Purdue News

November 10, 2000 Thanksgiving food prices higher despite lower farm prices WEST LAFAYETTE, Ind. – Families may pay a little more for their Thanksgiving dinners this year, but careful shoppers can still gobble up some savings, according to a Purdue University agricultural economist. Even though food supplies are adequate and farm prices are low, retail food prices are slightly higher. According to Professor Joe Uhl, rising energy and transportation costs are driving up food prices. Due to competitive pricing by grocers, higher wholesale turkey prices may not translate into higher prices at the checkout counter. "Even though the retail price of the traditional turkey will be higher this year, customers that buy during frequent sales and specials, won't see them," Uhl said. With new food stores competing for customers, there will be plenty of sales on holiday turkeys and trimmings, according to Uhl. Overall, retail food prices are running about 2.5 percent higher than last year. This means an average family of four, spending $163 a week, pays $4 more for food per week. Retail food prices increased 2.1 percent in 1999. Even so, Uhl says there is much to be thankful for. The American consumer spends only about 10.5 percent of their income on food. According to Uhl, this is the lowest percentage yet for this country and the lowest in the world. Farmers receive 20 cents for every dollar spent on food. Individual holiday food trends include: • Abundant milk supplies are keeping prices low. Retail prices remain at the same level as last year, while butter and cheese prices are below last year's averages. Eggs are 5 percent cheaper than last year. • Bad weather reduced the cranberry crop 8 percent, but the price should remain the same due to large inventories from last year. • Pumpkin pie might be made with smaller pumpkins and cheaper baking supplies this year. • This Thanksgiving, mashed potatoes will be abundant due to a 3 percent increase in white potato acreage. Sweet potato fans can indulge in the largest sweet potato harvest since 1985. Source: Joe Uhl, (765) 494-4219, uhl@purdue.edu Writer: Theresa Lawton, (765) 494-8402, news_students@aes.purdue.edu Purdue News Service: (765) 494-2096; purduenews@purdue.edu To the Purdue News and Photos Page