Most US consumers are more than ever looking forward to celebrating Thanksgiving on 26th November. However, Mintec’s Thanksgiving Dinner Index indicates that while consumers are planning their Thanksgiving meals, they will have to pay more for it.
The Index shows that the prices of some of their favorite festive foods are currently 9.2% more expensive than at this time last year, mainly driven by the main meal index which has increased by 10.9% year-on-year (y-o-y). In the main meal, commodities such as pork, turkey and potatoes have exhibited significant price increases.
Mintec’s 2020 Thanksgiving Dinner Index comprises of the main meal (meat, vegetables, bread, nuts) and the traditional pecan pie for dessert.
Mintec’s US potato price rose by 19% y-o-y to USD 335/MT, in October 2020, in line with robust retail demand. Record potato sales in the US retail market have contributed to the bullish impetus, evident in the US potato market since the end of June when prices reached yearly lows of USD 269/MT. Q3 2020 retail sales of potatoes increased by 13.6% in value, and 10.6% in volume, compared to the same period in the previous year.
In May and June 2020, the price of US potatoes bottomed out, with COVID-19 related lockdown restrictions, negatively impacting demand from the foodservice sector. The easing of lockdown restrictions in the second half of 2020, led to a rebound in potato demand from restaurants and schools, aiding a price recovery. Tighter supply further supported prices in Q3 2020, with the North America Potato Market News (NAPMN) projecting US 2020 production at 400.3 million cwt (Hundred Weight), 5.4% lower y-o-y.