Wednesday, November 26, 2008

A squeeze on Thanksgiving dinner

NEW YORK (CNNMoney.com) -- Ever since losing her executive secretary job last year, Carrie Seal-Stahl of Flat Rock, Mich. has grown produce on a suburban lot to supplement her family's food budget.

That's how she plans to help her mother prepare a Thanksgiving feast for 10 people, including her husband and 10-year-old daughter: with home-grown food.

"I still have some of my produce in the freezer," said Seal-Stahl. "It's a lot less effort to grow your own food than people think it is. I would encourage people to do that, if they are concerned about food prices."

Americans like Seal-Stahl are looking at a lean Thanksgiving this year, as rising food prices and higher unemployment are putting more pressure on shrinking budgets.

Food inflation

The average price of groceries has climbed 7.5% from the beginning of 2008, which is nearly double the general rate of inflation, according to the U.S. government's tally on consumer prices. During the same period, the economy shed about 1.2 million jobs.

The price of turkey and other non-chicken poultry has risen almost 4% since the beginning of this year, while the price of side-dish staples has soared: Potatoes are up 31%, flour and prepared flour mixes are up 20%, and canned fruits and vegetables are up 17%.

Jana Nordstrand, a cookbook publicist from Hoboken, N.J., said that she and her boyfriend prepare an annual feast for eight or nine friends. But this year, she can't be quite as generous as she would like.

"Last year, we cooked most of the food ourselves," said Nordstrand, who is planning to herb-roast an 18-pound turkey with apple-and-sausage stuffing and shiitake mushroom gravy. "This year, we're having more people bring food to cut down costs."

Nordstrand said she expects to spend about $200 on the meal this year, compared with $150 in 2007. "We've literally been budgeting for Thanksgiving, knowing that it's going to cost more," she said.

The end of extra

As Americans spend more on food and other necessities, they have less money to donate to organizations that feed the less fortunate - like D.C. Central Kitchen, a non-profit group that prepares and donates meals to hungry people in the nation's capitol.

"What we're seeing is the end of 'extra,'" said Robert Egger, founder of the D.C. Central Kitchen, which is experiencing a decrease in donations and an increased need from hungry people. "I'm not just talking about extra food. We're also seeing the end of extra money."

Egger said the decline of the restaurant industry has been particularly painful to his organization, because restaurants have traditionally served as its most generous food donors. D.C. Central Kitchen has been purchasing more of its food to prepare the meals, even as prices have increased, he said.

For this Thanksgiving, Egger expects his organization's cost-per-meal to surge to $1.03, up from 65 cents last year. The ingredients and serving-sizes remain the same, he said.

Carrie Seal-Stahl said that unemployment is "kind of a downer," but she still feels grateful. "Compared to some of the things going on in Darfur and Iraq and other places, we really should be thankful for some of the things we do have," she said. 


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