Cost of Thanksgiving dinner slightly higher than last year

Rising demand for dairy products worldwide combined with a lack of frozen turkey storage will likely see Texans paying a bit more than last year to serve up a traditional Thanksgiving feast, according to the American Farm Bureau Federation's 22nd annual informal survey of the price of basic food items found on the Thanksgiving dinner table. That includes turkey, stuffing, cranberries, pumpkin pie and all the trimmings.

The average cost of this year's dinner for 10 is $42.26, a $4.16 price increase from last year's average of $38.10, AFBF reported.

"Despite the increase, however, our food remains affordable," Texas Farm Bureau President Kenneth Dierschke said. "When you consider that the average family pays $80 more a month in gasoline this year than they did last year for the same travel, I'd tend to think a $4 increase in the price of a turkey dinner isn't much to worry over," he said.

Those numbers are based on a recent Oil Price Information Services study that found fuel is becoming a greater concern to the average American because it is consuming a greater percentage of annual income -- as much as 13 percent of a family's disposable income in the nation's southern states.

"Even with food price increases consumers have noticed over the last year, food remains just 10 percent of the average American's budget. That 10 percent includes not only grocery items, but going out to eat as well," Dierschke said.

"We are blessed to live in a country where we have an abundance of home-grown food items, many of which are produced with pride by farmers and ranchers right here in the Lone Star State. And we should all use this time of Thanksgiving to make sure our farm families know they're appreciated."

Cost of a 16-pound turkey, at $17.63 or roughly $1.10 per pound, reflects an increase of 12 cents per pound, or a total of $1.93 per turkey compared to 2006, making it the largest contributor to the overall increase in the cost of the 2007 Thanksgiving dinner.

"The inventory of birds in cold storage is relatively small this year, and this has helped drive up the average retail turkey price," said Jim Sartwelle, an AFBF economist.

"The tremendous increase in energy costs for transportation and processing over the past year also is a key factor behind higher retail prices at the grocery store."

Other items showing a price increase this year include a gallon of whole milk, $3.88; a 30-ounce can of pumpkin pie mix, $2.13; three pounds of sweet potatoes, $3.08; two nine-inch pie shells, $2.08; a 12-ounce package of brown-and-serve rolls, $1.89; a half-pint of whipping cream, $1.56; and a 12-ounce package of fresh cranberries, $2.20.

A combined group of miscellaneous items, including coffee and ingredients necessary to prepare the meal (onions, eggs, sugar, flour, evaporated milk and butter) increased in price by 66 cents to $3.29.

"All of the dairy products included in the survey increased significantly in price over the past year due to skyrocketing world demand," Sartwelle said.

Items that decreased slightly in price this year include a 14-ounce package of cube stuffing, $2.40; and a relish tray of carrots and celery, 66 cents. A pound of green peas remained the same in price at $1.46. "Consumers can enjoy a wholesome, home-cooked turkey dinner for just over $4 per person -- less than a typical fast-food meal. That's an amazing deal, any way you slice it," Sartwelle said.