Purdue News

November 7, 1997

Give thanks for lower November food prices

This Thanksgiving, the turkey, the apples in your pie and the butter on your potatoes should cost you less, said Purdue agricultural economists Joe Uhl and Lee Schrader. Potatoes and cranberries should cost no more than last year. You'll pay more for the coffee and the salad, however.

Last fall, U.S. food prices rose because of small harvests, strong export markets and weather problems, Schrader said. In contrast, he says, large harvests, more stable world food supplies and moderate inflation rates kept prices down in 1997.

Turkey supplies are high, he said. Stocks of birds ready for market on Oct. 1 were about 7 percent higher than last year. Large supplies and low demand have brought wholesale prices below where they were a year ago. Current prices are so low, in fact, that they don't cover production costs.

You should be able to take home a turkey for less than the retailer's cost (or free with additional purchase), Schrader said. As usual, you'll probably see whole-turkey specials on specific sizes or brands right next to birds selling for more than $1 a pound. If you don't want a whole bird, you'll probably find this year's prices lower than last year's, but you're less likely to get a deep discount.

Overall food prices this year are rising at a 1.7 percent annual rate compared to last year's 3.3 percent, Uhl said. Many foods, including oranges, butter, eggs, apples, dairy products and bacon, cost less than last year. Cranberries, potatoes and sweet potatoes are plentiful and shouldn't cost more. In fact, the cranberry harvest is close to a record after two years of disappointing crops, he said.

Consumers can expect continued moderate food price increases into 1998, Uhl said.

CONTACTS: Uhl (765) 494-4219, e-mail Uhl@agecon.purdue.edu, and Schrader (765) 494-4302, e-mail, schrader@agecon.purdue.edu

Compiled by Chris Sigurdson, (765) 494-8415; E-mail, sig@ecn.purdue.edu
Purdue News Service: (765) 494-2096; e-mail, purduenews@purdue.edu

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