Wednesday, November 23, 2011

Economic News Surrounding Turkey Day. Plus, Bonus Graphic Showing Which States Produce the Most Turkey

source: usda

Turkey producers are struggling, even going out of business due to current high feed prices. See Bloomberg's Turkey Farmers Lose Out on Thanksgiving Rally as Corn Costs Rise. (70% of the cost of turkey is grain.) And see my blog post from two months ago: In My Backyard: Longmont, Colorado Turkey Processing Plant is Closing Citing Ethanol Subsidies and High Fuel Costs.

Grocers are in the midst of turkey price wars so as to entice shoppers into the store. See FT's ‘Turkey war’ engages US grocers.

The U.S. shopper is reducing spending on food this holiday. See USA Today's Tough economy means another scaled-back Thanksgiving.

The U.S. food banks are really struggling this holiday season. Donations are down and needs are higher. One Chicago Food Bank has stopped offering turkeys this season so that the savings can provide for needs down the road. See the Chicago Tribune's Overburdened food pantry drops Thanksgiving turkey dinners - Cutting holiday dishes will save $20,000 charity can use the rest of the year.

  • The U.S. turkey industry produces over one-quarter of a billion birds annually, with the live weight of each bird averaging over 25 pounds.
  • Production of turkeys is somewhat more scattered geographically than broiler production.
  • In terms of cash receipts, the top five turkey-producing States in 2010 were Minnesota, North Carolina, Missouri, Indiana, and Arkansas.
  • The United States is by far the world's largest turkey producer, followed by the European Union. Even though exports are a major component of U.S. turkey use, the United States consumes more turkey per capita than any other country.
source: usda