Thanksgiving turkey prices rise 12% for producers despite lower holiday food costs, report finds

# Thanksgiving Turkey Prices Face Pressure as Rising Farm Costs Challenge Producers

American families preparing for Thanksgiving could encounter higher turkey prices this holiday season as rising production expenses place additional pressure on poultry farmers. Although some industry estimates suggest that overall Thanksgiving food costs may decline, smaller turkey producers are facing higher operating expenses and adjusting their prices to remain financially sustainable.

According to a Fox Business report by reporter Lydia Hu, wholesale turkey prices across the United States have increased by 12% this year. The rising cost of animal feed, fuel and other essential supplies has created challenges for family-owned farms, including DiPaola Turkey Farms.

Farm owner Artie DiPaola said the ingredients used to feed turkeys have become considerably more expensive. Corn and soybean, two major components of turkey feed, have experienced price increases of approximately 10% to 12%, adding to the farm's production expenses.

The increase in operating costs has forced DiPaola Turkey Farms to raise its prices by 30 cents per pound. DiPaola said the decision was difficult because the business has maintained long-standing relationships with its customers. Passing additional expenses on to loyal buyers has been an emotional challenge for the family-owned operation.

He explained that production costs have continued to rise across different areas of the business, leaving the farm with limited options to manage the financial pressure. Despite the price adjustment, DiPaola said stronger sales have helped the business offset some of the additional expenses.

The Fox Business report also highlighted how smaller producers can benefit from established customer relationships. Buyers who value local farms and their products may continue purchasing from them even when prices increase, helping family businesses manage difficult market conditions.

However, broader Thanksgiving food price estimates present a somewhat different picture of the market. The Wells Fargo Agri-Food Institute's annual Thanksgiving report found that six of the 10 food categories examined have become less expensive compared with last year.

Turkey prices in the report declined by 0.5%, while cranberries recorded a 6.6% decrease. Frozen vegetables also became cheaper, falling 4.2%. Stuffing, dinner rolls and whipped cream were among the other items that experienced price reductions.

Some Thanksgiving staples, however, recorded modest increases. Salad mix prices remained unchanged, while pumpkin pie increased by 2.5%, gravy mix rose by 2.2% and mashed potatoes became 1.3% more expensive.

The American Farm Bureau Federation has also pointed to improving turkey production as a factor behind lower prices in parts of the market. Senior Economist Veronica Nigh said a significant reduction in avian influenza cases had helped increase production in time for the holiday season, contributing to lower turkey prices.

The Wells Fargo Agri-Food Institute expects the overall cost of Thanksgiving food to fall further, estimating a 9% decline compared with the same period last year. Its projections suggest that households could experience some relief despite continuing price pressures in individual food categories.

Nevertheless, not every grocery item has become more affordable. Ham, canned green beans, russet potatoes and beer remain more expensive than they were in 2022, demonstrating that food prices continue to vary across products.

The institute estimates that a traditional Thanksgiving meal for 10 people will cost approximately $78.93, or about $7.89 per person. The contrasting figures highlight the difference between broader grocery-market trends and the individual challenges faced by farmers dealing with higher production costs.

While national estimates indicate that many Thanksgiving staples may be cheaper this year, shoppers purchasing from smaller farms could still encounter higher turkey prices. The final cost will depend on the producer, location, supply conditions and the expenses involved in bringing the birds to market.