Sharp increases in peanut butter prices have begun going into effect following one of the worst peanut harvests in decades.
Peanut Butter Prices Skyrocketing
Sharp increases in peanut butter prices have begun going into effect following one of the worst peanut harvests in decades.
Kraft will raise prices for its Planters brand peanut butter by 40% starting Monday, while ConAgra has instituted increases of more than 20% for its Peter Pan brand that went into effect this month.
J.M. Smucker, which makes Jif, will introduce price hikes of around 30% starting Tuesday.
Consumers, meanwhile, are already seeing these increases reflected at grocery stores.
Maria Brous, a spokeswoman for the Publix chain, said the store had already made slight increases in retail prices and expects them to go higher “as the cost of goods continue[s] to rise”.
Dick Roberts, a spokesman for Giant Eagle grocery stores, said that “like all retailers,” the store is “being affected by industry factors on peanut butter pricing”. Chris Brand, a spokesman for Giant food stores, said the “outlook does not look good until next year’s crop is harvested and produced”.
Peanuts usually get harvested in the fall, around September and October.
While spokespeople for several grocery chains declined to provide specific pricing figures, the peanut industry is clearly under pressure this year after one of the worst harvests in recent memory.
Prices for a ton of runner peanuts, commonly used to make peanut butter, hit nearly $1,200 this month, according to the U.S. Department of Agriculture. That’s up from just $450 per ton a year ago. Overall, the USDA projects that American peanut production will hit 3.6 billion pounds this year, down 13% from last year.
shlomo
it OK . it America G-d bless ! simple buy some else product!
RS
someone raised a good point that now is the time to remember, or learn, that alot of the peanut butters have hydrogenated oils in them, and they are terrible for health. The ones with no hydrogenated oils, salts and sugars, are much better
Milhouse
#2, really? And how do you know this?
this is just nuts!
waaaaaait a minute…what’s with the math? the production is down 13% from last year, BUT the price for ‘runner peanuts’ is up by over 250%? smells like speculators. the next great bubble! runner peanuts! get in while you can!
Roddy Munoz, MBA
B“H
Yiddem,
Remember chas V’Shalom this is an consequense of supply and demand. CNBC and Bloomberg has been covering this topic extensivily. No one is trying to ”cheat” anyone.There simply were not enough peanuts harvested for those who use peanuts to produce many everyday products we use on a daily basis. Due to this scarcity the prices for these products will go up. For example Organic Peanut production was so bad that organic peasnut butter is not being produced. IY Hashem next year’s harvest has hatzlochoh.
Roddy Munoz, MBA