; and one-half pint of whipping cream, which rose by 5 cents to $1.77.

Two highly processed items -- canned pumpkin pie filling, up 2 cents to $2.33; and pie shells, up 12 cents to $2.28 -- increased in price. Retail prices for highly processed foods such as these, which include costs for transportation and packaging, have been slower to decline compared to minimally processed foods like milk and whole turkeys, according to the American Farm Bureau Federation.

The AFBF survey was first conducted in 1986. Indiana began participating in 1993. This year's national average cost of $42.91 is equivalent to $20.05 in inflation-adjusted dollars. While Farm Bureau does not make any statistical claims about the data, it is a useful gauge of price trends around the nation.