Peanut Butter Prices to Increase
Increases in peanut butter have begun to hit the grocery shelves. These price increases are due to a very poor peanut harvest, the worst in decades.
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 (USDA). That’s up from just $450 per ton a year ago. The USDA projects that American peanut production will hit 3.6 billion pounds this year, down 13 percent from last year.
The outlook for peanut butter prices on the long-term does not look good until next year’s crop is harvested and processed. Peanuts are harvested in September and October.
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.