Turkey costs are down by 6.1%.
However due to fowl flu (avian influenza), they need to have gone up. Affecting 494 herds in 16 states through the previous three years, fowl flu diminished flock dimension by 100 million. This month alone, the illness contaminated a whopping 300,000 birds. In consequence, on a provide and demand graph, the provision curve ought to have shifted to the left, elevated value, and decreased amount:
Nonetheless, there may be extra to the story.
Turkey Costs
Sure, through the previous 20 years, the fowl depend has dipped:
Nonetheless, constraining the leftward shift in our provide curve, farmers paid much less for his or her feed grain. After which, leaping to the demand facet of turkey markets, we see much less demand additional moderating the value of a turkey. If you’re the common turkey eater, you decreased your annual turkey consumption from 14.8 to 13.9 kilos due to different meats.
Fortunately, for us as economists, a provide and demand graph says all of it. With the lower in demand and provide, equilibrium value goes down:
Our Backside Line: Thanksgiving Dinner
Feeding 10, this week’s Thanksgiving Dinner will price $58.08, down 5% from final 12 months:
Explaining the above costs, the Wall Avenue Journal advised us what went up and down.
On the up checklist, we now have:
- contemporary cranberries +11.8%
- stuffing combine +8.2%
- dinner rolls +8.4%
On the identical time, we’ll spend much less on:
- frozen peas -8.1%
- pie crusts-2.9%
- pumpkin pie combine -6.5%
- candy potatoes -26.2%
- the turkey -6.1%
The place are we? Brought on by the 2022 Covid pop, we stay uncomfortable with increased meals costs:
My sources and extra: At all times useful, the Farm Bureau had its annual checklist of Thanksgiving meal costs and additionally the fowl flu saga. Subsequent, it was excellent to have discovered extra of the information in a WSJ article. And at last, particularly as a result of this 12 months Thanksgiving is unusally near the winter holidays, do check out this previous econlife put up.
The put up The Thriller of the Falling Turkey Costs appeared first on Econlife.
