Peanut butter prices skyrocketing

ChitownFoodie

FYI

http://www.chicagotribune.com/business/breaking/chi-peanut-butter-prices-skyrocketing-20111101,0,1645306.story

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 percent starting Monday, while ConAgra has instituted increases of more than 20 percent for its Peter Pan brand that went into effect this month.

J.M. Smucker, which makes Jif, will introduce price hikes of around 30 percent 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 to rise“.

**** 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 percent from last year.

Analysts attribute this drop to the intense heat and drought that hit the southern U.S. this year, as well as to high prices for other crops that led farmers to focus their efforts elsewhere.

Americans spend almost $800 million on peanut butter and consume an average of more than six pounds of peanut products each year, according to The National Peanut Board, a farmer-funded research group.

Qarol

First coffee, now peanut butter...

:sad:

RNMDFF

well of course they are. too bad I will still buy it (peanut butter addict right here)

amberwebb79

My wonderful husband read something about it last week, and came home with two big jars. He knows me well. LOL.

ChitownFoodie

I practically live off of peanut butter....LOL! I know its not going to stop me (or most people) from buying, but I thought I should share.

RachelT14

I something about that the other day and was lucky to find that my local store was selling the organic pb at a very reduced price as it isnt a brand that sells well ...i bought 5 jars for my store cupboard because of the prices going up. I think quite a few other things are supposed to be goign up because of poor crops

warmachinejt

hhhhhmm i haven't been grocery shopping lately but I don't think it is more expensive in NJ yet

mandasimba

I was prepared and have 6 jars in my cupboard

I would have had more, but every time I went to TJs in the last couple weeks, they were sold out! I guess lots of other people had the same idea.

cmasonrock

Gonna need to switch to the No Name grainy PB now until next year

What I'm wondering is this. Once next year rolls around and people are used to the new Cost of Peanut butter, will they lower it back down because the harvest returns to normal? That will be interesting to see.

ChitownFoodie

Gonna need to switch to the No Name grainy PB now until next year

What I'm wondering is this. Once next year rolls around and people are used to the new Cost of Peanut butter, will they lower it back down because the harvest returns to normal? That will be interesting to see.

I doubt it...it'll probably continue to be ridiculously high.

Silverkittycat

I can't even find my usual brand because these articles are everywhere. :frown:

allie864

It sucks but I'll still be buying it. My husband & I looooove PB way too much.

flasportsfan

I had a raincheck at Harris Teeter for 20 jars of Skippy Natural. I went to get it and bought 20 more last week. No worries. They won't go bad. True addict and my kids are too.

Qarol

Now...let's all go out and get the huge all natural nut butter

With a name like Smuckers.......

jend114

Crazy!

iAMaPhoenix

I got my stash and will defend it to the death.

glockster972

Next you'll be telling me gas prices are rising.

VeganGal84

NOOOOOOOO!!!!

Peanut butter was already one of the most expensive things that I bought. :sad:

mandimoore617

This SUCKS, but I know I'll still faithfully buy it every week or two... large jars of crunchy peanut butter.

Shanna_Inc86

I've been noticiing this for a while now and shortages

Punkedpoetess

Not good news, I love natural peanut butter. I might need to stock up. :sad:

risefromruin

Nooooo! And chocolate too What is the world coming to...

shovav91

I might cry...
I go through so many jars! Looks like I'm going to have to get a second job to finance my peanut butter habit...

ShapeUpSidney

What frustrates me is that the prices never go back down, despite better harvests, stabilizing gas prices, whatever. It takes some external event to test the elasticity of demand, then BOOM they figure out they can gouge you for peanut butter forever.