Cost Of Thanksgiving Meal To Be Higher This Year
Largest Price Increases Among Dairy Products
Posted: 9:30 am EST November 22, 2004Updated: 11:46 am EST November 22, 2004
WEST LAFAYETTE, Ind. -- One of the most anticipated meals of the year, Thanksgiving dinner, might cost a little more this year.Corinne Alexander, assistant professor of agricultural economics at Purdue University, said food shoppers will see higher prices on many on many of the holiday favorites such as beef, dairy and fruit products.
"Food and beverage prices are increasing at a rate of 3.3 percent this year, compared to last year's rise of 2.5 percent," Alexander said. This rise in costs is a result of higher energy prices and lower production levels, she said."Dairy and cattle prices are the major reason for food price increases this year," Alexander said.The largest price increases are among dairy products, with butter prices up 28 percent and milk up 8 percent from 2003, Alexander said.The price of beef will depend on the cut, according to Alexander. Round roast costs 19 percent more, chuck roast costs 13 percent more, round steak 10 percent more and ground beef only 5 percent more than last year."These record-high dairy and cattle prices are the result of reduced supplies and continued strong demand, possibly due to the onslaught of high protein diets," she said. Alexander said the hurricanes in Florida and severe storms in California will mean "smaller supplies and generally higher prices" for fruits and vegetables.Alexander said Florida orange production will be 27 percent lower than last year, tangelo production will be 28 percent lower and grapefruit production as much as 63 percent lower.Due to a shorter supply of holiday fruit this year, shoppers can expect to see higher prices for citrus fruit.Also, severe storms in California, following the hurricanes in Florida, damaged crops like fresh tomatoes and bell peppers, leading to higher prices for many fresh vegetables, she said. Alexander said increased exports of turkeys have reduced the domestic supply, putting upward pressure on prices. But she said grocery retailers usually discount turkeys to attract customers. A few other traditional Thanksgiving favorites should be reasonably priced.Alexander said cranberry and sweet potato supplies are up, so prices for them should stay down. And bread for stuffing has actually dropped in price this year.
HOLIDAY FOOD |
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- November 18, 2004: This Thanksgiving, Beer Is For The Bird
- November 18, 2004: Waiting For The Bird
- November 16, 2004: Tackling Turkey Troubles And More
- November 11, 2004: Quest For The Thanksgiving Soda
Distributed by Internet Broadcasting Systems, Inc. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.














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