Christmas Turkey Prices Per Pound in 2022
For the best turkey pricing, most retailers demand a grocery purchase. Consider first where you conduct the most of your shopping when deciding where to purchase your turkey. The majority of retailers are giving a good deal off a turkey, but only if you buy additional groceries there.
You’re not alone if you are worried about rising turkey prices per pound this holiday season. Various factors are to blame, from the cost of production to supply chain problems to labor shortages. Other issues include the rising price of cheese and butter. But the main reason for the price rise is the lack of fresh turkeys. According to USDA data, the average price of an 8- to 16-pound frozen turkey in 2020 was $1.13 per pound. For 2022, the average price is $1.40 per pound.
Cost of production
The cost of raising turkeys has increased over the past few years and is projected to continue increasing in the coming years. Rising grain prices, a rise in the cost of diesel, and increased regional corn prices are driving up commercial production costs. These costs will likely be passed on to consumers.
According to the U.S. Department of Agriculture, turkey production will be at its lowest level in more than 10 years, a 5% decline from 2012. In addition, inventory levels of turkey are low compared to last year, and a shrinking cold storage system has increased the price of frozen whole hens. As a result, total hen turkey prices will be up to 23% higher in 2022 than they are today.
Turkey meat is widely used in a variety of products. It is also a healthy source of protein, and its consumption has grown significantly since the 1970s. Turkey is now grown on 2,500 farms throughout the U.S., many of which are family farms. The National Turkey Federation is committed to supporting the industry. The most common domestic breed of turkey is the Broad-breasted White, which is grown for its rich breast and lean thighs. There are also heritage turkey breeds, which are bred for specific niche markets.
Turkey’s imports grew year-over-year, driven by increased imports from France, Germany, and China. Other significant exports included Iron and steel, Plastics and articles, Chemicals, and Vehicles.
Supply chain issues
A shortage of workers is causing several supply chain issues and affecting the fresh turkey market. Because of this shortage, turkeys are not being picked up in time and are delayed in arriving at processing plants. This impacts the price of turkeys for consumers. Additionally, labor shortages are affecting port unloading delays.
As a result, retailers are trying to plan. While Thanksgiving is traditionally a break-even week for food retailers, increased demand for fresh turkeys has affected the pricing for Thanksgiving ingredients. As a result, many people will spend a bit more on this year’s turkeys than last year.
There are several reasons why the price of turkeys will be higher this year than in years past. A shortage of labor and feed is affecting the supply chain, forcing producers to charge more. In addition, Turkey farmers are struggling to pay more for inputs, like feed and labor. Retailers are working to create special deals for frozen whole turkeys, which are less expensive.
Thanksgiving is fast approaching, and families will return to their Thanksgiving traditions. This means the demand for mid-sized turkeys is set to increase. Also, according to a survey by Jennie-O, half of the respondents plan to use video calling or Zoom-type family events for a holiday.
The turkey supply chain is the link between turkey farmers and retailers. Farmers, logistics carriers, and processors must coordinate to ensure the production of turkeys is timely and meets the demand. Farmers must carefully plan the incubation and raising of turkey eggs. Additionally, carriers must have a suitable refrigerated transport capacity. Lastly, retailers must ensure that turkeys are delivered on a timetable.
The shortage of labor is a concern in the turkey industry. With fewer workers to harvest and process turkeys, supply chains are suffering, and prices are rising. According to the U.S. Department of Agriculture, fresh turkey production will be lower this year than last. But one turkey farmer is optimistic about the future. Ron Kardel, the owner of K3 Company, recommends buying your turkey early.
Increase in cheese and butter prices
The USDA reports that cheese and butter prices in the U.S. are rising, and the country’s cheese and butter producers are increasing production to meet the demand. This results from a shortage of cow milk and a growing perception of the saturated fats in dairy products. In addition, butter prices are also rising because the demand for organic products has increased.
According to CoBank, butter prices are likely to remain high through 2022. While this is good for producers, it may reduce demand as consumers switch to store brands or butter alternatives. The high price of dairy products could also reduce the purchasing power of consumers. This could lead to a shortage of butter during the holiday season.
Strong demand for dairy products in the food service sector has contributed to the steady price of cheese in the West and abroad. As a result, butter and cheese prices on the CME have been rising, but they remain competitive with prices on international markets. However, many cheese producers are still experiencing labor shortages and port congestion.
Cheese and butter prices in Turkey increased 40-54 percent from the previous year. Cyprus was the largest cheese supplier in Turkey, accounting for X% of total imports. Ireland contributed X% of Turkey’s total cheese market in 2021. The increase in cheese and butter prices is more than twice the TURKSTAT average.
Increase in ham prices
The price of ham has been rising in recent years. Rising tariffs and African swine fever have both hurt ham prices. However, the U.S. is still a major pork producer, and exports to China are expected to rise this year and next year. If the Chinese government lifts retaliatory tariffs against American pork, the growth in meat exports could be further accelerated. In addition, Chinese consumers are increasingly becoming interested in buying U.S. meats, including ham.
The price of boneless ham has been rising for the past three months. Prices of boneless hams were up 23.1% or $1.35 per pound in February, and bone-in hams were up by nearly a dollar. Despite the increase in ham prices, several stores continue to offer affordable boneless ham. For example, Seaway Food Town in Maumee, Ohio, runs a promotion selling boneless ham for $1.18. Meanwhile, Riesbeck in Wheeling, W.V., sells bone-in hams for 89 cents to $1.17.
The recent increases in meat prices have led to cuts in spending on staples like beef and chicken. A recent Bureau of Labor Statistics survey revealed that 72% of grocery shoppers had slashed their meat spending after the hikes. According to the Bureau of Labor Statistics, meat prices are expected to rise 14.8% by the end of 2020.
While pork is cheaper than beef, its production costs are still increasing, which could result in higher prices for ham. This could also be a factor, as ham requires skilled knife workers to slice it from the bone. As a result, these workers are being redeployed to other parts of the meat plant.