Thanksgiving Food Prices Increase as Supply Chain Costs Rise

1 BUSINESS

Business News - Opportunities - Reviews

 

 

The price rises are hitting in a year when Covid vaccines and loosened health guidelines point to more and bigger holiday celebrations than in 2020. There will be fewer turkeys on the market, but demand is expected to be higher, particularly for smaller birds and for more carefully raised and processed turkeys.

Kroger executives are anticipating more of what marketers call the “premiumization” of Thanksgiving ingredients, with many cooks shopping for turkeys that are fresh, organic, free-range or processed in ways that elevate them beyond an inexpensive frozen bird.

“Customers aren’t necessarily going out to restaurants, so they are upping their game in terms of products,” said Stuart Aitken, the company’s chief merchant.

Still, plenty of households will be looking for bargain turkeys and trying to stretch their food budget.

“I can buy that this will be the most expensive Thanksgiving ever, but there’s an income-inequality story here that matters a lot,” said Trey Malone, an agricultural economist at Michigan State University. “The rich are going to be spending more on Thanksgiving than they have ever spent before, but not everyone is going to be able to do that.”

Packaged dinner rolls will be pricier because the cost of almost all of the ingredients that commercial bakers use has gone up. Canned cranberry sauce will cost more because domestic steel plants have yet to catch up after pandemic shutdowns, and China is limiting steel production to reduce carbon emissions. As a result, steel prices have remained more than 200 percent higher than they were before the pandemic.

The heftier price tag on that turkey-friendly California pinot noir reflects a 25 percent surge in energy costs, expensive delays related to labor shortages and the cost of glass bottles stuck on cargo ships coming from China. The average end-to-end shipping time from China to the United States was 73 days in September, up from 40 days two years earlier, said Katheryn Russ, a professor of economics at the University of California at Davis. And shipping expenses, she said, have tripled.

1 BUSINESS

Business News - Opportunities - Reviews

 

 

Leave a Reply