Topline
The price of a frozen whole-body turkey is 20.2% higher than last year and about 35% more than the prior 3-year average, according to U.S. Department of Agriculture data released Monday, a further blow to American consumers as “meatflation” hits next week’s Thanksgiving holiday.
American consumers are encountering higher than normal turkey prices at grocery stores nationwide. … [+]
Key Facts
The average price for fresh whole turkeys and frozen whole turkeys are $1.44 per pound and $1.35 per pound, respectively, both modest decreases from last week but still at all-time high levels, per the USDA report.
The amount of live turkeys slaughtered under federal inspection is down 6% from 2020 to 4.4 million year-to-date, the USDA said, contributing to availability issues in stores nationwide.
Turkeys were 61.1% out of stock at the end of October, a 30-percent increase from the same time last year, according to IRI data, and turkey supplier Butterball told the Wall Street Journal that “labor and supply challenges” are behind the shortage.
Key Background
Supply chain bottlenecks, caused largely by labor shortages along the chain and skyrocketing demand as the U.S. emerges from the worst of the pandemic, have contributed to near-record inflation. Data released from the Bureau of Labor and Statistics last week found that the price of meat, poultry, fish and eggs rose 11.9% in October 2021 compared to October 2020, the highest jump since 1990. The price of whole turkeys was not listed in the Bureau of Labor Statistics report, but turkey’s 20% jump in price is similar to the 24.9% price increase for uncooked beef roasts.
What To Watch For
Later this week, the American Farm Bureau will release its annual survey on the cost of a Thanksgiving dinner, based on the prices of classic ingredients like turkey and pumpkin pie mix, and the bill could be at an all-time high for Thanksgiving hosts. University of San Diego School of Business professor Daniel Roccato told Bloomberg, “Without a doubt, due to the highest inflation in 30 years, the tab for this Thanksgiving dinner will be the highest consumers have seen.”
Tangent
Two turkeys from Jasper, Indiana, will be saved from the fate of their 4.3 million slaughtered brethren during the annual White House pardoning that President Joe Biden will oversee Friday.
Further Reading
‘Meatflation’ Worsens As Prices Rise At Fastest Rate In 30 Years In October (Forbes)
Thanksgiving’s Price Tag Packs on the Pounds (Bloomberg)
Thanksgiving Dinner Staples Are Low in Stock Thanks to Supply-Chain Issues (Wall Street Journal)
