Photo: Sylvia (flickr)
Peanut Prices Soar
That is bad news for fans of the PB & J. Peanut butter prices are expected to soar, up to 70 percent more than current prices. Major suppliers like Jif are expecting a 30 percent increase, while Trader Joe’s organic peanut butter has been discontinued entirely. A spokesperson said when it did return, it would cost about 70 percent more.
The USDA released figures stating that the cost of raw peanuts will over double — from $450 a ton to $1150 a ton.
Weather Not The Only Issue
Aside from drought, some peanut farmers traded their crops for cotton.
“Probably the first thing that happened was cotton prices were very high, which was very attractive to the farmers. So our first problem was [that] we didn’t plant enough peanuts,” peanut broker Richard Barnhill says.
Had enough bad news? Peanut butter’s popularity has risen 10 percent in three years, thanks in part to the recession, says the USDA.