Thanksgiving dinner will cost American families a bit more this year, but many of the 46 million turkeys being purchased, cooked and consumed for the holiday also will cost grocers money.

Sherrie Rosenblatt, spokeswoman for the National Turkey Federation, said the wholesale price of the Thanksgiving bird has little to do with the retail price.

"Retailers use turkey as their advertised special to get consumers in and spending on everything else for their holiday dinner," said Rosenblatt, who estimates that 88 percent to 98 percent of American's will have turkey on the holiday.

Joe Kolavo, vice president of perishable operations for the Highland-based Strack & Van Til chain, said at Thanksgiving prices, most retailers lose $7 to $9 on each turkey they sell, depending on size and brand. Because of the losses they take on turkeys, it's impossible for retailers "to allow people to come in and buy as many as they want," he added

"Everyone includes turkeys in their ad, so it's just a matter of how low a retailer is willing to go," Kolavo said. "Before they shop, most consumers look at the cost of other key items: soda, sweet potatoes, white potatoes ... and overall shopping experience, then they'll make their determination."

Dave Harvey, U.S. Department of Agriculture economist for the poultry industry, agrees there's a large disconnection between the average per-pound wholesale price and retail price of the Thanksgiving turkey.

"There's a lot of discounting on whole-bird prices for Thanksgiving," he said. "Retailers lose money on them. But almost all the discounting is on whole frozen birds."

Don Weiss, president of Merrillville-based WiseWay Supercenters and PayLow Foods, its discount division, said it's not uncommon for grocers to lose 30 cents a pound on turkeys sold for the Thanksgiving holiday. But much of that loss can be recouped, he said.

"It happens once a year," Weiss said. "It's very busy time. People are typically buying the majority of their food and don't have time to go from store to store. It can be our best week of the year. Our turkey prices are part of the business. They increase and engender loyalty throughout the year."

PayLow stores are selling frozen tom turkeys for 58 cents per pound, while WiseWay's prices are 10 cents a pound higher, which is the same price at Strack & Van Til's; and 9 cents higher than Ultra's 68 cents-a-pound price.

"We think where people choose to shop for the holiday is very important," Weiss said. "When they choose you, it means they think a lot of you."

Fresh, organic and heritage birds are selling much closer to retailer's cost, which includes wholesale price, plus the retailers' mark-up for transportation, storage and other costs, Harvey said. At the wholesale level, the specialty birds are more expensive than frozen birds, because there is less demand and smaller supply for them, he said.

Although the season's turkey supply has climbed about 3.5 percent above 2006 levels, the average wholesale per-pound cost for a frozen turkey through October was 95 cents, Harvey said. Thus, despite retailers' discounts, turkey prices are higher than in 2006, and will continue to climb.

In October 2004, the average per-pound-producer price was 48.1. In 2005, the average October producer price climbed to 52.9 cents. In 2006, the average U.S. wholesale price climbed to 82 cents.

"Now's the time to stock up in your freezer, if you have room," Rosenblatt said. "Turkey prices will continue to be high."

A large increase in corn and soybean prices, plus higher energy prices, mean higher production, transportation and storage costs, adding up to a hike in turkey prices, she said.

"Input prices -- corn and soybeans -- are one-third of the cost of turkey production," Rosenblatt said. "The cost of feed is major concern for the industry. Corn was $2 a bushel in March 2006. It's close to $3-plus right now. That's a big increase."

Whether it's chicken, turkey, beef or pork, meat prices have increased because of rising feed prices, Strack's Kolavo said.

"Plus, fuel and freight costs are up and that's also reflected in the price increase," he said.