Cost of Peanut Butter Set to Rocket
According to a report in today's Wall Street Journal, the wholesale cost of peanut butter will rise anywhere from 24%-40% next month. Since last year, the Journal says, quoting USDA figures, the cost of a ton of the unprocessed peanuts used in most peanut butters has risen from $450 to $1,150.
A hot, dry summer is the main factor in the peanut shortage and subsequent price hike.
Compounding the problems was that some farmers devoted more of their fields to crops like cotton, which was fetching a high price. The United States Department of Agriculture estimates a 17 percent drop in the peanut crop this year, to 3.46 billion pounds.How much of the cost will be passed on to the consumer of this staple? Gut Check plans to keep a close eye on the price tag at local grocery stores. And be sure to let us know if you notice the price going up.
Of added concern is the quality of the crop. Scorching heat, especially in Texas, singed many peanut plants as they developed....