Families preparing for Thanksgiving may have to pay more for their holiday turkeys as rising production costs squeeze turkey farms ahead of one of their busiest times of the year.
FOX Business’ Lydia Hu joined “Big Money in the Morning” from DiPaola Turkey Farms in Hamilton, New Jersey, to examine how higher costs are affecting farmers and shoppers as Thanksgiving approaches.
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Wholesale turkey prices nationwide have risen 12% this year, Hu reported. At DiPaola Turkey Farms, the cost of feed and other necessities has forced the family business to make a difficult choice.
Farm owner Artie DiPaola said the ingredients used to feed the birds have become more expensive, adding to the cost pressures facing producers.
“The price of fuel — in this case, what these turkeys eat is corn and soybean. That’s up 10 to 12 percent,” DiPaola said.
Those higher expenses have led to a 30-cent increase per pound, a decision DiPaola said was especially difficult given the farm’s longstanding relationships with its customers.
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“The production costs are all up wherever we look. The cost is rising and having to raise the price 30 cents to these loyal customers is very emotional,” he said.
For smaller producers like the 78-year-old farm, customer loyalty can help cushion the impact of rising operating costs, even when prices increase.
“Fortunately, the increased sales help offset some of the rising costs that we’re experiencing daily,” DiPaola said.
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