Charlotte Observer, NC
11-21-07
Holiday feast costs more this year
JILL COLEY
Charleston, S.C. Post and Courier
Leslie and Dwaine Holt shopped for their Thanksgiving trimmings Monday
afternoon. As their year-old grandson sat in the grocery cart playing with an
orange, the Holts kept their eyes on the grocery bill.
"I think the turkeys are more expensive, but I expect to spend about the same,"
said Leslie Holt, shopping list in hand.
The Holts' perception is on par with what the American Farm Bureau Federation
reported last week in its annual Thanksgiving dinner survey.
Traditional menu items cost more this year but remain affordable, the federation
found. The national average cost of a basic holiday dinner for 10 is $42.26, a
$4.16 increase from last year's $38.10. The nearly 11 percent rise is the largest
in a decade.
The Southern regional average is $41.68, the federation said. A total of 151
volunteers from 31 states, including South Carolina, shopped for the survey,
which has been conducted annually since 1986.
Participants' 11-item shopping list included items such as turkey, stuffing, sweet
potatoes, rolls with butter, peas and cranberries. Almost half of that $4.16
increase is the turkey's fault. At about $1.10 per pound, a 16-pound turkey's
$17.63 cost is about 12 cents more per pound than last year.
Jim Sartwelle, an economist with the federation, said, "The inventory of birds in
cold storage is relatively small this year. That has helped drive up the average
retail turkey price."
Sartwelle also blames the increase in energy costs for transportation and
processing over the past year.
Although gasoline is a component of meat prices, the American Meat Institute
points to increased demand for corn to make ethanol. The price for corn has
doubled in the past 18 months, the institute said.
An Iowa State University study earlier this year estimated that increased corn
prices, driven up by U.S. ethanol production, have increased U.S. retail food
prices by $14 billion annually.
Despite the spike in actual prices, when adjusted for inflation, this year's average
cost of $42.26 is the equivalent of $20.46 in 1986. That year, the actual cost was
$28.74. That means the real dollar cost of Thanksgiving dinner has declined 29
percent in the past 20 years.
Another bright spot is that South Carolinians now can save 3 percent in sales
taxes because the Legislature abolished the levy on unprepared foods. That
equals a $1.25 savings for an average Thanksgiving in the South. However,
consumers still must pay local-option sales taxes that counties and municipalities
assess.
But for some, no matter how you spin the numbers, Thanksgiving will be beyond
their reach this year without help.
South Carolina ranked second in the nation for prevalence of households with
difficulty providing enough food for al