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Giving Thanks: Turkey Dinner Price Falls 4%
Tuesday November 17, 11:20 am ET
ByJoe Mont,

BOSTON (TheStreet) -- The price of food has dropped, and the proof is in the pudding. Or, more appropriately, in the stuffing.

Since 1986, the American Farm Bureau has tracked food prices by analyzing the cost of a Thanksgiving Day dinner for 10 people. Though intended as an informal gauge of price trends across the nation, this year's tally supports reports that have found the cost of grocery items have declined in recent months as the recession reduced commodity prices and led to higher unemployment, sapping consumer demand.

The survey's shopping list includes turkey, bread stuffing, sweet potatoes, rolls with butter, peas, cranberries, a relish tray of carrots and celery, pumpkin pie with whipped cream, and beverages of coffee and milk. The average cost of the meal fell 4% to $42.91 this year, a decrease of $1.70 from last year's $44.61.

To develop the survey, volunteer shoppers were asked to look for the best possible prices, without taking advantage of special promotional coupons or purchase deals, such as spending $50 and receiving a free turkey. More than 200 volunteer shoppers from 35 states participated. The Farm Bureau's menu has remained unchanged.

Though prices may vary by region, many supermarket chains -- among them Kroger, Safeway and Winn-Dixie -- will likely feature near-average prices. Consumers could expect to pay more at specialty and organic food stores such as Whole Foods Market. Thanksgiving meals for up to 10 people are available at many supermarkets and take-out restaurants for $50 to $75. This year, even Wal-Mart is drumming up business with drumsticks, offering a six-person meal for $20.

According to the survey, the cost of a 16-pound turkey, at $18.65 or $1.16 a pound, reflects a decrease of 3 cents a pound, a total of 44 cents per turkey.

Milk, at $2.86 per gallon, dropped 92 cents and was the largest contributor to the overall decrease in the cost of the 2009 Thanksgiving dinner.

Other items showing a price decrease this year were: a half pint of whipping cream, $1.55; a dozen brown-and-serve rolls, $2.08; a 1-pound relish tray of carrots and celery, 72 cents; and a 12-ounce package of fresh cranberries, $2.41. A combined group of miscellaneous items, including coffee and ingredients necessary to prepare the meal (onions, eggs, sugar, flour, evaporated milk and butter) also dropped in price, to $2.50.

Items that increased slightly (less than 5%) in price this year were: a 14-oz. package of cubed bread stuffing, $2.65; two 9-inch pie shells, $2.34; and a 30-ounce can of pumpkin pie mix, $2.45.

Two items, green peas and sweet potatoes, stayed the same in price at $1.58 for one pound and $3.12 for three pounds, respectively.

"Food is still relatively affordable," says Stefphanie Gambrell, a domestic policy economist at AFBF. "Even in these down economic times, there is still a way to save some money. When you look at a meal for 10, it comes out to about $4.29 per person. That is still a lot cheaper than you can get a meal at most fast-food restaurants."

-- Reported by Joe Mont in Boston.


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