California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

Menu items for a “classic” Thanksgiving dinner including turkey, stuffing,
cranberries, pumpkin pie and all the basic trimmings will cost less this year,
according to the American Farm Bureau Federation, AFBF.

AFBF’s 24th annual informal price survey of classic items found on the
Thanksgiving Day dinner table indicates the average cost of this year’s feast
for 10 is $42.491, a $1.70 cents less from last year’s $44.61 price which was 
$2.35 price increase from 2007 year’s average price of $42.26 but significantly
up from 2006 total of $38.10.

The AFBF survey 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, all in quantities
sufficient to serve a family of 10.

The cost of a 16-pound turkey for 2009 is at $18.65 or roughly $1.16 per pound,
reflecting a decrease of 3 cents per pound. However, Milk was the largest contributor
to the lower cost at $2.86 for a gallon, a 92 cents reduction from last year

“Consistent with the retail food price declines seen throughout the year, consumers
will pay just a bit less for their Thanksgiving feast this year,” said Jim Sartwelle,
an AFBF economist. “Consumers are benefiting at the grocery store from significantly
lower energy prices and the effects of the economic slowdown. Again this year, the
cost per person for this special meal is less than a typical ‘value meal’ at a
fast-food outlet,” Sartwelle said.

Other items showing changes in prices this year were:
• A 12-oz. package of brown-n-serve rolls, decreased to $2.08;
• A 12-oz. package of fresh cranberries, decreased to $2.41;
• A 30-oz. can of pumpkin pie mix, increased to $2.34;
• Two 9-inch pie shells, increased to $2.34;
• A 14-oz. package of cubed bread stuffing, $2.65, increased from $2.57;
• A relish tray of carrots and celery, 72 cents;
• A half-pint of whipping cream, $1.55;
• One pound of green peas, $1.58; and,
• Three pounds of sweet potatoes, $3.12

A combined group of miscellaneous items, including coffee and ingredients necessary
to prepare the meal (onions, eggs, sugar, flour, evaporated milk and butter) dropped
in price by 19 cents to $2.50.

Identified by this year’s review, despite recent retail price increases, American
consumers have enjoyed relatively stable food costs over the years, particularly
when adjusted for inflation. This year’s average cost of $44.61 is equivalent to
$20.65 in 20-year inflation-adjusted dollars. The real dollar cost of the Thanksgiving
dinner has declined more than 8 percent since 1988.

The AFBF survey was first conducted in 1986. While Farm Bureau does not make any
statistical claims about the data, it is an informal gauge of price trends around
the nation. A total of 179 volunteer shoppers from 38 states participated in this
year’s survey. Farm Bureau’s survey menu has remained unchanged since 1986 to allow
for consistent price comparisons.

I am Tim Johnson and this has been the California Business Minute.