Kansas City, Missouri – For many of us, Thanksgiving and Christmas dinner could cost a pretty penny more this year than it did last year. That's because 2 years ago farmers were not enjoying the prosperity they are today.
Your turkey or chicken, roast beef or ham, cost you 6 to 8 cents more on the dollar this year than it would have last year, says the Federal Reserve Bank of Kansas City. Dairy products were significantly higher as well.
The Fed's Jason Henderson says in 2008, feed grain prices soared, and gas prices were over 4 dollars a gallon. Farmers cut back on their herds.
"With higher input price from feed and fuel, livestock went through a contraction in '09. We saw lower herd sizes, and that means lower supplies in 2010."
It's supply and demand, Henderson says. He says look for higher prices in our processed foods next year. That's because labor is the largest part in the cost of processed food, and as the economy recovers, labor becomes more expensive.