Lydia Hu reports from Hamilton, New Jersey, how turkey farmers like Artie DiPaola are raising prices during the holiday season due to rising production costs.
Families preparing for Thanksgiving may have to pay more for their holiday turkeys as rising production costs weigh on turkey farms ahead of one of their busiest times of the year.
FOX Business’ Lydia Hu joined DiPaola Turkey Farms’ “Big Money in the Morning” in Hamilton, New Jersey, to examine how higher costs are affecting farmers and buyers as Thanksgiving approaches.
Wholesale turkey prices nationwide are up 12% this year. (iStock/iStock)
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Wholesale turkey prices nationwide have increased 12 percent this year, Hu reported. At DiPaola Turkey Farms, the cost of feed and other necessities 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 producers face.
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“The price of fuel – in this case, what these turkeys are eating is corn and soybeans. That’s a 10 to 12 percent increase,” DiPaola said.
Those higher expenses led to a 30-cent-per-pound increase, a decision that DiPaola said was particularly difficult given the farm’s long-standing relationships with its customers.
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“Production costs are increasing everywhere we look. Costs are increasing and having to increase the price by 30 cents for these loyal customers is very emotional,” he said.
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For small producers like this 78-year-old farm, customer loyalty can help cushion the impact of rising operating costs, even when prices rise.
“Fortunately, the increase in sales helps offset some of the rising costs we experience on a daily basis,” DiPaola said.
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