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Turkey Tax
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Originally Posted On: https://www.empower.com/the-currency/life/turkey-tax
No more turkey tax: Prices fall for this year’s holiday season
Here’s one thing to be thankful for this holiday season: The cost of turkey has dropped for the second year running. Whether you’re hosting a full feast or a smaller gathering, the “turkey tax” that once burdened holiday budgets is easing, making it more affordable to host a festive meal.
A decade of turkey prices
Analysis of the Producer Price Index (PPI) — a measure of inflation — reveals the cost to produce turkeys increased 21% between 2014 and 2023.1 This year, the annual average of preliminary monthly data shows turkey production prices have decreased 19% year-over-year.
Average annual price of frozen turkeys
While the PPI is not a measure of consumer spending, producers can pass added expenses or savings onto buyers* in the form of higher or lower prices.
Prices peaked in 2022 when turkey production fell 6% to 5.222 billion pounds, down from about 5.558 billion in 2021. Now, the “turkey tax” is no more — consumers can expect to pay between $1.04 and $1.98 a pound for their bird of choice this Thanksgiving.2
Read more: Will Thanksgiving be more expensive this year?
States producing the most birds
The USDA projected that the U.S. will produce 5,110 million pounds of turkey in 2024, a decrease of 6.4% from 2023.3 Where are the birds coming from?
Per the most recent data from 2022, the states producing the most turkeys are:4
- Minnesota – 37.0 million birds
- North Carolina – 28.0 million birds
- Arkansas – 26.0 million birds
- Indiana – 20.0 million birds
- Missouri – 17.0 million birds
- Virginia – 15.3 million birds
- Iowa – 11.7 million birds
- Pennsylvania – 7.7 million birds
U.S. total turkey production: 210.0 million birds
Savings are flying in
With supply stabilized, consumers may be able to find lower prices in stores, offering a break from the higher prices of 2022 and 2023. According to the Consumer Price Index, the cost of turkey (and some other uncooked poultry) is down 2.24% versus last year.5 Ham, potatoes, rolls, and ready-made-pies have also decreased in price. As you prepare to indulge, rest assured that for this year’s feast, the only thing on the chopping block is the bird – not your budget.
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