Why Are Turkey Prices So High Right Now?

Elevated turkey prices reflect a complex interplay of economic forces. Understanding these elements can clarify why this household staple has recently climbed.

Supply Chain Disruptions

Disease outbreaks within turkey flocks have significantly reduced supply. Highly Pathogenic Avian Influenza (HPAI) has affected millions of turkeys since 2022, impacting approximately 14.2 million and contributing to a forecast 6.3% decrease in U.S. turkey production in 2024 compared to 2023. Such outbreaks necessitate culling entire flocks, leading to substantial reductions in availability. Farms often require months for decontamination and to rebuild flocks, creating lasting supply constraints.

Labor shortages across the agricultural sector also contribute to supply chain bottlenecks. Worker shortages from farms to processing plants and transportation impede efficient product movement. These constraints slow processing speeds and limit turkey volume, leading to higher consumer prices.

Transportation costs further add to the final price. Rising fuel prices increase operational expenses for trucking and logistics companies moving turkeys from farms to retailers. These increased freight costs are often passed down, contributing to a higher overall cost for consumers.

Elevated Production Costs

Feed costs represent a substantial portion of expenses in raising turkeys. Composed primarily of corn and soybeans, feed can account for over two-thirds of poultry production costs. While forecasts suggest declining feed prices in 2025, current levels remain a financial burden for farmers. Any increase in commodity prices for these inputs translates to higher operational costs.

Energy expenses also contribute to the elevated cost of turkey production. Poultry farming operations, including heating for barns, ventilation systems, and processing plant machinery, require substantial electricity and other fuels. Propane costs can be notably higher than electricity expenses for broiler farms. These energy costs are factored into the overall expenses of raising and preparing turkeys.

The cost of packaging materials has also seen increases in recent years. Materials such as plastic, cardboard, and labels, all necessary for packaging turkeys, have experienced price hikes due to rising raw material and energy costs. The global food packaging market is a significant industry, valued at $367.04 billion in 2024, with projections to grow to $450.01 billion by 2029. Additionally, the growing demand for sustainable packaging, while beneficial environmentally, can sometimes lead to higher initial material costs.

Market Forces and Consumer Behavior

Predictable surges in consumer demand, especially around major holidays, influence turkey prices. Significant holidays like Thanksgiving and Christmas traditionally see a substantial increase in turkey consumption. This seasonal demand creates a temporary imbalance between available supply and heightened consumer desire. Producers and retailers can adjust prices upward during these peak periods, recognizing the strong demand for the product.

The broader economic environment of general inflation also plays a role in higher turkey prices. The overall increase in prices across various goods and services affects every stage of the turkey supply chain, from labor wages to operational expenses for businesses. Food prices in the United States were 3.0% higher in June 2025 compared to June 2024, reflecting this ongoing inflationary trend. This pervasive inflationary pressure contributes to the overall rise in the cost of turkeys.

The finite capacity of turkey processing plants can create bottlenecks during periods of high demand. Processing facilities have a limited ability to handle the volume of turkeys, particularly for specific sizes or types, which can restrict the overall supply reaching the market. This limitation can lead to a scarcity of certain turkey products, especially during peak seasons, which further contributes to price increases. When processing capacity cannot keep pace with demand, it directly impacts the availability and cost of turkeys for consumers.