Families across the United States can expect to spend approximately 5% less on their Thanksgiving meals this year compared to 2023. According to the latest annual survey by the American Farm Bureau Federation (AFBF), the average cost for a Thanksgiving dinner for a family of ten is projected at $55.18, down from $58.08 last year and $61.17 in 2022.
A significant factor contributing to this decline is the falling price of turkeys. The AFBF reports that a typical 16-pound turkey will cost around $21.50, reflecting a noteworthy decrease of 16.3% from the previous year. This reduction is partly due to retail strategies that utilize turkeys as “loss leaders.” By selling turkeys at reduced prices, grocery chains aim to attract more customers, anticipating that shoppers will purchase additional items at regular prices.
Analysis from Purdue University highlights that while wholesale turkey prices are still on the rise, many retailers are absorbing these costs rather than passing them onto consumers. The analysis states, “Grocery retailers are competing for customers, and…some retailers offer significant discounts on turkeys to attract customers.” For instance, Walmart is currently selling whole turkeys for $0.98 per pound, considerably less than the expected average price.
Other traditional Thanksgiving staples have also seen price changes. Costs for items such as stuffing mix, pie crusts, dinner rolls, and cranberries have decreased, while prices for frozen peas, milk, sweet potatoes, and vegetable trays have increased. Despite these fluctuations, the overall cost of food at home rose by 2.7% in the twelve months ending September 2024, according to the latest Consumer Price Index.
Economist Faith Parum from the AFBF noted the ongoing challenges farmers face as they work to rebuild turkey flocks that were previously devastated by avian influenza. “It’s encouraging to see some relief in the price of turkeys, as it is typically the most expensive part of the meal,” Parum stated. She explained that a fall in overall demand has also contributed to the current pricing situation, ensuring that turkey remains an affordable option for families during the holiday season.
The AFBF survey was conducted by volunteer shoppers across all 50 states and Puerto Rico, who sought the best prices without utilizing special coupons or combined purchase deals. The findings reflect a broader trend in grocery pricing, as retailers strive to entice customers in a competitive market.
With these adjustments, many families can look forward to a more affordable Thanksgiving dinner this year, allowing them to focus on celebrating the holiday without the added stress of rising food costs.
