Prices for shelled peanuts are twice what they were one year ago. As peanut prices rise, peanut butter prices are also skyrocketing.
Farmers planted less peanut crops this year, the planting season
was delayed due to drought, and the excess heat hurt the crops.
Texas was especially hard hit: it suffered its hottest summer
on record this year which really hurt the peanut crops. Wholesale
prices of peanuts are expected to rise by around 35% or more, which is
going to make the cost of peanut butter skyrocket.
Planters will increase their prices
40%. Consumers will see an increase
of around $1 a jar. Lower income
consumers will be especially hard hit
by the increase: peanut butter is a
great source of inexpensive protein. Vegetarians also rely on peanut butter as a staple. The problem is so bad that Smuckers -- the largest buyer of peanuts in the world -- is discontinuing the really large size jars of Jif because it can't guarantee adequate supply.
The WSJ's Paul Ziobro explains the situation:
