Retail Turkey Prices Don’t Reflect Wholesale Price Changes

KANSAS CITY, MO – While wholesale turkey prices are lower this year, the savings aren’t necessarily being seen at the retail level. According to the Economic Research Service (ERS), between 2014 and 2016 the November markup from wholesale to retail prices for turkey averaged 18 percent, compared with a five-year average of 40 percent. Beginning in 2017, however, wholesale prices began a sustained decline that was not reflected in retail price movements. The retail markup in November 2017 reached 75 percent and remained at 70 percent one year later. The markup is expected to remain high but should contract slightly due to rising wholesale prices this season. The data suggest that the past relationship between wholesale and retail Thanksgiving turkey prices may be fading, as retail prices have become less responsive to downward movements in wholesale prices.